In a significant move to strengthen the dairy economy and enhance rural incomes, the Odisha government has announced a ₹3 per litre hike in the milk procurement price, benefiting nearly 2.5 lakh dairy farmers across the state. The revision increases the procurement rate from ₹35 to ₹38 per litre, effective June 13, 2025.

The announcement, made by Chief Minister Mohan Charan Majhi, aims to make dairy farming more remunerative and sustainable, particularly for small and marginal farmers, who form the backbone of the Odisha dairy cooperative network.

To ensure market balance, the retail price of milk will increase by ₹2 per litre, while the government will absorb the remaining ₹2 from its own budget. This move protects consumers from full exposure to the procurement cost rise, while still ensuring higher income for producers.

🐄 Expanding Dairy Infrastructure and Support

The milk price revision comes as part of a broader strategy to double Odisha’s milk production over the next five years. The state produced 26.4 lakh metric tonnes of milk in FY 2023–24. With increasing focus on:

• Indigenous cattle breeds (e.g., Binjharpuri cows)
• Fodder development
• Breed improvement
• Value-added dairy products

…the government aims to expand both volume and value in the dairy supply chain.

💰 ₹71 Crore Disbursed Under Kamdhenu Yojana

In tandem with the price hike, CM Majhi also disbursed ₹71 crore under the Chief Minister’s Kamdhenu Yojana 2024–25 to around three lakh dairy farmers. This assistance covers:

• Up to 70% subsidy for cattle rearing and dairy infrastructure
• Cattle insurance
• Cash incentives for higher milk production
• Fodder cultivation and support services

In addition, ₹10.5 crore was allocated to 77 registered goshalas to support the care of over 22,000 stray cattle in the state. The government has also promised ₹1 lakh in accidental death compensation to OMFED-affiliated dairy farmers.

🥛 New OMFED Product Launches: A2 Milk, Ghee, and Balti Dahi

As part of the dairy sector upgrade, the state-run OMFED (Odisha State Cooperative Milk Producers' Federation) launched three new consumer products:

• A2 Milk from native Binjharpuri cows
• A2 Ghee
• Balti Dahi (bucket curd for family use)

These products are aimed at tapping into the growing consumer demand for nutrient-rich, functional, and value-added dairy products, particularly in urban and health-conscious segments.