Milma to raise milk price by Rs 4 per litre from June 1

Milma, Kerala's major milk cooperative, has decided to increase milk prices by Rs 4 per litre from June 1 to protect dairy farmers from mounting losses.

Milk cooperative major Milma on Wednesday decided to increase the price of milk by Rs 4 per litre in Kerala with effect from June 1, citing a steep rise in production and distribution costs and the need to protect dairy farmers from mounting losses.

The decision was taken at a meeting of the Board of Directors of the Kerala Cooperative Milk Marketing Federation (KCMMF), popularly known as Milma, here, officials said.

Milma Chairman K S Mani told reporters after the meeting that the major share of the price hike would be passed on to 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.

According to him, 83.75 per cent of the increased amount would go to farmers.

Of the total hike of Rs 4 per litre, dairy farmers would get Rs 3.35, while dairy cooperative societies would receive 25 paise (6.25 per cent). Cooperative societies and vendors would also get an adequate share, Mani said.

With the revised prices coming into effect, the procurement price paid to farmers would increase from Rs 40.04 to Rs 43.39 per litre, he added.

The chairman said Milma was taking only a nominal share of the increased amount without reducing the share given to farmers.

The board observed that the sharp rise in production costs and low returns had severely affected dairy farmers in the state, making a price revision unavoidable to sustain the sector.

Milma also cited drought-like conditions in parts of Kerala following an intense summer, rising prices of milk procured from neighbouring states to meet local demand, and higher transportation and distribution expenses due to the increase in fuel prices.

The cooperative further said processing, packaging and distribution costs had increased owing to supply chain disruptions and the higher prices of materials, plastic bottles and cups.

According to Milma, geopolitical tensions in the Gulf region and the resulting fuel price increase had also contributed to the escalation in operational expenses.

The Left government had earlier approved Milma's recommendation for a price revision, but the hike was not implemented due to the model code of conduct in force during the elections, sources said.

Following the revision, consumers will have to pay Rs 28 for a 500 ml packet of homogenised toned milk, which is currently priced at Rs 26, a Milma statement added.