India’s largest dairy cooperative raises procurement rates, strengthening farmer incomes amid rising production costs.
Banas Dairy has announced a fresh increase in milk procurement prices, raising payments to producers to Rs 860 per kilogram of fat. The move is expected to directly benefit thousands of dairy farmers across Gujarat and reinforce the cooperative’s position as one of India’s most influential milk procurement networks.
The revised pricing structure reflects the cooperative’s effort to support producers facing rising feed, labour and operational costs. Officials said the higher procurement rates are aimed at ensuring dairy farming remains economically viable while encouraging consistent milk production in one of India’s key dairy regions.
Banas Dairy has continued expanding its procurement operations and processing capabilities as domestic demand for milk and dairy products grows steadily. The cooperative model, which channels earnings back to farmers, has been credited with strengthening rural incomes and improving financial stability for small and medium-scale producers.
Industry observers note that higher procurement prices could increase competition among dairy processors and cooperatives seeking to secure stable milk supplies. The decision may also influence pricing strategies adopted by other dairy unions and private processors across India’s rapidly expanding dairy market.
The latest increase further highlights the growing importance of farmer-centric pricing policies within India’s dairy sector. As production costs continue rising and consumer demand remains strong, cooperatives like Banas Dairy are positioning themselves to maintain farmer loyalty while sustaining long-term milk supply growth.
Source: The Times of India – Banas Dairy Hikes Milk Procurement Prices
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