Lok Sabha Question No. 2573 (UNSTARRED), answered on 2025-08-05
Subject: Milk Procurement Rate Committees
Ministry: FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
Asked by: Shri Sanjay Dina Patil, Prof. Varsha Eknath Gaikwad, Shri Bhaskar Murlidhar Bhagare, Dr. Amol Ramsing Kolhe, Smt. Supriya Sule

## 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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