According to the report, dairy farmer representatives believe the prolonged decision-making process is weakening confidence among producers already facing narrow margins. Union leaders warned that many small-scale farmers are struggling to absorb increasing input expenses, particularly amid volatile feed prices and broader inflationary pressures affecting the livestock sector.

The issue has become especially sensitive because Kerala’s dairy industry depends heavily on smallholder milk producers who supply cooperative networks on a daily basis. Farmer organizations argue that a delay in adjusting procurement prices could discourage milk production growth and potentially affect raw milk availability in the state’s dairy supply chain.

Producer groups are also concerned that insufficient returns may push more farmers out of the sector, threatening long-term sustainability for Kerala’s cooperative dairy model. Stakeholders are calling for faster intervention from state authorities and cooperative management to ensure that milk pricing reflects current production economics and supports farmer livelihoods.