Amul Dairy boosts milk procurement price while lowering cattle feed costs

INDIA – Anand-based Amul Dairy has announced an increase in the milk procurement price it pays to farmers while simultaneously reducing the price of cattle feed to support dairy farmers.

The changes will take effect from June 1, 2025, reducing operational costs for farmers, making dairy farming more affordable and sustainable.

Chairman Vipul Patel stated that this is the first time in the history of the milk union that procurement prices are rising while cattle feed costs are decreasing.

Under the revised structure, milk procurement prices will rise by Rs 10 per kilogram of fat, from Rs 855 to Rs 865 per kilogram of fat.

Patel stated that the adjustment would directly benefit more than 700,000 milk producers who are members of Amul Dairy across Anand, Kheda, and Mahisagar districts. He highlighted that this new price is the highest in Gujarat, further strengthening Amul’s support for farmers.

At the same time, Amul Dairy has implemented a 50 paisa per kilogram reduction in cattle feed prices, making it more affordable for dairy farmers. As a result, the price of a 70-kg bag of cattle feed has decreased from Rs 1,540 to Rs 1,505, while a 50-kg bag now costs Rs 1,050 instead of Rs 1,075.

“For the 2024-25 financial year, we paid Rs 1,028 per kilo of fat as the final price, which was the highest in the history of our union,” Patel added, underscoring Amul’s commitment to supporting dairy farmers and enhancing profitability in the sector.

The decision to adjust milk procurement and cattle feed prices comes in response to evolving market conditions and efforts to boost farmer earnings while reducing operational costs.

With these measures in place, Amul Dairy continues to reinforce its role as a key driver of the dairy industry in Gujarat.

FY 2024

Recently, Amul Dairy achieved a significant milestone with a record turnover of US$1.5 million (Rs 12,880 crore) in the financial year 2023-24.

This marks a 9% growth compared to the previous fiscal year, reflecting the dairy’s robust performance and commitment to quality.

Vipul Patel, Chairman of Amul Dairy, expressed pride in this achievement, emphasizing its historic significance for the organization.

He highlighted the dairy’s focus on ensuring milk quality and supporting milk producers, which has been instrumental in driving growth.

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