Kerala’s Milma Charts Bold Plan to Boost Milk Production Amid Sector Challenges


Thiruvananthapuram, Sep 17 (UNI): The Kerala Co-operative Milk Marketing Federation (KCMMF), popularly known by its brand Milma, has announced a comprehensive set of measures to increase milk production in Kerala, empower dairy farmers, and strengthen the competitive edge of its dairy products in the market.

The initiatives were unveiled at the 52nd Annual General Body Meeting (AGM) of KCMMF, where leaders reaffirmed the federation’s dual focus on farmer welfare and consumer affordability.


📈 Milk Procurement Rising Despite Decline in Cattle Numbers

One of the biggest revelations at the AGM was that milk procurement by Milma’s three regional unions rose by 13.91% between April and August 2025, even as the state witnessed a 35% drop in cattle population.

  • TRCMPU: +12.9%
  • ERCMPU: +18.5%
  • MRCMPU: +12.43%

Milma leaders credited subsidies, incentives, and welfare measures for farmers with reducing input costs and helping sustain milk supplies despite herd shortages.


💰 Farmer Support and Subsidies Extended

To secure the sector’s foundation, Milma confirmed that several supportive schemes will continue:

  • ₹100 subsidy per sack of cattle feed (extended until October 2025)
  • Preferential hiring for dependents of dairy farmers in regional unions
  • Incentives and subsidies at cooperative society level to offset rising input costs

Milma’s tie-up with Kerala Bank has also simplified access to credit, offering farmers easier financing and encouraging youth participation in dairy farming.


📊 Budget for Growth

The AGM approved:

  • Revenue Budget: ₹597.97 crore
  • Capital Budget: ₹67.33 crore for FY 2025-26

The budget underscores investments in both milk procurement capacity and infrastructure for value-added dairy products, positioning Milma to compete with private players and national brands.


Policy Support for Cooperatives

The meeting welcomed the Kerala State Electricity Board (KSEB) tariff revision made earlier this year, which shifted cooperative dairies into the agriculture tariff slab. This has reduced power costs for procurement centres, chilling units, and cold chain facilities — critical infrastructure for scaling milk production.


🗣️ Voices from Leadership

Milma Chairperson KS Mani reiterated the federation’s core priorities:

On milk pricing, Mani clarified that no immediate hike is planned, given the GST relief on dairy products. However, a five-member committee will reassess the situation in January–February 2026, depending on market trends.


🌱 Balancing Growth and Sustainability

While Milma’s proactive measures signal a strong intent to expand milk production, challenges remain:

  • Shrinking cattle population threatens long-term supply stability
  • Rising feed and labour costs continue to pressure farmer incomes
  • Climate variability in Kerala impacts fodder availability

Milma’s approach — blending subsidies, credit access, tariff relief, and cooperative empowerment — aims to safeguard the sustainability of dairy farming in Kerala while meeting the growing consumer demand for milk and value-added products.


Key Takeaways

  • Milk procurement in Kerala rose 13.91% (Apr–Aug 2025) despite a fall in cattle population
  • KCMMF approved ₹597.97 crore revenue budget and ₹67.33 crore capital budget
  • Subsidies on cattle feed and easier credit access continue
  • No immediate milk price hike; review due early 2026
  • Focus on farmer welfare, consumer affordability, and cooperative competitiveness



Source link