Micro finance as a powerful tool and a novel concept emerged for eradication poverty at the grass roots through financial inclusion, economic and social development and attaining self–sufficiency. Micro finance enters in all areas as and sectors including the dairy sector in Kerala. Most of the farmers in the dairy sector are poor and difficulty to find capital of their own. Micro finance is one of the sources of capital for the farmers. Microfinance is a type of banking service that is provided to low-income or unemployed individuals who do not have access to typical banking services. Ultimately, the goal of the field is to give these individuals the opportunity to become self-sufficient and sustainably lift themselves out of poverty. Microfinance is a general term used to encompass a vast variety of financial services to serve the poor, such as microcredit, micro savings, micro insurance, and fund transfers. Sustainable growth and food security are the world biggest challenges, as the population is now over 7 billion people. Small enterprise producing traditional foods have a high social, economic and even ecological role as they usually are based on sustainable technology, their products are unique and thus competitive and are the source of jobs and income for many rural families acting as true guardians of the land. India remains the world’s largest producer and consumer of milk