Shimla: Under the able leadership of Chief Minister Thakur Sukhvinder Singh Sukhu, the state government is making strong and continuous efforts to strengthen the rural economy, with a special focus on farmers and milk producers. The aim is to make dairy farming a reliable and profitable source of income for rural households.
The government has taken historic steps to improve the financial security of milk producers. Farmers are now receiving an average benefit of Rs. 34.18 crore every month the highest ever. The state milk federation is currently procuring approximately 2.70 lakh liters of milk per day, a significant increase compared to the average procurement of 1.57 lakh liters perday during FY 2024-25. The federation is ensuring doorstep milk collection, particularly benefiting marginal milk producers living in remote areas of the state. This initiative is helping improve their socio-economic conditions by providing them with direct financial support.
Showing a strong commitment to farmers welfare, the government has consistently increased milk procurement prices from last three years. In the 2026-27 budget provision has been made to procure cow milk at Rs. 61 per litre and buffalo milk at Rs. 71 per litre. Reforms made in dairy sector have encouraged more people to participate in village dairy societies has risen from 27,498 to 39,790 in the last three years, while the number of functional dairy cooperative societies has increased from 583 to 758.
To further boost rural employment and strengthen the dairy sector, the government is promoting milk producer groups and women self-help groups. These initiatives are not only increasing milk production but also creating sustainable livelihood opportunities in rural areas.
In terms of infrastructure, the government has made major investments. Currently, 11 milk processing plants are operational with a combined capacity of 1.80 lakh liters per day. In addition, a modern milk processing plant is being set up at Dhagwar in Kangra district with an initial capacity of 1.50 lakh liters per day, which can be expanded to three lakh liters per day in the future which represents the government’s long-term vision.
To strengthen institutional capacity, the government has signed an agreement with the National Dairy Development Board (NDDB) to establish a new milk union in Kangra district. This will cover Kangra, Una, Hamirpur, and Chamba districts and will improve milk collection, processing and marketing systems.
To build farmer capacity, more than 2,000 farmers have been trained over the past three years in clean milk production and quality maintenance, with support from institutions such as RTDC Jalandhar, MIT Mehsana, and NDRI Karnal. Additionally, to ensure transparency and fair pricing, 222 Automatic Milk Collection Units (AMCUs) and 32 Data Processing Milk Collection Units (DPMCs) have been installed.
Chief Minister Thakur Sukhvinder Singh Sukhu stated, “Ensuring that farmers receive money directly in their hands is a key priority of the state government. We are making every effort to support farmers and horticulturists so they can become economically empowered. Our clear objective is to position villages, farmers, women, and rural youth at the heart of the state’s economic growth.”
