**Executive Summary**
This document is the answer to Unstarred Question No. 1748 in the Lok Sabha, addressed to the Minister of Fisheries, Animal Husbandry and Dairying on February 10, 2026, regarding the state of dairy farming in India, particularly in Kerala. The questions address dairy farmer losses, the effectiveness of central schemes, and government support for the dairy industry. The Minister's response details the government's position and actions.
**Key Points / Main Content**
* **Kerala Dairy Farmer Losses:** The Department of Animal Husbandry and Dairying (DAHD) has not received reports indicating dairy farmers in Kerala are incurring losses due to production costs exceeding milk procurement prices.
* **Milk Price Regulation:** DAHD does not regulate milk procurement and sale prices; these are determined by cooperative and private dairies based on production costs, dairy commodity stocks, and market conditions.
* **Government Support Schemes:** DAHD is implementing schemes to support dairy development and small/marginal dairy farmers, including:
* 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)
* **Impact of Schemes:** These schemes aim to improve milk productivity, expand dairy cooperatives, strengthen infrastructure, address working capital, enhance feed availability, and provide animal health services to reduce production costs and increase farmer income.
* **Union Budget 2026-27 Support:** Because the government does not regulate milk prices directly and is already implementing the support schemes mentioned, specific steps in the Union Budget 2026-27 do not arise.
**Impact Analysis**
**Stakeholder:** Dairy Farmers (specifically in Kerala, and small/marginal dairy farmers across the country)
* **Impact:** The response indicates that DAHD has not received reports of losses, and DAHD does not directly regulate milk prices. However, the government offers multiple schemes to improve farmer income and reduce production costs.
* **Action Required:** Dairy farmers should engage with the government support schemes such as RGM, NPDD, SDCFPO, AHIDF, NLM and LHDCP in order to improve productivity, animal health, and their working capital requirements.
**Stakeholder:** Cooperative and Private Dairies
* **Impact:** These entities retain control over milk procurement and sale prices, based on market factors, however the government is providing support to small and marginal dairy farmers who supply to these companies, which helps improve the economics of their supply.
* **Action Required:** Private and cooperative dairies should continue to set prices based on cost of production, stock of commodities, and market conditions.
**Stakeholder:** State Government (Kerala)
* **Impact:** The Central Government is supplementing State Government efforts to promote sustainable dairy development.
* **Action Required:** The State Government should continue working alongside Central Government schemes to support the small and marginal dairy farmers of Kerala.
Key Entities Referenced
Department of Animal Husbandry and Dairying (DAHD): The Indian governmental department responsible for policies related to animal husbandry and dairying, answering a question on dairy farming.
Kerala: Indian state; the location where dairy farmers are reportedly experiencing losses.
National Programme for Dairy Development (NPDD): A Central scheme by the Indian government aimed at improving milk procurement, processing, and rural incomes.
Rashtriya Gokul Mission (RGM): A scheme implemented by the Department of Animal Husbandry and Dairying (DAHD) to promote sustainable dairy development.
Animal Husbandry Infrastructure Development Fund (AHIDF): A scheme implemented by the Department of Animal Husbandry and Dairying (DAHD) to promote sustainable dairy development.
GOVERNMENT OF INDIA
MINISTRY OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
DEPARTMENT OF ANIMAL HUSBANDRY AND DAIRYING
LOK SABHA
UNSTARRED QUESTION NO. 1748
TO BE ANSWERED ON 10TH FEBRUARY 2026
DAIRY FARMING
1748. DR. SHASHI THAROOR:
Will the Minister of FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
मत्स्यपालन, पशुपालन और डेयरी मंत्री
be pleased to state:
(a) whether Government is aware that dairy farmers in Kerala are reporting losses because
production costs exceed milk procurement prices currently offered, farmers receiving Rs.
42-48 per litre only while actual costs around Rs. 52 per litre, this is contributing to a
decline in dairy herds and farmer exits;
(b) whether the Government has made any assessment to find the reasons for existing Central
schemes, including the Revised National Programme for Dairy Development aimed at
improving milk procurement, processing and rural incomes which have not improved
remunerative prices or cost support at the farm level;
(c) whether there is any gap between scheme design and actual farm-level relief, especially
for small and marginal dairy producers and if so, the reasons therefor; and
(d) the steps being taken by the Government in the Union Budget 2026-27 to ensure that
central dairy development support results in viable economics for producers, fair milk
prices, reduced dependence on imports and sustained rural livelihoods?
ANSWER
THE MINISTER OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
(SHRI RAJIV RANJAN SINGH ALIAS LALAN SINGH)
(a) The Department of Animal Husbandry and Dairying (DAHD), Government of India (GoI)
has not received any such report indicating that dairy farmers in Kerala are incurring losses
due to production costs exceeding milk procurement prices, or that this has contributed to a
decline in dairy herds and farmer exits.
(b) and (c) DAHD, GoI does not regulate the procurement and sale prices of milk. These are
determined by cooperative and private dairies based on factors such as cost of production,
stocks of dairy commodities (e.g., white butter, skimmed milk powder), and prevailing
domestic and international market conditions. However, DAHD, GoI is implementing the
following schemes to supplement the efforts made by the State Government to promote
sustainable dairy development and support to small and marginal dairy farmers across the
country including Kerala:
i. Rashtriya Gokul Mission (RGM).
ii. National Programme for Dairy Development (NPDD)
iii. Supporting Dairy Cooperatives & Farmer Producer Organisations engaged in dairy
activities (SDCFPO)
iv. Animal Husbandry Infrastructure Development Fund (AHIDF)v. National Livestock Mission (NLM)
vi. 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.
(d) In view of (b) and (c) above, does not arise
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