What is biggest challenge faced by Maharashtra dairy farmers? No, it is not lumpy skin disease

Indian Express

28-07-2025

Amarsingh Kadam is currently facing challenges in maintaining his herd of 30 cows due to the local dairy's procurement price of Rs 32 per litre. The farmer from the Sansar village in Pune's Indapur taluka sells 300 litres of milk daily to the local dairy; however, the current price is putting a strain on his finances.
'My cost of production comes to around Rs 35-40 per litre. This loss is something which I will not be able to bear for long,' he said. Kadam's herd has 12 cows too old to produce milk. 'However, I need to maintain them; there is no longer a market for them,' he added.
Even as the lumpy skin disease, a viral disease affecting cattle, makes a comeback in Maharashtra after a three-year gap, what has been bothering dairy farmers like Kadam is the low returns. Kadam considers himself fortunate that his four acres allow him to grow most of the necessary green fodder. However, the increased costs of feed and labour have made his dairy business almost unviable.
'This has been ongoing for the last few months. The state government announced a subsidy of Rs 5 per litre in 2024, which has since been stopped,' he said.
What worries Kadam even more is the possibility that prices may drop further. After September, the sector will enter a 'flush' period, during which animals will produce more milk. This increase is mainly due to the availability of green fodder and water.
'If prices continue to drop, I will need to reduce my herd, but there are few buyers at the moment,' he said.
Since January, the dairy industry in Maharashtra has faced significant challenges, with farmers expressing concerns over low earnings. On a global scale, the market for skimmed milk powder (SMP), which is produced by dehydrating liquid milk, has experienced unpredictable fluctuations that the dairy industry claims have rendered exports nearly unviable.
Domestically, SMP is priced at Rs 235 per kg, which is roughly equal to the cost of production. Industry insiders estimate that the country has around 200,000 tonnes of SMP in stock, with Maharashtra alone holding approximately 10,000 tonnes. Dasarath Mane, chairman and managing director of Indapur-based Sonai Dairy, said that while procurement prices may not decrease further, any price increases could be challenging to achieve.
In the Sakpalwad village of the Indapur taluka, Yogesh Sapkal is uncertain about whether to keep his herd of 18 cattle. 'Out of the 18, four are barren and not producing milk. The rising costs of raw materials and labour are making the entire business unviable,' he said.
Partha Sarathi Biwas is an Assistant Editor with The Indian Express with 10+ years of experience in reporting on Agriculture, Commodities and Developmental issues. He has been with The Indian Express since 2011 and earlier worked with DNA. Partha's report about Farmers Producer Companies (FPC) as well long pieces on various agricultural issues have been cited by various academic publications including those published by the Government of India. He is often invited as a visiting faculty to various schools of journalism to talk about development journalism and rural reporting. In his spare time Partha trains for marathons and has participated in multiple marathons and half marathons. ... Read More