Government Rules Out MSP for Milk, Expands Dairy Sector Support

The Central Government has ruled out introducing a Minimum Support Price (MSP) for milk while reaffirming its commitment to strengthening India's dairy and livestock sector through infrastructure development, better veterinary services, digital livestock management and farmer-focused support schemes.

Responding to a series of questions in the Lok Sabha, Union Minister for Fisheries, Animal Husbandry and Dairying Rajiv Ranjan Singh outlined the government's ongoing initiatives to improve milk production, modernise the livestock sector and create better income opportunities for dairy farmers across the country.

Milk prices to remain market-driven

Addressing a question on milk pricing, the Minister said there is no proposal to introduce an MSP for milk. He explained that milk prices are decided by dairy cooperatives and private dairy companies based on prevailing market conditions rather than through government intervention.

At the same time, he said the government continues to support dairy farmers by expanding milk procurement networks, increasing processing capacity, strengthening village-level dairy cooperative societies, improving milk quality testing facilities and investing in modern dairy infrastructure. These measures are intended to create stronger market linkages and improve the overall efficiency of the dairy sector.

AHIDF driving investment in livestock infrastructure

Rajiv Ranjan Singh said the Animal Husbandry Infrastructure Development Fund (AHIDF) is encouraging private investment in dairy processing plants, meat processing units, animal feed manufacturing facilities and value-addition projects that strengthen the livestock economy.

He informed Parliament that the department regularly conducts awareness campaigns, training programmes, stakeholder meetings and outreach activities through state governments, Common Service Centres and industry associations to increase participation in the scheme. According to the Minister, the infrastructure being developed under AHIDF is helping livestock farmers access larger markets and secure better returns for their produce.

Digital livestock system strengthens animal management

The Minister also highlighted progress under the National Digital Livestock Mission (NDLM), saying every registered animal receives a unique 12-digit Tag ID that allows authorities and farmers to digitally record vaccinations, breeding history, treatments and other veterinary services throughout the animal's lifetime.

He added that the portal uses AES-256 encryption and Transport Layer Security (TLS) to provide government-grade data security. Rajiv Ranjan Singh also clarified that Mobile Veterinary Units are not currently integrated with the platform and no proposal has been received for linking banking APIs with the digital livestock system.

Dairy schemes continue to support farmers nationwide

The Minister said several flagship programmes, including the National Livestock Mission (NLM), Livestock Health and Disease Control Programme (LHDCP) and AHIDF, are helping improve milk production, strengthen veterinary infrastructure, promote entrepreneurship, support breed improvement and expand access to affordable veterinary medicines.

He also informed the Lok Sabha that 113 AHIDF projects worth ₹4,700.13 crore have been approved in Maharashtra, with ₹123.46 crore released as interest subvention, reflecting continued investment in dairy and livestock infrastructure to support rural employment and boost farmers' incomes.