Milk Procurement Price Surge Sparks Dairy Revolution in Kangra as Rural Economy Transforms Under Sukh Government
A major transformation in Kangra district’s rural economy is underway as milk procurement prices rise under the Sukh government. Dairy production has doubled, cooperative societies have expanded rapidly, and a Rs 225 crore automated milk plant is being built in Dagwar, boosting employment, farmer income, and value-added dairy production across Himachal Pradesh.
Once considered only a means of subsistence, livestock rearing is rapidly emerging as a viable commercial enterprise, encouraging farmers and unemployed youth to adopt dairy farming as a source of self-employment. Officials describe the development as the early stage of a “White Revolution” taking shape in Himachal Pradesh.
Over the past three years, the government has increased the milk procurement price by 21 rupees per kilogram, triggering renewed enthusiasm among farmers and a steady rise in participation in the dairy sector. The results are evident in production and institutional expansion.
In December 2023, only 44 milk cooperative societies were operational in the region, collectively procuring approximately 6,200 liters of milk per day. This figure has now surged to 24,000 liters per day. Additionally, 352 milk cooperative societies have been established in the Kangra cluster, marking a significant institutional expansion of the dairy network.
To further strengthen the sector, a fully automated milk processing plant is being developed at Dagwar in Kangra district at an estimated cost of 2.25 billion rupees. The plant is expected to be completed by September. Alongside this, two new chilling centers with a combined capacity of 20,000 kiloliters are also being set up under the Kangra Milk Federation.
The upcoming Dagwar facility will process milk into value-added products including flavored milk, yogurt, lassi, mozzarella cheese, paneer, yogurt, and khoya. This is expected to ensure better market access for farmers while simultaneously generating new employment opportunities for the youth of the state.
Within cooperative societies, cow milk is currently being procured at approximately 51 rupees per kilogram. Improved pricing has significantly strengthened farmers’ confidence, leading to increased participation in livestock rearing and dairy expansion across rural areas.
Farmers are now increasingly active in the sector. The expectation of better income has not only revitalized traditional livestock rearers but has also encouraged a large number of young individuals to adopt dairy farming as a self-sustaining livelihood option. Officials report that milk production in the state has nearly doubled within a year.
Pawan from Dadi stated that earlier milk was sold at around 30 rupees per kilogram, but the price has now risen to 51 rupees per kilogram. He added that the improved procurement rate has provided financial relief and stability. He supplies around 10 liters of milk daily to the cooperative society, earning approximately 15,000 rupees per month, which now supports his household expenses, with plans to expand livestock operations.
Development Saran from Tangroti, who has long been associated with dairy farming, said that following the government’s price revision, more people in the area have begun engaging in milk production. A local cooperative society in Tangroti is now supplying around 1,200 liters of milk per day to the Dagwar milk plant.
Dagwar Milk Processing Plant Manager Akhilesh Parashar stated that the impact of Chief Minister Sukhvinder Singh Sukhu’s visionary policies is now evident at the ground level. He noted that the increase in milk procurement prices has led to a doubling of production. He further added that the government is working to expand processing capacity, which will enable greater procurement from farmers in the coming years.
The rapid expansion of cooperative societies, rising production levels, and large-scale infrastructure development together reflect a significant transformation in Himachal Pradesh’s rural economy, positioning dairy farming as a central pillar of future growth.

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