Amul Dairy on Tuesday announced an increase in milk procurement prices for cooperative member milk producers and milk pourers, effective from June 1. The dairy cooperative said the revision was necessary due to rising input costs and growing pressure on the dairy sector.
The announcement was made by Amul Dairy chairman Sabhesinh Parmar.
Under the revised procurement structure, buffalo milk prices will increase by Rs 10 per kg fat, taking the procurement rate from Rs 865 to Rs 875 per kg fat.
Revised Buffalo Milk Procurement Rates
Following the revision:
- Buffalo milk with 6% fat content will now fetch Rs 54.05 per litre, up from Rs 53.44 per litre.
- Buffalo milk with 7% fat content will increase from Rs 62.34 to Rs 63.06 per litre.
The hike translates into an increase of approximately:
- Rs 0.61 per litre for 6% fat buffalo milk
- Rs 0.72 per litre for 7% fat buffalo milk
Cow Milk Procurement Prices Also Increased
Amul Dairy also revised cow milk procurement prices upward.
The procurement rate for cow milk has increased from Rs 384.10 to Rs 388.65 per kg equivalent fat, marking an increase of Rs 4.55 per kg equivalent fat.
Under the revised rates:
- Cow milk with 3.5% fat content will now fetch Rs 36.68 per litre, up by Rs 0.43 per litre.
- Cow milk with 4% fat content will rise to Rs 38.68 per litre, an increase of Rs 0.45 per litre.
Record Procurement Price Announced
Amul Dairy also declared a final procurement price of Rs 1,035 per kg fat for the financial year 2025–26, which the cooperative described as the highest in its history and among the highest milk procurement rates in Gujarat and the Indian dairy sector.
The dairy cooperative reported:
- Annual turnover: Rs 15,113 crore
- Current financial year target: Rs 16,753 crore
Welfare Initiatives for Dairy Farmers
Alongside the procurement hike, Amul Dairy highlighted several farmer welfare and cattle development initiatives implemented during the year.
These include:
- Subsidised sexed semen at Rs 25 per dose
- Establishment of Asia’s largest semen laboratory at Oon
- Breeding improvement programmes aimed at enhancing milk productivity and farmer income
The cooperative stated that these initiatives are intended to strengthen cattle genetics, improve milk yield and support long-term sustainability for dairy farmers.
Read More: Whole Milk Revival Opens New Growth Path for Global Dairy Industry
Rising Costs Continue to Pressure Dairy Sector
According to chairman Sabhesinh Parmar, rising operational expenses and global economic pressures have significantly impacted the dairy industry.
He stated that:
- LPG and diesel prices have increased sharply
- Transportation costs have risen due to fuel inflation
- Packaging film, CBX and other consumables have become more expensive
- Cattle feed raw material prices have nearly doubled compared to previous years
Parmar also noted that continuing geopolitical tensions in the Middle East have affected oil-based economies globally, indirectly impacting dairy operations and supply chain costs.
Despite the cost escalation, Amul Dairy said it remains committed to protecting the interests of cooperative milk producers and cattle rearers associated with the federation.
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