Vadodara | May 27, 2025 — In a landmark step to strengthen farmer welfare and dairy sustainability, Anand-based Amul Dairy has announced a significant increase in milk procurement prices along with a historic reduction in cattle feed costs. This double benefit, effective June 1, is poised to impact over 7 lakh dairy farmers across Anand, Kheda, and Mahisagar districts in central Gujarat.
At a press conference on Monday, Amul Dairy Chairman Vipul Patel confirmed that the cooperative will raise its procurement rate from ₹855 to ₹865 per kilogram of fat — the highest milk procurement price currently offered by any dairy in Gujarat. This hike reflects Amul’s continued commitment to ensuring fair compensation for its farmer-members amid increasing cost-of-living and inflationary pressures.
📈 “This decision directly supports our milk producers. It reaffirms Amul’s core value: farmers first,” said Patel. “We’ve also taken the unprecedented step of reducing cattle feed prices simultaneously — a first in the history of our union.”
🔻 Reduced Cattle Feed Prices to Ease Input Burden
In a parallel move, Amul Dairy has cut the price of its cattle feed by ₹0.50 per kilogram. The price of a 70-kg bag has been reduced from ₹1,540 to ₹1,505, while a 50-kg bag will now cost ₹1,050 instead of ₹1,075. This strategic relief measure is aimed at mitigating input costs and boosting long-term productivity for dairy farmers.
This cost-cutting decision comes when feed prices have remained volatile due to global supply chain disruptions and climate-related challenges. By absorbing part of this burden, Amul proactively supports the viability of small and marginal dairy farmers.
💰 Highest Final Price in History for FY 2024–25
Chairman Patel also revealed that Amul Dairy paid its members an average of ₹1,028 per kilogram of fat for the 2024–25 financial year, marking the highest final payout in the cooperative’s history. This robust price point underscores Amul’s strong financial performance and reinvestment model, ensuring profits flow back to farmer-members.
🌾 A Model for Cooperative-Led Inclusive Growth
Amul’s twin decision to raise milk prices and cut feed costs is being hailed as a model for inclusive growth in India’s dairy sector. At a time when other cooperatives and private dairies are grappling with fluctuating procurement rates, Amul’s proactive strategy strengthens farmer trust and long-term retention.
The move is expected to ripple across the Indian dairy industry, setting new benchmarks for fair trade practices and farmer-centric policy. With inflation, rural distress, and feed affordability all under watch, Amul’s leadership reinforces dairy cooperatives’ role in supporting economic growth and social equity.
