Rising production costs and farmer protests push Kerala’s dairy unions to propose a significant rate increase.
Kerala’s dairy sector is facing potential price adjustments, as the Thiruvananthapuram regional union of Milma has recommended a ₹10 per litre hike in milk prices. This move stems from rising input costs and growing dissatisfaction among small-scale farmers, who claim the current rates are unsustainable and prompting them to exit milk production altogether.
The Ernakulam regional union has echoed the demand, supporting an upward revision of the current ₹56 per litre for full-fat milk. Meanwhile, the Malabar union is scheduled to meet later this month to formalize its stance on the proposed increase. These unified calls from the unions underline the urgency of addressing pricing to protect producer viability.
Milma’s board of directors, tasked with making the final decision, is expected to deliberate on the unions’ recommendations next week. However, internal sources indicate concern about the feasibility of a ₹10 or higher increase, which would push retail milk prices beyond ₹60 per litre—an amount that could face consumer resistance.
The federation had earlier asked regional unions to assess the situation after numerous complaints from dairy farmers about unfair returns and input cost inflation. Many smallholders are reportedly scaling down or exiting production, raising alarms about the long-term sustainability of the state’s milk supply.
While the proposed hike aims to retain farmers in the supply chain and stabilize milk availability, it also presents challenges in balancing consumer affordability and cooperative sustainability. The board’s upcoming decision could mark a critical inflection point for Kerala’s dairy economics.
Source: Kerala Kaumudi – https://keralakaumudi.com/en/news/news.php?id=1558928&u=
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