INR 3.35 to go to dairy farmers, societies to get 25 paise
THIRUVANANTHAPURAM, 23 May 2026: Kerala Co-operative Milk Marketing Federation, known by brand Milma, today decided to increase the price of milk by INR 4 per litre from June 1, in view of the steep increase in production cost suffered by the dairy farmers.
A proposal in this regard was approved by the meeting of Milma Board held here today.
Out of the enhanced price INR 3.35 (83.75 per cent) will go to the dairy farmers and 25 paise to (6.25 per cent) to dairy cooperative societies.
The board meeting observed that drastic rise in production cost and low returns had hit the dairy farmers in the state hard, making a price increase inevitable to sustain the dairy sector.
Adding to the increase in input cost are drought-like condition in parts of the state due to extreme summer this year and increase in price of milk procured from neighbouring states to make up the domestic deficit.
Also, geo-political unrest in the Gulf region and subsequent rise in fuel prices had resulted in sharp rise in transportation and distribution costs of milk and milk products.
The processing, packing and distribution costs had also gone up due to supply chain disruptions and higher price of essential materials like LDPE film, plastic bottles and cups.
The decision to increase the price of milk arose from the need to ensure dairy farmers remunerative price to sustain them in the vital sector. While going for the increase under the adverse circumstances, Milma ensures that the dairy farmers benefit from the decision and help them stay in the dairy sector, Milma Chairman K S Mani noted.
With the new price coming into effect, the procurement price to the farmers will go up from INR 40.04 to INR 43.39 per litre.
Customers will have to pay INR 28 for 500 ml packet of homogenised toned milk, which is currently priced at Rs 26.
