The new dairy plant is expected to play a key role in strengthening the state’s milk collection network. By increasing processing capacity, the facility will help absorb larger volumes of milk produced by farmers in surrounding rural areas and channel them into organized dairy markets, improving efficiency across the dairy supply chain.

Officials said the project forms part of broader efforts to modernize India’s dairy sector through investment in processing infrastructure and cooperative networks. Enhancing regional processing capabilities is considered essential for reducing wastage, stabilizing milk procurement and ensuring steady supplies of fresh dairy products to consumers.

The plant will also support rural livelihoods by providing farmers with improved access to formal procurement systems. Strengthening cooperative dairy structures like OMFED enables smallholder producers to benefit from better market linkages, more reliable milk collection and opportunities to participate in the growing domestic dairy economy.