Government of India stays out of milk pricing decisions

The Department of Animal Husbandry & Dairying (DAHD), Government of India does not regulate the procurement and sale prices of milk. These are determined by cooperative and private dairies based on factors such as cost of production, stocks of dairy commodities (e.g., white butter, skimmed milk powder), and prevailing domestic and international market conditions. However, DAHD regularly monitors the milk situation in coordination with State Milk Federations and other stakeholders. There is a moderate increase in milk prices as reflected in the Consumer Price Index (CPI) for milk. The CPI of milk since 2019 in the month of July is tabulated below:

 

 

DAHD, GoI has not received any such representation/ report to indicate that increase in prices of packed and unpacked milk and dairy products affected the affordability of nutrients for children.

Department of Animal Husbandry and Dairying (DAHD), Government of India is implementing the following schemes across the country to complement and supplement the efforts of State Governments for development of milk production and milk processing infrastructure:

1. Rashtriya Gokul Mission (RGM): RGM is implemented for development and conservation of indigenous breeds, genetic upgradation of bovine population and enhancement of milk production and productivity of bovines.
2. National Programme for Dairy Development (NPDD): NPDD is implemented with following 2 components:

1. Component ''A'' of NPDD focuses on creating/strengthening of infrastructure for quality milk testing equipment as well as primary chilling facilities for State Cooperative Dairy Federations/ District Cooperative Milk Producers’ Union/ Self Help Groups (SHGs)/ Milk Producer Companies/ Farmer Producer Organizations.
2. Component ''B'' of the NPDD scheme "Dairying through Cooperatives” Japan International Cooperation Agency (JICA) assisted, aims to increase sale of milk and dairy products by increasing farmer’s access to organized market, upgrading dairy processing facilities and marketing infrastructure and enhancing the capacity of producer owned institutions.

3. Supporting Dairy Cooperatives & Farmer Producer Organisations engaged in dairy activities (SDCFPO): To assist the State Dairy Cooperative Federations by providing interest subvention (regular 2% and additional 2% on prompt repayment) with respect to soft working capital loan to tide over the crisis on account severely adverse market conditions or natural calamities.
4. Animal Husbandry Infrastructure Development Fund (AHIDF): AHIDF provides interest subvention at the rate 3% per annum for creation/ strengthening of livestock product processing and diversification infrastructure thereby providing greater access for unorganized producer members to organized market.
5. National Livestock Mission (NLM): To bring sharp focus on entrepreneurship development and breed improvement in poultry, sheep, goat, piggery and fodder by providing the incentivization to the individual, FPOs, SHGs, Section 8 companies ( for entrepreneurship development) and also to the State Government for breed improvement infrastructure
6. Livestock Health and Disease Control Programme (LHDCP): to provide for prophylactic vaccination against animal diseases, capacity building of veterinary services, disease surveillance, and strengthening veterinary infrastructure. Also, a new component of Pashu Aushadhi is added under the scheme to ensure availability of affordable generic veterinary medicine across the country through Pradhan Mantri Kisan Samriddhi Kendras (PM-KSK) and Cooperative Societies. This will create an ecosystem for Generic Medicine which will be affordable and of good quality.

These schemes are helping in improving milk productivity of bovines, expanding network of dairy cooperatives, strengthening of dairy infrastructure, working capital requirement, enhancing availability of feed and fodder and providing animal health services. These interventions help to reduce the cost of milk production to enhance income of milk producer from dairy farming and also help to stabilize milk prices.

India ranks number one in milk production globally. During the year 2023-24, 239.3 Million Metric tonnes of milk is produced in the country which is more than 25% of the total world milk production. Milk production in country has increased by 63.56 % during the past 10 years from 146.3 million tonnes in 2014-15 to 239.30 million metric tonnes in 2023-24. Milk production in the country is growing at the annual growth rate of 5.7 % during the past 10 years and whereas, world milk production is growing at 2% per annum. Per capita availability of milk in the country is more than 471 gm/person/day during the year 2023-24 against the per capita availability of 322 gram/ person/ day in the world. The milk production in the country is by and large sufficient to meet the demand.

This information was given by Union Minister of State, Ministry of Fisheries, Animal Husbandry and Dairying, Prof. S.P. Singh Baghel, in a written reply in Lok Sabha on 19th August, 2025.

Source : Dairynews7x7 Aug 20th 2025 PIB