Thiruvananthapuram: Kerala Co-operative Milk Marketing Federation, known by the brand Milma, has decided to increase the price of milk by Rs 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 the Milma Board. Out of the enhanced price, Rs 3.35 (83.75 per cent) will go to the dairy farmers, and 25 paise (6.25 per cent) to dairy cooperative societies.
The board meeting observed that a drastic rise in production costs 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 conditions in parts of the state due to the extreme summer this year, and an increase in the price of milk procured from neighbouring states to make up the domestic deficit.
Also, geopolitical unrest in the Gulf region and the subsequent rise in fuel prices have resulted in a 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 prices 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 a 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 Rs 40.04 to Rs 43.39 per litre.