Kozhencherry/Pandalam: Even as milk prices rise in Kerala, dairy farmers say the benefit barely reaches them. A recent ₹4 per litre price hike by Kerala Cooperative Milk Marketing Federation has translated into just ₹2 per litre for farmers, leaving them grappling with mounting losses and pushing many to consider exiting the sector.Rising Costs, Shrinking Margins
Farmers report that the actual cost of producing milk far exceeds what they earn. While procurement prices hover around:
- ₹46–47 per litre for farmers
- ₹48–48.5 per litre at the cooperative level
Experts and farmers alike argue that ₹60 per litre is the minimum viable price for profitability.
The biggest concern? Exploding feed costs.
In just one week, cattle feed prices jumped by ₹30. Other inputs have also surged:
- Corn flour
- Wheat bran
- Cottonseed cake
- Fodder and hay
Ground Reality: Loss Per Litre
A typical weekly cost breakdown for maintaining one cow shows the financial stress:
- Fodder (kachhi): ₹250–350
- Compound cattle feed: ₹1,455
- Beer waste: ₹350
- Corn flour & supplements: ₹550
- Total weekly cost: ~₹3,600
With an average yield of 10 litres per day, farmers earn about ₹3,220 per week at current prices—resulting in a loss of roughly ₹380 per cow per week.
Farmers Exit as Crisis Deepens
The situation has led to a quiet but steady exodus from dairy farming:
- Farmers who once managed 30–40 cows are scaling down or quitting
- Smallholders with 1–2 cows are barely sustaining operations
- Many are actively seeking alternative livelihoods
A farmer from Kudasanad noted that continuing dairy farming today is driven more by passion than profit.
Policy Gaps and Unimplemented Recommendations
A government-appointed commission led by Lida Jacob in 2018 had estimated the cost of milk production at ₹47 per litre. Farmers point out that pricing policies have not kept pace with this baseline, let alone rising inflation.
They also highlight the lack of regulation in cattle feed pricing as a major structural issue.
Direct Sales vs Cooperative Model
Interestingly, farmers note that:
- Direct home delivery fetches ₹65–80 per litre
- But logistical challenges force most to rely on cooperative systems like Kerala Cooperative Milk Marketing Federation
This dependency limits their bargaining power and income potential.
Read More: OMFED Raises Milk Procurement Price by ₹1/Litre, Offers Relief to Odisha Dairy Farmers
The Bigger Concern
Kerala’s dairy sector, known for its cooperative strength, now faces a critical challenge:
- Declining farmer participation
- Rising input costs
- Unsustainable pricing models
If the trend continues, experts warn of reduced local milk production and increased dependency on imports from other states.
Bottom Line
A price hike on paper doesn’t always translate to relief on the ground. For Kerala’s dairy farmers, the math is simple—and brutal:
Rising costs + partial price benefit = steady losses.
Unless procurement pricing, feed regulation, and policy support align with real production costs, the sector risks losing the very people who sustain it.
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