The Assam government has taken a major step toward enhancing rural livelihoods by launching a subsidy scheme offering Rs 5 per litre of milk to dairy farmers across the state. This initiative, introduced in 2025, is aimed at increasing milk production, improving farmer incomes, and strengthening the dairy supply chain.
Under the new scheme, dairy farmers who supply milk to registered cooperative societies will receive a direct subsidy of Rs 5 per litre. Targeting over 20,000 dairy farmers, this initiative is intended to encourage greater participation in the formal dairy sector. Officials have described the scheme as the foundation for a “rural dairy revolution” that can uplift farming communities and boost economic resilience in the state.
Complementing the subsidy scheme is the expansion of Assam’s largest dairy processing facility—the Purabi Dairy Plant in Panjabari, Guwahati. Operated by the West Assam Milk Producers’ Cooperative Union Ltd (WAMUL), the plant’s processing capacity will double from 1.5 lakh litres per day (LLPD) to 3 LLPD. This Rs 104-crore project, undertaken in collaboration with the National Dairy Development Board (NDDB), is expected to significantly improve milk collection, pasteurisation, and distribution efficiency.
With this upgrade, pasteurised pouch milk production will increase from 1.15 LLPD to 2 LLPD. A new ice cream production line with an initial capacity of 20 thousand litres per day (TLPD)—expandable to 30 TLPD—will be established. Additionally, the plant will begin producing other value-added dairy products at a combined capacity of 70 TLPD, offering a wider range of consumer choices and creating new revenue streams for farmers.
This initiative aligns with the Assam Dairy Development Plan (ADDP), which envisions processing 10 LLPD in the formal sector across the state. By expanding infrastructure and providing direct incentives to farmers, Assam aims to achieve self-reliance in dairy production, improve nutritional security, and stimulate rural economic growth.
The combination of financial support and industrial expansion is expected to improve market access for farmers, increase rural incomes, and strengthen Assam’s agricultural economy. By investing in both people and infrastructure, Assam is paving the way for a sustainable, farmer-friendly dairy ecosystem that benefits all stakeholders.
