In a major step towards strengthening Assam’s rural economy and boosting the dairy industry, Chief Minister Himanta Biswa Sarma on Sunday launched a new subsidy scheme offering Rs 5 per litre of milk to dairy farmers supplying milk to cooperative societies for processing.
The scheme, formally rolled out at a programme in Guwahati, is expected to benefit over 20,000 dairy farmers across the state. Speaking at the event, the Chief Minister described the initiative as a “rural dairy revolution in the making” and a critical move toward achieving self-reliance in the dairy sector.
“Empowering our dairy farmers. Today, we formally rolled out the subsidy scheme, under which farmers will now receive Rs 5 per litre as subsidy for milk given to cooperatives for processing,” cm Sarma posted on social media platform X.
The new subsidy is part of Assam’s broader mission to strengthen milk supply chains, improve farmers’ incomes, and promote formal dairy processing through cooperative networks.
Purabi Dairy Expansion Project Launched
Alongside the subsidy announcement, the Chief Minister also laid the foundation stone for the expansion of the Panjabari plant operated by West Assam Milk Producers’ Cooperative Union Ltd (WAMUL), which markets dairy products under the popular Purabi Dairy brand.
The Rs 104 crore project, once completed, will significantly upgrade the plant’s milk processing capacity, taking it from the current 1.5 lakh litres per day (LLPD) to 3 LLPD, effectively doubling its output.
“This expansion is a crucial step towards making Assam self-reliant in the dairy sector. It will not only create more market access for our farmers but also ensure greater availability of quality milk and dairy products for consumers across the region,” Sarma said.
The project is being undertaken as part of an agreement signed earlier this year between WAMUL and the National Dairy Development Board (NDDB) during the Advantage Assam 2.0 Summit. The expansion includes not only enhanced milk processing capacity but also a new ice cream production line and other value-added dairy products.
Enhancing Assam’s Dairy Ecosystem
Officials from the Department of Animal Husbandry and Dairy Development highlighted that the subsidy and plant expansion are part of the Assam Dairy Development Plan (ADDP), which aims to increase formal milk processing in the state to 10 LLPD over the coming years.
The expanded Panjabari facility, which is already the largest milk processing plant in the North East, is being equipped to handle a larger variety of dairy products.
Key features of the upgrade include:
- Pasteurised pouch milk output to rise from 1.15 LLPD to 2.0 LLPD
- Introduction of a dedicated ice cream line with a capacity of 20,000 litres per day (TLPD), scalable up to 30,000 TLPD
- Addition of 70 TLPD of other dairy products such as curd, paneer, lassi, and flavored milk
According to Meenesh Shah, Chairman of NDDB and WAMUL, the expansion is aligned with national goals of promoting organized dairy processing in underserved regions. “This development will not only boost milk collection and increase processing but also allow us to reach a broader consumer base across Assam and neighbouring states,” Shah said at the event.
Economic Upliftment and Rural Employment
The new subsidy scheme and plant expansion are expected to provide a significant boost to rural livelihoods, especially in western Assam and surrounding districts. With rising costs of feed and inputs, the Rs 5/litre incentive will enhance profitability for farmers and encourage many more to participate in the formal dairy economy.
The initiative also supports employment generation, as a larger processing facility will require more manpower for operations, logistics, packaging, quality control, and distribution.
Chief Minister Sarma emphasized that dairy farming, when integrated with scientific practices and formal market access, can emerge as a sustainable income source for rural families.
“Assam has immense potential in dairy. With proper support and infrastructure, we can become not just self-sufficient, but also an exporter of quality dairy products from the North East,” he said.
Focus on Nutritional Security and Value Addition
Apart from boosting farmer incomes, the expanded facility and increased processing are expected to contribute significantly to nutritional security in the state. With more processed and fortified milk products available, school meal programmes, hospitals, and households will have better access to safe, hygienic, and nutritious dairy products.
The move is also expected to reduce Assam’s dependency on milk imports from other states, thereby saving costs and encouraging local production.
Additionally, the new ice cream and value-added dairy lines will allow Purabi Dairy to diversify its product portfolio, expand its presence in retail markets, and tap into the growing demand for dairy-based convenience foods among urban consumers.
A Roadmap for Future Growth
The government’s plan includes extending milk procurement systems, establishing more chilling centres in rural areas, providing veterinary support, and training farmers in modern dairy farming techniques. Further partnerships with NDDB, NABARD, and private players are also on the horizon to improve backward and forward linkages.
Sarma reiterated his government’s commitment to holistic development of the dairy ecosystem, stating that “this is just the beginning of a much larger movement to transform Assam’s agriculture and animal husbandry sectors.”
As the state moves ahead with this vision, the twin initiatives launched on Sunday — the milk subsidy scheme and Purabi Dairy expansion — mark a turning point in Assam’s journey toward a prosperous, self-reliant, and nutrition-secure future.
ALSO READ: Hira vs Kumar: The Dying Art of Traditional Pottery in Assam
