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Himachal boosts rural economy with MSP on milk

Under this policy, a minimum support price (MSP) has been introduced for milk for the first time in the country to ensure that milk producers get better remuneration for their produce, which is a remarkable and revolutionary step in the history of the state.

News Arena Network - Shimla - UPDATED: September 7, 2025, 06:18 PM - 2 min read

Representational image.


By adopting a visionary approach, the Himachal Pradesh government has taken a historic step towards strengthening the rural economy. An official spokesman here said the government was working with a clear goal that villages, farmers, women, and rural youth should be at the centre of the state’s economic progress. Under this policy, a minimum support price (MSP) has been introduced for milk for the first time in the country to ensure that milk producers get better remuneration for their produce, which is a remarkable and revolutionary step in the history of the state.

 

Himachal Pradesh Milk Federation is procuring an average of 2.25 lakh liters of cow milk daily from 38,400 farmers at the rate of Rs 51 per litre, while during 2024-25, the Federation procured an average of 1.57 lakh liters per day. Similarly, milk from 1,482 buffalo rearers is being purchased at the rate of Rs. 61 per litre, totaling 7,800 liters daily. Under a new initiative, goat milk is also being procured on a pilot basis in Una district at Rs 70 per litre. In total, the Federation is procuring 2.32 lakh liters of milk from farmers every day.

 

To encourage milk cooperative societies, the transportation subsidy has been increased from Rs 1.50 to Rs 3 per litre. Additionally, a provision of Rs 2 per litre has been made for farmers and societies transporting milk over two kilometres distance to the milk collection centres. The state government has also decided to set up bulk milk coolers, and this initiative will help maintain the quality of milk, ensure its proper utilisation, and provide farmers with a fair commission.

 

At present, 11 milk processing plants are functional under the Federation with a total capacity of 1.80 lakh liters per day. A milk powder plant of five metric tonnes per day capacity is functional at Dattnagar in Shimla district, while a cattle feed plant of 16 metric tonnes per day capacity has been established at Bhor in Hamirpur district. The Federation is also setting up automatic milk collection units (AMCU) across the state to ensure timely payments to producers.

 

The Federation is providing a financial benefit of Rs 39.48 crore per month on an average to the milk producers, which is the highest financial benefit recorded so far in the state. The marginal dairy farmers in remote areas are being reached at their doorsteps for milk collection, which has significantly improved their economic condition.

 

To ensure the production of clean and nutritious milk, milk chilling centres and mini-processing plants are being established in the villages. In the past two years, the Federation has set up bulk milk coolers of different capacities across the state.

 

Special emphasis is being laid on the formation of milk producer committees and women self-help groups. This will generate employment for milk producers and also ensure value addition. The Federation has also started testing the milk of producer committees. With a view to ensure the availability of clean milk and fair prices to farmers, 222 Automatic Milk Collection Units and 32 DPMCUs have been installed. The Federation has also started digitisation of the milk collection process and units on a pilot basis in eight committees.

 

The ‘Him Ganga Yojana’ has been launched on a pilot basis in Hamirpur and Kangra districts. The Federation has so far formed 268 new committees, including 46 in Hamirpur and 222 in Kangra, of which 20 are operated by women. The Federation has registered 107 committees in Kangra district and 11 in Hamirpur district.

 

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