The Department of Animal Husbandry & Dairying (DAHD) told the Lok Sabha that milk prices have not fallen in the last five years; they have been continuously increasing, and liquid milk remains exempt from GST/excise duty.
Average Milk Procurement Prices (₹/litre)
(Inclusive of State Govt subsidies)
| Year | Buffalo Milk (6% fat, 9% SNF) | Cow Milk (3.5% fat, 8.5% SNF) |
|---|---|---|
| 2021–22 | 39.8 | 29.4 |
| 2022–23 | 44.3 | 33.6 |
| 2023–24 | 46.5 | 35.2 |
| 2024–25 | 47.5 | 35.5 |
| 2025–26 | 49.2 | 36.7 |
Key Points Explained
- Milk yield naturally drops after 4–5 months of lactation.
- Cows and buffaloes in India typically produce milk until 10–12 years of age.
- Under Article 246(3), animal preservation is a State subject, not a Union subject.
- DAHD does not fix milk prices.
Prices are decided by cooperatives and private dairies based on:- Cost of production
- Market demand & supply
- Fat/SNF content
- Seasonal factors
Read More: GEA Finds New Genetic Potential to Reduce Lameness in Dairy Cows
Central Schemes Supporting the Dairy Sector
DAHD runs several schemes to help states improve dairy productivity, infrastructure and farmer income:
- Rashtriya Gokul Mission (RGM) – Breed improvement, genetic enhancement
- National Programme for Dairy Development (NPDD) – Infrastructure, chilling, testing
- Supporting Dairy Cooperatives & FPOs (SDCFPO) – Working capital, support to dairy FPOs
- Animal Husbandry Infrastructure Development Fund (AHIDF) – Processing, chilling, value-addition
- National Livestock Mission (NLM) – Feed, fodder, breed development
- Livestock Health & Disease Control Programme (LHDCP) – Vaccination, disease control, biosecurity
Overall Impact
These schemes help:
- Increase milk productivity
- Strengthen dairy cooperatives and FPOs
- Expand processing and chilling infrastructure
- Improve feed availability
- Reduce cost of milk production
- Increase dairy farmers’ income
The information was provided in the Lok Sabha by Shri Rajiv Ranjan Singh (Lallan Singh), Minister of Fisheries, Animal Husbandry & Dairying.
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Disclaimer
I do my best to share reliable and well-researched market insights but occasional errors or omissions may slip through. Please view all content as informational.
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