In a major move aimed at supporting dairy farmers, the Punjab government has increased milk procurement rates under the Milkfed cooperative, which markets products under the well-known Verka brand. The revised rates came into effect from April 1, 2026, and are expected to provide significant financial relief to lakhs of farmers across the state.
The decision, announced under the leadership of Chief Minister Bhagwant Mann, increases procurement prices by approximately ₹10 to ₹15 per kilogram of fat in milk.
Relief for dairy farmers amid rising costs
The government justified the hike by citing rising input costs, especially cattle fodder, which has significantly impacted dairy farming profitability. Officials stated that the increase was necessary to ensure fair remuneration for farmers and sustain the dairy sector.
Around 2.5 lakh dairy farmers directly associated with Milkfed are expected to benefit from the revised rates, while nearly 30 lakh milk producers across Punjab could see indirect gains as private players adjust their procurement prices accordingly.
The move is being seen as a strong pro-farmer step aimed at improving rural incomes and stabilizing the dairy economy in the state.
Likely impact on milk retail prices
With procurement costs rising, there are strong indications that the retail prices of milk and dairy products may also increase in the coming days. Industry experts believe that cooperatives and private dairies will have to pass on part of the increased cost to consumers to maintain margins.
Since Verka is a major player in North India’s dairy market, any price revision by the cooperative is likely to influence the broader market, leading to a ripple effect across Punjab and neighboring states.
Boost to rural economy and dairy sector
The Punjab government emphasized that the hike is not just about farmer welfare but also about strengthening the rural economy. Increased procurement rates are expected to inject substantial liquidity into rural areas, potentially adding around ₹100 crore per month to the state’s economy.
Officials highlighted that dairy farming remains a crucial pillar of Punjab’s rural livelihood, and such measures are essential to keep the sector viable and competitive.
Ripple effect across dairy industry
Experts suggest that the increase in procurement prices by Milkfed will likely push other private dairies and cooperatives to follow suit. This could lead to a broader upward revision in milk prices across the region.
The decision may also encourage more farmers to continue or expand dairy farming, as improved returns could offset rising operational costs such as feed, veterinary care, and maintenance.
Background: Verka’s role in dairy sector
Verka is one of North India’s leading dairy brands, operating under the Punjab State Cooperative Milk Producers’ Federation (Milkfed). It plays a crucial role in procuring milk from farmers and supplying dairy products across multiple states.
Over the years, Verka has been central to Punjab’s cooperative dairy model, ensuring stable income for farmers while providing affordable dairy products to consumers.