Government doubles milk incentive from Rs. 3 to Rs. 6 per Litre

SHIMLA 29 October, 2026

Rs. 14 crore earmarked to support milk producers associated with eligible non-government dairy cooperative societies
The State Government, led by Chief Minister Thakur Sukhvinder Singh Sukhu, has approved an enhancement in the Milk Incentive Scheme, doubling the incentive for eligible milk producers from Rs. 3 to Rs. 6 per litre. The decision, in line with the budget announcement, aims to strengthen the rural economy, improve farmers’ income and promote dairy farming as a sustainable livelihood, particularly in rural and remote areas of Himachal Pradesh.

Under the enhanced scheme, eligible milk producers supplying milk to non-government dairy cooperative societies in the State will receive an incentive of Rs. 6 per litre through Direct Benefit Transfer (DBT). The Government has earmarked Rs. 14 crore for the scheme.

The State Government has been taking several steps to strengthen the dairy sector by ensuring remunerative prices for milk producers and improving milk procurement, processing and marketing infrastructure.

However, milk producers associated with private dairy cooperative societies were not receiving similar incentive support due to financial constraints faced by these institutions. To address this disparity and extend greater financial assistance to such producers, the State Government introduced the Milk Incentive Scheme, initially providing an incentive of Rs. 3 per litre, which has now been enhanced to Rs. 6 per litre.

Chief Minister Thakur Sukhvinder Singh Sukhu said that the State Government was committed to strengthening the rural economy by ensuring better returns to farmers and creating sustainable income opportunities through agriculture and allied activities. He said the enhancement of the milk incentive would provide additional financial support to milk producers associated with eligible non-government dairy cooperative societies and extend the benefits of the State’s dairy development initiatives to a wider section of farming families.

The Chief Minister said that the Government has focused on making agriculture and allied activities, including dairy farming, economically viable and attractive, particularly for small and marginal farmers. He added that the Government would continue to introduce farmer-friendly initiatives to increase milk production, strengthen cooperative institutions and improve the procurement and marketing network for milk and milk products.

He further said that these initiatives were aimed at increasing rural incomes, generating employment opportunities within villages and ensuring inclusive development across Himachal Pradesh. The enhancement of the milk incentive reflects the State Government’s commitment to fulfilling its promises to farmers and building a strong, self-reliant and prosperous rural economy.