Shimla, 7^th September, 2025

Feature-Rural economy of Himachal achieves new heights with MSP on Milk

• MILKFED procuring average 2.32 lakh liters of milk from farmers

By adopting a visionary approach, the Himachal Pradesh government has taken a historic step towards strengthening the rural economy. The government is working with a clear goal that villages, farmers, women and rural youth should be at the centre of the state’s economic progress. Under this policy, a minimum support price (MSP) has been introduced for milk for the first time in the country to ensure that milk producers get better remuneration for their produce, which is a remarkable and revolutionary step in the history of the state.

Daily milk procurement from 38,400 lakh liters of cow milk

Himachal Pradesh Milk Federation is procuring an average 2.25 lakh liters of cow milk daily from 38,400 farmers at the rate of Rs. 51 per litre while during 2024-25, the Federation procured an average of 1.57 lakh liters per day. Similarly, milk from 1,482 buffalo rearers is being purchased at the rate of Rs. 61 per litre, totaling 7,800 liters daily. Under a new initiative, goat milk is also being procured on a pilot basis in Una district at Rs. 70 per litre. In total, the Federation is procuring 2.32 lakh litres of milk from farmers every day.

Transportation subsidy enhanced

To encourage milk cooperative societies, the transportation subsidy has been increased from Rs.1.50 to Rs. 3 per litre. Additionally, a provision of Rs. 2 per litre has been made for farmers and societies transporting milk over two kilometres distance to the milk collection centres. The state government has also decided to set up bulk milk coolers and this initiative will help maintain the quality of milk, ensure its proper utilization and provide farmers with a fair commission.

11 milk processing plants operational

At present, 11 milk processing plants are functional under the Federation with a total capacity of 1.80 lakh litres per day. A milk powder plant of five metric tonnes per day capacity is functional at Dattnagar in Shimla district while a cattle feed plant of 16 metric tonnes per day capacity has been established at Bhor in Hamirpur district. The Federation is also setting up automatic milk collection units (AMCU) across the State to ensure timely payments to producers.

Monthly benefit of Rs. 39.48 crore to milk producers

The Federation is providing a financial benefit of Rs. 39.48 crore per month on an average to the milk producers, which is the highest financial benefit recorded so far in the state. The marginal dairy farmers in remote areas are being reached at their door-steps for milk collection which has significantly improved their economic condition.

Chilling plant facilities up to villages

To ensure production of clean and nutritious milk, the milk chilling centres and mini-processing plants are being established in the villages. In the past two years, the Federation has set up bulk milk coolers of different capacities across the State.

Formation of milk producer committees

Special emphasis is being laid on the formation of milk producer committees and women self-help groups. This will generate employment for milk producers and also ensure value addition. The Federation has also started testing the milk of producer committees. With a view to ensure availability of clean milk and fair prices to farmers, 222 Automatic Milk Collection Units and 32 DPMCUs have been installed. The Federation has also started digitization of the milk collection process and units on a pilot basis in eight committees.

Empowering women and self-help group

The ‘Him Ganga Yojana’ has been launched on a pilot basis in Hamirpur and Kangra districts. The Federation has so far formed 268 new committees, including 46 in Hamirpur and 222 in Kangra, of which 20 are operated by women. The Federation has registered 107 committees in Kangra district and 11 in Hamirpur district.

Expansion of infrastructure

On 15 November 2024, Chief Minister Sukhvinder Singh Sukhu inaugurated a new milk processing plant of 50,000 liters per day capacity at Dattnagar in Shimla district. This plant is connecting more and more milk producers and farmers of the region, providing them employment opportunities. The total milk processing capacity at Dattnagar has now increased to 70,000 liters per day.

The Federation is making continuous efforts to improve the existing infrastructure of milk processing plants. In the past two years, Rs. 19.54 crore has been spent on strengthening the infrastructure of six milk processing plants (Mandi, Dattnagar, Nahan, Mohal (Kullu), Parel (Chamba), and Dhagwar (Kangra)), two milk chilling centres (MCC Sarahan and MCC Katoula) and one cattle feed plant (Bhor). Work is in progress to strengthen and expand the infrastructure of various Federation units so that the increased quantity of milk can be processed promptly and more farmers can be connected.

Expanding with National Partnerships

For the first time in its history, Himachal Pradesh is collaborating with the National Dairy Development Board (NDDB). A state-of-the-art, fully automated processing plant at Dhagwar in Kangra, with a capacity to expand from 1.5 lakh litres to 3 lakh litres per day at a cost of Rs. 200.43 crore, is under construction. Additional plants in Nahan, Nalagarh, and Mohal under the NPDD 2.0 project, along with chilling centres in Una and Hamirpur, will soon ensure that no drop of milk goes unutilized.

What sets this initiative apart is not just its economic value but its human impact. Dairy farming, once seen as supplementary, has now become a mainstay of rural households, giving farmers the confidence to invest in better cattle, modern techniques and allied sectors like natural farming and horticulture. It has also created employment opportunities for rural youth, offering them viable alternatives to migration. The reforms made in the diary sector are more than a policy, it is a vision in action. By linking rural households with assured markets, modern infrastructure and transparent systems, the State has redefined how agriculture and allied activities can uplift entire communities.

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CM visits disaster-affected areas in Sujanpur Constituency of Hamirpur

· MLA Captain Ranjit Singh announces Rs. one Lakh assistance for each affected family

· Each displaced family in Chabutra to get Rs. 8.70 lakh relief package, including Rs. 7 lakh from State Government and Rs.70,000 for essential items

Chief Minister Thakur Sukhvinder Singh Sukhu today visited disaster-affected villages in the Sujanpur constituency of district Hamirpur and reviewed relief and rehabilitation works. He assured the affected families of every possible support from the state government.

The Chief Minister visited Khairi and adjoining villages to assess the flood and landslide damage and later inspected the land subsidence-affected area of Chabutra. He interacted with the displaced families and announced that the State Government would provide Rs. 7 lakh for house construction and Rs. 70,000 for household items. In addition, local MLA Captain Ranjit Singh would extend Rs. one lakh to each affected family, raising the total assistance to Rs. 8.70 lakh per family.

Sh. Sukhu said that similar assessments were underway in other parts of Hamirpur district and relief was being extended to all affected families. He said that the issue of transferring safe forest land for house construction would be taken up with the Central Government, along with the overall losses suffered by Himachal Pradesh during the monsoon season.

Later the Chief Minister also listened to public grievances at Kutheda.

MLA Suresh Kumar, Chairman of Kangra Central Cooperative Bank Ram Chandra Pathania, State Nasha Nivaran Board Coordinator Naresh Thakur, senior Congress leaders Dr. Pushpender Verma and Suman Bharti, Deputy Commissioner Amarjeet Singh, SP Bhagat Singh Thakur and other dignitaries were present on the occasion.