Assam Milk Subsidy is the state’s latest initiative to empower dairy farmers and stimulate the rural economy. The Assam government has rolled out a new scheme that offers a Rs 5 per litre subsidy to dairy farmers, aiming to increase milk production and improve the incomes of over 20,000 beneficiaries. Alongside this, the state is undertaking a major expansion of its largest milk processing unit in Guwahati, signaling a comprehensive push toward dairy sector modernization and rural economic resilience.
Subsidy Scheme for Dairy Farmers
The Assam Milk Subsidy program provides an incentive of Rs 5 per litre to farmers who supply milk to recognized cooperative societies. The government has specifically targeted small and marginal dairy farmers across Assam to promote higher milk yield, reduce dependency on imports, and ensure fair returns for producers.
This initiative aligns with Assam’s broader rural development goals. By directly supporting the grassroots milk economy, the state aims to trigger a dairy revolution similar to the White Revolution seen in Gujarat and other parts of India. The subsidy not only boosts immediate income for farmers but also encourages them to invest in better cattle care, nutrition, and breeding practices, ultimately leading to improved milk quality and quantity.
Expansion of Purabi Dairy Plant
To complement the Assam Milk Subsidy, the government, in collaboration with the West Assam Milk Producers’ Cooperative Union Ltd (WAMUL) and the National Dairy Development Board (NDDB), is expanding the Panjabari Purabi Dairy plant in Guwahati. This Rs 104-crore project will double the plant’s processing capacity from 1.5 lakh litres per day (LLPD) to 3 LLPD.
Purabi Dairy is the largest milk processing facility in the Northeast, and its expansion is vital for handling the anticipated surge in milk supply due to the subsidy. Improved infrastructure will ensure timely collection, quality processing, and wider distribution of dairy products throughout the region.
Enhancing Milk Production and Processing Capacity
Post-expansion, Purabi Dairy will increase pasteurized pouch milk production from 1.15 LLPD to 2 LLPD. In a strategic diversification move, the plant will also introduce a new ice cream production line with an initial capacity of 20 thousand litres per day (TLPD), expandable to 30 TLPD. Additionally, other dairy products such as curd, paneer, and flavoured milk will be produced with a total additional capacity of 70 TLPD.
This infrastructural boost is aimed at reducing wastage, improving shelf life, and meeting the growing consumer demand for dairy products in Assam and neighbouring states.
Assam Dairy Development Plan and Regional Impact
The Assam Dairy Development Plan (ADDP), under which the Assam Milk Subsidy and plant expansion fall, seeks to process 10 LLPD of milk across the state. The goal is to make Assam self-sufficient in milk production, thereby reducing reliance on supplies from other states.
Given that Assam consumes about 55 lakh litres of milk daily but produces less than 50% of that requirement, this plan is timely and essential. The ADDP envisions a robust, decentralized dairy network, enabling local economies to thrive while ensuring nutritional security for the population.
The expanded Purabi Dairy will serve as the central hub for this mission, sourcing milk from multiple districts and benefiting thousands of farmers, collection agents, and dairy entrepreneurs.
Economic and Social Benefits
The Assam Milk Subsidy scheme and dairy infrastructure projects are expected to generate direct and indirect employment, improve rural incomes, and enhance market access for dairy farmers. By investing in the dairy sector, Assam aims to create a sustainable ecosystem that includes training programs, veterinary support, and cold chain logistics for rural dairy cooperatives.
Furthermore, this initiative supports women-led self-help groups (SHGs) and marginal dairy farmers, enabling inclusive growth. It also aligns with national objectives like Atmanirbhar Bharat and Doubling Farmers’ Income by 2027.
Conclusion
The Assam Milk Subsidy is not just a short-term relief measure—it is a transformative policy aimed at building a resilient and future-ready dairy industry in the state. Coupled with strategic investments in processing and distribution, Assam is paving the way for a self-reliant, inclusive, and thriving rural dairy economy. If implemented effectively, this model could serve as a blueprint for other Indian states striving to empower their agricultural communities through targeted and scalable interventions.
