Executive Summary: Himachal Pradesh is advancing a robust dairy development agenda under Chief Minister Sukhvinder Singh Sukhu, focusing on expanding cooperative societies, increasing the Minimum Support Price (MSP) for milk, and strengthening infrastructure through new milk processing plants. With dairy cooperatives already active in 910 panchayats, the state plans further outreach to empower rural youth and boost dairy self-employment. Key initiatives include a ₹225 crore milk plant in Kangra and six additional plants across other districts, alongside a substantial MSP hike to ₹51/litre for cow milk and ₹61/litre for buffalo milk—aimed at enhancing farmer income and solidifying Himachal’s role in the Indian dairy industry’s growth.
Dagwar Dairy Plant: A ₹225 Crore Vision for Kangra Region
Reviewing progress on the ambitious Dagwar Milk Processing Plant in Kangra district, CM Sukhu announced the formation of a dedicated committee to expedite its development. Designed with a daily capacity of 1.5 lakh litres and an investment of ₹225 crore, the plant is slated for completion by June 2026. It is expected to serve farmers across the Kangra, Una, Hamirpur, and Chamba districts, thereby catalysing milk processing and procurement capabilities in the region.
“The state government is committed to uplifting the rural economy. By strengthening dairy infrastructure and ensuring fair milk prices, we aim to improve the livelihoods of our dairy farmers,” said CM Sukhu.
Increased MSP: A Step Toward Dairy Sector Empowerment
In a landmark move, the Himachal Pradesh government has raised the Minimum Support Price (MSP) for milk to ₹51 per litre for cow milk and ₹61 per litre for buffalo milk. This revision, among the highest in the country, underlines the administration’s focus on farmer profitability and dairy sector growth.
These efforts have already borne fruit, with MILKFED’s milk procurement rising by 17% over the past three years, a testament to the improved confidence and participation of local farmers in the formal dairy supply chain.
Six New Processing Hubs to Broaden Reach
The government also unveiled plans for six new milk processing and chilling plants in Jhalera (Una), Jhaladi (Hamirpur), Nahan (Sirmaur), Mohal (Kullu), Nalagarh (Solan), and Rohru (Shimla), backed by a combined investment of ₹120 crore. These facilities will not only streamline milk collection and preservation but also enhance farmer incomes and ensure quality in dairy production.
This integrated push for cooperative expansion, higher Minimum Support Prices (MSPs), and infrastructure investment is poised to position Himachal Pradesh as a progressive model in India’s dairy sector evolution.
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