Indore Milk Union Raises Farmer Procurement Rates, Adds 550 New Committees to Expand Dairy Network
The Indore Cooperative Milk Union has raised milk procurement prices for farmers to Rs 840 per kg fat and will add 550 new milk committees, taking the total to 2,208. With daily collections of 2.8 lakh litres set to rise, nearly 14,000 new farmers will benefit. The move strengthens farmer support, stabilizes the market, and expands the cooperative’s reach.
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The Indore Cooperative Milk Union has announced a significant step to strengthen its relationship with farmers and expand its operations. From September 11, 2025, the procurement price of milk has been increased from Rs 820 to Rs 840 per kg of fat — a rise of more than 2%. This comes at a time when the union is also undertaking a major expansion drive, with 550 new milk committees to be formed, raising the total number from around 1,658 to 2,208 in the region.
The expansion initiative stems from a Memorandum of Understanding (MoU) between the Madhya Pradesh State Cooperative Dairy Federation (MPCDF) and the National Dairy Development Board (NDDB), focused on sharing technical expertise and implementing quality enhancement measures to maximize the plant’s operational capacity.
Currently, the union collects nearly 2.8 lakh litres of milk daily through its committees. With the expansion, close to 14,000 new dairy farmers are expected to be integrated into the cooperative’s network. Officials believe this will not only increase milk procurement but also help in strengthening cold chain infrastructure, improving quality monitoring, and ensuring timely payments to farmers.
The procurement price hike is being seen as a farmer-centric decision, particularly at a time when rising fodder, fuel, and input costs have been putting pressure on dairy producers. The revised rates will ensure better returns for farmers, making dairy farming more sustainable and attractive. By supporting farmers first, the Indore Union aims to strengthen loyalty and secure a long-term supply base.
Interestingly, while the union has raised procurement rates, it has not immediately passed on the cost to consumers. Its brand, Sanchi, had earlier increased packaged milk prices by Rs 2 per litre in early 2025, with the gold full-cream variant now retailing at Rs 67 for a one-litre pack. However, the latest procurement hike has not yet translated into a retail price increase, keeping the consumer market stable.
