Himachal government, NDDB sign three MoUs
Mar 16, 2026
Shimla (Himachal Pradesh) [India], March 16 : The Himachal Pradesh government and the National Dairy Development Board (NDDB) on Monday signed three Memorandums of Understanding (MoUs) in the presence of Chief Minister Sukhvinder Singh Sukhu.
On behalf of the state government, Secretary Animal Husbandry Ritesh Chauhan and Managing Director of the Himachal Pradesh State Cooperative Milk Producers Federation (Milkfed) Abhishek Verma signed the agreements, while Chairman of NDDB Dr. Meenesh Shah signed on behalf of the Board, a release said.
The first MoU relates to the formation and operation of the Kangra Milk Union. The second agreement concerns the establishment of two milk processing plants with a capacity of 20,000 litres per day each at Nahan in Sirmaur district and Nalagarh in Solan district, along with two milk chilling centres of 20,000 litres per day capacity at Jalari in Hamirpur district and Jhalera in Una district. The third MoU relates to the implementation of Enterprise Resource Planning (ERP) software in Milkfed.
A fully automated and modern milk processing plant with a capacity of 1.5 lakh litres per day is being established at Dhagwar in Kangra district for Rs. 250 crore. Its capacity can later be expanded to three lakh litres per day. Under the agreement, the new Milk Union will include Kangra, Una, Hamirpur and Chamba districts, which will strengthen the milk collection, processing and marketing system.
To modernise and bring transparency to the dairy sector, ERP software is being introduced. This will enable digital management of all processes related to milk collection, quality testing, production, storage and distribution. It will help maintain organised records of milk-producing farmers and ensure timely and transparent payments to them. In addition, production management, stock control and supply chain monitoring will become more efficient, thereby improving the overall functioning of the dairy sector.
Speaking on the occasion, Chief Minister said that the state government has been taking steps to strengthen the rural economy since the first day after forming the government in the state. He said the dairy sector has been given priority by the government, and these efforts will continue in the future. Through systemic reforms, the government is working to ensure that money reaches farmers directly.
He said that once the Dhagwar milk processing plant becomes operational in Kangra district, quality dairy products under the 'Him' brand will be introduced in the market. He added that when the quality of products improves, the rural economy will become stronger and farmers will receive better returns for their hard work. He said there is no derth of funds with the state government to strengthen the dairy sector and that around Rs. 300 crore will be spent in the coming time to set up more processing units in other parts of the state.
The Chief Minister said that Himachal Pradesh has become the first state offering the highest support price for milk procurement in the country. He said the government has made a historic increase in procurement prices for cow and buffalo milk. The support price for cow milk has been increased from Rs. 32 to Rs. 51 per litre and for buffalo milk from Rs. 47 to Rs. 61 per litre.
Under the Dugdh Protsahan Yojana, farmers who transport milk themselves to the milk procurement centre are given a direct incentive of Rs. three per litre. The transport subsidy on milk has also been increased by Rs. 1.50 per litre. He said the objective of the government is not only to increase the price of milk but also to provide self-employment opportunities to youth in villages so that the rural economy can improve.
He said that under the Gopal Yojana, proper care of stray cattle is being ensured. The financial assistance for the upkeep of cows in gaushalas and cow sanctuaries has been increased from Rs. 700 to Rs. 1,200 per month.
Agriculture Minister Chander Kumar said that there is a need to promote the 'Him' brand and said that the state's dairy products should reach markets on the lines of brands like Amul and Verka so that the economy of the state can grow further. He said the Dhagwar milk processing plant is expected to start operations by October this year, which will benefit farmers in Kangra, Una, Hamirpur and Chamba districts.
He said that farmers need to improve the health of their animals and that the state government will encourage them to purchase high-yielding dairy animals. He said that the government is also promoting indigenous cows because dairy and agriculture remain priority sectors for the state government. He further said that the government has imposed a cess on liquor, and a major portion of the revenue generated from it is being allocated to the dairy sector, which is already showing positive results.