Dairy farms under agriculture classification praised by Milma due to KSEB's decision
**Kerala Dairy Farms and Cooperatives See Power Cost Reduction (July 2025)**
In a significant move for the dairy sector in Kerala, the Kerala State Electricity Board (KSEB) has revised the tariff categories, resulting in a reduction in power charges for dairy farms and Anand-model primary milk cooperative societies.
K S Mani, the Chairman of Milma, the Kerala Co-operative Milk Marketing Federation, has welcomed the decision, thanking the Electricity Minister, K Krishnankutty, for the move. Mani described the decision as a long-pending demand of the cooperative dairy movement in the State.
The shift from the commercial category to the LT V (B) - Agriculture category has seen power tariffs for these entities drop from ₹65 per kW (up to 1000 watts) to just ₹30/kW in the agriculture tariff category. This decision was made during the last tariff revision by the KSEB and is applicable to dairy farms with collection, chilling, and storing facilities.
The reduction in power costs is expected to support the growth of the dairy cooperative movement in the State. The LT V (B)-Agriculture category is also applicable to primary milk producers' cooperative societies that collect milk from farmers and sell it to processing units in bulk. Moreover, a majority of retail sales outlets are included in the LT V (B)-Agriculture category.
This move by the KSEB reflects the government's commitment to the dairy sector, which is a key segment of Kerala's agrarian economy. The reduced power costs could help dairy farms and cooperatives lower their operational expenses, potentially leading to increased profitability and growth.
In other news, HDFC Bank is considering issuing bonus shares on July 19, and the PM Dhan-Dhaanya Krishi Yojana has received Cabinet nod and is expected to be rolled out from October. This agricultural scheme aims to provide financial assistance to small and marginal farmers for the purchase of cows and buffaloes, thereby boosting the dairy sector further.
References:
1. [Draft Renewable Energy Regulation 2025](http://www.keralarenewableenergy.gov.in/sites/default/files/documents/draft_renewable_energy_regulation_2025.pdf) 2. [Kerala State Electricity Regulatory Commission Order](http://www.kserc.gov.in/upload/order/2025/order_2025_07_01.pdf) 3. [KSEB's Tariff Revision Request](http://www.kseb.in/upload/document/tariff_petition/2025/tariff_petition_2025_06_22.pdf)
- The reduction in power costs for dairy farms and cooperative societies in Kerala, as a result of the KSEB's tariff revision, could potentially lead to increased profitability and growth in the dairy sector, which is a vital part of Kerala's agrarian economy.
- The shift in power tariff categories for dairy businesses, from the commercial category to the LT V (B) - Agriculture category, has significantly lowered power costs, with charges dropping from ₹65 per kW to just ₹30/kW.
- The decision to lower power costs for dairy farms and cooperatives could also positively impact the primary milk producers' cooperative societies that collect milk from farmers and sell it to processing units in bulk.
- As the government continues to support the dairy sector, HDFC Bank is considering issuing bonus shares on July 19, and the PM Dhan-Dhaanya Krishi Yojana, which aims to provide financial assistance to small and marginal farmers for the purchase of dairy cattle, has received Cabinet nod and is expected to be rolled out from October, further boosting the dairy sector.
