Kerala Co-operative Milk Marketing Federation, popularly known as Milma has decided to increase the price of milk by ₹4 per litre from June 1, considering the steep increase in production cost suffered by the dairy farmers. A proposal in this regard was approved by the meeting of Milma Board.Of the enhanced price ₹3.35 (83.75 per cent) will go to the dairy farmers and 25 paise to (6.25 per cent) to dairy co-operative societies, said a press release.The board was of the view that drastic rise in production cost and low returns had hit the dairy farmers in the State hard, making a price increase inevitable to sustain the dairy sector.Besides the rise in input cost, drought-like condition in several parts due to extreme summer and increase in price of milk procured from neighbouring states to make up the domestic deficit is also a factor for the hike.Also, geopolitical unrest in the Gulf region and subsequent rise in fuel prices had resulted in 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 price 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 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 KS Mani said.With the new price coming into effect, the procurement price to the farmers will go up from ₹40.04 to ₹43.39 per litre.Customers will have to pay Rs28 for 500 ml packet of homogenised toned milk, which is currently priced at ₹26.Published on May 20, 2026