Under the newly introduced scheme, dairy farmers across Assam will now receive a direct subsidy of ₹5 for every litre of milk they supply for processing at cooperative societies. This financial incentive is expected to significantly improve the profitability of dairy farming for thousands of producers. The government anticipates that this initiative will directly benefit over 20,000 dairy farmers throughout the state, fostering greater participation and investment in milk production.

The launch of the subsidy scheme coincides with a major infrastructure upgrade: the doubling of the processing capacity of the WAMUL plant in Guwahati. This expansion is crucial for handling the anticipated increase in milk procurement resulting from the subsidy. By investing in both farmer incentives and processing capabilities, the Assam government is creating a more robust and efficient dairy supply chain, from farm to consumer.

For the Assam dairy industry, this dual approach of direct farmer support and processing enhancement is expected to stimulate overall growth. Increased farmer income will encourage higher milk production, while expanded processing capacity will ensure that this additional supply can be effectively managed and brought to market. This holistic strategy aims to strengthen the state’s position within India’s dairy sector and contribute to regional agribusiness development.