Milk Procurement Surges Fivefold Since 2001, Cementing Gujarat as a Major Powerhouse in the International Dairy Sector.
In a landmark achievement for India’s agribusiness sector, milk procurement in Gujarat has seen a phenomenal fivefold increase over the past two decades. According to Union Cooperation Minister Amit Shah, daily milk procurement in the state has surged from 50 lakh litres in 2001-02 to an impressive 250 lakh litres in 2024-25. This historic growth is a clear indicator of the robust development and modernization of the state’s dairy industry.
The surge in milk procurement is a direct result of key government initiatives. The article highlights that a range of schemes, including the National Programme for Dairy Development (NPDD), the Dairy Processing and Infrastructure Development Fund (DIDF), and the Animal Husbandry Infrastructure Development Fund (AHIDF), have played a vital role. These programs have provided essential assistance for modernizing infrastructure, improving breeding practices, and developing fodder resources for dairy farmers.
A critical piece of data journalism reveals that this growth has been financially beneficial for producers. The article notes a significant improvement in dairy farmers’ incomes, with average milk prices paid to farmers increasing by 140% over the last 15 years. This substantial price hike, from an average of ₹400 per kg fat to ₹950 per kg fat, has directly contributed to the expansion of chilling and milk procurement capacities across the state.
The success of Gujarat’s dairy industry is also due to its well-structured cooperative network. The state boasts a strong system led by the Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), widely known as Amul. With 18 district unions and over 36 lakh members, the cooperative model has been instrumental in procuring approximately 250 lakh litres of milk daily. This collective effort solidifies Gujarat’s position as a leading milk-producing state in the country.
For the international dairy community, Gujarat’s success story serves as a powerful case study in dairy economics. The combination of effective government support, strategic infrastructure investment, and a strong cooperative framework has created a thriving and sustainable dairy sector. The achievement demonstrates how targeted development initiatives can dramatically increase production, improve farmer livelihoods, and establish a region as a global dairy powerhouse.
Source: The Economic Times, “Gujarat’s milk procurement hits 250 lakh litres per day, fivefold jump since 2001: Amit Shah”
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