In a landmark step towards rural empowerment, Himachal Pradesh has become the first state in India to introduce Minimum Support Price (MSP) for milk, setting a national precedent in dairy sector reforms. Over the past two and a half years, the state government has implemented transformative policies to uplift livestock farmers, strengthen cooperative institutions, and build a more resilient rural economy.
Currently, the state procures an average of 2.32 lakh litres of milk daily—2.25 lakh litres from around 38,400 cow farmers at Rs. 51/litre, and 7,800 litres from 1,482 buffalo rearers at Rs. 61/litre. This guaranteed pricing mechanism has not only ensured stable income for farmers but also replaced older, inconsistent procurement practices.
To support farmers in remote and hilly regions, the government offers a Rs. 2 per litre transport subsidy, easing market access and logistics costs. Additionally, milk cooperative societies now receive Rs. 3 per litre as transport support, up from Rs. 1.50, with the annual subsidy commitment estimated at Rs. 6 crore—a figure set to rise as more societies are formed and registered.
A key driver of this dairy resurgence is the Him Ganga Yojana, launched to strengthen grassroots dairy infrastructure. Under its first phase, 268 new milk producer cooperatives have been formed in Hamirpur and Kangra, with 110 already registered. Notably, 20 of Hamirpur’s 46 new societies are led by women, reflecting the state’s commitment to women’s empowerment in agriculture. To date, 5,166 farmers have been linked directly to these cooperative structures.
In a forward-looking pilot, the government has also begun procurement of goat milk at Rs. 70/litre, currently purchasing 100 litres per day from 15 goat rearers, signaling diversification in dairy initiatives.
Sukhu emphasized that the reforms aim to build more than just production capacity—they are about creating a sustainable, inclusive ecosystem that values rural producers and supports organized, quality-driven dairy production.
“These reforms are a bold step toward self-reliant rural development,” the Chief Minister said. “By focusing on fair pricing, cooperative empowerment, and women’s leadership, Himachal Pradesh is redefining rural economics while inspiring other states to adopt similar models.”
Himachal’s dairy sector now stands as a model of inclusive growth, offering a blueprint for states across India to reimagine rural prosperity through policy innovation and cooperative engagement.
