Ludhiana, Punjab: The Progressive Dairy Farmers Association (PDFA) has appealed to Punjab Chief Minister Bhagwant Mann to immediately reverse the recent reduction in milk procurement prices, warning that the move has jeopardised the economic viability of the state’s dairy sector.
In a memorandum submitted to the Chief Minister, the association said the price cut implemented on December 21 had “virtually wiped out profit margins” for dairy farmers already grappling with rising input costs, pushing many operations to the brink of a serious financial crisis.
Profit Margins Eroded at a Critical Time
PDFA President Daljit Singh Sadarpura said the timing of the price reduction was particularly harmful:
“Punjab’s dairy industry is one of the strongest in the country and a backbone of the rural economy. But at a time when feed, fodder, diesel, electricity, labour and veterinary costs have all surged, this abrupt price cut has undermined farmers’ ability to sustain their livelihoods.”
The association stressed that modern dairy units, often established with bank loans by educated youth choosing agriculture over migration or unemployment, are now at risk due to squeezed margins.
Alleged Policy Contradiction and ‘Breach of Trust’
According to PDFA, the state government had repeatedly assured farmers of higher milk procurement prices over the past two years. Instead, it introduced a sharp price reduction, which the association described as a “breach of trust” that has shaken confidence among dairy producers.
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Key Demands from the Government
PDFA’s memorandum outlined several core demands:
- Immediate rollback of the recent milk price cut
- Introduction of a fair, cost-based pricing mechanism for milk
- Ban on loose paneer sales in Punjab, following the model of Jammu & Kashmir, to curb adulteration and ensure quality
- Prompt official dialogue between the government and dairy stakeholders to pursue lasting solutions
The proposed ban on loose paneer is intended to protect consumers and enable dairy producers to obtain better returns through packaged, quality-assured products.
Rural Impact and Employment Risks
The association warned that without urgent corrective action, many dairy units could be forced to shut down, exacerbating unemployment in rural areas and diminishing Punjab’s status as a key milk-producing state.
“If timely and concrete steps are not taken, PDFA will be compelled to initiate protest programmes to protect the interests of dairy farmers,” the memorandum said.
Outlook
PDFA expressed hope that Chief Minister Bhagwant Mann would intervene promptly, keeping in mind the livelihoods of lakhs of dairy farmers and the broader health of the rural economy.
The issue underscores ongoing tensions between dairy producers and policymakers over pricing mechanisms, input cost escalation, and market stability amid evolving agricultural economics in Punjab and across India’s leading milk-producing regions.
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