Himachal Pradesh is taking a decisive step towards transforming its dairy sector with the establishment of new milk processing plants in Nahan, Nalagarh, Mohal and Rohru, a milk chilling centre at Jalari (Hamirpur), and a bulk milk cooler at Jhalera (Una). This comprehensive upgrade in infrastructure is aimed at strengthening rural livelihoods, modernising milk collection systems, and ensuring farmers receive fair and timely payments.
Chief Minister Thakur Sukhvinder Singh Sukhu emphasised that with over 90% of the state’s population living in rural areas and engaged in farming, dairy development is a core economic priority. “These new facilities will increase milk collection capacity, ensure fair returns to farmers, and raise the quality benchmarks of milk procurement,” he said.
Digital Transformation in Dairy: ERP System for Transparency
In a significant move to enhance operational efficiency and curb malpractices, the Himachal Pradesh Milk Federation (Milkfed) will soon roll out an Enterprise Resource Planning (ERP) system. This state-of-the-art digital platform will empower farmers with mobile access to real-time data on milk collection volumes, payment status, quality testing results, and procurement rates.
By replacing manual record-keeping with a fully digital system, the ERP platform will minimise errors, prevent manipulation, and ensure faster payment processing directly to farmers’ bank accounts. Farmers will be able to track every litre of milk supplied and every payment received, ensuring complete transparency in transactions.
“The earnest efforts of the state government have led to record-high milk procurement by Milkfed, while also improving the quality standards of milk collection,” the Chief Minister noted.
Expanding Value-Added Dairy Production
A flagship project currently under construction — the Milk Processing Plant at Dhagwar in Kangra district — is poised to revolutionise the state’s dairy economy. Once operational, it will produce a range of value-added products including curd, lassi, butter, ghee, paneer, flavoured milk, khoya, and mozzarella cheese.
This facility will help farmers earn more through the sale of high-margin dairy products, while providing consumers with high-quality, locally sourced goods.
First State in India to Offer MSP for Milk
In a landmark policy move, Himachal Pradesh has become the first state in India to introduce a Minimum Support Price (MSP) scheme for milk procurement. Under the scheme:
- Cow milk is procured at ₹51 per litre
- Buffalo milk is procured at ₹61 per litre
- Farmers delivering milk to notified collection centres located more than 2 km away receive an additional ₹2 per litre as a transport subsidy.
This initiative not only guarantees fair and remunerative prices for dairy farmers but also provides a safety net against market fluctuations.
A Model for Rural Economic Growth
With the dual thrust of infrastructure expansion and digital innovation, Himachal Pradesh’s dairy sector is set to become a model for other states. The combination of modern processing plants, transparent payment systems, and policy-backed price assurance underscores the state government’s commitment to sustainable rural development.
As Chief Minister Sukhu stated, “The State Government is committed to uplifting rural livelihoods through sustained investments in animal husbandry and dairy infrastructure.”
With these reforms, Himachal’s dairy farmers are entering a new era — one where technology, fair pricing, and value addition converge to create lasting prosperity.
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