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“5 Key Insights: Maharashtra Dairy Farmers Overcome Their Biggest Challenge with Resilience | Pune News”

July 28, 2025
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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.

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“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.

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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.

Parthasarathi Biswas

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

When one thinks of dairy farming challenges in Maharashtra, the recent lumpy skin disease outbreak naturally comes to mind. However, farmers across the state emphasize that while animal health issues are real, the biggest challenge lies elsewhere—economic sustainability. Despite price fluctuations, rising input costs, and limited access to modern infrastructure, Maharashtra’s dairy farmers are proving remarkably resilient. Instead of giving up, they are adapting with innovation, cooperation, and sheer determination. Here are five key insights into how they are overcoming obstacles and keeping the milk flowing.

1. The Price–Cost Imbalance

The central challenge is the imbalance between the price farmers get for milk and the cost of production. Feed, fodder, and labor expenses continue to rise, while procurement prices often remain stagnant. Many farmers argue that without a fair minimum support price for milk, their margins remain razor-thin.

Yet, farmers in districts like Pune, Ahmednagar, and Kolhapur have shown resilience by diversifying income sources. From selling cow dung as organic fertilizer to producing value-added products like ghee, paneer, and flavored milk, they are finding ways to boost earnings beyond raw milk sales.

2. The Push for Cooperatives and Direct Market Links

Dairy cooperatives have long been the backbone of Maharashtra’s rural economy, but today farmers are reimagining collective strength. By forming new-age cooperatives and self-help groups, they are bypassing middlemen and selling directly to consumers.

For example, farmer-led brands are now supplying fresh milk and dairy products to Pune and Mumbai households through subscription-based mobile apps. This direct farm-to-home model not only fetches better prices but also builds consumer trust in locally produced milk.

3. Technology as a Game-Changer

Another positive shift in this dairy race for survival is the adoption of technology. Farmers are increasingly using mobile apps for cattle health monitoring, milk yield tracking, and financial planning. Some progressive dairy farmers are even experimenting with Internet of Things (IoT) devices that track cattle movement and optimize feeding cycles.

Milk collection centers in Maharashtra are now equipped with automated chilling plants to maintain freshness, helping farmers get better rates from buyers. By embracing digital and mechanical innovations, farmers are modernizing an age-old industry and preparing for a sustainable future.

4. Climate Challenges and Sustainable Solutions

Erratic monsoons and fodder shortages due to climate change have been a recurring challenge. Scarcity of green fodder often forces farmers to rely on costly alternatives, squeezing profit margins further.

But instead of despair, many are turning toward sustainable fodder cultivation. Techniques like hydroponic green fodder systems, silage-making, and multi-cropping are being adopted to ensure year-round feed availability. NGOs and agricultural universities in Pune and Satara are actively training farmers in these methods, ensuring that resilience against climate shocks becomes part of the system.

5. Government Support and Youth Participation

Government schemes like subsidies for fodder cultivation, cattle insurance, and loans for setting up dairy units are slowly helping. More importantly, the new wave of educated rural youth is entering dairy farming with entrepreneurial zeal.

In Pune and nearby districts, young graduates are transforming family dairies into modern businesses by introducing branding, online sales, and cold-chain logistics. Their enthusiasm shows that dairy farming is no longer just about tradition—it’s about innovation and enterprise.

A Resilient Future for Maharashtra’s Dairy Farmers

While economic sustainability remains the biggest challenge, Maharashtra’s dairy farmers are proving that challenges can be opportunities in disguise. They are not only fighting back with resilience but also showing the way forward for India’s rural economy.

From cooperative strength to technological adoption, sustainable fodder solutions, and youth-driven innovations, the dairy sector is undergoing a silent but powerful transformation. And this transformation holds lessons not just for Maharashtra, but for farmers across India.

The road ahead may still be tough, but the determination of Maharashtra’s dairy farmers ensures that milk will continue to reach millions of households every day. Their story is not just one of survival—it is a story of strength, adaptability, and optimism.

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