The Assam government and National Dairy Development Board recently signed an agreement to create a Rs 2,000-crore joint venture for holistic development of the sector in the state

As per the MoU, a joint venture company will be set up for Rs 2,000 crore with a target of processing 10 lakh litres of milk through six new units in seven years.

Milk from more than 4,100 dairy cooperative societies will be processed, packed and marketed. This will benefit more than 1,75,000 farmers associated with dairy farms in the state.

The milk production in Assam is dominated by the small-scale milk producers. Also, the milk producers face shortage of feed and resources. So they sell her milk at any cost on the daily basis.

Under the arrangement, 15,000 high milk yielding Gir cows of Gujarat will be inducted in the state to ensure higher returns to the dairy farmers besides creating huge employment at various levels. Two cattle feed and organic manure manufacturing units will also be set up as per the agreement.


The Government of Assam is to provide market subsidies to the milk producers. With this, they will be saved from market fluctuations and the milk processing helps to preserve the milk for days, months and even weeks.