Shimla: Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Monday said the state government is providing a record ₹34.18 crore monthly benefit to milk producers, underlining its strong focus on strengthening the rural economy through dairy development.
Calling dairy farming a “reliable and profitable” livelihood, the Chief Minister said the government has taken “historic steps” to improve the financial security of farmers and enhance milk production across the state.
Sharp Rise in Milk Procurement
The state milk federation is currently procuring around 2.7 lakh litres of milk per day, a significant jump from 1.57 lakh litres per day during 2024–25. The increase has been driven by improved procurement systems and policy support.
A key initiative has been doorstep milk collection, particularly benefiting marginal farmers in remote areas by ensuring direct market access and steady income flow.
Higher Milk Prices to Support Farmers
The government has steadily increased procurement prices over the past three years. Under the 2026–27 Budget:
- Cow milk will be procured at ₹61 per litre
- Buffalo milk at ₹71 per litre
These measures are aimed at making dairy farming more remunerative and encouraging greater participation.
Expansion of Dairy Cooperatives
Reforms in the sector have led to rapid growth in cooperative participation:
- Village dairy societies increased from 27,498 to 39,790
- Functional dairy cooperative societies rose from 583 to 758
This expansion is strengthening the organised dairy network and improving farmer outreach.
Read More: Dairy Farmers in Mandi Demand Payment Certainty and Policy Clarity
Infrastructure Boost and Future Plans
Currently, 11 milk processing plants are operational with a combined capacity of 1.8 lakh litres per day. Additionally, a new modern plant is being set up at Dhagwar in Kangra district with an initial capacity of 1.5 lakh litres per day, expandable to 3 lakh litres per day.
To further strengthen the sector, the state has partnered with the National Dairy Development Board to establish a new milk union in Kangra district, covering Kangra, Una, Hamirpur, and Chamba.
Capacity Building and Transparency Measures
Over the past three years:
- 2,000+ farmers have been trained in clean milk production and quality maintenance
- Training support provided by institutions such as National Dairy Research Institute and others
- 222 Automatic Milk Collection Units (AMCUs) and 32 Data Processing Milk Collection Units (DPMCs) installed to ensure transparency and fair pricing
Focus on Rural Empowerment
The Chief Minister reiterated that empowering farmers, women, and rural youth remains central to the state’s development strategy. The government aims to transform dairy into a sustainable engine of rural growth, ensuring stable income and improved livelihoods across Himachal Pradesh.
With rising procurement, better pricing, and infrastructure expansion, the state is steadily positioning dairy as a backbone of its rural economy.
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