
Historic Freight Hike Set to Empower 6,000 Dairy Families, Fuel Rural Growth.
Himachal Pradesh has implemented a groundbreaking policy decision to double its milk freight subsidy, a move that has been met with widespread acclaim from milk producers across the state, particularly from the Kamdhenu Hitkari Society. This significant increase, elevating the subsidy from Rs. 1.50 to Rs. 3 per litre for registered milk societies, is projected to directly benefit approximately 6,000 families. The initiative underscores the state government’s commitment to fortifying the rural economy and improving the livelihoods of dairy farmers.
This progressive step distinguishes Himachal Pradesh as the first state in India to offer such a substantial milk freight subsidy. Chief Minister Sukhvinder Singh Sukhu reiterated the government’s unwavering dedication to uplifting the rural economy. He emphasized the state’s strategy of ensuring high minimum support prices (MSP) not only for milk but also for a range of other crucial agricultural products, signaling a comprehensive approach to agricultural development.
Under the current policy, the government procures cow milk at Rs. 51 per litre and buffalo milk at Rs. 61 per litre, providing a stable and attractive income for dairy producers. Beyond milk, the state also guarantees MSPs for key crops such as wheat, maize, barley, and turmeric. These robust support prices are designed to incentivize farmers, enhance their overall incomes, and significantly improve their living standards, addressing fundamental challenges in rural prosperity.
The doubling of the milk freight subsidy directly tackles one of the significant cost burdens faced by dairy farmers – the transportation of milk from often remote collection points to processing centers. By alleviating this financial strain, the subsidy encourages increased milk production and strengthens the operational viability of dairy cooperatives. This measure is a testament to the government’s understanding of the practical challenges faced by its agribusiness sector.
For the international dairy community and policy analysts, Himachal Pradesh’s initiative offers a compelling case study in direct government intervention to support dairy sector growth and rural development. It showcases how targeted subsidies can empower small and medium-scale dairy farmers, foster local economic resilience, and contribute to national food security. This model may inspire similar strategies in other regions grappling with the economic complexities of dairy economics.
Source: Devdiscourse: Himachal’s bold move: Doubling milk freight subsidy enhances rural economy
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