Bhubaneswar: The Odisha government has announced a ₹2 per litre increase in the milk procurement price paid to farmers associated with primary dairy cooperative societies. The revised rate will come into effect from September 11, 2026, providing additional income support to dairy producers across the state.
Animal Husbandry and Fisheries Minister Gokulananda Mallick said the decision would benefit more than three lakh dairy farmers. According to the minister, the increase is aimed at strengthening Odisha’s dairy sector, improving the economic condition of milk producers and encouraging greater participation in the organised dairy industry.
OMFED Procures Seven Lakh Litres Daily
The Odisha State Cooperative Milk Producers’ Federation, popularly known as OMFED, is the state’s apex dairy cooperative. It currently procures approximately seven lakh litres of milk every day from nearly 3.24 lakh farmers through 4,616 primary milk cooperative societies.
The latest price revision is expected to provide some relief to farmers facing rising operational expenses, including the cost of cattle feed, fodder, medicines and livestock maintenance.
In May, OMFED had increased its milk procurement price by ₹1 per litre, taking the cow milk procurement rate to ₹39.05 per litre. The earlier revision was also introduced in response to growing input costs and increasing pressure on dairy farmers’ profit margins.
Government Plans 1,200 New Dairy Cooperatives
Minister Mallick also announced that the state government is planning to establish 1,200 additional dairy cooperative societies across Odisha. He said the new societies would become operational soon.
The proposed expansion is expected to improve milk collection infrastructure, bring more farmers into the cooperative network and increase access to organised milk procurement. It may also help strengthen rural employment and improve the availability of quality milk for processing and distribution.
By expanding the cooperative network, the government aims to connect more milk producers with formal markets and reduce their dependence on informal buyers.
Farmers Welcome Hike but Seek More Support
The Odisha Dairy Farmers Federation welcomed the announcement but said the increase was not sufficient to fully address the financial challenges faced by milk producers.
Federation president Rabi Behera said the ₹2 per litre hike was a positive step, although farmers were expecting a larger increase. He also urged the government to take measures to control cattle feed prices, which have become a major expense for dairy farmers.
Behera further called for an Ayushman Yojana-like healthcare scheme for livestock. Such a programme, he said, could help farmers manage the rising cost of veterinary treatment and protect their animals from serious diseases.
Focus on Sustainable Dairy Growth
The procurement price increase and proposed expansion of dairy cooperatives reflect Odisha’s efforts to strengthen its organised dairy sector. Higher procurement prices can improve farmers’ income, while new cooperative societies may increase milk collection and provide better market access.
However, farmers have indicated that long-term support will also require affordable feed, accessible veterinary services, improved breeding facilities and stronger rural dairy infrastructure.
The latest announcement is therefore expected to offer immediate financial relief while supporting the state government’s broader objective of increasing milk production and encouraging more farmers to join the organised dairy network.
