The state aims to empower rural youth and expand milk infrastructure with a ₹345 crore outlay.
Shimla, June 20, 2025 – Himachal Pradesh is accelerating its rural dairy transformation under the leadership of Chief Minister Sukhvinder Singh Sukhu, who has called for the formation of dairy cooperative societies on a “mission mode” across the state.
In a high-level meeting held on Thursday with the Animal Husbandry Department, CM Sukhu emphasised the role of dairy cooperatives in enhancing livelihoods, particularly for the state’s youth. He noted that while such cooperatives are currently active in 910 panchayats, a concerted push is needed to scale up operations across the remaining panchayats.
“Dairy cooperatives can boost milk production and create self-employment. The state will work hard to expand their reach,” Sukhu said.
Major Infrastructure Push
The Chief Minister reviewed progress on the flagship Dhagwar Milk Processing Plant in Kangra district, a ₹225 crore initiative with a processing capacity of 1.5 lakh litres per day. A committee will be formed to expedite the plant’s construction, which is targeted for completion by June 2026. This facility will benefit dairy farmers from Kangra, Una, Hamirpur, and Chamba.
Additionally, the government is planning six more milk processing and chilling plants at strategic locations:
- Jhalera (Una)
- Jhaladi (Hamirpur)
- Nahan (Sirmaur)
- Mohal (Kullu)
- Nalagarh (Solan)
- Rohru (Shimla)
These new units, backed by an investment of ₹120 crore, aim to strengthen the milk procurement ecosystem across the state.
Supportive Pricing and Brand Building
In a significant move to incentivise farmers, the government has increased the minimum support price (MSP) for:
- Cow milk: ₹51 per litre
- Buffalo milk: ₹61 per litre
Milk procurement by Himachal Pradesh Milkfed (MILKFED) has reportedly increased by 17% over the past three years, reflecting improved farmer participation and enhanced supply chain efficiency.
To further boost farmer income, MILKFED has been directed to scale up marketing efforts for ‘Him-Ghee’, a premium ghee made from Pahari cow milk. The state is positioning this as a high-value dairy product with regional identity and health benefits.
Rural Development Through Dairy
CM Sukhu reiterated that the dairy sector will be a cornerstone of his government’s rural development strategy. Efforts are also underway to establish more ‘Gau Sadans’ (cow shelters) to ensure animal welfare and sustainability in dairy farming.
Analysis & Outlook
Himachal’s dairy roadmap, which combines infrastructure, procurement incentives, and branding, is aligned with national efforts to decentralise milk processing and boost income in hill and tribal regions. If executed effectively, it could serve as a model for other Himalayan states looking to revitalise rural economies through cooperative-led dairy systems.
