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Milk price in Kerala will go up by an average ₹3 a litre from Monday.
Milma, the cooperative milk marketing federation, took the decision after factoring in the mounting production costs, said PT Gopala Kurup, Chairman.
Farmers will benefit to the extent of 80 per cent of the enhanced price. The rest will be distributed among primary milk cooperative societies, distribution agencies, dairy farmer welfare schemes, and regional unions of the milk marketing federation.
This is the third time Milma has increased the price after the High Court ordered in 2011 that the federation would have the sole right to decide on it.
Production and sale of milk have stagnated in the State during the last few years, the Milma chairman said. But domestic procurement had increased from 6.73 lakh litre in 2010 to 10.26 lakh litre in 2014.
Kurup noted that that the State was fast moving towards self-reliance in milk production. The federation expected to achieve it in not less than two years if the current trend in production continued.
“We will be able to keep the momentum only by ensuring sufficient returns to farmers,” he said.
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