Previously, these essential dairy operations were subjected to electricity charges under the commercial tariff category, facing rates of Rs 65 per kilowatt (kW) for consumption up to 1000 watts. With the strategic reclassification to the LT V (B) – Agriculture category, these rates have been dramatically reduced to just Rs 30 per kW. This significant reduction in power charges is expected to provide substantial financial relief to thousands of dairy farmers and cooperative societies across Kerala.

The newly revised agriculture category now comprehensively includes a broad spectrum of dairy infrastructure. This encompasses dairy farms that operate facilities for the collection, chilling, and storage of milk, ensuring its preservation until it is transported to larger dairy processing units. Furthermore, primary milk producers’ cooperative societies that are responsible for collecting raw milk directly from farmers and subsequently selling it in bulk to processing units and retail outlets are also covered under this beneficial reclassification.

For the Indian dairy industry and particularly for dairy economics in Kerala, this reclassification is a game-changer. Lower operational costs, primarily driven by reduced electricity expenses, will directly enhance the profitability and sustainability of dairy farming. This move is expected to stimulate further investment in the sector, encourage increased milk production, and strengthen the overall dairy supply chain within the state.