Indian Government Maintains Market-Linked Pricing for Milk
The Indian government has announced that it will not implement a Minimum Support Price (MSP) for milk. Instead, the prices will continue to be determined by market conditions, as stated in a parliamentary session. Rajiv Ranjan Singh, the Minister of Fisheries, Animal Husbandry and Dairying, conveyed this decision in response to a query in the Lok Sabha.
Currently, milk prices in India are set by cooperatives and private dairies based on prevailing market conditions. In a bid to protect dairy farmers' interests and maintain price stability, the government is pursuing a range of initiatives.
Expansion and Quality Initiatives
Efforts to bring more milk producers into the organized sector have led to the establishment of 36,283 new Dairy Cooperative Societies (DCS) by March 2026. Additionally, 31,150 existing societies have been strengthened to enhance their operations. The government has also increased milk chilling capacity to 168 lakh litres per day and distributed 76,748 quality testing devices across the country.
Projects designed to boost milk processing and value addition have been approved, with a total capacity of 418 lakh litres per day. These measures are part of a broader strategy to improve milk production and quality.
Production and Genetic Improvements
India's milk production reached 248 million metric tonnes in the 2024-25 period, a significant increase from 146 million metric tonnes in 2014-15. This growth, approximately 69 per cent, has been attributed to advancements in breed development, genetic improvement, and initiatives such as free artificial insemination and in-vitro fertilization.
The government reported that 17.27 crore artificial inseminations have been conducted, expanding coverage from 20 per cent to 42 per cent. These efforts have resulted in a 67 per cent boost in milk productivity.
Despite these advances, 68 per cent of the marketable milk surplus is still handled by the unorganized sector. The government remains focused on expanding organized procurement through enhanced village-level dairy infrastructure.
Quality Monitoring
The Food Safety and Standards Authority of India (FSSAI) continues its nationwide surveillance of milk quality. This is conducted in collaboration with State Food Safety Authorities to ensure compliance with safety standards.
