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The News Drill > Blog > Indian Economy & Budget > Assam Launches Milk Subsidy Scheme: ₹5 Per Litre Support to Boost Dairy Sector
Indian Economy & Budget

Assam Launches Milk Subsidy Scheme: ₹5 Per Litre Support to Boost Dairy Sector

Parihar Rishabh Singh
Last updated: July 21, 2025 11:03 AM
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Parihar Rishabh Singh
ByParihar Rishabh Singh
Founder & Managing Editor
Parihar Rishabh Singh is the Founder, Managing Editor, and Main Author of The News Drill, an Indian digital news platform committed to factual, unbiased reporting. Holding a...
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Assam CM Himanta Biswa Sarma announces Assam milk subsidy scheme for dairy farmers

Guwahati, July 21: In a major step towards strengthening the dairy industry and empowering rural farmers, the Assam government has launched a new milk subsidy scheme, providing a subsidy of ₹5 per litre to dairy farmers across the state. This ambitious initiative aims to increase milk production, improve farmers’ incomes, and reduce dependency on milk imports from other states.

Contents
  • Assam Milk Subsidy Scheme: Key Details
  • Objectives of the Milk Subsidy Scheme
  • Who Can Avail the Subsidy?
  • Impact on Dairy Sector in Assam
  • Budget Allocation and Monitoring
  • Reaction from Farmers and Dairy Cooperatives
  • Conclusion

Assam Milk Subsidy Scheme: Key Details

The newly launched milk subsidy scheme was announced by Assam Chief Minister Himanta Biswa Sarma on Monday during a press conference in Guwahati. Under the scheme, eligible dairy farmers will receive a subsidy of ₹5 per litre of milk supplied to the government authorised milk cooperatives and dairy processing units.

The subsidy will be directly transferred to the farmers’ bank accounts, ensuring transparency and timely payments. According to the state government, this scheme will benefit over 50,000 dairy farmers and is expected to significantly boost local milk production.

Objectives of the Milk Subsidy Scheme

The Assam government’s milk subsidy scheme has multiple objectives:

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  1. Enhancing milk production in the state by encouraging farmers to invest more in dairy.
  2. Doubling farmers’ income, in line with the Centre’s broader agricultural policy goals.
  3. Reducing milk imports from neighbouring states and promoting self sufficiency.
  4. Strengthening rural economy by supporting dairy as a sustainable livelihood.
  5. Creating employment opportunities in the dairy sector through allied services like veterinary care, fodder supply, and milk processing.

Who Can Avail the Subsidy?

Farmers must be registered with recognised milk cooperatives or dairy societies to avail the subsidy. They are required to maintain minimum hygiene and quality standards as per guidelines issued by the Animal Husbandry and Veterinary Department.

Dairy farmers will need to submit records of their daily milk supply, which will be verified digitally. The scheme is expected to be implemented through an online portal, ensuring ease of access and minimal paperwork.

Impact on Dairy Sector in Assam

Currently, Assam produces around 20 lakh litres of milk per day, which falls short of the daily demand of approximately 30 lakh litres. As a result, the state depends on imports from Bihar, West Bengal, and Uttar Pradesh.

With the implementation of the milk subsidy scheme, the government expects the production gap to narrow significantly. Officials estimate that local milk production could rise by 20-30% in the next two years, making Assam more self reliant.

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“This scheme is a revolutionary step. It will not only motivate existing dairy farmers to increase their production but also attract new entrants into the dairy business,” said Atul Bora, Assam’s Agriculture and Veterinary Minister.

Budget Allocation and Monitoring

The Assam government has allocated an initial budget of ₹100 crore for the milk subsidy scheme in the current financial year. A dedicated monitoring cell will track the scheme’s performance, ensure compliance, and make improvements as necessary.

In collaboration with the National Dairy Development Board (NDDB), the state plans to offer technical support, training, and access to quality breeds to improve productivity.

Reaction from Farmers and Dairy Cooperatives

The announcement has been widely welcomed by the farming community. Raju Das, a dairy farmer from Barpeta, said, “We were struggling to cover fodder and medicine costs. With this ₹5 per litre support, we can expand our herds and ensure better care of the animals.”

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Milk cooperatives across districts such as Kamrup, Nalbari, and Darrang have expressed enthusiasm, noting that this could revive rural dairy units that had shut down due to low returns.

Conclusion

The Assam milk subsidy scheme marks a turning point for the state’s dairy sector. By offering ₹5 per litre as financial support, the government is not only aiming to raise milk production but also to uplift thousands of farmers and strengthen rural livelihoods. With proper implementation and monitoring, Assam could soon emerge as a dairy rich state in the North-East.

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ByParihar Rishabh Singh
Founder & Managing Editor
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Parihar Rishabh Singh is the Founder, Managing Editor, and Main Author of The News Drill, an Indian digital news platform committed to factual, unbiased reporting. Holding a B.Sc. in Mathematics and an M.Sc. in Statistics with expertise in Statistics, he brings analytical depth to investigative and data-driven journalism. He is also a dedicated UPSC and GPSC aspirant. A disciplined former NCC cadet with A Grade in Certificates C, B, and A, and a football player, he values precision, discipline, and teamwork. His skill set includes fact-checking, reverse image search, and thorough verification of sources. He also contributed to the 2022 National Games as part of the GMS team. His reporting spans geopolitics, international relations, politics, society, the Indian economy, environment & ecology, technology, crime, law and justice, education, and public policy. Through The News Drill, he aims to combine rigorous research with clear, accessible journalism that informs and empowers readers.
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