The Department of Animal Husbandry and Dairying (DAHD) has clarified that it has no plans to introduce price support schemes or subsidies for dairy farmers. The department emphasized that milk procurement and sale prices in India are determined by cooperative and private dairies based on production costs and market forces. A press release on this clarification was issued on March 12, 2025.
The DAHD reiterated that it does not regulate milk prices, allowing market dynamics to dictate pricing. In the dairy cooperative sector, it was noted that approximately 70-80% of the consumer rupee is returned to milk producer farmers.
The dairy sector plays a vital role in India’s agricultural economy, contributing over 5%. In 2022-23, the value of milk output reached Rs. 11.16 lakh crore, surpassing the total value of food grain production.
Government Initiatives for Dairy Sector Development
Instead of price support, the DAHD is focusing on strengthening the dairy sector through various schemes aimed at improving productivity, infrastructure, and market access. These schemes include:
- National Programme for Dairy Development (NPDD)
- Supporting Dairy Cooperatives & Farmer Producer Organisations engaged in dairy activities (SDCFPO)
- Animal Husbandry Infrastructure Development Fund (AHIDF)
- Rashtriya Gokul Mission (RGM)
- National Livestock Mission (NLM)
- Livestock Health and Disease Control Programme (LHDCP)
These programs aim to:
- Improve bovine milk productivity.
- Strengthen dairy infrastructure.
- Enhance feed and fodder availability.
- Provide animal health services.
- Reduce milk production costs.
- Organize market access.
- Enhance income for dairy farmers.
Under the NPDD, 23,516 Dairy Cooperative Societies have been established or strengthened. Additionally, the DAHD and the Ministry of Cooperation are jointly implementing “White Revolution 2.0,” aiming to create 75,000 new dairy cooperatives across the country within five years.
