In a major step to strengthen Assam’s dairy industry and boost rural incomes, Chief Minister Himanta Biswa Sarma has recently announced a new subsidy of ₹5 per litre of milk for dairy farmers across the state. The move is aimed at encouraging higher milk production, reducing rural distress, and enhancing the viability of the dairy sector.
The announcement was made during the inauguration of the expanded dairy processing facility at the Purabi Dairy plant in Guwahati, where Sarma emphasized the government’s commitment to creating a self-reliant dairy ecosystem in Assam.
“This subsidy will ensure that farmers get fair compensation for their efforts while we work to make Assam self-sufficient in milk production,” said the Chief Minister. He added that the new policy is part of the broader Assam Dairy Development Strategy, which seeks to expand milk output and reduce the state’s dependence on imports from other regions.
Empowering our dairy farmers 🐮🥛
Today, we formally rolled out the subsidy scheme for our dairy farmers who will now receive ₹5/litre subsidy for the milk they give for processing at cooperative societies.
This will encourage them to increase production, boost their income… pic.twitter.com/x8GB6Sc7rn
— Himanta Biswa Sarma (@himantabiswa) July 20, 2025
The upgraded Purabi Dairy facility, operated under the West Assam Milk Producers’ Cooperative Union Ltd (WAMUL), has enhanced its processing capacity to meet growing demand. The plant is now capable of handling significantly more milk and producing a wider range of value-added products such as paneer, curd, and flavored milk.
Under the new subsidy scheme, dairy farmers supplying milk to registered cooperatives and milk unions will receive ₹5 per litre directly into their bank accounts, in addition to the price paid by the cooperative. Officials estimate that more than 25,000 farmers will benefit initially, with the number expected to grow as new cooperatives are formed.
The state government has also pledged additional investments in cold storage chains, animal healthcare, and fodder availability. Training programs will be rolled out to help farmers adopt modern milking and hygienic storage practices.
Industry experts have welcomed the initiative, calling it a “transformative policy” that could revitalize dairy farming in Assam. The scheme is also expected to reduce Assam’s reliance on milk brought in from states like Bihar and West Bengal.
Chief Minister Sarma noted that the long-term vision is to make Assam a dairy hub in Northeast India, with both production and processing infrastructure developing hand-in-hand to ensure profitability for farmers and quality for consumers.
