Punjab Increases Milk Procurement Rates to Support Dairy Farmers

Punjab's Chief Minister Bhagwant Mann has sanctioned an increase of ₹40 per kilogram of fat in milk procurement rates, a decision that aims to offer financial relief to dairy producers in the region. This adjustment addresses a significant demand from the Progressive Dairy Farmers’ Association (PDFA) to alleviate increasing operational costs.

The revised procurement rates raise the price for cow milk from ₹810 to ₹850 per kilogram of fat and buffalo milk from ₹850 to ₹890 per kilogram of fat. These rates are calculated based on the total weight of pure fat in the milk pool, differing from a flat per-liter rate approach. The changes will be applied retroactively from July 21.

The decision followed discussions in Chandigarh between Chief Minister Mann and a PDFA delegation, which included association president Daljit Singh Gill Sadarpura and executive committee members. During the talks, the economic strain imposed by rising prices of cattle feed, fodder, and veterinary care was highlighted, revealing the financial distress many dairy households were facing.

The Chief Minister reiterated the state government's commitment to supporting agricultural diversification and the allied farming sectors. He emphasized the importance of ensuring long-term farm viability, fair returns, and adequate infrastructure support across Punjab's rural areas.

The PDFA acknowledged the state's swift action, emphasizing that the procurement rate adjustment will help cover rising production costs and safeguard the livelihoods of producers. The increase in raw milk acquisition rates by state channels is expected to prompt private dairy processors in northern India to raise their own farmgate prices, maintaining competitive market dynamics.