Guwahati, May 2025 – In a transformative step toward strengthening Assam’s dairy economy, the Assam Cabinet has approved the leasing of 20 bighas of land to AMUL to establish a state-of-the-art milk processing plant at Rani, near Guwahati. With an initial investment of ₹75 crore, the project is expected to scale up to ₹150 crore and process 1 lakh litres of milk per day.
Part of the Advantage Assam 2.0 initiative, this new AMUL facility is expected to directly benefit over 20,000 dairy farmers, enhance milk procurement infrastructure, and generate local employment.
🧈 A Boon for Farmers—and a Catalyst for Competition
Assam’s dairy sector already has a strong institutional presence in Purabi Dairy, operated by the West Assam Milk Producers’ Cooperative Union Ltd (WAMUL), with technical and managerial support from the National Dairy Development Board (NDDB).
Purabi Dairy has been instrumental in developing the dairy value chain in Assam, operating multiple milk processing plants, bulk milk coolers, and a wide retail network across Guwahati and adjoining regions.
Now, with AMUL entering the same market with its processing infrastructure, Assam is poised to witness healthy competition between two of India’s most respected cooperative models.
“With AMUL setting up shop and Purabi backed by NDDB’s deep expertise, Assam’s dairy market is set to evolve rapidly,” said an industry analyst. “This competition will not only boost milk procurement prices for farmers but will also drive product quality, innovation, and affordability for consumers.”
🥛 Sector Impact: Why This Matters
- For Farmers: Competing procurement systems may lead to better farmgate prices, prompt payments, and more support services.
- For Consumers: Wider choices, higher product quality, and potentially more competitive pricing for liquid milk, paneer, curd, ghee, and other value-added dairy products.
- For the Industry: AMUL’s investment, combined with NDDB’s support to Purabi, will accelerate cold chain development, boost rural incomes, and expand rural-to-urban dairy supply networks.
📦 Additional Cabinet Decisions
Alongside the AMUL project, the Assam Cabinet also approved:
- Subsidised foodgrain distribution (Masur Dal at ₹69/kg, Sugar at ₹38/kg, and Salt at ₹10/kg) to NFSA beneficiaries across the state from October to November 2025.
- ₹2,457.98 Cr industrial investment package, projected to create 1,000 jobs under the Industrial and Investment Promotion Act (IIPA).
- A welfare hike for 1,313 ICT instructors, increasing their honorarium to ₹20,000/month and extending service till age 60.