Dairy farmers in Kerala have formally demanded a revision of the milk procurement price, citing unsustainable production costs and stagnant procurement rates since 2022. The Kerala Cooperative Milk Marketing Federation (Milma) currently pays farmers ₹46.93 per litre for milk, of which ₹42.69 goes directly to producers.
However, with rising costs for cattle feed, veterinary services, fuel, and fodder, farmers argue that the current rate fails to ensure minimum viability. According to the farmers’ unions, input costs have surged by over 25% since the last revision, while the procurement price has remained static for nearly two years.
The farmers are urging the state government and Milma to immediately increase the base procurement rate by ₹5 per litre. They also stressed the need for a transparent and time-bound mechanism to revise procurement prices annually in consultation with stakeholders.
Milma officials acknowledged the issue but indicated that any decision on price revision would depend on the federation’s financial health and prevailing market conditions, including consumer affordability. With neighbouring states offering higher procurement rates, Kerala’s dairy sector faces the risk of losing supply to cross-border traders.
Industry Insight:
The pressure for a procurement price hike reflects rising input costs across India’s dairy landscape. For cooperatives, balancing farmer viability and market competitiveness is now a critical challenge requiring proactive state-level policy interventions.
Source : Dairynews7x7 May 6th 2025 The Hindu Businessline