In a welcome move for Kerala’s dairy community, the Kerala Cooperative Milk Marketing Federation (Milma) has expressed strong support for the Kerala State Electricity Board’s (KSEB) latest decision to classify dairy farms and primary milk societies under the agricultural category for electricity tariffs.
This reclassification, included in KSEB’s recent tariff revision, is expected to significantly reduce operational costs for dairy farmers operating milk collection and chilling units, many of whom are struggling with high input expenses and low profit margins.
🐄 A Boost for Dairy Cooperatives and Infrastructure
The decision applies to:
- Dairy farms with milk collection and chilling facilities
- Primary milk cooperative societies operating at the grassroots level
By placing these facilities under the agricultural category, the electricity board acknowledges their role as agri-linked essential infrastructure, rather than treating them as commercial or industrial consumers.
Milma Managing Director KS Mani said the move demonstrates the government’s commitment to strengthening rural dairy economies and enabling cooperatives to operate more sustainably.
⚙️ Why This Matters for India’s Dairy Sector
The cost of electricity is a significant burden for milk collection centres, chilling units, and dairy cooperatives, particularly in states with decentralised and cooperative-led dairy models, such,as Kerala By classifying them under the agriculture tariff, KSEB has not only reduced the financial pressure but also recognised dairy as an integral part of India’s farming ecosystem.
Experts say this decision sets a precedent for other states to follow, especially at a time when:
- Milk procurement costs are rising
- Input costs (feed, fodder, fuel) remain volatile
- Sustainability and cost-efficiency are top industry goals
🌱 Strategic Win for Green Dairy Practices
The move also aligns with eco-friendly dairy goals, as reduced power tariffs can support:
- Wider adoption of energy-efficient chilling and storage technologies
- Rural electrification of milk supply chains
- Transition toward solar-powered and low-emission dairy units
Milma has consistently advocated for better infrastructure support, and this step enhances the viability of its cooperative-led value chain, which directly connects lakhs of farmers to Kerala’s consumers.