Milma boosts cattle feed subsidy to support dairy farmers

INDIA – 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.

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 lowers feed costs to ₹120, below the 2019 price benchmark, restoring affordability not seen in several years.

In parallel, Milma has reduced the cost of silage and maize fodder by ₹2 below the 2019 average, broadening 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.

Milma announces US$841,575 benefits for Malabar dairy farmers

In 2025, Milma, Malabar region, announced benefits amounting to US$841,575 (₹7.35 crore) for dairy farmers in connection with Onam, Kerala’s biggest festival.

Of the total amount, US$475,175 (₹4.15 crore) will be distributed as an additional price for milk, and the remaining US$366,400 (₹3.2 crore) as a subsidy for cattle feed.

Milma officials said that an extra amount of ₹2 per litre will be paid to Anandmodel dairy farmers’ societies which supplied milk meeting specified quality standards between July 1 and 31.

The additional amount will be deposited before Onam in the accounts of the societies along with the payment for milk supplied from August 11 to 20, the official added.

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