This Onam, Milma set to procure 1 crore litres of milk from other states at Rs 45 crore

Onam demand forced Milma to resume procurement from Karnataka, after a nearly year-long hiatus.
Image used for representational purpose.
Image used for representational purpose.

THIRUVANANTHAPURAM: Amid the surge in milk demand for Onam, Milma has started ramping up procurement from other states. The state milk cooperative would need to import at least 1 crore litres this season. A significant portion of the demand this year will be met by Maharashtra (55 lakh litres) and Andhra Pradesh (30 lakh litres). Karnataka, which used to be the top supplier, is also chipping in, by providing 20 lakh litres. Milma will be spending around Rs 45 crore to ensure supply from outside the state. 

“Milma is responsible for providing milk and milk products based on demand. Procurement can prove to be costly at times,” said Milma chairman K S Mani. 

Onam demand forced Milma to resume procurement from Karnataka, after a nearly year-long hiatus. The Karnataka Milk Federation (KMF) has been at loggerheads with Milma over the sale of its milk in Kerala. KMF stopped supplying milk as competition increased. With the change of government in Karnataka, KMF seems to have eased its expansion plans.

“We used to depend on KMF entirely for our outside procurement needs. But they terminated supply citing poor procurement. They have now realised that we are a premium customer,” said Mani. Milk from Karnataka costs Rs 45-46 a litre, whereas Maharashtra and Andhra Pradesh charges only `42-43. “Though milk from Karnataka is costlier, it helps us meet emergencies. Moreover, the other two locations are more distant and there could be some supply disruptions,” said an official. 

Milma procures the milk directly from the federations to ensure quality. The product is then chilled to 0-1 degrees Celsius and transported in puff-insulated tankers to preserve temperature. 

Payasam and curd, which are essential to the Onam feast, are driving additional demand. Milk demand peaks two days before Thiruvonam. Against normal sales of around 16-17 lakh litres, sales triple during Pooradam and Uthradam.

White Onam 

  • Milma controls 80 per cent of the milk market in Kerala 
  • To spend D45 crore on an additional supply 
  • Milk demand to triple ahead of Thiruvonam
  • Curd sales to double to 2L kg
  • Ghee sales alone were seen hitting  Rs 6 crore during Onam

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