This document summarizes Lok Sabha Unstarred Question No. 2573, addressed to the Minister of Fisheries, Animal Husbandry and Dairying on August 5, 2025, regarding milk procurement rates in India, specifically in Maharashtra. The question raised concerns about the disparity between the procurement price received by dairy farmers (averaging ₹32 per liter in Maharashtra) and the price paid by consumers (up to ₹60 per liter), and the role of intermediary costs, quality testing malpractices, and unregulated pricing by private dairies. The question also inquired about the potential establishment of a Milk Marketing and Regulatory Board and a Fair and Remunerative Price (FRP)-like mechanism for milk.
The Minister of State for Fisheries, Animal Husbandry and Dairying, Prof. S.P. Singh Baghel, responded that the Department of Animal Husbandry and Dairying (DAHD) does not regulate milk procurement and sale prices, as these are determined by cooperative and private dairies based on production costs, dairy commodity stocks, and market conditions. However, DAHD monitors the milk situation in coordination with State Milk Federations and stakeholders.
The response cited the Milk Situation Report for June 2025, which indicated an all-India average procurement price of ₹47.70 per kg of milk (containing 6% fat and 9% solids-not-fat (SNF)) and an all-India average sale price of ₹65.04 per liter, implying that approximately 73% of the consumer price is returned to farmers. In Maharashtra, the state government reported an average procurement price of ₹49 per kg for milk with the same composition and an average sale price of ₹70 per liter, reflecting that nearly 70% of the consumer price benefits farmers.
Given these figures, the Minister stated that further action regarding milk procurement and pricing was not deemed necessary. Regarding milk quality, the response noted that the Food Safety and Standards Authority of India (FSSAI), under the Ministry of Health and Family Welfare, is responsible for enforcing food safety standards for milk and milk products to prevent adulteration. Therefore, the questions regarding a Milk Marketing and Regulatory Board and an FRP-like mechanism were also deemed not to arise.
Key Entities Referenced
Ministry of Fisheries, Animal Husbandry and Dairying: A ministry of the Government of India responsible for fisheries, animal husbandry, and dairying.
Department of Animal Husbandry and Dairying: A department under the Ministry of Fisheries, Animal Husbandry and Dairying, Government of India (DAHD).
Maharashtra: A state in India where dairy farmers receive a procurement price of only 32 per litre.
Milk Procurement Rate Committees: State level committees in certain States that are unable to ensure fair pricing due to lack of enforcement powers over private players.
Milk Marketing and Regulatory Board: A proposed board for mandatory monthly reporting on adulteration levels in milk.
Fair and Remunerative Price: A FRPlike mechanism for milk.
Food Safety and Standards Authority of India: An authority under the Ministry of Health and Family Welfare, responsible for food safety standards for milk and milk products (FSSAI).
Prof. S.P. Singh Baghel: The Minister of State for Fisheries, Animal Husbandry and Dairying.
GOVERNMENT OF INDIA
MINISTRY OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
DEPARTMENT OF ANIMAL HUSBANDRY AND DAIRYING
LOK SABHA
UNSTARRED QUESTION NO. 2573
TO BE ANSWERED ON 5TH AUGUST 2025
MILK PROCUREMENT RATE COMMITTEES
2573. Dr. Amol Ramsing Kolhe:
Shri Bhaskar Murlidhar Bhagare:
Shri Sanjay Dina Patil:
Smt. Supriya Sule:
Prof. Varsha Eknath Gaikwad:
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, especially in States like Maharashtra,
receive and average procurement price of only 32 per litre, while consumers pay up to 60 per
litre, reflecting a disparity of nearly 87.5 percent;
(b) if so, the reasons for such disparity, including the impact of intermediary costs, alleged
malpractices in milk quality testing, and unregulated pricing by private dairies, which
reportedly handle over 74 per cent of milk procurement in the country;
(c) whether the State level Milk Procurement Rate Committees in certain States are unable to
ensure fair pricing due to lack of enforcement powers over private players;
(d) whether the Government proposes to introduce reforms such as establishment of a Milk
Marketing and Regulatory Board for mandatory monthly reporting on adulteration levels and a
Fair and Remunerative Price (FRP)-like mechanism for milk; and
(e) if so, the details thereof and the proposed timeline by which it is likely to be implemented?
ANSWER
THE MINISTER OF STATE FOR FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
(PROF. S.P. SINGH BAGHEL)
(a) The Department of Animal Husbandry & Dairying (DAHD), Government of India 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 regularly monitors the milk situation in coordination with State
Milk Federations and other stakeholders. As per the Milk Situation Report for June 2025, the all
India average procurement price paid to farmers was approximately Rs.47.70 per kg of milk
containing 6% fat and 9% solids-not-fat (SNF), while the all India average sale price stood at
Rs.65.04 per litre. This indicates that about 73% of consumer price is returned to farmers.
Similarly, in Maharashtra, the State Government reported an average procurement price of Rs.49
per kg for milk with the same composition, and an average sale price of about Rs 70 per litre
reflecting that nearly 70% of consumer price directly benefits farmers.
(b) Does not arise in view of (a) above with respect to milk procurement and milk price. As regards
the quality of milk, Food safety Standards for milk and milk products comes under the preview
of Food Safety and Standards Authority of India (FSSAI), Ministry of Health and Family
Welfare, and they are taking enforcement measures to prevent adulteration.
(c) to (e) Does not arise in view of (a)
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