Chandigarh : In a significant relief for Punjab’s dairy sector, Chief Minister Bhagwant Mann on Saturday approved an increase of ₹40 per kilogram of fat in milk procurement rates, responding to a longstanding demand raised by the Progressive Dairy Farmers’ Association (PDFA).

The decision comes at a time when dairy farmers across the state have been grappling with rising input costs, particularly higher cattle feed prices, veterinary expenses, and labor costs.
Under the revised rates:
- Cow milk: Increased from ₹810 to ₹850 per kg of fat
- Buffalo milk: Increased from ₹850 to ₹890 per kg of fat
The revised procurement rates will be implemented retrospectively from July 21, 2026.
Unlike a fixed per-litre pricing mechanism, Punjab’s dairy procurement system calculates payments based on the total quantity of milk fat supplied, a model widely used in organized dairy procurement to incentivize quality and higher fat content.
The announcement followed a meeting between the Chief Minister and a delegation of the Progressive Dairy Farmers’ Association led by its President, Daljit Singh Gill Sadarpura, along with members of the association’s executive and core committees.
During the discussions, the delegation highlighted the mounting financial pressures facing dairy producers, citing sustained increases in feed costs and other production expenses. Representatives of the association warned that narrowing profit margins had made dairy farming increasingly difficult, particularly for small and medium-sized producers.
Responding to the concerns, Mann approved the rate revision and reiterated the government’s commitment to addressing issues affecting the agricultural and allied sectors.
“Our government does not make farmers wait. Every genuine demand will be addressed promptly,” the Chief Minister said.
He added that the state would continue engaging with stakeholders to ensure the long-term sustainability of Punjab’s agriculture and dairy industries.
Welcoming the announcement, PDFA President Daljit Singh Gill thanked the Chief Minister for giving the delegation a patient hearing and acting swiftly on the association’s request.
Read More: KMF Hikes Nandini Butter Prices by 10%, Ghee Rates Raised 2.14% per litre
Industry observers say the increase is expected to benefit thousands of dairy farmers across Punjab, one of India’s leading milk-producing states. The move could also help offset some of the financial pressures arising from rising feed prices, which have remained a key concern for dairy producers over the past year.
The development comes amid broader discussions within the dairy sector regarding remunerative pricing for milk producers. Earlier this week, the Central Government informed Parliament that there is currently no proposal to introduce a Minimum Support Price (MSP) for milk, reiterating that milk procurement prices remain market-driven and are determined by cooperatives and private dairies.
Punjab’s latest procurement rate revision highlights the role state governments and dairy institutions continue to play in supporting farmer incomes through localized interventions.
For many dairy farmers in the state, the increase represents more than a pricing adjustment—it is a recognition of the growing economic challenges associated with milk production and the need to ensure that dairying remains a viable livelihood for rural households.
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