New procurement policy aims to expand institutional demand, strengthen dairy cooperatives and improve market access for local milk producers.
The Himachal Pradesh government has approved a decision allowing government departments and institutions across the state to procure milk and milk products from the state-run Himachal Pradesh Milkfed and registered dairy cooperative societies. The initiative is aimed at strengthening the cooperative dairy sector, expanding market opportunities for local producers and improving farmers’ incomes.
The approval covers a wide range of government establishments, including hospitals, educational institutions, hostels, canteens, boards, corporations, public sector undertakings and other government institutions. These establishments can purchase milk and milk products according to their respective requirements.
The move is expected to create a more dependable institutional market for dairy cooperatives and provide local milk producers with additional opportunities to sell their products.
Four Dairy Cooperatives Expected to Benefit
Alongside Milkfed, four registered dairy cooperatives are expected to benefit directly from the initiative. These include Kamdhenu Hitkari Manch and Kehloor Milk Producer Cooperative Society in Namhol, Bilaspur district; Gau Amrit Dugdh Utpadak Society in Paplota; and Amrit Dhara Dairy Cooperative Society in Darlaghat, Solan district.
By opening government procurement channels to these cooperatives, the state aims to strengthen their commercial position and improve access to organised buyers. Institutional demand from hospitals, educational establishments and government canteens could provide cooperatives with additional opportunities to market their milk and dairy products.
The decision also supports the wider cooperative model, in which milk producers collectively organise procurement and marketing activities to improve their participation in the dairy value chain.
Government Focuses on Farmers’ Income and Rural Development
Chief Minister Sukhvinder Singh Sukhu said the government was committed to strengthening the rural economy by ensuring remunerative prices and assured market access for farmers and milk producers.
He highlighted dairy farming’s potential to increase rural household incomes and said the decision would reinforce cooperative institutions while creating better marketing opportunities for local producers.
The initiative is expected to benefit thousands of milk producers by providing access to institutional buyers. It could also support rural employment and improve the economic conditions of farming households.
Small and marginal farmers, women and unemployed youth are among the groups expected to benefit from the promotion of dairy farming as a sustainable livelihood. Improved market access could encourage more rural households to participate in organised milk production and cooperative activities.
Milkfed’s Network Supports Dairy Development Across 11 Districts
Milkfed is currently undertaking dairy development activities across 11 districts of Himachal Pradesh. Its network includes 799 primary milk producers’ cooperative societies, serving approximately 55,300 milk producers.
This existing cooperative infrastructure provides an important foundation for expanding institutional procurement. Connecting government establishments with Milkfed and registered societies could help strengthen the relationship between milk producers, cooperative organisations and organised consumers.
The state government is also providing what officials describe as the highest minimum support price for milk in the country, with the objective of improving returns for dairy farmers.
Chief Minister Sukhu reiterated that the government would continue promoting rural-based economic activities, strengthening the dairy sector and creating employment opportunities as part of its broader objective of making Himachal Pradesh self-reliant.
Strengthening the Dairy Cooperative Value Chain
The procurement decision represents an effort to connect public-sector demand more directly with local dairy production. By enabling government institutions to purchase from Milkfed and registered cooperatives, Himachal Pradesh is seeking to expand the market available to its dairy producers while supporting cooperative institutions.
The effectiveness of the initiative will depend on how procurement requirements translate into regular demand, consistent product supply and dependable market opportunities for participating societies.
For the state’s dairy sector, the policy offers a route to strengthen institutional marketing, encourage cooperative participation and improve the economic prospects of rural milk-producing households.
