Milk cooperative major Milma decided to increase the price of milk by Rs 4 per litre in Kerala with effect from June 1, citing a steep rise in production and distribution costs and the need to protect dairy farmers from mounting losses.
The decision was taken at a meeting of the Board of Directors of the Kerala Cooperative Milk Marketing Federation (KCMMF), popularly known as Milma, here, officials said.
Milma Chairman K S Mani told reporters after the meeting that the major share of the price hike would be passed on to dairy farmers.
Milma Chairman K S Mani said most of the additional amount generated through the price revision 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.
Of the Rs 4 increase, dairy farmers will receive Rs 3.35 per litre, while dairy cooperative societies will get 25 paise. According to Milma, more than 83 per cent of the additional revenue generated through the hike will go to milk producers.
Following the revision, the procurement price paid to farmers will increase from Rs 40.04 to Rs 43.39 per litre.
With the revised prices coming into effect next month, a 500 ml packet of homogenised toned milk, currently priced at Rs 26, will cost Rs 28.
Milma said the increase was unavoidable as dairy farmers have been facing a sharp rise in input costs and declining returns in recent months.
The cooperative cited several factors behind the decision, including drought-like conditions in parts of Kerala after an intense summer, rising fuel prices and increasing transportation expenses.
Milma also pointed to higher costs of packaging materials such as plastic bottles and cups, along with rising procurement expenses for milk sourced from neighbouring states to meet local demand.
It added that global fuel price fluctuations and supply-chain disruptions have further increased operational expenses across the dairy sector.
