**Executive Summary**
The Department of Animal Husbandry and Dairying (DAHD) is implementing various schemes nationwide to support State Government efforts in the dairy sector. The average milk procurement price has been increasing over the past five years. Milk prices are not regulated by DAHD but are determined by cooperative and private dairies based on production costs and market forces. The information was provided on 02 DEC 2025 in a written reply to a question in Lok Sabha.
**Key Points / Main Content**
* **Milk Pricing and Taxation:**
* The average price of milk has consistently increased over the past five years.
* Liquid milk is exempt from Goods and Service Tax (GST)/excise duty.
* DAHD does not regulate milk prices; they are determined by cooperatives and private dairies.
* **Average Milk Procurement Prices (Rs./Litre):**
* Table indicating the average procurement price of buffalo milk (6% Fat and 9% SNF) and cow milk (3.5% Fat and 8.5% SNF) for the years 2021-22 to 2025-26, including subsidies from State Governments.
* **Milk Production:**
* Milk yields typically decrease after 4-5 months of lactation.
* Cows and buffaloes in India produce milk up to the age of 10-12 years, on average.
* **Legislative Authority:**
* Article 246(3) of the Constitution grants State legislatures exclusive power to legislate on the preservation of animals.
* **DAHD Schemes:**
* DAHD implements schemes to complement State Government efforts, including:
* Rashtriya Gokul Mission (RGM)
* National Programme for Dairy Development (NPDD)
* Supporting Dairy Cooperatives & Farmer Producer Organisations (SDCFPO)
* Animal Husbandry Infrastructure Development Fund (AHIDF)
* National Livestock Mission (NLM)
* Livestock Health and Disease Control Programme (LHDCP)
* **Scheme Benefits:**
* The schemes aim to improve milk productivity, expand dairy cooperative networks, strengthen dairy infrastructure, enhance feed availability, and provide animal health services.
* These interventions help to reduce the cost of milk production and increase the income of milk producers.
**Impact Analysis**
**Milk Producers (Farmers):**
* **Impact:** Improved milk productivity, reduced production costs, enhanced income through DAHD schemes, increased availability of animal health services.
* **Action Required:** Participate in relevant DAHD schemes to leverage benefits for improving milk production and income.
**Dairy Cooperatives & Private Dairies:**
* **Impact:** Expansion of network, strengthening of infrastructure, schemes to support operations, impacting production costs and market reach.
* **Action Required:** Collaborate with DAHD to implement and benefit from schemes aimed at strengthening dairy infrastructure and expanding market reach.
**State Governments:**
* **Impact:** DAHD schemes complement and supplement state-level efforts in animal husbandry and dairying.
* **Action Required:** Coordinate with DAHD to ensure effective implementation of schemes and maximize benefits for the dairy sector within their respective states.
Key Entities Referenced
Department of Animal Husbandry and Dairying (DAHD): The primary entity responsible for implementing schemes related to dairy and animal husbandry.
Constitution: The document referenced regarding the distribution of legislative powers related to animal preservation.
Goods and Service Tax (GST): The tax from which liquid milk is exempted.
Rashtriya Gokul Mission (RGM): One of the schemes implemented by DAHD to improve milk productivity.
National Programme for Dairy Development (NPDD): One of the schemes implemented by DAHD to improve milk productivity.
Ministry of Fisheries, Animal Husbandry & Dairying
DAHD is implementing the following schemes
across the country to complement and
supplement the efforts made by the State
Government
प्रव तथ: 02 DEC 2025 3:37PM by PIB Delhi
The average price of milk has not fallen in the past five years and it has been continuously increasing.
Further, liquid milk is exempted from Goods and Service Tax (GST)/ excise duty.
Average milk procurement price* (Rs./Litre)
Year Buffalo Milk (Fat-6% and SNF 9%) Cow Milk (Fat- 3.5% and SNF8.5%)
2021-22 39.8 29.4
2022-23 44.3 33.6
2023-24 46.5 35.2
2024-25 47.5 35.5
2025-26 49.2 36.7
*Source: Milk Unions/ Federations
Price is inclusive of subsidies provided by State Govts
During the course of a lactation, the milk yields typically decrease after 4-5 months of lactation. It is a
natural phenomenon. Further, on an average, cows-buffaloes in India are producing milk up to the age of
10-12 years.
c. As per Article 246(3) of the Constitution, under the distribution of legislative powers between the
Union and the States, the preservation of animal is a matter on which the State legislature has
exclusive powers to legislate
d. Department of Animal Husbandry and Dairying (DAHD) does not regulate the milk prices in the
country. Milk Prices are decided by the cooperative and private dairies based on their cost of
production and market forces. However, DAHD is implementing the following schemes across the
country to complement and supplement the efforts made by the State Government:Rashtriya Gokul Mission (RGM)
National Programme for Dairy Development (NPDD)
Supporting Dairy Cooperatives & Farmer Producer Organisations engaged in dairy activities
(SDCFPO)
Animal Husbandry Infrastructure Development Fund (AHIDF)
National Livestock Mission (NLM)
Livestock Health and Disease Control Programme (LHDCP)
These schemes are helping in improving milk productivity of bovines, expanding network of dairy
cooperatives, strengthening of dairy infrastructure, working capital requirement, enhancing availability of
feed and fodder and providing animal health services. These interventions help to reduce the cost of milk
production and also help to enhance income of milk producer from dairy farming.
The information was provided by THE MINISTER OF Fisheries,Animal Husbandry and Dairying, SHRI
Rajiv Ranjan Singh Alias Lallan Singh in a written reply to a question in Lok Sabha today.
JP(Lok Sabha Q 376)
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