Guwahati: Assam’s dairy sector has witnessed significant growth following the implementation of the state’s ₹5-per-litre milk production subsidy, with milk procurement increasing by 54.65% and membership in dairy cooperative societies rising by 36.77%, according to Chief Minister Himanta Biswa Sarma.
Sharing the latest figures on July 17, the Chief Minister stated that the subsidy scheme has strengthened the state’s dairy ecosystem by encouraging greater farmer participation in organised milk collection and cooperative institutions.
“Our ₹5/litre subsidy has driven a 54.65% surge in milk procurement and a 36.77% increase in cooperative membership, significantly strengthening the dairy ecosystem,” Sarma said in a post on social media platform X.
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The Assam Government introduced the milk production incentive as part of its efforts to improve dairy farmers’ incomes, increase milk production, and promote cooperative-led dairy development across the state.
The sharp rise in milk procurement indicates growing participation of dairy farmers in the organised sector, while the increase in cooperative membership reflects greater adoption of the cooperative model for milk collection and marketing.
Industry experts note that direct milk production incentives can play an important role in encouraging farmers to channel milk through organised procurement networks, thereby improving market access, ensuring remunerative returns, and strengthening dairy value chains.
The subsidy programme is expected to contribute to the long-term development of Assam’s dairy sector by promoting formal milk marketing systems and enhancing the economic viability of dairy farming for small and marginal producers.
The latest figures underscore the impact of targeted policy interventions in accelerating dairy sector growth and demonstrate how financial incentives can help strengthen cooperative institutions while improving farmer livelihoods.
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