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Assam Introduces Rs 5/Litre Milk Subsidy and Expands Major Dairy Plant

Assam Launched Milk Subsidy And Expands Guwahati Dairy Plant To Boost Rural Economy

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Assam Launched Milk Subsidy And Expands Guwahati Dairy Plant To Boost Rural Economy
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Description

The Assam government has launched a new initiative providing a Rs 5 per litre subsidy on milk supplied by dairy farmers, aiming to enhance milk production and increase farmer incomes. This effort is complemented by the expansion of the region's largest dairy processing facility in Guwahati, aimed at strengthening the state's dairy value chain and promoting rural development.

Support Scheme For Dairy Farmers

Under the newly announced plan, dairy farmers supplying milk to cooperative networks will receive a direct subsidy of Rs 5 per litre. More than 20,000 farmers across Assam are expected to benefit from this scheme. The state envisions this as a step toward a "white revolution" in the region, focusing on uplifting rural livelihoods and ensuring steady income support for dairy producers.

Expansion Of Panjabari Dairy Facility

The West Assam Milk Producers’ Cooperative Union Ltd (WAMUL) is spearheading the modernisation and capacity enhancement of its Panjabari-based plant in Guwahati. Backed by a Rs 104 crore investment and implemented through a partnership with the National Dairy Development Board (NDDB), the plant’s milk processing capacity will be doubled from 1.5 lakh litres per day (LLPD) to 3 LLPD. This is expected to significantly improve the collection, processing, and distribution of dairy products in Assam.

Upgrading Production And Diversifying Offerings

As part of the upgrade, the production of pasteurised pouch milk will increase from 1.15 LLPD to 2 LLPD. A new ice cream manufacturing unit will be added, initially capable of producing 20,000 litres per day (TLPD), with future scalability to 30 TLPD. Additionally, other value-added dairy products will be manufactured, with a combined daily capacity of 70 TLPD, supporting both market diversification and consumer demand.

Strategic Dairy Development Plan

These developments are in line with the Assam Dairy Development Plan (ADDP), which envisions formal processing of 10 LLPD of milk across the state. The objective is to achieve self-sufficiency in dairy production, reduce dependency on external supplies, and ensure nutritional security for the population. With the Panjabari facility being the largest dairy plant in North East India, its expansion is critical to Assam’s overall dairy growth strategy.

Economic And Social Outcomes

The subsidy program and processing upgrades are expected to strengthen farmer-market linkages, increase rural household incomes, and stimulate agricultural-based entrepreneurship. By enhancing infrastructure and providing financial support, Assam aims to build a sustainable and inclusive dairy ecosystem that benefits both producers and consumers across the region.


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