Milma milk sales climb 5.61% this Onam; Sabarimala row held back growth, says chairman

The Kerala Cooperative Milk Marketing Federation (Milma) recorded a rise in milk and dairy product sales during this year's Onam season, with milk sales up 5.61% and curd sales up 9.68% compared with the corresponding period last year. However, KCMMF chairman K S Mani said milk sales could have grown by 10% had it not been for controversies, including the one surrounding Milma's ghee supply to Sabarimala.

Between August 20 and 25, Milma sold 1,45,76,846.63 litres of milk, according to a statement the federation issued on Thursday. Curd sales stood at 18,09,331.50 kg during the period.

"It is encouraging that people in Kerala have placed their trust in the Milma brand despite the controversies. I believe milk sales could have achieved 10% growth had it not been for the Sabarimala ghee controversy," Mani told Onmanorama.

The Sabarimala ghee controversy involved allegations concerning the supply of ghee by Milma for the preparation of Aravana during the 2025-26 pilgrimage season. The Kerala High Court had directed the Vigilance and Anti-Corruption Bureau (VACB) to form a Special Investigation Team (SIT) to probe the alleged conspiracy.

Milma's three regional unions also reported growth in sales during the Onam season. The Thiruvananthapuram Regional Co-operative Milk Producers' Union (TRCMPU) recorded a 5.86% increase in milk sales during the five days leading up to Uthradam compared with the same period last year. Curd sales rose 7.94%. Between August 1 and 25, TRCMPU sold 297.85 tonnes of ghee.

The Ernakulam Regional Co-operative Milk Producers' Union recorded a 4.62% increase in milk sales and a 16.44% rise in curd sales during the period. It sold 172.58 tonnes of ghee between August 1 and 25.

The Malabar Regional Co-operative Milk Producers' Union reported a 6.03% increase in milk sales and an 8.7% rise in curd sales compared with last year. It sold 358.35 tonnes of ghee during the same period.

Milma attributed the growth to preparations and extensive supply-chain management undertaken ahead of the festive rush.

Competition from neighbouring states
Mani said Milma continues to face challenges from products brought into Kerala from neighbouring states, where production and raw material costs are lower.

"In Karnataka, Tamil Nadu, Andhra and other states, milk is available at ₹8 to ₹10 less than the price at which we sell it here," he said.

He said Milma's procurement cost was higher because it pays farmers among the highest milk prices in India. The federation passes on 84% of its revenue to farmers, he said.

Milma also faces challenges in competing with private players who can offer dealers higher commissions because of their lower costs. Another issue, according to Mani, is Milma's policy of not extending credit to dealers.

"Private players often allow dealers to make payments later, giving them greater flexibility in the market. The fact that we have managed to achieve growth in the market despite all these challenges is a major achievement for our team and our professional team," he said.