GUWAHATI: The Assam government is strengthening its dairy cooperative network as part of efforts to increase milk production, expand organised milk marketing and improve returns for dairy farmers.
Chief Minister Himanta Biswa Sarma has announced measures to promote dairy development in the state, including the formation and strengthening of Dairy Cooperative Societies (DCSs) and a ₹5-per-litre milk incentive for eligible farmers supplying milk through the organised cooperative system.
The state’s Directorate of Dairy Development says the incentive is intended to encourage farmers to join the organised dairy sector and support sustainable milk production and procurement.
₹5 Per Litre Incentive for Eligible Farmers
Under the state’s Milk Incentive Scheme, eligible dairy farmers receive an incentive of ₹5 per litre of milk, subject to a maximum of 30 litres per day or 900 litres per month per farmer.
Also Read: Dairy Business: Government Schemes May Support Milk, Paneer and Processing Units
The benefit is available to farmers who supply milk through a functional registered Dairy Cooperative Society or registered Farmer Organisation to designated milk-processing units in Assam. Farmers must also have an active bank account, mobile number and Aadhaar for registration.
The scheme was announced by the Chief Minister in 2023 and has been implemented as an input-support measure for dairy farmers. Assam government district records indicate that the ₹5-per-litre support has been effective from June 2025.
Focus on Organised Milk Marketing
The government says the incentive is aimed at encouraging greater participation in formal milk procurement channels and improving the competitiveness of locally produced milk.
The Dairy Development Department identifies several objectives, including increasing milk production, improving farmer profitability, strengthening existing cooperative societies and expanding the capacity of milk-processing infrastructure in the state.
The department has also documented examples in which Dairy Cooperative Societies have helped producers gain access to organised milk collection, quality testing, credit linkages and scientific cattle-rearing practices.
Dairy Cooperatives to Form the Procurement Base
The proposed expansion of Dairy Cooperative Societies is expected to create a more organised channel for milk producers to collectively market their milk.
Assam’s Dairy Development Department provides a framework for the formation of district milk unions, with district unions linked to registered Dairy Cooperative Societies.
The approach is intended to strengthen the connection between farm-level milk production, cooperative collection, processing and organised marketing.
Focus on Raising Milk Production
The Assam government’s dairy strategy combines farmer incentives with cooperative development and processing infrastructure. By linking financial support to organised milk procurement, the state is seeking to encourage more farmers to participate in formal dairy supply chains.
The success of the initiative will depend on the expansion and effective functioning of Dairy Cooperative Societies, reliable milk collection and testing infrastructure, access to processing facilities and the ability of farmers to increase productive dairy capacity.
The ₹5-per-litre incentive therefore represents one component of a broader effort to strengthen Assam’s dairy ecosystem and increase the share of locally produced milk entering organised markets.
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