Under an executive directive approved by Chief Minister Thakur Sukhvinder Singh Sukhu, all state departments, hospitals, schools, hostels, and public sector undertakings are cleared to source dairy supplies directly from Milkfed—spanning 55,300 producers across 11 districts—and four designated regional dairy cooperatives.
In a strategic policy measure designed to anchor institutional demand and boost farmgate liquidity across northern India’s hill economy, the Government of Himachal Pradesh has granted formal approval for all state government entities to procure milk and value-added dairy products directly from the Himachal Pradesh State Cooperative Milk Producers’ Federation (Milkfed) and eligible local dairy cooperative societies. According to an official press release issued by the state’s Department of Information & Public Relations, the authorization encompasses government departments, hospitals, educational institutions, hostels, canteens, statutory boards, corporations, and public sector undertakings (PSUs) wherever cooperative supply is available.
The policy establishes a reliable, guaranteed institutional off-take channel for thousands of smallholder dairy producers, reducing cooperative reliance on volatile open-market retail competition while reinforcing rural employment and cooperative self-reliance across the Himalayan state.
Key operational reach, designated cooperative beneficiaries, and state dairy support metrics outlined in the announcement include:
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Extensive Milkfed Procurement Network: Milkfed currently coordinates dairy collection and processing operations across 11 districts in Himachal Pradesh through 799 primary milk producers’ cooperative societies, directly supporting approximately 55,300 registered milk producers.
Four Additional Regional Cooperatives Included: Beyond the state federation, the government explicitly cleared four district-level dairy cooperatives in Bilaspur and Solan districts to supply institutional buyers:
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Kamdhenu Hitkari Manch (Namhol, Bilaspur district)
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Kehloor Milk Producer Cooperative Society (Namhol, Bilaspur district)
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Gau Amrit Dugdh Utpadak Society (Paplota, Solan district)
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Amrit Dhara Dairy Cooperative Society (Darlaghat, Solan district)
Record Farmgate Minimum Support Pricing: State officials noted that Himachal Pradesh provides a historic minimum support price (MSP) for cow and buffalo milk—ranked as the highest state-backed procurement benchmark in India—complemented by direct producer incentives aimed at elevating household earnings for small and marginal farmers, rural women, and unemployed youth.
Chief Minister’s Rural Self-Reliance Push: Chief Minister Thakur Sukhvinder Singh Sukhu emphasized that institutional procurement guarantees remunerative returns and predictable market access: “Dairy farming has tremendous potential to further increase the income of rural households, particularly small and marginal farmers, women and unemployed youth. The initiative will encourage dairy farming, strengthen cooperative institutions and ensure that local milk producers receive better marketing opportunities for their produce.”
From an agribusiness supply-chain and dairy economics perspective, directing state institutional procurement—particularly consistent bulk demand from government hospitals, school hostels, and public canteens—into cooperative processing plants improves plant capacity utilization and stabilizes year-round working capital. In mountainous terrains where milk collection logistics carry higher per-litre transportation costs, assured institutional contracts help offset collection overheads and protect remunerative farmgate milk payouts.
Source: Government of Himachal Pradesh
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