The Kerala State Electricity Board (KSEB) has decided to reclassify dairy farms under the ‘agricultural’ consumer category for electricity, significantly lowering power tariffs for these units. Milma (Kerala Co-operative Milk Marketing Federation) has hailed the decision as a long-overdue relief for the state’s struggling dairy farmers, who had been demanding the reclassification to reduce escalating production costs. The move is expected to offer direct economic benefit to thousands of small and medium-scale dairy operators across Kerala, many of whom rely heavily on electricity for milking machines, cold storage, lighting, and water systems.
This policy shift is part of broader efforts to align energy pricing with the essential nature of dairy farming in rural livelihoods and nutrition security. Milma officials emphasized that this step would not only reduce the cost burden on farmers but also boost milk production and retention in the cooperative system. Kerala’s dairy industry, which has been facing stiff input cost inflation and fluctuating milk procurement prices, will likely see improved viability due to this intervention. It also aligns with Milma’s push to make the sector more sustainable and competitive, especially in light of pan-India concerns over rural distress and farmer profitability.
Industry Insight:
This landmark decision in Kerala could serve as a blueprint for other states to rationalize power tariffs for dairy operations—vital for long-term sector resilience.
Source : Dairynews7x7 July 18th 2025