How Amul (GCMMF) Determines Farmer Milk Payments
Gujarat Co-operative Milk Marketing Federation (GCMMF / Amul) is India's largest dairy cooperative network, procuring over 30 million litres of milk daily from 3.6 million village farmers across 18,600 Village Dairy Co-operative Societies (VDCS).
Unlike middlemen who pay fixed flat rates, Amul pays strictly on scientific quality:
- Buffalo Milk: Paid on Rate per Kilogram of Fat (₹/Kg Fat).
- Cow Milk: Paid on Two-Axis Pricing or Total Solids (TS = FAT + SNF).
Amul 2026 Milk Procurement Rate Breakdown
| Milk Category | Quality Parameters | Amul Base Rate Formula (2026) | Approximate Price per Litre |
|---|---|---|---|
| Buffalo Milk (6.5% FAT / 9.0% SNF) | High Butterfat | ₹840 – ₹880 per Kg FAT | ₹56.00 – ₹62.00 / Litre |
| Buffalo Milk (8.0% FAT / 9.2% SNF) | Peak Winter Fat | ₹860 per Kg FAT | ₹68.80 – ₹72.50 / Litre |
| Cow Milk (3.8% FAT / 8.5% SNF) | Standard A2 / Crossbred | ₹360 – ₹390 per Kg TS | ₹34.50 – ₹37.50 / Litre |
| Cow Milk (4.5% FAT / 8.8% SNF) | Indigenous Gir / Sahiwal | ₹380 per Kg TS | ₹40.50 – ₹44.00 / Litre |
Step-by-Step: The Amul Buffalo Milk Rate Formula
Amul calculates buffalo milk payments using the standard FAT percentage multiplier:
``
Price per Litre = (FAT % / 100) * Rate per Kg Fat
``
Real Calculation Example:
- Measured FAT: 7.2%
- Amul Mandated Fat Rate: ₹850 per Kg FAT
- Price per Litre = $(7.2 / 100) * 850 =$ ₹61.20 per Litre
If a farmer pours 18.5 Litres during the morning shift:
- Morning Payout = $18.5 * ₹61.20 =$ ₹1,132.20