**Executive Summary**
This document is a response to Unstarred Question No. 272 in Lok Sabha regarding the exploitation of dairy farmers in tribal areas of Andhra Pradesh due to low milk procurement rates. The response, provided by the Minister of Fisheries, Animal Husbandry and Dairying, states that milk prices are determined by cooperatives and private dairies based on production cost and market forces, and outlines the measures taken by the government to ensure fair pricing. The question was scheduled to be answered on December 2nd, 2025.
**Key Points / Main Content**
* **Milk Pricing Mechanism:**
* Milk prices are determined by cooperative and private dairies based on production costs and market forces.
* **Government Oversight and Initiatives:**
* The Department of Animal Husbandry and Dairying (DAHD) monitors the milk situation in consultation with State milk federations and stakeholders.
* The goal is to ensure fair price realization for farmers and affordability for consumers.
* **Infrastructure and Coverage in Andhra Pradesh:**
* 137 tribal mandals across 12 districts of Andhra Pradesh are involved.
* 1,118 villages across 121 mandals are covered under Central and State Government schemes for establishing and upgrading milk collection centres.
* **Current Milk Prices:**
* Buffalo milk price ranges from ₹45.65 to ₹83.00 per litre.
* Cow milk price ranges from ₹34.50 to ₹41.75 per litre.
**Impact Analysis**
**Dairy Farmers in Tribal and Agency Areas of Andhra Pradesh**
* **Impact:** Addressed concerns regarding low milk procurement rates and potential exploitation. Provided insight into government measures to ensure fair pricing.
* **Action Required:** Dairy farmers should be aware of the pricing mechanisms and government initiatives in place to support fair compensation for their milk.
**Consumers**
* **Impact:** The document addresses the affordability of milk for consumers.
* **Action Required:** Consumers need to be aware of the government's intention to balance fair prices for farmers with affordable prices for consumers.
Key Entities Referenced
Department of Animal Husbandry and Dairying (DAHD): The department responsible for monitoring the milk situation and ensuring fair prices.
Andhra Pradesh: The state where the dairy farmer exploitation is investigated.
Ministry of Fisheries, Animal Husbandry and Dairying: The ministry answering the question related to dairy farmers.
GOVERNMENT OF INDIA
MINISTRY OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
DEPARTMENT OF ANIMAL HUSBANDRY AND DAIRYING
LOK SABHA
UNSTARRED QUESTION NO. 272
TO BE ANSWERED ON 2nd DECEMBER 2025
DAIRY FARMERS IN TRIBAL AND AGENCY AREAS IN ANDHRA PRADESH
272. SHRI PUTTA MAHESH KUMAR:
Will the Minister of FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
मत्स्यपालन, पशुपालन और डेयरी मंत्री
be pleased to state:
(a) whether the Government is aware that dairy farmers in tribal and agency areas are being
exploited with low procurement rates for milk (around Rs. 45 per litre) due to lack of proper
collection centres and transparency in procurement systems; and
(b) if so, the number of milk collection centres being operated by the Central Government or its
agencies in tribal and agency regions of Andhra Pradesh and the steps taken by the Government
to ensure fair pricing and development of dairy farmers?
ANSWER
THE MINISTER OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
(SHRI RAJIV RANJAN SINGH ALIAS LALAN SINGH)
(a) and (b) The Milk Prices are decided by the cooperative and private dairies based on their cost
of production and market forces. The Department of Animal Husbandry and Dairying (DAHD)
regularly monitors the milk situation in the country, in consultation with State milk federations
and other stakeholders, to ensure fair price realization for farmers and affordability for
consumers. As reported by Andhra Pradesh Dairy Development Co-operative Federation ltd,
a total of 137 tribal mandals are spread across 12 districts of Andhra Pradesh, out of which
1,118 villages across 121 mandals are covered under various Central and State Government of
India schemes for establishment and upgradation of milk collection centres in tribal and agency
regions. Procurement channels and market linkages have been extended to get the best possible
price to the dairying farmers against the quality of milk poured. Currently, the buffalo milk
price payable to the dairying farmers ranging from ₹45.65 to ₹83.00 per litre and cow milk
₹34.50 to ₹41.75 per litre.
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