How FAT-SNF milk pricing works
Indian milk co-operatives have used a two-axis FAT + SNF pricing formula for decades. Instead of paying a flat per-litre rate, the dairy measures the milk's fat content (FAT%) and solids-not-fat (SNF%), and pays the supplier based on how much actual value is in each litre. This is the fairest way to price milk because it directly reflects how much butter, ghee, paneer and milk powder can be produced from the supplier's milk.
The formula is simple: Total (₹) = Quantity × (FAT% × FAT rate + SNF% × SNF rate) + Bonus − Deduction. A supplier who brings 10 litres of buffalo milk at 6.5% FAT and 8.8% SNF, with the dairy paying ₹5.50 per FAT point and ₹3.00 per SNF point, earns (6.5 × 5.5 + 8.8 × 3) × 10 = ₹622.50.
Typical FAT and SNF ranges in India
- Cow milk (crossbred): 3.5%–4.5% FAT, 8.3%–8.7% SNF
- Cow milk (desi / Gir / Sahiwal): 4.5%–5.5% FAT, 8.6%–9.0% SNF
- Buffalo milk (Murrah): 6.5%–7.5% FAT, 9.0%–9.5% SNF
- Buffalo milk (Jaffarabadi / Mehsani): 7.0%–8.5% FAT, 9.0%–10.0% SNF
Why this formula is used across Indian dairy co-operatives
A single flat rate rewards volume but punishes quality. If every farmer gets ₹45 per litre regardless of FAT, a farmer with 7% FAT buffalo milk subsidises a farmer with 3.5% FAT watered-down cow milk. The FAT-SNF formula solves this fairly: better feed, better milking hygiene, and better animal health directly translate into higher payment. It also discourages adulteration — adding water drops both FAT and SNF instantly, so the farmer is paid less.
This pricing model was popularised by Amul through the Anand pattern co-operative movement and is now standard across NDDB-affiliated dairies, state federations (Sudha, Nandini, Aavin, Mother Dairy) and most private dairies. Modern milk analysers at the village collection centre give readings in under 60 seconds, so there is no excuse for flat-rate procurement any more.
Tips for suppliers to get higher FAT and SNF
- Feed quality green fodder + balanced concentrate — especially oil cake.
- Milk at consistent times morning and evening; irregular gaps dilute fat.
- Ensure the last few ml are fully milked — strippings carry the most fat.
- Keep the animal hydrated but avoid overwatering before milking.
- Record FAT/SNF trend per animal to spot mastitis or feed problems early.
Using this calculator at your collection centre
Bookmark this page on your phone. At the collection centre, punch in the litres, FAT and SNF readings from your analyser, and the calculator gives the exact rupee amount in real time. Add a bonus for clean milk or subtract a deduction for late delivery. The effective ₹/litre at the bottom is useful for quick cross-checks with the supplier.
If you run a collection centre with more than a handful of suppliers, doing this manually in a notebook is painful. That is exactly what DudhHisaab automates — store rates once, record daily entries in a few taps, and let the app generate the monthly bill automatically.