Gujarat’s Dairy Sector Sees Five-Fold milk procurement; Pay to producers Up 140% in 25 years: Shah
December 06, 2025
New Delhi: Milk procurement in Gujarat has increased nearly five-fold over the past two decades, accompanied by a sharp rise in the prices paid to farmers, Cooperation Minister Amit Shah informed the Lok Sabha while replying to a question on the status of dairy cooperatives in the State. Shah said milk procurement, which stood at about 50 lakh litres per day in 2001–02, has now reached around 250 lakh litres per day in 2024–25, reflecting the sustained expansion of Gujarat’s cooperative-based dairy model. He added that the average procurement price paid to farmers has risen by about 140 per cent in the last 15 years, climbing from ₹400 per kg FAT to ₹950 per kg FAT, significantly boosting rural incomes.
Responding to a question from MP Devusinh Chauhan, Shah said Gujarat today has 15,740 functional dairy cooperative societies as recorded on the National Cooperative Database Portal, forming one of the country’s strongest cooperative networks. He noted that the Gujarat Cooperative Milk Marketing Federation (GCMMF), popularly known as Amul, continues to anchor this system through its 18 district unions and more than 36 lakh member farmers. “Amul’s cooperative model today enables the procurement of nearly 250 lakh litres of milk per day, making Gujarat a leading milk-producing State,” Shah said, adding that the brand has grown into India’s largest FMCG entity with an annual turnover of USD 11 billion.
The Minister told the House that several Central schemes have been instrumental in modernising Gujarat’s dairy infrastructure and strengthening grassroots cooperatives. “Under the National Programme for Dairy Development, Gujarat has received ₹315 crore in grants over the last seven years, supporting projects worth ₹515 crore,” Shah said. This assistance has enabled the installation of 2,052 bulk milk coolers, 4,309 automatic milk collection systems and 1,000 milk adulteration detection machines across the State. He said additional support under the Dairy Processing and Infrastructure Development Fund and the Animal Husbandry Infrastructure Development Fund has facilitated processing plant expansion, UHT lines and milk powder facilities.
Shah also highlighted State-level efforts to help youth and farmers set up dairy units with 12 to 50 milch animals. “The Government of Gujarat has provided ₹198.5 crore in support to milk producers under these schemes in the last seven years,” he told MPs, noting that the programme has created new employment opportunities and strengthened the dairy ecosystem.
Concluding his reply, Shah said that the combined impact of these measures has reduced post-harvest losses, expanded chilling and processing capacity and substantially improved farmers’ incomes. “Gujarat’s dairy sector stands as a testament to the success of cooperative strength backed by sustained government intervention,” he said.
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