Farmers like Amarsingh Kadam from Pune’s Indapur taluka are grappling with an unsustainable economic reality. Local dairies are procuring milk at approximately Rs 32 per liter, a price point that falls significantly below their cost of production, estimated to be between Rs 35-40 per liter. This alarming disparity means dairy farmers are consistently operating at a loss, making their businesses almost unviable and eroding their financial stability.

The escalating cost of production is a major factor exacerbating the financial distress. Increased expenses for cattle feed and labor have severely squeezed profit margins, pushing many dairy operations to the brink. Further compounding their woes, a state government subsidy of Rs 5 per liter, which was introduced in 2024 to alleviate some of the burden, has now been discontinued, leaving farmers even more vulnerable.

Adding to the anxiety, dairy farmers are anticipating a potential further drop in milk prices after September. This period, known as the “flush” season, typically sees a significant increase in milk production, which historically leads to a downward pressure on procurement prices. This cyclical challenge creates immense uncertainty and threatens to deepen the financial losses for milk producers.