Amul Raises Milk Procurement Prices, Big Relief for Dairy Farmers
Brief By Newsbrief / 4:48 PM on 21 May 2026
India’s largest dairy cooperative, Amul, has announced an increase in milk procurement prices for farmers and livestock owners from June 1, 2026. The decision comes at a time when the cost of cattle feed, medicines, and animal care has risen sharply, putting financial pressure on dairy farmers across the country.
Amul stated that the procurement rate has been increased by ₹10 per kilogram of fat. Earlier, farmers were paid ₹865 per kg fat, which will now rise to ₹875. In terms of milk pricing, farmers are expected to earn nearly ₹4.55 more per litre than before. The company says this increase will benefit millions of dairy farmers who supply milk daily to cooperative societies.
However, the announcement has also sparked debate among consumers and farmers alike. Many people have questioned why milk price hikes for customers are implemented immediately, while benefits for farmers are delayed until a fixed future date. Experts explain that dairy procurement operates on a large-scale system involving thousands of cooperative societies, automated machines, digital records, and payment systems. Before revised prices can be implemented, all procurement and accounting systems across the network must be updated, which takes time.
Amul Chairman Shabheshsinh Parmar said the cooperative has always prioritized the welfare of farmers and livestock owners. He added that dairy farmers are the backbone of the entire milk supply chain, and ensuring fair prices is essential for sustaining milk production in the country.
The decision is expected to significantly help rural families, especially small farmers and women involved in dairy work. Higher milk prices could strengthen village economies and encourage better livestock management.
Industry experts believe Amul’s move may also push other dairy brands to offer better procurement rates to farmers, which could further strengthen India’s dairy sector and boost milk production in the long term.