Telangana Dairy Farmers May See Price Changes for Milk Supply
Dairy farmers in Telangana who supply milk to the Telangana State Dairy Development Co-operative Federation (TSDDCF) under the Vijaya brand may soon see changes in the prices they receive. Farmers supplying buffalo milk are likely to get an increase of ₹3 per litre, while cow milk suppliers may face a price reduction due to financial losses faced by the Federation.
Currently, the TSDDCF pays ₹48 per litre for buffalo milk, and this may rise to ₹51. However, cow milk suppliers, who currently receive ₹42.24 per litre—higher than private dairies—could see a reduction of ₹2 to ₹3 per litre. Officials explained that the Federation is losing ₹12 crore per month due to high procurement costs and declining sales of Vijaya brand milk.
Milk production has increased across India, and neighbouring states like Karnataka and Maharashtra are selling milk at lower prices, between ₹27 and ₹32 per litre. This has allowed private and cooperative dairies to import cheaper milk and sell it in Telangana at competitive rates. Additionally, fake Vijaya brand milk sales have further reduced demand, with official Vijaya milk sales dropping to 2.8 lakh litres per day.
To address this financial crisis, TSDDCF officials recently met with dairy farmers to discuss possible solutions. Three key proposals were suggested: asking the government to clear pending dues of ₹50 crore, adjusting procurement prices, and introducing a structured payment system where farmers receive payments on the 5th and 20th of every month.
Despite the price adjustments for farmers, officials have assured that the retail price of milk for consumers will not change. This decision highlights the challenges state-run dairies face as they compete with private companies and cheaper imported milk.
