Milma reluctant to increase price; survival of Kerala's dairy farmers in jeopardy?

KOCHI: Dairy farmers threatened to exit from this profession if the procurement price of milk is not increased. Farmers are apprehensive of the GST concessions and said that the survival of the dairy sector will be in jeopardy if the situation remains unchanged.

The central government claims that the reduction of GST from 12 to 5 per cent on dairy products, milk cans used by farmers, will benefit farmers and consumers. Dairy farmers said that although it is a benefit for institutions like Milma and consumers, it does not benefit them.

Kerala Dairy Farmers Association office bearers said that the dairy sector is in crisis due to increasing production costs and a lack of significant support from the government.

Five years ago, there were 13 lakh dairy cows, but now there are nine lakh. They have to rely more on milk from other states.

Milma reluctant to increase prices

# According to Milma's study, it costs Rs 52 to produce a litre of milk. The procurement price is between Rs 42 and Rs 48.

# Farmers had requested Milma through a petition to increase the procurement price by at least Rs 5. The Milma board discussed the matter the other day but didn't reach a decision.

“GST exemption is not good for farmers. Farmers cannot survive without increasing the price of milk. Reducing GST on products will benefit consumers,” said M.N. Giri, a Dairy farmer.