HYDERABAD: The state government is considering an increase in the milk procurement price to dairy farmers supplying to Vijaya Dairy. According to government sources, a proposal is under review to raise the price by Rs 2 to Rs 3 per litre for cow milk and Rs 3 for buffalo milk. Currently, Vijaya Dairy pays Rs 42.24 per litre for cow milk and Rs 48 per litre for buffalo milk.
Officials noted that the government has previously increased procurement prices three times to support dairy farmers and encourage milk production, leading to an increase in output. They also highlighted that Vijaya dairy pays Rs 8–9 more per litre compared to private dairy companies.
However, the sales of Vijaya Dairy have declined due to various reasons. “Private dairy companies and some cooperative dairies procure milk at much lower prices —Rs 27 to Rs 32 per litre—from states like Karnataka and Maharashtra and sell it in Telangana by offering high marketing commissions. Additionally, some diaries are illegally selling milk products under the Vijaya Dairy brand. These factors led to decline in Vijaya Dairy’s sales,” officials stated.
Following the decline, Vijaya Dairy’s current dairy sales stand at 2.8 lakh litres per day. The Telangana State Dairy Development Cooperative Federation Limited (TGDDCFL), which operated Vijaya Dairy, is facing monthly losses of Rs 12 crore due to the high procurement prices paid to farmers.
These losses have led to delays in payments to farmers. In response, Vijaya Dairy management recently held discussions with dairy farmers to address the issue.
Sources said that three key issues were discussed during the meeting. Following the talks, the management agreed to pay milk bills to farmers on the 5th and 20th day of every month. Additionally, they decided to request the government to release Rs 50 crore arrears and increase milk procurement prices.