Gokul Dairy (Kolhapur Zilla Sahakari Dudh Utpadak Sangharsh Ltd.) has announced a ₹1 per litre increase in the procurement price for both cow and buffalo milk, effective September 1, 2025. This adjustment is expected to yield an additional ₹4–5 crore in monthly income for milk producers in the Kolhapur district. To support small dairies facing rising construction and labor costs, Gokul is also enhancing subsidies: building and employee grants will rise by ₹8,000–10,000, depending on milk volumes collected. Additionally, the minimum eligibility for the cattle-shed subsidy will be relaxed from owning five animals to four. Notably, there will be no change in retail milk prices. Gokul currently collects 16 lakh litres of milk daily from approximately 7,500 small dairies and aims to increase collections to 20 lakh litres soon, as shared by president Navid Mushrif.
Industry Insight
Gokul Dairy’s updated procurement strategy is a timely and well-targeted intervention. By raising milk prices and enhancing subsidies for small-scale operations, the cooperative directly supports frontline producers while containing retail price volatility. This dual approach alleviates working capital constraints for farmers and dairy staff and helps ensure supply chain stability. Relaxing eligibility norms further democratizes access to developmental support, enabling more small-scale dairies to upgrade infrastructure. Coupled with Gokul’s ambitious target to scale collections to 20 lakh litres per day, these measures position the cooperative to strengthen its supply base, deepen rural engagement, and build resilience amid competitive pressures in India’s fast-growing dairy sector.
Source : Dairynews7x7 Sep 1st 2025