Shimla: In a major boost to the rural economy, milk-producing farmers in the state are now receiving an average monthly benefit of ₹34.18 crore—the highest ever—driven by increased procurement and policy support from the state government.
According to an official statement released on Saturday, the state milk federation is currently procuring around 2.70 lakh litres of milk per day, marking a significant rise from 1.57 lakh litres per day recorded during the 2024–25 financial year.
A key factor behind this growth has been the federation’s doorstep milk collection system, which is particularly benefiting marginal farmers in remote regions. The initiative has ensured consistent market access and direct income support, contributing to improved socio-economic conditions among rural households.
The government has also steadily increased procurement prices over the past three years. In the 2026–27 budget, milk prices have been fixed at ₹61 per litre for cow milk and ₹71 per litre for buffalo milk, further incentivizing dairy farmers.
Reforms in the dairy sector have led to a sharp increase in farmer participation. The number of village dairy societies has grown from 27,498 to 39,790, while functional dairy cooperative societies have risen from 583 to 758 over the same period.
The government is actively promoting milk producer groups and women self-help groups, creating sustainable livelihood opportunities and strengthening rural entrepreneurship.
Infrastructure development has also gained momentum. Currently, 11 milk processing plants with a combined capacity of 1.80 lakh litres per day are operational. Additionally, a modern milk processing plant is being established at Dhagwar in Kangra district, with an initial capacity of 1.50 lakh litres per day, expandable up to 3 lakh litres per day.
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To further strengthen the dairy ecosystem, the state has partnered with the National Dairy Development Board to establish a new milk union in Kangra district. This union will cater to Kangra, Una, Hamirpur, and Chamba districts, enhancing milk collection, processing, and marketing efficiency.
Capacity building has also been prioritized, with over 2,000 farmers trained in clean milk production and quality maintenance over the past three years. To ensure transparency and fair pricing, 222 Automatic Milk Collection Units (AMCUs) and 32 Data Processing Milk Collection Units (DPMCs) have been installed across the state.
Chief Minister Sukhvinder Singh Sukhu emphasized the government’s commitment to rural empowerment, stating that ensuring direct financial benefits to farmers remains a top priority.
“Our clear objective is to position villages, farmers, women, and rural youth at the heart of the state’s economic growth,” he said.
The developments reflect a strong push towards modernizing the dairy sector while ensuring inclusive growth for farmers across the state.
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