Kerala cooperative dairy giant Milma has yet to formally announce its proposed milk price hike even after the withdrawal of the Model Code of Conduct (MCC), creating uncertainty across the Indian dairy industry and intensifying concerns among dairy farmers facing mounting production costs.
Milma’s Board of Directors had earlier approved a Rs 4 per litre increase during its April 29 meeting, aligning with recommendations already cleared by the previous LDF government. However, the implementation was postponed due to election-related restrictions and the prevailing political transition.
Now, despite the MCC no longer being in effect, divisions within the Board are reportedly slowing down the formal rollout of the revised pricing structure.
According to Milma chairman K S Mani, the price revision remains inevitable, with Rs 3.75 out of the proposed Rs 4 increase expected to be directly passed on to dairy farmers. However, the Board is considering holding discussions with the newly formed government and the incoming minister before making the official announcement.
The development is being closely watched within the dairy sector India landscape, particularly at a time when milk procurement prices, dairy inflation India concerns, and production costs continue to impact cooperative milk unions and small-scale producers.
Industry observers note that the delay comes during a challenging period for Kerala milk production, where farmers are already grappling with rising cattle feed prices, labour shortages, and seasonal declines in milk output.
The Ernakulam Regional Co-operative Milk Producers’ Union (ERCMPU) has strongly opposed further postponement of the hike. The union reportedly staged a walkout during the earlier Board meeting, expressing dissatisfaction over what it described as an unjustified delay in supporting dairy farmers.
ERCMPU representatives argue that milk prices have not been revised for more than three years despite significant increases in operational expenses across the dairy production chain.
Farmer groups claim that many producers are operating under severe financial stress due to escalating feed costs and reduced summer milk yields. They believe an immediate price revision is essential to sustain farmer confidence and stabilise local milk procurement networks.
The issue also reflects broader India dairy trends, where cooperative dairy organisations across several states are balancing consumer affordability concerns with the need to ensure sustainable returns for producers.
Analysts suggest that delays in procurement price revisions could impact long-term dairy market growth, particularly in regions dependent on cooperative supply systems.
With dairy cooperative news continuing to dominate discussions in southern India, industry stakeholders now await Milma’s next Board meeting, where a final decision on the implementation timeline is expected to be taken.
