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Lambagaon Milk FPO Transforms Rural Economy, Empowers 500 Farmers

In Himachal Pradesh’s Kangra district, the Lambagaon Milk Fed Farmer Producer Organisation has emerged as a compelling example of how collective action can reshape rural livelihoods. Established in May 2023 at Sua village, the FPO now brings together more than 500 farmers, enabling them to pool resources, access scientific support, and strengthen market engagement.

A distinctive feature of the Lambagaon FPO is its women-led governance, with half of its directors being women actively involved in decision-making, reflecting broader trends in rural empowerment. Such leadership has helped foster inclusive participation and diversify income avenues for marginal producers.

With support from the state Agriculture Department and a recent memorandum of understanding with the CSK Himachal Pradesh Agricultural University at Palampur, the FPO combines scientific guidance on farming practices with organised dairy activities. It procures and distributes 150–200 litres of milk daily, while also handling products such as paneer and curd for over 100 households.

Beyond dairy, the FPO has encouraged farmers to adopt remunerative crops such as organic turmeric and ginger. Procuring organic turmeric at supportive prices has provided direct financial benefits and eased market access, illustrating the value of integration between crop and livestock value chains.

The organisation also overcame local operational challenges such as crop damage from stray animals through targeted interventions like solar fencing. These infrastructure improvements have bolstered cultivation confidence, enhancing productivity.

Economically, the Lambagaon initiative highlights how farmer collectives can achieve economies of scale, improve bargaining power and create local employment. By aggregating milk and product distribution, the FPO reduces dependency on intermediaries and gives farmers a stronger foothold in both procurement and distribution.

Overall, the Lambagaon model underlines the transformative potential of FPOs in India’s dairy and agricultural landscape. It demonstrates how scientific support, institutional collaboration and inclusive leadership can enhance rural incomes and foster sustainable economic development.

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