Currently, the TSDDCF pays ₹48 per litre for buffalo milk, which is expected to increase to ₹51. Meanwhile, cow milk suppliers, who receive ₹42.24 per litre—significantly higher than private dairies—could see a ₹2 to ₹3 reduction in their payment. Officials cited mounting losses of ₹12 crore per month as the reason for this adjustment, attributing it to high procurement costs and declining Vijaya brand sales.

Milk production has surged nationwide, with neighbouring states like Karnataka and Maharashtra offering milk at much lower rates, between ₹27 and ₹32 per litre. Many private and cooperative dairies are capitalising on this by importing cheaper milk and aggressively marketing it in Telangana. Additionally, counterfeit Vijaya brand sales have further dented its market presence, with official sales dropping to just 2.8 lakh litres per day.

To mitigate the crisis, TSDDCF management recently met with dairy farmers to discuss solutions. Three key proposals emerged: requesting the government to clear outstanding dues of ₹50 crore, revising procurement prices, and implementing a structured payment system with bills settled on the 5th and 20th of each month.