Milk Prices Continue Five-Year Rise; Centre Highlights Support Schemes for States

Ziraat Times Team Report

New Delhi, December 2: Milk prices in India have increased steadily over the past five years, with no decline recorded during the period, the Department of Animal Husbandry and Dairying (DAHD) informed the Lok Sabha on Tuesday. The ministry also clarified that liquid milk remains exempt from GST and excise duty.

According to data shared by DAHD, the average procurement price paid to farmers has risen consistently:

The figures, sourced from Milk Unions and Federations, include subsidies offered by state governments.

DAHD noted that variations in milk output during an animal’s lactation cycle—particularly declining yields after the first 4–5 months—are natural. Cows and buffaloes in India typically produce milk up to 10–12 years of age.

The ministry reiterated that milk price regulation falls under State jurisdiction, as per Article 246(3) of the Constitution. Prices are determined by cooperative and private dairies based on production costs and market conditions. The Centre does not intervene in pricing.

However, to support states and strengthen the dairy sector, DAHD is implementing several national programmes:

• Rashtriya Gokul Mission (RGM)

• National Programme for Dairy Development (NPDD)

• Supporting Dairy Cooperatives & FPOs (SDCFPO)

• Animal Husbandry Infrastructure Development Fund (AHIDF)

• National Livestock Mission (NLM)

• Livestock Health and Disease Control Programme (LHDCP)

These schemes focus on improving bovine productivity, expanding cooperative networks, upgrading dairy infrastructure, meeting working capital needs, improving feed and fodder availability, and strengthening veterinary services. Together, they aim to reduce production costs and increase farmers’ income from dairying.

The information was provided in a written reply by Minister of Fisheries, Animal Husbandry and Dairying Rajiv Ranjan Singh (Lallan Singh).