
India’s Dairy Giant Boosts Milk Prices and Subsidies, Injecting Millions into the Local Economy.
Kolhapur Zilla Sahakari Dudh Utpadak Sangharsh Ltd., widely known as Gokul Dairy, has announced a significant boost for its milk producers. The cooperative has increased its milk purchase price by Re 1 per litre for both cow and buffalo milk, a change that will take effect on September 1. This strategic move is expected to inject an additional Rs 4 to 5 crore into the district’s economy each month, providing a much-needed financial lift for thousands of dairy farmers.
In a further show of support, Gokul Dairy is also enhancing its subsidies for small dairies. To help these smaller operations cope with rising costs for construction materials and worker salaries, the cooperative’s directors have approved an increase in the incentive grant for employees. The building grant will also see a rise of Rs 8,000 to Rs 10,000, with the final amount linked to the amount of milk collected. These measures are designed to strengthen the foundation of the agribusiness sector at the local level.
The cooperative is also relaxing the criteria for its open cattle shed subsidy scheme. The minimum requirement of animals to qualify for the subsidy has been reduced from five to four. This adjustment aims to expand the program’s reach, allowing more cattle sheds to receive financial support and encouraging broader participation in milk production. The article notes that Gokul currently collects 16 lakh litres of milk daily from 7,500 small dairies, with a goal of crossing the 20 lakh litre mark in the near future.
Gokul Dairy’s president, Navid Mushrif, stated that these changes are about providing “justice to the work of milk producers” and empowering small dairy employees. For the international dairy community, this is a powerful example of a cooperative using its scale to directly support its members and encourage production growth. It demonstrates a commitment to sustainable growth by addressing the economic pressures faced by individual farmers, which is a key element of resilient dairy economics.
This proactive approach is a critical data point for analysts and producers watching the global dairy market. It shows how targeted price increases and subsidies can be used as tools to stabilize milk supply and support livelihoods, even in the face of broader economic volatility. Gokul Dairy’s decision to invest in its producers reflects a long-term vision focused on strengthening the entire supply chain, from the smallest dairy farm up to the cooperative’s ambitious growth targets.
Source: The Times of India, “Gokul increases milk purchase price and subsidies for small dairies”
You can now read the most important #news on #eDairyNews #Whatsapp channels!!!
🇮🇳 eDairy News ÍNDIA: https://whatsapp.com/channel/0029VaPidCcGpLHImBQk6x1F