The Telangana government is considering raising milk procurement prices for dairy farmers supplying to Vijaya Dairy. According to government sources, a proposal is under review to increase rates by ₹2 to ₹3 per litre for cow milk and ₹3 per litre for buffalo milk.
Currently, Vijaya Dairy pays ₹42.24 per litre for cow milk and ₹48 per litre for buffalo milk—one of the highest procurement rates in the region.
Past Support & Current Challenges
Officials emphasized that this would be the fourth price hike aimed at supporting dairy farmers and boosting production. Past increments have led to higher milk output, but Vijaya Dairy now faces mounting challenges, including declining sales and financial losses.
They pointed out a major pricing disparity:
🔹 Private dairy companies procure milk for ₹27–₹32 per litre from states like Karnataka and Maharashtra
🔹 These companies sell milk in Telangana at lower prices by leveraging high marketing commissions
🔹 Some dairies are allegedly illegally selling products under the Vijaya Dairy brand, impacting its market share
As a result, Vijaya Dairy’s daily sales have fallen to 2.8 lakh litres, and the Telangana State Dairy Development Cooperative Federation Limited (TGDDCFL) is incurring monthly losses of ₹12 crore due to its high procurement costs.
Delayed Payments & Farmers’ Concerns
With rising losses, Vijaya Dairy has struggled to make timely payments to dairy farmers. A recent meeting between Vijaya Dairy management and farmers addressed key concerns:
✅ Milk payments will now be made on the 5th and 20th of each month
✅ A request will be submitted to the government to release ₹50 crore in pending arrears
✅ The proposed increase in procurement prices will be pursued
Farmers argue that while Vijaya Dairy offers fair prices, its sustainability is at risk unless structural changes are implemented.
With a critical decision pending, will the Telangana government step in to support Vijaya Dairy and protect local dairy farmers?