The Kerala government has dissolved the Malabar Regional Co-operative Milk Producers’ Union (MRCMPU), one of the three regional unions operating under the Kerala Co-operative Milk Marketing Federation (Milma). The Dairy Development director issued the dissolution order on September 18, following which Wayanad Deputy Director of Dairy Development Varkey George took charge as administrator.
According to the government order, the action followed complaints and reported irregularities involving the union and its subsidiary, the Malabar Rural Development Foundation (MRDF). The issues cited included procurement of substandard milk at the Kasaragod Dairy, alleged theft of dairy products at the Malappuram Dairy, stock irregularities and financial and administrative lapses.
One of the major cases relates to the Kasaragod Dairy. On March 19, 2025, the dairy reportedly procured 33,062 litres of milk from Maharashtra’s Sampathrao Deshmukh Co-operative Milk Union after making an advance payment. The government order said the milk was suspected to contain chemicals and had a kerosene-like odour, but was mixed with around 55,000 litres of milk procured from the Karnataka Milk Federation before quality testing. The combined quantity of around 88,000 litres was subsequently lost, with the order putting the financial loss at ₹27.45 lakh.
The dissolution order also cited alleged irregularities involving dairy products worth ₹84.45 lakh at the Malappuram Dairy’s Marketing Products Store during 2025–26. According to the order, invoices and gate passes were allegedly edited or cancelled in connection with the removal of products including ghee.
The government also raised questions about expenditure associated with the Malappuram Dairy. The order reportedly cited approximately ₹25 lakh spent on a function related to obtaining a ₹50 lakh government grant and around ₹1.5 crore spent on a three-day inauguration programme held in December 2024.
Another issue concerns the Malabar Rural Development Foundation, a subsidiary institution of MRCMPU. The Dairy Development Department cited failures relating to statutory auditing and the presentation of accounts and reports to the general body. Reports said the foundation had not presented the required accounts and reports at the union’s general meetings since its formation.
Milma has three regional unions—Thiruvananthapuram, Ernakulam and Malabar. The government had already dissolved the LDF-led Thiruvananthapuram regional union in July, while the Ernakulam union is controlled by a UDF-led panel. The latest dissolution therefore changes the administrative composition of Milma’s regional structure ahead of the federation’s next board election.
Milma chairman K.S. Mani has disputed the government’s action and said the union would challenge the decision legally. He alleged that the dissolution was politically motivated and that the mandatory procedure under Section 32 of the Kerala Co-operative Societies Act had not been followed.
Animal Husbandry Minister Bindhu Krishna rejected the political-motive allegation. She said the dissolution was based on prima facie findings involving alleged irregularities in milk procurement, purchase of low-quality milk and other programmes, and said a detailed departmental inquiry would follow.
Milma’s structure comprises the three regional cooperative milk producers’ unions under the Kerala Co-operative Milk Marketing Federation. According to Milma, the federation had more than 10.8 lakh farmer members through 3,113 milk cooperatives as of May 2026, highlighting the scale of the cooperative network affected by governance and administrative decisions involving its regional unions.
The dissolution is now set to be followed by further administrative and legal proceedings, with the government’s allegations and the union leadership’s objections likely to be examined through the departmental inquiry and any court proceedings.
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Source: Dairynews7x7 20 Sep, 2026 Read full story here
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