The Kerala Co-operative Milk Marketing Federation (KCMMF), operating under the Milma brand, has raised its cattle feed subsidy in a targeted move to ease mounting cost pressures on dairy farmers. Effective from 1 February to 31 March, the federation will provide a ₹200 per bag subsidy on Milma Gomathi Gold cattle feed, doubling the earlier support extended at the state level.
This decision, approved by KCMMF’s governing body, comes amid persistent inflation in feed ingredients and farm inputs that has eroded producer margins. When combined with the ₹100 per bag subsidy already offered by Milma’s Thiruvananthapuram and Malabar Regional Unions, farmers will now receive a total benefit of ₹300 per bag, a significant short-term intervention aimed at stabilising production economics.
From a price perspective, the revised subsidy structure effectively lowers the feed cost to ₹120 below the price benchmark fixed in 2019, restoring affordability levels not seen in several years. In parallel, Milma has also reduced the cost of silage and maize fodder to rates ₹2 below the 2019 average, broadening the relief across key nutritional inputs.
The move highlights the growing role of dairy cooperatives as shock absorbers in volatile input markets. Feed typically accounts for 60–70% of milk production costs, making it the most critical determinant of farm profitability. By intervening directly on feed pricing, Milma is not only supporting farmer cash flows but also safeguarding milk procurement stability, an essential factor for maintaining supply continuity in organised dairy chains.
However, while the subsidy offers immediate respite, it also underscores the structural vulnerability of smallholder dairy systems to feed price cycles. Sustained solutions will likely require longer-term investments in fodder development, local feed resource optimisation and productivity enhancement, reducing dependence on external raw material markets.
In the near term, Milma’s enhanced subsidy is expected to provide meaningful financial relief to Kerala’s dairy farmers, reinforcing the cooperative’s mandate to balance farmer welfare with supply chain sustainability.
