Assam Launches Milk Subsidy Scheme

The Assam government has recently introduced a subsidy scheme offering Rs 5 per litre of milk to dairy farmers. This initiative aims to increase milk production and improve farmers’ incomes. Alongside the subsidy, Assam is expanding its largest dairy processing plant in Guwahati to strengthen the dairy supply chain and promote rural economic growth.
Subsidy Scheme for Dairy Farmers
The new scheme provides Rs 5 per litre subsidy to farmers who supply milk to cooperative societies. It targets over 20,000 dairy farmers in Assam. The subsidy is designed to encourage higher milk production and enhance farmers’ earnings. The government views this as a way to spark a rural dairy revolution and improve livelihoods.
Expansion of Purabi Dairy Plant
The West Assam Milk Producers’ Cooperative Union Ltd (WAMUL) is expanding its Panjabari plant in Guwahati. The plant’s processing capacity will double from 1.5 lakh litres per day (LLPD) to 3 LLPD. This Rs 104-crore project is part of a memorandum of understanding with the National Dairy Development Board (NDDB). The expansion will improve milk collection and processing efficiency.
Enhancing Milk Production and Processing
The plant will increase pasteurised pouch milk production from 1.15 LLPD to 2 LLPD. A new ice cream production line will be introduced with an initial capacity of 20 thousand litres per day (TLPD), expandable to 30 TLPD. Additional dairy products with a total capacity of 70 TLPD will also be produced. These upgrades will diversify product offerings and boost the dairy sector.
Assam Dairy Development Plan and Regional Impact
The expansion supports the Assam Dairy Development Plan (ADDP), which aims to process 10 LLPD across the state’s formal dairy sector. The plan seeks to achieve self-reliance in dairy production and improve nutritional security. The Panjabari plant is the largest dairy processing facility in North East India and plays a key role in regional dairy growth.
Economic and Social Benefits
The subsidy and plant expansion are expected to strengthen market access for farmers. They will also enhance rural incomes and contribute to Assam’s agricultural development. By supporting dairy farmers and upgrading infrastructure, Assam aims to build a sustainable dairy ecosystem that benefits consumers and producers alike.