The Kerala government has given an in-principle nod to a milk price hike following the upcoming local‐body elections. MILMA (Kerala Co-operative Milk Marketing Federation) had originally recommended a Rs 3–4 per litre increase, driven by rising input costs for dairy farmers. Currently, MILMA sells toned milk at ₹ 52 per litre, with a 2020 cost-of-production estimate of ₹ 49 per litre, while farmers are reportedly earning only ₹ 44 per litre even as feed costs climb.
The decision reflects mounting pressure from dairy producers within the state, who face rising cattle-feed costs and squeezed margins. The timing of the hike — after local body polls — suggests the government wants to balance farmer welfare with election sensitivity.
Industry Insight:
This development signals that dairy pricing in states is increasingly linked to input-cost cycles (feed, labour, utilities) and political timing (elections). For processors, co-ops and feed suppliers, it’s a reminder that regional milk price moves — even modest ones — can ripple through collection margins, farm incomes and supply availability.
Source : DAirynews7x7 Nov 5th 2025 TOI