Retail Inflation down but prices of milk and dairy products sticky
India’s retail inflation cooled to a six-year low of 2.82% in May 2025, easing from 3.16% in April and 4.8% a year ago, driven by a sharp moderation in food prices, according to provisional data released by the Ministry of Statistics and Programme Implementation (MoSPI). This marks the fourth consecutive month of sub-4% inflation—the longest…
Himachal Pradesh – first state in India to offer MSP on milk
The state government is procuring cow milk from over 38,000 farmers, collecting an average of 2.25 lakh litre milk daily at a support price of Rs 51 per litre, based on quality standards. Additionally, about 1,482 buffalo-rearers contribute 7,800 litres of milk per day, which is purchased at Rs 61 per litre. Chief Minister Sukhvinder…
Govt to Establish 3 Multi-State Cooperatives for Dairy Sector Growth
The Indian government has announced the formation of three new multi-state cooperative societies aimed at bolstering the dairy sector’s sustainability and efficiency. This initiative focuses on enhancing animal feed production, implementing effective dung management practices, and promoting the circular use of dead cattle residues. Union Cooperation Minister Amit Shah, who chaired the meeting on sustainability…
India Eyes Dairy Export Boost Amid U.S. Tariff Shifts
Media reports have suggested that retaliatory tariffs against American dairy may create an opening for India. While such optimism is understandable, a closer look reveals that these expectations warrant a more cautious assessment. India, the world’s largest milk producer, produces about 240 mn tonnes of milk annually. Yet, it accounts for less than 0.5% of…
India to Ease Liquidation of Defunct Dairy Cooperatives
Union Home and Cooperation Minister Amit Shah announced that the central government will soon introduce a policy to expedite the liquidation of defunct Primary Agricultural Credit Societies (PACS) and facilitate the registration of new ones. This initiative aims to revitalize the cooperative sector, particularly in the dairy industry. The government plans to establish 200,000 new…
UP Boosts Dairy Subsidy to 35% to Attract Investments
The Uttar Pradesh government has amended its Dairy Development and Milk Production Promotion Policy 2022 to significantly increase subsidies aimed at attracting investments in the dairy sector. The revised policy now offers a 35% subsidy, up to ₹5 crore, for establishing new dairy units or upgrading existing ones. Previously, the subsidy was capped at 10%….
Supreme Court Confirms 5% GST on Badam-Flavoured Milk
On Friday, the Supreme Court rejected a plea by the Revenue Department challenging a decision by the Andhra Pradesh High Court about GST on badam-flavoured milk. The High Court had ruled that only 5% GST should apply. Therefore, experts think the GST Council might now look into reviewing the tax rate on flavoured milk products….
High Court Rules Flavoured Milk as Milk, Not Beverage for GST
In a significant ruling, the Andhra Pradesh High Court has sided with Dodla Dairy Limited, determining that flavoured milk should be classified under GST Tariff Heading 0402 99 90, which attracts a 5% tax rate, rather than under Heading 2202 99 30, which carries a 12% rate. This decision overturns a previous demand by the…
FSSAI Releases Consultation Paper on Analogue Dairy Compliance
The Food Safety and Standards Authority of India (FSSAI) has released a consultation paper addressing compliance issues related to analogue dairy products. This initiative aims to gather feedback from stakeholders to ensure that such products meet established safety and quality standards. Analogue dairy products, which are substitutes for traditional dairy items, have seen increased market…
PAN Data to Transform Dairy Cooperatives, GDP Metrics
In a significant development for India’s cooperative sector, Cooperation Secretary Gyanesh Kumar emphasized the vital role of PAN (Permanent Account Number) data collection from cooperative societies in ensuring accurate GDP estimation and policy formulation. Speaking at a government event, Kumar revealed that India’s vast network of over 8 lakh cooperative societies has long operated in…