Procurement Price Increased by Rs 15 Per Kg Fat.
Banas Dairy, regarded as Asia’s largest dairy cooperative, has announced a hike of Rs 15 per kg fat in milk procurement prices, bringing relief to lakhs of dairy farmers across Gujarat’s Banaskantha and Patan districts.
With the latest revision:
- Milk procurement price has increased to Rs 860 per kg fat
Dairy officials said the increase is aimed at helping farmers manage rising expenses linked to:
- Cattle maintenance
- Fodder procurement
- Feed costs
- Dairy farming operations
Around 4.5 Lakh Cattle Breeders to Benefit
Shankar Chaudhary said the revised procurement rates are expected to directly benefit nearly:
- 4.5 lakh cattle breeders in the region
He added that the dairy is currently receiving:
- An additional 70 lakh litres of milk daily
The higher procurement payments are expected to inject crores of rupees into the rural economy through increased farmer income.
Payments Based on Fat and SNF Content
Officials clarified that milk payments will continue under the existing pricing structure based on:
- Type of milk (cow or buffalo)
- Fat percentage
- SNF (Solids-Not-Fat) content
The revised slabs will apply across procurement operations under the cooperative system.
Rising Input Costs Driving Procurement Revisions
The announcement comes amid continued pressure on dairy farmers due to:
- Increasing cattle feed prices
- Higher fodder costs
- Rising transportation expenses
- Inflation in farm inputs
Dairy cooperatives across India have recently been revising procurement prices to support milk producers facing elevated operational costs.
Banas Dairy Continues Farmer-Centric Expansion
Shankar Chaudhary stated that farmer welfare remains a core priority for the cooperative.
“We remain committed to the welfare of cattle breeders and farmers, and this increase in the base price is an important step in that direction,” he said.
Read More: Vadilal Dairy International Reports 27% Decline in March 2026 Quarterly Sales
One of India’s Largest Dairy Networks
Banas Dairy is one of India’s biggest dairy cooperatives and plays a major role in:
- Milk procurement
- Dairy processing
- Rural employment
- Livestock-based livelihoods
The cooperative has expanded rapidly in recent years through:
- Large-scale milk collection infrastructure
- Value-added dairy product manufacturing
- Cattle development programmes
- Farmer support initiatives
Industry analysts say the procurement price hike could further strengthen milk production incentives while improving financial stability for dairy households across North Gujarat.
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