Punjab government has taken a big decision to increase the purchase price of milk to provide relief to dairy farmers. The government has announced an increase in milk prices by Rs 20 per kg fat for farmers associated with MILKFED (Verka).
Business News: Punjab’s leading cooperative dairy organization Milkfed and its brand Verka have taken a big decision to increase the milk purchase price. This change will come into effect from May 1, 2026. The aim of this step of the government is to increase the income of dairy farmers and strengthen the rural economy. However, it may also have a mild impact on consumers, as there is a possibility of a slight increase in the retail price of milk.
Increase of ₹ 20 per kg fat for farmers
Verka has announced an increase in milk procurement rates by ₹20 per kilogram of fat. Milk procurement in India is generally decided on the basis of fat content. In such a situation, milk producers will get the direct benefit of this increase. According to government officials, this decision has been taken with the aim of increasing the cost of dairy farmers and encouraging production.
The new rates will be applicable across Punjab from May 1, 2026. Milkfed said that this decision has been taken in view of the long-standing demand and economic condition of the farmers. Verka is one of the largest cooperative dairy societies in North India with a strong market presence in packaged milk and dairy products.
Lakhs of farmers will get direct benefits
According to Milkfed, this decision will benefit around 2.5 lakh directly associated dairy farmers. At the same time, it will indirectly have a positive impact on about 30 lakh cattle rearers and dairy farmers of the state. Officials estimate that this move will lead to an additional income flow of about ₹100 crore every month in rural areas, thereby strengthening the rural economy.
The government spokesperson said that the main objective of this decision is to improve the income of farmers and make the dairy sector more profitable. With increase in milk production, quality is also expected to improve. Dairy industry experts believe that when farmers get better prices, they pay more attention to better animal husbandry and milk quality, which benefits the entire sector.
How much will consumers be affected?
The new rates will also impact consumers, although the increase will not be much. According to estimates, the price of milk in the market may increase by ₹ 1.20 to ₹ 1.40 per liter. Experts say this increase will be limited as companies do not make major changes in prices keeping in mind the competitive market.
“Fat” is the most important parameter in the milk procurement system in India. This means that the higher the fat content in the milk, the higher will be its price. The ₹20 per kilogram fat increase means farmers will get an additional ₹20 for every kilogram of fat consumed. This will especially benefit those farmers who produce high quality milk.
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