The Assam government has rolled out a ₹5-per-litre subsidy for dairy farmers supplying milk to cooperative societies, a move aimed at incentivizing production and strengthening the state’s dairy sector. Chief Minister Himanta Biswa Sarma announced the scheme during the groundbreaking ceremony for the expansion of the West Assam Milk Producers’ Cooperative Union Ltd (WAMUL) plant in Guwahati, which will double its processing capacity to 3 lakh litres per day (LLPD).
The subsidy scheme is expected to benefit over 20,000 dairy farmers across Assam, encouraging higher milk production and improving rural incomes. Meanwhile, the ₹104-crore expansion of WAMUL’s Panjabari plant—funded under a Memorandum of Understanding (MoU) with the National Dairy Development Board (NDDB)—will enhance processing efficiency and introduce new product lines, including ice cream and other dairy items.
“This subsidy will empower our dairy farmers, increase their earnings, and spark a dairy revolution in rural Assam,” said Chief Minister Sarma. “Along with the WAMUL expansion, this initiative will modernize the sector and ensure better prices for producers.”
We have given a thrust to develop and expand our dairy sector to meet the 10 lakh litres/day production goal.
I am performing the Bhumi Pujan of Purabi Dairy expansion and launching the dairy subsidy scheme. https://t.co/XYfiFxBwx7
— Himanta Biswa Sarma (@himantabiswa) July 20, 2025
A WAMUL official stated, “Doubling our processing capacity will help meet rising demand, reduce waste, and offer farmers a more reliable market.”
The Guwahati plant’s pasteurized milk production will rise from 1.15 LLPD to 2 LLPD.
A new 20,000-litre/day ice cream unit (expandable to 30,000 litres) will be added.
Additional dairy products, totaling 70,000 litres per day, will supplement revenue streams.
Assam’s dairy sector has lagged behind other states in production and processing infrastructure. The subsidy and plant expansion align with the state’s efforts to reduce dependency on milk imports and create sustainable livelihoods for farmers. WAMUL, which operates under the brand “Purabi Dairy,” plays a pivotal role in Assam’s cooperative dairy network.
Officials say the subsidy will be disbursed directly to farmers through cooperatives, with strict monitoring to prevent misuse. The expanded WAMUL facility is expected to be operational within 18 months, potentially creating new jobs and stabilizing milk prices in the region.
