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Milk prices in India rising consistently
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Thursday, 04 December, 2025, 13 : 00 PM [IST]
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Our Bureau, New Delhi
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The Department of Animal Husbandry and Dairying (DAHD) has revealed that average milk procurement prices in India have kept climbing over the past five years reaching Rs 49.2 per litre for buffalo milk and Rs 36.7 per litre for cow milk in 2025-26.
In its statement to the Parliament, the DAHD clarified that while dairy cooperatives and private dairies set milk prices, the rising trend reflects underlying growth in cost structures and demand. At the same time, liquid milk continues to enjoy exemption from GST and excise duty a policy move meant to keep end-consumer prices in check.
To support dairy farmers and strengthen the sector across India, the DAHD is implementing a slew of nationwide schemes. These include the Rashtriya Gokul Mission (RGM), National Programme for Dairy Development (NPDD), Supporting Dairy Cooperatives & Farmer Producer Organisations Scheme (SDCFPO), Animal Husbandry Infrastructure Development Fund (AHIDF), National Livestock Mission (NLM) and the Livestock Health and Disease Control Programme (LHDCP).
These initiatives aim to enhance milk productivity, expand dairy-cooperative networks, improve access to feed and fodder, upgrade infrastructure, support working capital needs, and ensure animal health services across the country. The combined impact of these efforts including better veterinary care, improved dairy-farm infrastructure, and more robust cooperative systems is expected to lower production costs and uplift the incomes of countless milk-producing farmers.
Although the centrally controlled national government doesn’t directly dictate milk prices state governments, cooperatives and private dairies do that the government’s supportive policy framework and ongoing reforms are strengthening the backbone of India’s dairy industry.
With the consistent increase in procurement prices, tax exemptions on liquid milk, and comprehensive support through multiple welfare and infrastructure schemes, dairy farmers in India are getting a better deal. For consumers too, the hope is that improved supply chains and efficiencies will keep fresh milk reasonably priced while supporting livelihoods in rural India.
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