The Odisha State Cooperative Milk Producers’ Federation Ltd (Omfed) has increased milk prices by approximately Rs 4 per litre, effective from Sunday. The revised prices are as follows: toned milk now costs Rs 54 per litre, premium milk Rs 58, gold milk Rs 60, and gold plus Rs 64.
Reasons for the Price Hike
Vijay Amruta Kulange, the managing director of Omfed, attributed the increase to rising costs of gas and raw materials, along with higher transportation expenses. He also noted that farmers had been demanding a hike in the milk collection price. “All these factors prompted us to increase the price,” Kulange explained.
Fisheries Minister Gokulananda Mallik added, “The hike is a result of an increase in the cost of transportation and processing of milk at the plant. Besides, we want to buy milk from the farmers at an increased rate so that they can get some benefit.”
Impact on Farmers
Omfed will now pay farmers Re 1 more per litre for cow milk and Rs 1.60 per litre for buffalo milk. Previously, Omfed purchased cow milk at Rs 38.05 per litre and buffalo milk at Rs 47 per litre. The Odisha Milk Farmers Association, however, has demanded an increase of Rs 2 per litre for farmers.
Additionally, the collection price of Binjharpuri cow (A2) milk has been raised from Rs 50 per litre to Rs 60 per litre, according to an Omfed statement. “Farmers and milk cooperatives will benefit from the price hike,” Kulange said, emphasizing that Omfed’s milk prices remain comparatively cheaper than other brands.
Historical Price Increases
Omfed had previously hiked milk prices by Rs 4 in September 2019, and by Rs 2 in March 2020, April 2022, and June 2025.
Impact on Businesses and Consumers
The price hike comes at a time when shopkeepers, eateries, restaurants, and hotels are already struggling with a rise in LPG prices amid the US-Iran war. Many eateries, tea shops, and food stalls have shut down.
Tophan Mahabhoi, a tea seller in Patia, expressed concern: “My profit margin has decreased after the hike in LPG price. Now the milk price hike will badly affect my business. I had increased Re 1 for a cup of tea from Rs 5. Now I will increase Re 1 more.”
The price rise is expected to push up costs of tea, coffee, and milk products such as paneer, curd, cheese, and ghee. Naresh Nayak, a resident of Patia, commented, “This hike will rub salt into the wounds of consumers and shopkeepers. Prices of paneer, curd, cheese, ghee, sweets, and other milk products will increase. Milk and milk products are essential for many people. This will hurt the poor and the middle-class more.”
