Rising milk prices, larger cooperatives and new processing capacity are boosting dairy incomes across Himachal Pradesh.
The Himachal Pradesh government is delivering an average monthly benefit of Rs 34.18 crore to milk producers, marking the highest level of direct support ever provided to the state’s dairy sector. Chief Minister Sukhvinder Singh Sukhu said the initiative is part of a broader strategy to strengthen the rural economy and make dairy farming a more profitable business for smallholders.
Milk procurement by the state federation has climbed sharply to around 270,000 litres per day, compared with 157,000 litres during the 2024-25 fiscal year. The expansion has been supported by doorstep milk collection services, especially in remote areas where marginal producers often struggle to reach formal dairy markets.
The state has also continued to raise milk procurement prices over the past three years. Under the 2026-27 budget, Himachal Pradesh will purchase cow milk at Rs 61 per litre and buffalo milk at Rs 71 per litre. These higher prices have encouraged greater participation in dairy cooperatives, with the number of milk producers in village dairy societies increasing from 27,498 to 39,790, while active dairy cooperatives have expanded from 583 to 758.
Infrastructure investment is emerging as another pillar of the state’s dairy strategy. Himachal currently operates 11 milk processing plants with a combined capacity of 180,000 litres per day. A new dairy plant under construction at Dhagwar in Kangra district will add another 150,000 litres per day initially, with the potential to double capacity in the future. The state has also partnered with the National Dairy Development Board to create a new milk union covering Kangra, Una, Hamirpur and Chamba districts.
Beyond production and processing, the government is focusing on improving quality and transparency throughout the dairy supply chain. More than 2,000 farmers have received training in clean milk production and quality management, while automated milk collection systems have been installed to ensure fair pricing. Officials say the combination of higher milk prices, stronger cooperatives and rural employment programs for women’s groups could make Himachal Pradesh one of India’s fastest-growing dairy regions.
Source: TheNewsMill original article
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