Milma has announced a ₹4 per litre increase in milk prices across Kerala, with the revised rates set to come into effect from June 1.
The decision was finalised during a board meeting of the state-run dairy cooperative on May 20 after receiving approval from the state government.
Under the revised pricing structure, consumers will now pay ₹28 for a 500 ml packet of homogenised toned milk, compared to the current price of ₹26. Prices of other packaged liquid milk variants and milk products sold by Milma are also expected to increase correspondingly.
Majority of Hike to Benefit Dairy Farmers
Milma officials stated that out of the ₹4 per litre increase, approximately ₹3.35 per litre would directly benefit dairy farmers.
The cooperative said the revision was necessary to support milk producers struggling with:
- rising cattle feed costs,
- drought-related challenges,
- increasing transportation expenses,
- and higher milk procurement costs from neighbouring states.
Officials noted that regional milk unions were also facing losses in milk sales due to rising operational expenditure.
Milma Says Price Revision Essential for Farmer Survival
In an official statement, Milma said the increase was critical to retain dairy farmers in the sector and sustain milk production within the state.
“The increase in milk price is absolutely necessary to retain dairy farmers in this sector and address the significant rise in production costs,” the cooperative said.
Industry observers say dairy farming in Kerala has been under mounting pressure because of:
- high feed prices,
- shrinking farm profitability,
- labour shortages,
- and climate-related stress conditions.
Earlier Proposal Sought Higher Increase
Milma had earlier requested a milk price revision of ₹4 to ₹6 per litre, citing severe operational pressure across the dairy value chain.
A three-member expert committee appointed by the cooperative had also reportedly recommended a hike of up to ₹6 per litre after evaluating production economics and farmer distress.
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Although the Milma Board approved the proposal nearly six months ago, government clearance had reportedly been delayed due to the election period.
The final approval came after repeated demands from:
- Milma management,
- regional dairy unions,
- and dairy farmer organisations
seeking urgent financial relief.
Dairy Sector Faces Rising Cost Pressure Nationwide
The Milma price revision comes amid a broader trend of milk price hikes across India’s organised dairy sector.
In recent weeks, major dairy brands including:
- Amul,
- Mother Dairy,
- Parag,
- and Gokul Dairy
have also revised milk prices upward due to increasing: - feed costs,
- packaging expenses,
- transportation charges,
- and farmer procurement prices.
Analysts believe the continued rise in dairy input costs could keep retail milk prices under pressure in the coming months, especially during periods of lower milk production and extreme weather conditions.
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