Government Declines MSP for Milk, Focuses on Dairy Sector Strengthening

The government has no plans for a Minimum Support Price (MSP) for milk, opting instead to let cooperatives and private dairies set prices. Initiatives to empower dairy farmers include establishing Dairy Cooperative Societies and enhancing milk quality and production. Despite growth, the unorganized sector still manages much of the marketable surplus.

The Indian government has no intention of introducing a Minimum Support Price (MSP) for milk, relying on market dynamics governed by cooperatives and private dairies to set prices, as revealed in Parliament on Tuesday.

Minister for Fisheries, Animal Husbandry, and Dairying, Rajiv Ranjan Singh, explained that initiatives are underway to shield dairy farmers' interests, stabilize milk prices, and enhance quality monitoring nationwide. By 2026, 36,283 new Dairy Cooperative Societies (DCS) will be established, and 31,150 existing societies will be fortified, boosting organized sector involvement.

The country has witnessed a significant rise in milk production, with 248 million metric tonnes (MMT) produced in 2024-25, compared to 146 MMT in 2014-15. Innovations such as genetic improvement, artificial insemination, and in-vitro fertilization have propelled this growth. Despite advancements, expanding organized procurement remains a priority due to the dominance of the unorganized sector.