On World Milk Day, the Odisha government announced a ₹3 per litre increase in the milk procurement price, raising it from ₹35 to ₹38 per litre. This move directly benefits approximately 2.5 lakh dairy farmers associated with the Odisha State Cooperative Milk Producers’ Federation (OMFED). To balance this increase, the retail price of milk will rise by ₹2 per litre, effective June 13, with the government absorbing half of the increased cost.
Chief Minister Mohan Majhi also introduced a ₹1 lakh accident death assistance for OMFED farmers during the state-level World Milk Day celebration. The government aims to double milk production in the next five years from the 2023-24 level of 26.4 lakh metric tonnes. Under the Chief Minister Kamadhenu Scheme, 3 lakh beneficiaries received ₹71 crore in FY 2024-25 for livestock-related activities, offering up to 70% financial aid. Additionally, ₹10.5 crore was disbursed to 77 cow shelters for the care of 22,000 stray cattle.
Industry Insight:
This strategic price adjustment reflects Odisha’s commitment to strengthening its dairy sector. By enhancing farmer incomes and aiming to double milk production, the state positions itself to meet rising dairy demands while ensuring the sustainability of its rural economy.