Milma milk price hike: Kerala cooperative raises rates by Rs 4 per litre from June 1

Milk prices in Kerala will increase from June 1 after the Kerala Cooperative Milk Marketing Federation (KCMMF), popularly known as Milma, approved a Rs 4 per litre price hike citing rising production and operational costs.

The decision was taken at a meeting of Milma’s Board of Directors on Wednesday. The cooperative said the revision had become necessary due to increasing expenses related to milk procurement, transportation, packaging and fuel, along with growing pressure on dairy farmers in the state.

Farmers to receive major share of hike

Milma Chairman K S Mani said most of the additional amount generated through the price revision would directly benefit dairy farmers.

“It has been decided to increase the price by Rs 4 per litre from June 1. As Milma is a collective of farmers, the decision is to pass on its lion’s share to them,” he said.

Of the Rs 4 increase, dairy farmers will receive Rs 3.35 per litre, while dairy cooperative societies will get 25 paise. According to Milma, more than 83 per cent of the additional revenue generated through the hike will go to milk producers.

Following the revision, the procurement price paid to farmers will increase from Rs 40.04 to Rs 43.39 per litre.

Milk packet prices to increase from June 1

With the revised prices coming into effect next month, a 500 ml packet of homogenised toned milk, currently priced at Rs 26, will cost Rs 28.

Milma said the increase was unavoidable as dairy farmers have been facing a sharp rise in input costs and declining returns in recent months.

Rising costs behind revision

The cooperative cited several factors behind the decision, including drought-like conditions in parts of Kerala after an intense summer, rising fuel prices and increasing transportation expenses.

Milma also pointed to higher costs of packaging materials such as plastic bottles and cups, along with rising procurement expenses for milk sourced from neighbouring states to meet local demand.

It added that global fuel price fluctuations and supply-chain disruptions have further increased operational expenses across the dairy sector.