Sexed semen is one of the newest reproductive technologies available for dairy farmers and can fulfil their desire to produce a high percentage of female calves. The present study was designed to define the willingness of Indian dairy farmers to pay for sexed semen. Hence, 120 small holder dairy farmers and 90 commercial dairy farmers were randomly selected from Karnal and Yamunanagar districts in North-western Haryana, where there is a high proportion of crossbred dairy cattle. Willingness to pay for sexed semen was evaluated by a contingent valuation method and its determinants by an interval regression model. The majority of the small holder dairy farmers (81.67%) were willing to pay for sexed semen and they were ready to pay around INR 340 per sexed semen straw. Almost all (99%) of the commercial dairy farmers were willing to pay around INR 770 per sexed semen straw, i.e. more than double the value identified by small holder dairy farmers. Among all the predictors fitted in the interval regression model to explain the willingness to pay for sexed semen by the commercial dairy farmers, namely education level, herd size and attitude towards public extension systems, were positive and significant contributors. Our findings may help to identify what subsidy is required to promote sexed semen among dairy farmers, and as a consequence further improve breeding policies by introducing this new livestock production technology with the active participation of the dairy farmers.