Himachal Pradesh’s dairy sector has recorded a major boost, with milk collection linked to the Dhagwar Milk Plant in Kangra district increasing fourfold over the past two-and-a-half years, reflecting the impact of higher milk procurement prices and renewed government focus on dairy development. The surge in milk procurement has strengthened confidence among dairy farmers and is expected to support the upcoming state-of-the-art milk processing plant at Dhagwar, which is being developed as one of Himachal Pradesh’s most advanced dairy facilities.
The new plant will have an initial milk processing capacity of 1.5 lakh litres per day, expandable to 3 lakh litres per day in the future. The project, backed by the Himachal Pradesh government, is expected to directly benefit more than 35,000 milk producers across Kangra, Mandi, Hamirpur, Chamba and Una districts while creating employment opportunities in milk collection, processing, quality control, distribution, transportation and supply chain management.
State officials attributed the growth in milk collection to the increase in milk procurement prices. The government has raised procurement rates for cow milk and buffalo milk, resulting in Milkfed’s daily milk procurement rising from 1.40 lakh litres to 2.10 lakh litres. Once operational, the Dhagwar facility will manufacture a range of value-added dairy products, including curd, lassi, butter, ghee, paneer, cheese, flavoured milk, khoya and mozzarella cheese, helping improve farmer incomes and strengthen the rural economy.
The project, estimated at around ₹225 crore, is targeted for completion by February 2026. Industry observers view the rapid growth in milk collection as a positive indicator for Himachal Pradesh’s efforts to build a modern dairy ecosystem focused on value addition, farmer welfare and sustainable rural development. (The Tribune)
Source: Dairynews7x7 6 June, 2026 Read full story here
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