State-run dairy cooperative Kerala Cooperative Milk Marketing Federation has indicated that a milk price revision is inevitable and will be implemented soon, citing rising input costs and the need to support farmers.

According to a report by PTI, Milma chairman K S Mani stated that the cooperative will take a balanced view before deciding the quantum of increase. “We also need to look after the interests of the dairy farmers as well as the consumers…a hike in milk price is necessary for Milma and it will be implemented,” he said.

The board will decide how much the milk price will be increased

Mani stated the final decision will be taken after a board meeting. Discussions on the surge were earlier paused because of the election model code of conduct but have now resumed. He further added that while Milma can revise prices independently, it consulted the state government given the wider consumer impact.

Rising costs, farmer pressure

The move follows mounting pressure from dairy producers amid a sharp surge in cattle feed, labour and other input costs. Members of Milma’s Ernakulam Regional Co-operative Milk Producers’ Union recently protested, demanding an immediate hike. A committee had also recommended a rise of Rs 6 per litre, as reported by PTI.

Milma also stated that its farmer-focused measures have helped milk procurement by around 13 percent in FY26, marking a record level.

Sector-wide trend

The pressure to raise prices is visible beyond Kerala. According to an earlier report by Financial Express, dairy players in Maharashtra are also planning price revisions due to rising input costs and supply constraints. Industry participants said producers have so far absorbed costs to avoid burdening customers, but sustained increases could force a revision in retail prices. Nikhil Chitale of Chilate Diary stated that the business operates on thin margins, leaving limited room to absorb further cost pressures.

Indian Dairy Association President on milk prices

Indian Dairy Association President Sudhir Kumar Singh stated to ANI earlier that prices are revised only when companies are “compelled” by increasing costs, adding that the sector aims to balance the interests of producers and consumers. Meanwhile, India remains the world’s largest milk producer with output estimated at 247.87 million tonnes in 2024-25.