In a significant step aimed at strengthening the rural economy and boosting the dairy sector, the Government of Himachal Pradesh on Monday signed three key Memorandums of Understanding (MoUs) with the National Dairy Development Board in the presence of Chief Minister Sukhvinder Singh Sukhu.
The agreements mark a major push by the state government to modernise milk production, processing and marketing systems while ensuring that financial benefits reach farmers directly. The MoUs were signed on behalf of the state government by Animal Husbandry Secretary Ritesh Chauhan and Managing Director of the Himachal Pradesh State Cooperative Milk Producers Federation Abhishek Verma, while NDDB Chairman Meenesh Shah signed the agreements on behalf of the Board.
The first agreement focuses on the formation and operation of the Kangra Milk Union, a move expected to streamline milk collection, processing and marketing in several districts of the state. Under the plan, the proposed union will cover Kangra district, Una district, Hamirpur district and Chamba district, thereby creating a more organised dairy network across these regions.
The second MoU deals with expanding dairy infrastructure in the state. Under this agreement, two milk processing plants with a capacity of 20,000 litres per day each will be established at Nahan and Nalagarh. Additionally, two milk chilling centres, each capable of handling 20,000 litres of milk per day, will be set up at Jalari and Jhalera.
The third MoU relates to the implementation of Enterprise Resource Planning (ERP) software in Milkfed to bring transparency, efficiency and digital integration into the dairy supply chain. The ERP system will digitally manage key processes such as milk procurement, quality testing, production management, storage and distribution. It will also maintain organised records of milk-producing farmers and ensure timely and transparent payments.
One of the flagship projects under the initiative is the establishment of a fully automated milk processing plant at Dhagwar. The facility is being built at a cost of around Rs. 250 crore and will initially have a processing capacity of 1.5 lakh litres of milk per day. Officials said the plant has been designed in a way that its capacity can later be expanded to three lakh litres per day.
Addressing the gathering, Chief Minister Sukhvinder Singh Sukhu said the state government has been committed to strengthening the rural economy since the day it assumed office. He emphasised that the dairy sector has been given special priority because it directly supports farmers and rural households.
The Chief Minister said that once the Dhagwar milk processing plant becomes operational, high-quality dairy products will be introduced in the market under the “Him” brand. According to him, improving product quality and strengthening the marketing network will increase farmers’ income and make the rural economy more resilient.
Sukhu also highlighted the government’s decision to significantly increase the support price for milk procurement, stating that Himachal Pradesh has now emerged as the state offering one of the highest procurement prices in the country. The procurement rate for cow milk has been increased from Rs. 32 to Rs. 51 per litre, while the price for buffalo milk has been raised from Rs. 47 to Rs. 61 per litre.
He further said that under the Dugdh Protsahan Yojana, farmers who deliver milk themselves to procurement centres receive a direct incentive of Rs. 3 per litre. In addition, the transport subsidy for milk has been increased by Rs. 1.50 per litre, providing further financial support to dairy farmers.
The Chief Minister said the government’s approach is not limited to increasing milk prices alone. The larger goal, he said, is to create employment opportunities for youth in rural areas and strengthen village-based economic activities.
Sukhu also referred to the Gopal Yojana, under which care for stray cattle is being improved. Financial assistance provided to gaushalas and cow sanctuaries for the upkeep of cows has been increased from Rs. 700 to Rs. 1,200 per animal per month.
Speaking on the occasion, Agriculture Minister Chander Kumar said the state must focus on strengthening the “Him” brand so that Himachal’s dairy products can compete with nationally recognised brands such as Amul and Verka. He added that the Dhagwar milk processing plant is expected to become operational by October this year, which will directly benefit farmers in Kangra, Una, Hamirpur and Chamba districts.
The minister also stressed the importance of improving the health and productivity of dairy animals and said the state government would encourage farmers to adopt high-yielding breeds. He noted that indigenous cow breeds are also being promoted as part of the government’s strategy to strengthen both agriculture and dairy sectors.
He further revealed that the state government has imposed a cess on liquor, and a significant portion of the revenue generated from it is being channelled into the development of the dairy sector, which is already showing encouraging results.
Several senior officials and dignitaries attended the event, including Milkfed Chairman Buddhi Singh Thakur, Chief Minister’s Principal Media Adviser Naresh Chauhan, Secretary to the Chief Minister Rakesh Kanwar and Registrar Cooperative Societies D.C. Negi, along with other senior officers of the state government.
