Higher Farmer Payments, Government Incentives and Early Monsoon Drive Record Milk Collection; Nandini Sales Surge Across India.
Bengaluru: In a significant achievement for India’s dairy cooperative sector, the Karnataka Co-operative Milk Producers’ Federation (KMF) has successfully overcome the traditional summer decline in milk production, recording daily milk procurement of more than one crore litres consistently since April 2026.
The milestone comes despite Karnataka experiencing one of its hottest summers in recent years, with prolonged dry conditions and high temperatures affecting several districts.
Traditionally, milk procurement in Karnataka declines during the summer months due to heat stress in dairy animals and reduced fodder availability. In previous years, daily milk collection typically dropped to around 85–90 lakh litres during this period. During the summer of 2025, KMF received an average of only 80–85 lakh litres per day.
However, this year the federation has maintained procurement levels above the one-crore-litre mark, setting new records for summer milk collection.
Strategic Support Boosts Farmer Confidence
According to KMF Managing Director Shivaswamy B, a combination of attractive milk procurement prices, government support schemes, and favourable weather conditions contributed to the remarkable performance.
“We have continued to provide remunerative prices to milk producers. The average procurement price is approximately ₹34.50 per litre. Combined with the Karnataka government’s Ksheera Dhaare incentive of ₹5 per litre, farmers are receiving close to ₹40 per litre,” he said.
Industry experts note that competitive pricing plays a critical role in encouraging farmers to maintain dairy production even during challenging climatic conditions.
KMF also benefited from the early arrival of monsoon showers, which improved fodder availability and helped reduce heat stress among dairy animals.
Record-Breaking Summer Procurement
The federation crossed the 1.06-crore-litre procurement mark on May 25, nearly a month earlier than in 2025 when the same milestone was achieved on June 21.
Daily milk collection averaged between 1.02 and 1.03 crore litres during April 2026 and increased further to 1.04 crore litres in May.
KMF set two new seasonal records during the summer:
- 1.06 crore litres on April 21
- 1.08 crore litres on May 20, the highest-ever summer milk procurement recorded by the federation
Officials identified the milk unions of Bengaluru Rural, Bengaluru South (Ramanagara), and Hassan as major contributors to the increase in milk supply.
Based on current trends, KMF expects peak daily procurement to reach approximately 1.2 crore litres later this year.
Efficient Payment System Strengthens Supply Chain
A key factor behind the federation’s success has been its farmer-friendly payment mechanism.
Most of KMF’s 15–16 member milk unions follow a 10-day payment cycle, ensuring prompt payments to producers. This has strengthened farmer confidence, improved liquidity in rural areas, and encouraged sustained milk production throughout the year.
Strong Growth in Nandini Demand
The increase in milk production has been accompanied by robust growth in demand for KMF’s flagship dairy brand, Nandini, across Karnataka and several other Indian markets.
In Delhi, daily Nandini milk sales have reached between 30,000 and 40,000 litres, exceeding last year’s figures.
Other product categories also recorded strong growth:
- Curd sales increased by 30%
- Combined curd and buttermilk sales rose by 14%
- Ice cream sales surged by 30%
- Ghee, paneer, and butter sales grew by 5%
- Out-of-state business expanded by 10%
Heatwave conditions across northern and western India, including temperatures reaching 44°C in Delhi, significantly boosted demand for dairy-based beverages, curd, buttermilk, and frozen dairy products.
Expanding National Footprint
KMF continues to strengthen its presence outside Karnataka, with growing operations in Hyderabad, Mumbai, Pune, Vidarbha, Chennai, and Delhi.
Read More: UNC Dairy Supports 11 Day Power Play with Chocolate Intense Milk Donation
The federation’s expansion strategy, coupled with rising consumer acceptance of Nandini products, is helping establish the cooperative as a major national dairy player.
A Model for India’s Dairy Cooperatives
The federation’s performance demonstrates how effective farmer support, timely government incentives, efficient payment systems, and market expansion can sustain dairy growth even under adverse climatic conditions.
With procurement levels expected to touch 1.2 crore litres per day and demand for value-added dairy products continuing to rise, KMF is reinforcing its position as one of India’s most successful dairy cooperatives and strengthening the contribution of dairy farming to Karnataka’s rural economy.
Join Our “Dairy & Food Jobs Updates” WhatsApp group
Follow the Agri Jobs Updates channel on WhatsApp:
Disclaimer
I do my best to share reliable and well-researched insights but occasional errors or omissions may slip through. Please view all content as informational.
Stay informed on all the latest news updates
All Agriculture Books Free Download
All Dairy Technology Books Free Download
All Agricultural Engineering Books Free download
All Horticulture Books Free Download
All Fisheries Science Books Free Download
For Daily Update follow us at:
Facebook Telegram Whatsapp Instagram YouTube
The contents are provided free for noncommercial purpose such as teaching, training, research, extension and self learning.
If you are facing any Problem than fill form Contact Us
If you want share any article related Agriculture with us than send at info@agrimoon.com with your contact detail.
