Indore Milk Union increases farmer procurement rates to US$9.53 per kg of fat

INDIA – The Indore Cooperative Milk Union has increased milk procurement prices for farmers to Rs 840 (US$9.53) per kg of fat, a rise of more than 2%, and will establish 550 new milk committees, bringing the total to 2,208.

This comes at a time when the union is also undertaking a primary expansion drive, with 550 new milk committees to be formed, thereby increasing the total number from approximately 1,658 to 2,208 in the region.

The expansion initiative stems from a Memorandum of Understanding (MoU) between the Madhya Pradesh State Cooperative Dairy Federation (MPCDF) and the National Dairy Development Board (NDDB), focused on sharing technical expertise and implementing quality enhancement measures to maximize the plant’s operational capacity.

“Under the agreement between the state government and the NDDB, the formation of 550 new milk committees within the operational area of the Indore Milk Union is expected to strengthen the network of farmers and increase milk collection,” said MPCDF managing director Sanjay Govani.

Currently, the union collects nearly 2.8 lakh litres of milk daily through its committees. With the expansion, close to 14,000 new dairy farmers are expected to be integrated into the cooperative’s network.

Officials believe that this will not only increase milk procurement but also help strengthen cold chain infrastructure, improve quality monitoring, and ensure timely payments to farmers.

The procurement price hike is being seen as a farmer-centric decision, particularly at a time when rising fodder, fuel, and input costs have been putting pressure on dairy producers.

The revised rates will ensure better returns for farmers, making dairy farming more sustainable and attractive. By supporting farmers first, the Indore Union aims to strengthen loyalty and secure a long-term supply base.

Interestingly, while the union has raised procurement rates, it has not immediately passed on the cost to consumers. Its brand, Sanchi, had earlier increased packaged milk prices by Rs 2 per litre in early 2025, with the gold full-cream variant now retailing at Rs 67 for a one-litre pack.

However, the latest procurement hike has not yet been reflected in a retail price increase, maintaining stability in the consumer market.

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