Chandigarh, July 26 -- In a major relief for Punjab's dairy farmers grappling with rising production costs, chief minister Bhagwant Mann on Saturday approved an increase of Rs.40 per kilogram of fat in the milk procurement rate, accepting a long-pending demand of the Progressive Dairy Farmers' Association (PDFA).

With the revision, the procurement rate for cow milk has been increased from Rs.810 to Rs.850 per kilogram of fat, while the rate for buffalo milk has been raised from Rs.850 to Rs.890 per kilogram of fat. The rate is based on total weight of pure fat contained in the milk, rather than a flat price per litre.

The revised rates will be effective retrospectively from July 21.

The announcement came after the chief minister held a...