In a landmark decision aimed at empowering the rural population, the Government of Himachal Pradesh has introduced the Minimum Support Price (MSP) on milk — a first-of-its-kind initiative in the country. This revolutionary step places farmers, women, rural youth, and villages at the heart of the state’s economic growth strategy. The initiative not only ensures fair pricing for milk producers but also repositions dairy farming as a central pillar of rural livelihoods.
The Himachal Pradesh Milk Federation (MILKFED) is now procuring an average of 2.32 lakh litres of milk daily, benefitting over 40,000 farmers. This includes 2.25 lakh litres of cow milk from 38,400 farmers at ₹51 per litre and 7,800 litres of buffalo milk from 1,482 rearers at ₹61 per litre. Goat milk procurement has also begun on a pilot basis in Una district at ₹70 per litre, further diversifying dairy income streams.
To support milk cooperative societies, the government has doubled the transportation subsidy from ₹1.50 to ₹3 per litre. An additional ₹2 per litre subsidy is provided for transporting milk over two kilometres to collection centres. The introduction of bulk milk coolers will further maintain milk quality and ensure better returns for farmers.
Currently, 11 milk processing plants with a total capacity of 1.80 lakh litres per day are operational. A milk powder plant in Shimla (Dattnagar) and a cattle feed plant in Hamirpur (Bhor) support value addition. Additionally, Automatic Milk Collection Units (AMCUs) are being installed to ensure accurate and timely payments to farmers.
Farmers across Himachal Pradesh are witnessing tangible benefits from the dairy reforms. The Federation is providing an average of ₹39.48 crore per month to milk producers — the highest ever recorded. Remote and marginal dairy farmers are also being reached directly at their doorsteps, improving income and livelihood security.
To promote clean and nutritious milk production, chilling plants and mini-processing units are being established in villages. Over the last two years, MILKFED has installed bulk milk coolers of varying capacities across the state, strengthening cold chain infrastructure right at the grassroots.
Special focus is being placed on empowering women through the formation of milk producer committees and self-help groups (SHGs). As part of this, 268 new committees have been formed under the ‘Him Ganga Yojana’ in Kangra and Hamirpur districts, including 20 women-operated units. The Federation has also introduced milk testing and digitized collection in eight pilot committees, ensuring transparency and quality assurance.
On 15 November 2024, CM Sukhu inaugurated a 50,000-litre per day milk processing plant at Dattnagar, increasing its capacity to 70,000 litres/day. In the past two years alone, ₹19.54 crore has been invested to upgrade infrastructure in six processing plants and two chilling centres, ensuring readiness to handle increased milk volumes efficiently.
In a major leap, Himachal Pradesh has partnered with the National Dairy Development Board (NDDB) to construct a state-of-the-art automated processing plant at Dhagwar in Kangra, with plans to scale capacity from 1.5 to 3 lakh litres per day at a cost of ₹200.43 crore. Additional plants are being developed in Nahan, Nalagarh, and Mohal under the NPDD 2.0 project, with new chilling centres planned in Una and Hamirpur.
This milk MSP initiative goes beyond economics—it represents a social transformation. Dairy farming, once seen as a supplementary activity, is now a primary income source for rural families. Farmers are investing in high-quality cattle, modern techniques, and allied sectors such as natural farming and horticulture. Youth are finding local employment, reducing rural migration. By integrating fair pricing, modern infrastructure, and transparent systems, Himachal Pradesh has shown how bold reforms can uplift entire communities and redefine the role of agriculture in sustainable development.
