This high-level intervention comes as MilkFed reports strong foundational performance. The cooperative achieved its highest-ever increase in milk procurement during the current financial year, demonstrating robust supply chain momentum. This growth is supported by a burgeoning base of suppliers; the number of milk-producing cooperative societies has increased to 716, with over 40,000 farmers now actively contributing milk to the federation, underscoring strong farmer participation and confidence in the system.

To manage the escalating procurement volumes and ensure product longevity, the CM has initiated proposals for critical infrastructure expansion. A significant new milk processing centre is slated for development in Kinnaur district (specifically Karcham or Tapri), designed to cater both to the local civilian population and the operational needs of the Indian Army. Simultaneously, a separate proposal is sought to establish a dedicated milk powder plant at the existing processing facility located in Mandi district, a key move for maximizing the value of surplus milk and mitigating market volatility.

In a move focused on operational efficiency, Chief Minister Sukhu suggested exploring the potential for outsourcing the operations of two existing milk processing plants located in the Shimla district at Duttnagar. This measure is intended to immediately enhance the production capacity of these facilities. For dairy manufacturers and analysts, this signals a pragmatic approach to capacity management, potentially leveraging private sector efficiency to boost throughput without requiring massive state capital expenditure on existing assets.