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From Surplus Milk to Sold-Out Mornings: How a Hoshiarpur Farmer Built a ₹1-Crore Dairy Enterprise

Hoshiarpur (Punjab): What began as subsistence farming on two acres of land has grown into a thriving, family-run dairy enterprise earning over ₹1 crore annually, showcasing how value addition and direct marketing can transform the fortunes of small farmers.

From Surplus Milk to Sold-Out Mornings: How a Hoshiarpur Farmer Built a ₹1-Crore Dairy Enterprise

Sanjeev Kumar Kahol (56), a marginal farmer from Mehlanwali village in Hoshiarpur, was forced to abandon his BSc studies in the early 1990s after the death of his father and brother, who ran the family’s transport business. With limited resources, Kahol turned to farming—growing vegetables and grains largely for household consumption, selling small surpluses to survive.

Turning point: Dairy training and crisis-led innovation

A decisive shift came in 2015–16, when Kahol underwent formal dairy training and invested in 10 cows using a ₹16-lakh loan. Though a promised ₹8-lakh subsidy never materialised, he pressed on.

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The real breakthrough arrived during the 2018 nationwide dairy farmers’ strike. With procurement halted, Kahol was left with 200 kg of unsold milk daily. A social media post offering free milk unexpectedly attracted local shopkeepers, who offered to buy directly at ₹40–45 per litre, far above the ₹20/kg he earned supplying corporates.

“Within days, all our milk was sold directly to consumers. I stopped supplying companies altogether,” Kahol recalls.

He repaid his loan within a couple of years—subsidy included.

COVID-19 accelerates value addition

The 2020 lockdown further strengthened the direct-to-consumer model. Disrupted supply chains pushed the family to process milk into paneer, curd, lassi and butter—a move that proved transformative.

Today, the enterprise—run as a close-knit family team—operates under the brand “Farm Fresh Safe Food.”

  • Son Kartik manages dairy operations
  • Wife Reeta Sharma oversees processing
  • Kahol handles marketing and sales

Sold out in 30 minutes

Every morning at 7.30 am, Kahol reaches Hoshiarpur city on an e-rickshaw with 2.5 quintals of milk and 50 kg of dairy products. Sales are typically completed within 30 minutes, coordinated via a WhatsApp group of nearly 100 regular customers.

Current prices:

  • Milk: ₹70/kg
  • Curd: ₹120/kg
  • Paneer: ₹600/kg
  • Lassi: ₹60/kg
  • Butter: ₹1,000/kg

Daily sales average ₹27,000–30,000, translating into ₹8–9 lakh per month with an estimated 30% profit margin.

The dairy unit has expanded to 30 cows, with 15–16 lactating at any given time.

Beyond dairy: Diversification and sustainability

Kahol has diversified into vegetables, fruits, and processing, cultivating 42 fruit trees—including mango, amla, apple, guava, galgal (hill lemon) and local varieties—processed into pickles, murabba, candies and powders. Seasonal vegetables add ₹2,000–3,000 daily, while turmeric grown on two kanals is sold raw and processed.

Looking ahead, he plans to convert his entire farm to natural farming from February, using mulching and minimal intervention.

“In natural farming, soil improves on its own. You don’t need to plough,” he says.

Recognition and impact

For his innovation and resilience, Punjab Agricultural University (PAU) honoured Kahol with the Sardar Surjit Singh Dhillon Award under its initiative “Apni Jins To Utpad Banao Te Munafa Kamao”.

“With training, technical knowledge and strong family teamwork, Sanjeev Kumar Kahol has set an inspiring example for marginal farmers across Punjab,” said PAU Vice-Chancellor Dr Satbir Singh Gosal.

From struggling to meet basic needs to building a sold-out, consumer-driven dairy brand, Kahol’s journey underscores a clear lesson for Indian agriculture: value addition plus direct marketing equals farmer power.

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Disclaimer
I do my best to share reliable and well-researched market insights but occasional errors or omissions may slip through. Please view all content as informational.

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