A key point of contention is a recent GST reduction. The article notes that while the GST on certain dairy products and milk cans was lowered from 12% to 5%, farmers feel this change benefits only institutions like Milma and the end consumer, not them directly. According to a farmer, M.N. Giri, the GST exemption does not help them survive. This highlights a significant disconnect between government policy and the financial realities on the ground for those who are at the very beginning of the food supply chain.

The numbers presented in the article are a stark representation of the problem. A study by Milma itself found that the cost to produce one liter of milk is 52**, while the procurement price for farmers is only between **42 and 48**. This significant deficit in the **dairy industry** is making it nearly impossible for farmers to turn a profit and is the primary reason for their plea to Milma to raise the price by at least **5.

The impact of this economic strain is already being felt. The article provides a critical piece of data journalism, revealing that the number of dairy cows in Kerala has dropped significantly over five years, from 13 lakh to a mere nine lakh. This drastic reduction in the herd is forcing the state to become increasingly reliant on milk from other states, a worrying trend that undermines regional self-sufficiency and national food security.