Milk prices in Kerala will increase by Rs 4 per litre starting June 1, following a price revision approved by the dairy cooperative major Milma. The decision, taken at a meeting of the Board of Directors of the Kerala Cooperative Milk Marketing Federation (KCMMF), known as Milma, on Wednesday, cites rising production, procurement, and distribution costs amid mounting pressure on farmers.
Details of the Price Revision
Milma Chairman K S Mani stated that the bulk of the hike would directly benefit dairy farmers. "It has been decided to increase the price by Rs 4 per litre from June 1. As Milma is a collective of farmers, the decision is to pass on its lion's share to them," he said. With the revised rates, a 500 ml packet of homogenised toned milk, currently priced at Rs 26, will cost Rs 28.
Benefit to Farmers
Of the Rs 4 increase per litre, farmers will receive Rs 3.35, while dairy cooperative societies will get 25 paise. According to Milma, more than 83 per cent of the additional revenue generated from the hike will be passed on to milk producers. Following the revision, the procurement price paid to farmers will rise from Rs 40.04 to Rs 43.39 per litre.
Reasons for the Hike
The cooperative stated that the revision was necessary due to a sharp increase in operational costs and declining returns for dairy farmers. Factors cited include drought-like conditions in parts of Kerala after an intense summer, rising fuel prices, higher transportation expenses, and increased costs of packaging materials such as plastic bottles and cups. Milma also pointed to rising procurement costs for milk sourced from neighbouring states to meet local demand, along with supply-chain disruptions and escalating operational expenses linked to global fuel price fluctuations.
Background
PTI sources revealed that the previous Left government had earlier cleared Milma's recommendation for a price hike, but implementation was delayed due to the election model code of conduct.
