Haryana Farmers Demand Higher Milk Prices Amid Rising Costs
Dairy farmers and operators in multiple Haryana districts have announced a significant price hike for buffalo milk, setting the rate at ₹100 per litre. This coordinated decision, driven by escalating input costs, also includes a strict penalty system: local dairy associations will fine sellers up to ₹21,000 for undercutting the newly agreed prices for milk and ghee.
Meetings held across villages in Jind, Kurukshetra, Kaithal, Rohtak, and Hisar districts have ratified these new rates, with implementation expected around September 4-5.
Why the Price Hike? Soaring Input Costs Burden Farmers
Livestock owners assert that current procurement and retail rates, previously ₹60–₹80 per litre for buffalo milk and ₹50–₹60 for cow milk, are no longer sustainable. The primary driver for the increase is the sharp rise in input costs.
“The cost of cattle feed has increased from ₹1,800 to ₹3,000. The price of wheat fodder has doubled to ₹1,000 per quintal,” stated Manoj Kumar, president of the Dairy Operators’ Association in Julana (Jind), during a meeting where the new prices were finalized.
Farmers also highlight increased transport costs and stagnant procurement prices from cooperatives as critical pressures making dairy farming economically unviable without higher rates.
New Rates and Strict Penalties Implemented
In Julana, the Dairy Operators' Association has fixed buffalo milk at ₹100/litre, cow milk at ₹80/litre, buffalo ghee at ₹1,500/kg, and cow-milk ghee at ₹2,500/kg. To ensure uniformity and prevent under-cutting, the association declared that “anyone selling milk and milk products below the aforesaid prices will be fined ₹21,000.” Similar resolutions have been adopted by groups in other affected districts.
Expert View: Is ₹100/Litre Reasonable?
Richa Sharma, a researcher on the Supreme Court-appointed High Powered Committee on Agrarian Reforms, commented on the new pricing. She considers ₹100 per litre for buffalo milk to be reasonable, based on input-cost studies. However, she suggested that ₹80 per litre for cow milk might be slightly high, noting that cow milk could be remunerative for farmers at ₹70 per kg.
Sharma referenced the Situation Assessment of Agricultural Households and Land and Livestock Holdings of Households in Rural India, 2019, to underscore the economic difficulties faced by livestock owners due to low dairy prices. Farmer bodies warn that without improved rates, many small and marginal livestock owners may be forced out of dairying.
Impact on Consumers and Cooperatives
The widespread adoption of these new prices, particularly for buffalo milk which is extensively used for tea, sweets, and ghee, will likely impact household budgets across Haryana. Meanwhile, farmer bodies have submitted memoranda to Vita cooperative plants, requesting a ₹2–₹3 per kg increase in raw milk procurement prices to help offset the rising feed and fodder expenses.
While the ₹21,000 fine is an internal decision by local associations and not a government mandate, these groups intend to enforce it through village-level committees to maintain price stability among local operators.