Kerala’s leading dairy cooperative, Milma, has formally sought approval from the Kerala Government for a milk price hike of ₹4 per litre, citing persistent cost pressures across the dairy supply chain.
The proposed Milma milk price hike comes at a time when procurement costs, cattle feed prices, fuel expenses, and electricity tariffs have risen sharply, placing sustained financial stress on cooperative dairies in the state.
Rising Input Costs Drive Price Revision
According to cooperative officials, Milma has been absorbing cost escalations for several months to avoid burdening consumers. However, rising fodder prices and higher payments to farmers have narrowed operational margins, making a price revision unavoidable.
Moreover, logistics and chilling costs have increased due to fuel inflation, further affecting the cooperative’s cost structure. Without a calibrated milk price hike, dairy unions risk weakening procurement incentives, which could impact milk availability.
Farmer Income and Cooperative Sustainability
Milma has highlighted that the proposed revision is crucial to ensure stable and remunerative prices for dairy farmers. In Kerala’s cooperative model, procurement prices are directly linked to retail realisations, making periodic revisions necessary for long-term viability.
Industry analysts note that delaying milk price adjustments often results in payment stress or reduced procurement volumes, ultimately harming rural livelihoods. The Milma milk price hike aims to prevent such disruptions while maintaining cooperative stability.
Consumer Impact and Government Decision
The proposal now awaits clearance from the Kerala government, which must weigh consumer affordability against farmer welfare and sector sustainability. Milk remains a politically sensitive commodity, particularly amid broader food inflation concerns.
If approved, the revision would bring Kerala in line with other states where dairy cooperatives have implemented price hikes to counter rising costs.
Sector Outlook
Experts suggest that, alongside price rationalisation, structural interventions such as feed subsidies, productivity enhancement, and energy efficiency will be essential to strengthen cooperative dairies nationwide.
