The Cabinet on Wednesday gave its green signal for a hike in prices of milk, marketed by Milma, by Rs. 3 a litre.

Chief Minister V. S. Achuthanandan told journalists the prices had to be increased because of increase in costs of fodder and other inputs used by dairy farmers. The Milma (State Cooperative Milk Marketing Federation) would have no share in the additional revenue. The farmers would get a share of Rs. 2.76 a litre while the primary cooperatives and agents would each get 12 paise per litre.

The Chief Ministers said that though the increase in price would cause hardships to the consumers, the problems of the dairy farmers also needed to be addressed. Though the demand was for a hike of Rs. 4 to Rs. 5 per litre, the government had conceded only an increase of Rs. 3 a litre, he noted.