Ramsinh Parmar, chairman of the union, announced the decision taken at the board meeting held before the Annual General Meeting here.
At present, KDCMPU pays Rs 525 per kg fat to the milk suppliers, now it will pay Rs 550. The union is one of the 14 member-dairies of Gujarat Co-operative Milk Marketing Federation, the owner of the popular Amul brand.
Parmar, the Congress MLA from Thasra, also said that the increase in price was announced considering the late arrival of monsoon and rise in the price of cattle-feed.
"Looking at all these difficulties of our farmers, we have decided to increase the procurement price," he said.
On June 10, some milk-supplier farmers had vandalised the office of Kheda Dairy, while demanding increase in the share of price-difference.
On this, Parmar said, "A handful of persons from Virpur and Kapadvanj vandalised our office. Other members did not join them. Legal action will be initiated. There is provision in cooperative by-laws under which we can (also) stop procurement of milk from them."
While Parmar, a Congress leader, controls Kheda Dairy, most other district milk unions are controlled by BJP leaders.