
Massive Rs 1.5 per liter boost benefits 200,000 producers as dairy economics improve for Indian agribusiness.
The Jaipur District Milk Producers’ Union has delivered a substantial financial boost to its network of suppliers, announcing a significant revision in milk procurement rates just ahead of the festive Diwali season. Effective October 1, the purchase price for milk fat has been raised from the existing Rs 875 per kilogram of fat to Rs 900 per kilogram of fat. This immediate Rs 25 per kilogram increase signals a strong financial environment and proactive efforts by the union to reward its milk producers during a high-demand period.
The core revision provides a clear and measurable increase in the rate paid for the critical fat component of milk, a key metric in dairy economics. The new structure dictates that the purchase price will be Rs 900 per kilogram of fat, supplemented by a fixed component of Rs 2 per kilogram. This transparent pricing structure, notified by the Jaipur District Milk Producers’ Union, helps producers better calculate their returns and confirms a firm commitment to competitive pricing.
This procurement rate increase is strategically layered on top of existing government support, creating a powerful synergy for rural incomes. Milk producers will continue to benefit from the Chief Minister’s Milk Producer Support Scheme, which provides an additional Rs 5 per liter in subsidy. This state-level support, combined with the union’s own rate hike, means the net earnings for farmers are climbing significantly, ensuring the viability and resilience of the regional agribusiness.
Quantifying the direct impact, data journalism indicates that the new rates are expected to provide an overall additional gain of about Rs 1.5 per liter for the supplying farmers. The scope of this initiative is vast, affecting nearly two lakh (200,000) milk producers across three major districts: Jaipur, Dausa, and Kotputli. Such widespread financial support at the producer level is crucial for stimulating local rural economies and maintaining supply confidence in the rapidly expanding Indian dairy market.
Crucially, this is not an isolated event but rather the second consecutive hike in rates within a single month, underscoring strong market momentum and operational health within the Jaipur Dairy system. For international analysts, this consecutive price action highlights the current bullish trend in local input costs and the rising profitability pressures—and opportunities—within the world’s largest milk producing nation. The consistent increase confirms a positive trajectory for milk producers entering the peak season.
Source: Review the official announcement and rate details in the original First India article.
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