The Government has stated that the average price of milk in India has not decreased at any point during the past five years; instead, it has shown a consistent upward trend. Liquid milk also remains exempt from Goods and Services Tax (GST) and excise duty, the Ministry clarified in the Lok Sabha. The information was provided by Minister of Fisheries, Animal Husbandry and Dairying, Rajiv Ranjan Singh (Lallan Singh) in a written reply to a question in the Lok Sabha today.
According to data compiled from various Milk Unions and Federations, the average procurement price of both buffalo and cow milk has steadily increased each year:
| Year | Buffalo Milk (Fat 6%, SNF 9%) – Rs/litre | Cow Milk (Fat 3.5%, SNF 8.5%) – Rs/litre |
|---|---|---|
| 2021–22 | 39.8 | 29.4 |
| 2022–23 | 44.3 | 33.6 |
| 2023–24 | 46.5 | 35.2 |
| 2024–25 | 47.5 | 35.5 |
| 2025–26 | 49.2 | 36.7 |
(Prices include subsidies provided by State Governments.)
The data shows that buffalo milk procurement prices increased from ₹39.8 to ₹49.2 per litre, while cow milk prices rose from ₹29.4 to ₹36.7 per litre between 2021–22 and 2025–26.
Milk Yield Declines Naturally During Lactation
The Ministry noted that milk yield naturally decreases after 4–5 months of lactation. On average, cows and buffaloes in India continue to produce milk up to 10–12 years of age.
Milk Pricing Is Not Regulated by the Centre
Citing Article 246(3) of the Constitution, the Ministry emphasized that preservation of animals falls under the exclusive legislative domain of State governments.
The Department of Animal Husbandry and Dairying (DAHD) clarified that it does not regulate milk prices. Pricing decisions are taken independently by cooperative and private dairies, based on:
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Cost of production
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Market forces
Central Schemes Supporting the Dairy Sector
Although the Centre does not fix prices, DAHD implements several schemes to support dairy farmers, enhance productivity, and strengthen dairy infrastructure:
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Rashtriya Gokul Mission (RGM)
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National Programme for Dairy Development (NPDD)
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Supporting Dairy Cooperatives & FPOs (SDCFPO)
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Animal Husbandry Infrastructure Development Fund (AHIDF)
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National Livestock Mission (NLM)
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Livestock Health and Disease Control Programme (LHDCP)
These initiatives aim to:
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Improve milk productivity
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Expand dairy cooperative networks
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Enhance dairy infrastructure and working capital
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Increase availability of feed and fodder
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Provide animal health services
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Reduce overall cost of milk production
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Increase income of dairy farmers
Minister’s Statement in Parliament