In July 2025, to strengthen the dairy value chain and boost the income of milk producers, a northeastern state government launched a subsidy scheme to provide Rs.5 per litre of milk to cooperative supply units. The scheme targets around 20,000 dairy farmers across 601 cooperative societies. Which state launched this “Milk Subsidy Scheme” with an initial outlay of Rs.10 crore for FY2025–26?

The correct answer is Assam. In News The Assam government launched the Milk Subsidy Scheme to provide Rs.5 per litre subsidy to dairy farmers linked with cooperative milk unions. Key Points Launched by Chief Minister Himanta Biswa Sarma, the scheme aims to improve milk production and strengthen Assam’s dairy sector. The scheme offers financial assistance of Rs.5 per litre of milk supplied to cooperative processing units. A subsidy is available for up to 30 litres per day per farmer across 601 dairy cooperative societies. Approximately 20,000 dairy farmers are targeted under this initiative during FY2025–26. The state government allocated Rs.10 crore for the scheme in the current financial year’s budget. The initiative complements policies under Assam Dairy Development Plan focusing on rural livelihoods and self-reliance. Additional Information Assam is the largest milk-producing state in Northeast India. National Dairy Development Board (NDDB) works with Assam’s dairy cooperative societies for infrastructure development. India’s overall milk output accounts for about 24% of global production. Dairy sector contributes significantly to India’s rural economy and employs over 80 million people. Similar subsidy-based dairy schemes also operate in Karnataka and Gujarat.