Dairy farmers in Kerala are not receiving income in proportion to production costs, prompting many small and marginal dairies to exit the sector, claims chairman.
ERCMPU to seek milk price hike amid rising production costs

Dairy farmers in Kerala are not receiving income in proportion to production costs, prompting many small and marginal dairies to exit the sector, claims chairman.

The Ernakulam Regional Cooperative Milk Producers’ Union (ERCMPU) is planning to request the Kerala Cooperative Milk Marketing Federation (KCMMF), popularly known as Milma, to increase the price of milk “in tune with the times amid a steady rise in production costs and labour wages.” The ERCMPU represents the districts of Ernakulam, Kottayam, Idukki, and Thrissur.

The meeting of the ERCMPU’s administrative committee held in Ernakulam decided to make the request to Milma, said chairman Valsalan Pillai on Sunday (April 6, 2025).
“It is up to the federation to decide on a price hike. But we will continue to press the apex body to take action on this,” he added.
Mr. Pillai said dairy farmers in Kerala were not receiving income in proportion to production costs, prompting many small and marginal dairies to exit the sector. He claimed the State’s milk production was declining, forcing Kerala to rely heavily on neighbouring States for supply.
He also highlighted issues such as climate change and the rising incidence of diseases among cattle. “We urgently need governmental intervention to avert an imminent crisis,” he added.
Mr. Pillai said that Milma should raise the price of milk packets “by at least ₹10” to retain farmers in the sector. The government should also work on schemes and projects that give prominence to dairy farmers, he added.

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