The Assam government has recently introduced a subsidy scheme to support dairy farmers by providing Rs 5 per litre of milk. This move aims to increase milk production and improve farmers’ incomes across the state. Alongside this, Assam is expanding its largest dairy processing plant to double its capacity, signalling a major push towards dairy self-reliance and rural development.
Subsidy Scheme to Support Dairy Farmers
The subsidy offers Rs 5 per litre of milk to farmers. This financial incentive encourages higher milk production. It aims to improve farmers’ livelihoods and strengthen rural economies. The scheme also intends to increase Assam’s overall dairy output.
Expansion of Dairy Processing Capacity
The West Assam Milk Producers’ Cooperative Union Ltd (WAMUL) plant in Guwahati is being expanded. Its processing capacity will rise from 1.5 lakh litres per day (LLPD) to 3 LLPD. This project is worth Rs 104 crore and is in partnership with the National Dairy Development Board (NDDB). The expansion will enhance milk collection and processing efficiency.
Improving Market Access and Nutritional Security
Doubling the plant’s capacity will help over 20,000 dairy farmers. It will give them better access to markets and fair prices. The increased processing ability aims to improve milk availability and nutritional security for Assam’s population. This also supports the state’s goal of food self-sufficiency.
New Product Lines and Production Targets
The expansion will increase pasteurised pouch milk production from 1.15 LLPD to 2 LLPD. A new ice cream production unit will start with a capacity of 20 thousand litres per day (TLPD), expandable to 30 TLPD. Additional dairy products with a combined output of 70 TLPD will be produced. These efforts align with the Assam Dairy Development Plan (ADDP), targeting 10 LLPD processing statewide.
Strategic Importance for Assam’s Agriculture
The subsidy and plant upgrade form part of Assam’s wider agricultural growth strategy. They aim to boost dairy productivity, generate rural employment and improve farmer incomes. The initiative supports Assam’s vision for a sustainable and self-reliant dairy sector. It also strengthens the cooperative dairy model in the region.
Partnership with National Dairy Development Board
The collaboration with NDDB brings technical expertise and investment. NDDB’s chairman brought into light the importance of building capacity to support a growing dairy network. This partnership is crucial for modernising Assam’s dairy industry and expanding consumer reach.
Impact on Rural Economy and Livelihoods
The scheme and expansion are expected to revitalise rural economies. By supporting farmers financially and improving infrastructure, Assam aims to create a robust dairy ecosystem. This will enhance income stability and encourage more participation in dairy farming.
Questions for UPSC:
- Critically analyse the role of government subsidies in promoting agricultural sectors like dairy farming with suitable examples.
- Explain the importance of cooperative models in India’s agricultural development and how they contribute to rural livelihoods.
- What are the challenges faced by the dairy industry in North East India? How can infrastructure development address these challenges?
- With reference to Assam, discuss the impact of public-private partnerships in boosting food processing industries and rural employment.
