Union Minister Rajiv Ranjan Singh tells Lok Sabha there is no proposal for milk MSP, focusing instead on AHIDF infrastructure and digital NDLM tagging.
Free Market Stance Indian Government Rules Out Milk MSP, Directs Support to Dairy Infrastructure
According to the Minister, the infrastructure being developed under AHIDF is helping livestock farmers access larger markets and secure better returns for their produce. Image Credit: ChatGPT

Union Minister Rajiv Ranjan Singh reaffirms in Parliament that raw milk pricing will remain market-driven while expanding AHIDF capital and cooperative networks.

The Central Government has formally ruled out introducing a Minimum Support Price (MSP) for raw milk, clarifying that farmgate prices will remain strictly market-driven across the country. Replying to Lok Sabha inquiries regarding price guarantees for livestock farmers, Union Minister for Fisheries, Animal Husbandry and Dairying, Shri Rajiv Ranjan Singh, explained that milk prices are determined dynamically by dairy cooperatives and private processing companies based on local market conditions, fat/SNF composition, and seasonal supply-demand factors rather than government intervention.

While rejecting statutory price floors, the Minister highlighted that the government continues to provide active structural support to dairy farmers by strengthening midstream supply chains. Central initiatives are focused on expanding village-level milk procurement networks, scaling up processing capacity, reinforcing primary dairy cooperative societies, and upgrading quality testing facilities. These measures aim to optimize supply chain efficiency and build stronger market linkages, enabling producers to secure better net realizations without market distortions.

A key pillar of this development strategy is the Animal Husbandry Infrastructure Development Fund (AHIDF), which incentivizes private and cooperative investments in dairy processing plants, meat units, animal feed manufacturing, and value-addition infrastructure. Minister Singh informed Parliament that the Department of Animal Husbandry and Dairying regularly conducts awareness drives, stakeholder meetings, and outreach via State Governments, Common Service Centres (CSCs), and industry groups to drive wider participation and capital deployment.

In addition to physical infrastructure, the government is advancing digital reforms through the National Digital Livestock Mission (NDLM). Under this initiative, every registered animal receives a unique 12-digit Tag ID, creating a secure, lifetime digital record for vaccinations, breeding history, and veterinary treatments. Addressing data security questions, the Minister assured lawmakers that the NDLM portal utilizes AES-256 encryption and Transport Layer Security (TLS) to ensure robust protection for national livestock data.

Ultimately, the Lok Sabha disclosure underscores the Centre’s strategy of prioritizing infrastructure capital, veterinary healthcare, and digital management over direct price interventions. By combining private capital incentives under AHIDF with targeted programs like the National Livestock Mission (NLM) and Livestock Health and Disease Control Programme (LHDCP), the government aims to improve herd productivity, expand rural employment, and enhance the long-term economic resilience of India’s dairy sector.

Source: Devdiscourse / Press Information Bureau (PIB Delhi)

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