The Government of Uttar Pradesh has approved a strategic dairy infrastructure expansion in the Bundelkhand region, signalling renewed efforts to strengthen milk processing capacity and improve market access for rural producers.
The decision, cleared during a Cabinet meeting chaired by Yogi Adityanath, includes the establishment of a new dairy processing plant in Banda and a significant capacity expansion of the existing facility in Jhansi.
Under the proposal, a new plant with a processing capacity of 20,000 litres per day (LPD) will be established in Banda as part of the Bundelkhand development package. Simultaneously, the current dairy plant in Jhansi will see its capacity expanded from 10,000 LPD to 30,000 LPD, effectively tripling its milk handling capability.
Strengthening Processing Infrastructure
The state government has nominated Indian Dairy Machinery Company Ltd as the executing agency for the project. The company will undertake civil and mechanical works on a turnkey basis, with the full project expenditure to be borne by the state government.
Expanding milk processing infrastructure in Bundelkhand is considered crucial for addressing long-standing supply chain inefficiencies. In several parts of the region, limited chilling and processing facilities often lead to milk spoilage and distressed sales, particularly during peak production periods.
By expanding formal processing capacity, the initiative is expected to improve milk procurement systems, stabilise pricing mechanisms, and ensure better value realisation for farmers.
Supporting Dairy-Led Rural Growth
As India’s largest milk-producing state, Uttar Pradesh continues to witness rising demand for dairy products driven by urbanisation, population growth, and evolving consumption patterns.
In this context, strengthening processing infrastructure in relatively underserved regions such as Bundelkhand can play a transformative role. Improved dairy capacity will not only reduce post-harvest losses but also facilitate the development of local dairy value chains, including chilling centres, transport networks, and downstream product manufacturing.
Economic and Employment Impact
The projects are also expected to generate direct and indirect employment opportunities across the dairy ecosystem, from milk collection and logistics to plant operations and retail distribution.
State officials noted that improving dairy infrastructure aligns with broader economic objectives, including the state’s ambition to become a USD 1-trillion economy. Enhanced dairy processing capabilities are expected to strengthen rural incomes while supporting the growth of the organised dairy sector.
For Bundelkhand, a region historically challenged by water scarcity and agrarian distress, dairy development is increasingly viewed as a stable and resilient income stream for farmers, making infrastructure investments particularly significant.