Milma has announced a ₹4 per litre increase in milk prices across Kerala, with the revised rates set to take effect from June 1, 2026. The decision was approved during a meeting of the Board of Directors of the Kerala Cooperative Milk Marketing Federation (KCMMF), popularly known as Milma, amid rising production, procurement and distribution costs affecting the dairy sector.
Milma officials stated that the majority of the price increase will directly benefit dairy farmers. Of the ₹4 per litre hike, ₹3.35 per litre — nearly 83.75% of the additional amount — will be passed on to milk producers to support farmer incomes and sustain dairy farming operations in the state.
According to Milma Chairman K S Mani, the cooperative decided to prioritize farmer welfare while retaining only a nominal share of the increased amount. Cooperative societies, vendors and welfare-related activities will also receive portions of the revised pricing structure.
Milma had earlier proposed a milk price hike ranging between ₹4 and ₹6 per litre after a three-member expert committee studied rising operational pressures in the dairy sector. The cooperative cited sharp increases in cattle feed costs, transportation expenses, drought-related challenges and higher milk procurement costs from neighbouring states as major reasons behind the revision.
Reports indicate that regional dairy unions in Kerala have also been facing losses in milk sales due to increasing operational expenditure and supply-side pressures. Industry experts noted that climate-related stress, shrinking farm profitability and labour shortages are creating long-term challenges for Kerala’s dairy sector.
The price revision was reportedly approved earlier by the Kerala government but implementation was delayed because of the election model code of conduct. Following repeated demands from Milma management, regional unions and dairy farmer organizations, the revised prices will now officially come into force from June 1.
Under the revised pricing structure, the price of a 500 ml homogenised toned milk packet will increase from ₹26 to ₹28. Industry observers also expect prices of other milk products sold by Milma to rise in the coming weeks.
Analysts say the Milma revision reflects a broader nationwide dairy inflation cycle, with several major dairy brands including Amul, Mother Dairy, Gokul and Vita recently increasing milk prices due to rising feed, fuel, packaging and logistics costs. Experts believe continued cost pressures could keep retail milk prices elevated across India in the coming months.
