Kerala’s leading co-op defies cost hikes and population decline, driven by farmer-centric welfare schemes and sustained product quality focus in FY 2025-26.
The Kerala Co-operative Milk Marketing Federation (KCMMF), widely known by the brand Milma, has reported impressively strong growth in the first half of the Fiscal Year 2025-26, signaling robust health in the South Indian dairy sector. This performance is particularly noteworthy as it occurred despite two major economic headwinds: consistently high input costs for farmers and stiff competition from both internal and external market forces. Milma Chairman K. S. Mani attributes this success not to chance, but to the collective strength of Kerala’s dairy farmers and the federation’s comprehensive, inclusive cooperative model.
The cooperative’s operational data underscores this success, showing significant gains across key metrics. From April to September 2025, the average daily milk procurement soared by 13.97 per cent, climbing from 10.66 lakh litres to 12.15 lakh litres compared to the previous year. This substantial growth in raw supply is remarkable given that a recent cattle survey indicated a decline in the state’s overall cattle population. Daily milk sales also saw positive movement, increasing by 2.03 per cent to reach 16.83 lakh litres, demonstrating strong consumer trust.
The three regional unions—Malabar (MRCMPU), Ernakulam (ERCMPU), and Thiruvananthapuram (TRCMPU)—were the engine of this growth. Malabar led the procurement gains with 6.69 lakh litres per day, closely followed by Ernakulam, which recorded the sharpest growth rate at 19.28 per cent. This regional strength was mirrored in the sales figures, with MRCMPU and TRCMPU leading the daily sales volumes. This decentralized performance validates the effectiveness of the support measures implemented at the regional level, ensuring stability across the supply chain.
A critical pillar of Milma’s success lies in its intensive farmer welfare and institutional support measures, which helped producers offset rising production costs. During the six-month period, the regional unions collectively disbursed large sums to farmers: MRCMPU paid out ₹4.00 crore as additional milk price and ₹5.47 crore as cattle subsidy, while ERCMPU and TRCMPU distributed ₹11.23 crore and ₹10.73 crore, respectively, as additional milk price. Furthermore, a continuing subsidy of ₹100 per bag on cattle feed remains in effect through the end of December 2025.
Beyond financial incentives, Milma has invested in dairy infrastructure and herd quality. Welfare initiatives like Ksheera Samaswasam, Ksheera Sadanam, and Ksheera Swanthanam focus on breed improvement and veterinary healthcare. These measures, alongside new credit and insurance schemes for purchasing high-yielding cows and securing low-interest loans, demonstrate an unwavering commitment to improving farmer livelihoods. The federation’s goal is clear: to fortify the entire dairy ecosystem so that farmers achieve better returns while consumers remain assured of a reliable source of quality milk.
Source: Read the full report on the Kerala Co-operative Milk Marketing Federation’s performance from United News of India.
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