Goa Increases Milk Procurement Prices to Support Local Dairy Farmers

The government of Goa has enacted a significant price adjustment for milk procurement to enhance the financial stability of local dairy farmers. This decision, approved by Chief Minister Pramod Sawant, follows advocacy by the Bharatiya Kisan Sangh, which sought to protect farmers' livelihoods amidst rising operational costs.

Under the new pricing model, the procurement price for cow milk has risen by ₹6 per liter, while buffalo milk sees an increase of ₹10 per liter. This change is part of a broader policy to provide a stable revenue stream for farmers, who will now earn ₹56 per liter for cow milk with 4% fat and 8.5% solids-not-fat, and ₹78.4 per liter for buffalo milk with 6% fat and 9% SNF.

This intervention aims to address the economic challenges faced by local producers, who were previously disadvantaged by price disparities with neighboring regions like Maharashtra, where cow milk fetches approximately ₹36 per liter and buffalo milk ₹53.5 per liter. The increase in Goa's procurement prices helps narrow this gap and alleviate frustrations among farmers.

The decision also responds to pressures from cross-border economic conditions, where on-farm input costs have been rising. Public demonstrations and petitions to bodies like Goa Dairy highlighted these issues, prompting the government to act.

While the government has absorbed the financial impact to keep retail prices stable, analysts suggest that sustained subsidies could eventually lead to inflation in consumer prices. The state’s approach underscores the importance of maintaining farmer confidence and stabilizing milk procurement volumes during times of market misalignment.