Bhubaneswar: Dairy farmers across Odisha are set to receive higher returns for their milk, with the Odisha State Cooperative Milk Producers’ Federation Limited (OMFED) announcing an increase of Rs 2 per litre in the milk procurement price from September 11.
The decision is expected to benefit more than three lakh dairy farmers associated with OMFED’s milk procurement network across the State. Importantly, the increase in procurement price will not be passed on to consumers, meaning the retail prices of OMFED milk and other dairy products will remain unchanged.
Milk Procurement Price Increased From September 11
The revised procurement price will come into effect from September 11, providing direct financial relief to milk producers who have been facing rising expenses associated with dairy farming.
OMFED procures milk from farmers through a large network of primary dairy cooperative societies spread across Odisha. According to the State government, more than seven lakh litres of milk are currently being procured every day from over three lakh dairy farmers.
The additional Rs 2 per litre is aimed at improving farmers’ earnings and addressing their long-standing demand for better returns in view of increasing input costs.
Rising Feed and Transportation Costs Put Pressure on Farmers
The decision comes at a time when dairy farmers are dealing with a substantial increase in the cost of maintaining livestock.
Prices of several important ingredients used in cattle feed, including maize, de-oiled rice bran (DORB), rice polish and mustard oil cake, have reportedly increased by more than 25 per cent.
Higher expenditure on cattle feed and fodder has directly affected the cost of milk production. At the same time, increased fuel and transportation expenses have added another layer of financial pressure on dairy farmers.
Recent fluctuations in global oil prices have also contributed to higher diesel and transportation costs, affecting the movement of agricultural inputs and milk across the State.
Government Links Higher Costs to Transportation and Fuel
Animal Resources Development Minister of State Gokulananda Mallik explained that several factors had contributed to the rise in milk production and collection costs.
According to the Minister, OMFED currently collects milk through 4,616 primary dairy cooperative societies. Flood-related disruptions at different times, along with rising diesel prices and transportation expenses, have affected the overall milk procurement system.
He also pointed to increased costs associated with cattle feed, which have further raised the financial burden on dairy producers.
OMFED Retail Prices to Remain Unchanged
While farmers will receive an additional Rs 2 per litre for the milk supplied to OMFED, consumers will not face an increase in the retail price.
This means that OMFED milk and other dairy products will continue to be sold at their existing prices, despite the higher procurement cost being borne by the federation.
The move is expected to provide direct support to milk producers without creating an additional financial burden for consumers.
1,200 New Dairy Cooperative Societies Planned
Alongside the procurement price increase, the Odisha government is also working to expand the State’s dairy cooperative network.
Plans are underway to establish 1,200 new dairy cooperative societies across different districts. Odisha currently has 4,616 dairy cooperative societies, which form the primary link between milk producers and the organised procurement system.
Construction work for the new cooperative societies has already commenced, and the facilities are expected to become operational in the coming period.
The expansion is intended to bring more dairy farmers into the cooperative network, strengthen milk collection infrastructure and create better institutional support for producers.
Move Aimed at Strengthening Odisha’s Dairy Sector
The increase in procurement prices and planned expansion of cooperative societies are being viewed as measures to strengthen Odisha’s dairy ecosystem while improving the economic position of milk producers.
With input costs continuing to remain a concern for farmers, the additional Rs 2 per litre could provide some relief to households dependent on dairy farming for their livelihoods.
The government is also seeking to expand the cooperative network so that more farmers can access organised milk procurement and related support services.
Minister Gokulananda Mallik said that, keeping in view the demands of milk producers across Odisha, OMFED had decided to enhance the procurement price by Rs 2 per litre from September 11.
The decision is expected to provide a direct boost to more than three lakh dairy farmers while ensuring that consumers continue to purchase OMFED products at the existing retail rates.
