Katraj Milk Union has increased its milk procurement price by ₹1 per litre for both cow and buffalo milk, providing some relief to dairy farmers amid rising milk-production costs. The move is significant for the Pune dairy supply chain, where farmer remuneration remains closely linked to procurement volumes and organised dairy collection.
The higher procurement price is expected to support farmer economics as feed, fodder and other dairy-input costs remain under pressure. For Katraj Dairy, maintaining an adequate and consistent farmer supply base is critical to sustaining milk procurement and processing operations.
The revision also comes amid broader milk-price increases in Maharashtra, with other cooperatives and dairy brands adjusting prices in response to higher input costs. Recent market reports have highlighted rising milk and sugar prices as key factors pushing up costs across the dairy and food ecosystem.
For dairy farmers, even a ₹1/litre increase can improve returns when applied across regular milk supplies; for processors, however, higher procurement costs can put additional pressure on margins unless efficiency, volumes or consumer prices offset the increase.
Source: Dairynews7x7 11 Sep, 2026 Read full story here
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