In a major push towards rural development and self-reliance in Ladakh, Union Home Minister Amit Shah laid the foundation stone for a 10,000 litres per day dairy processing plant in Kargil on May 1, 2026. The initiative is part of a broader strategy to modernise the dairy sector and enhance farmers’ incomes in the Union Territory.
Project Overview & Funding Structure
The dairy plant, being set up at an estimated cost of ₹25 crore, will be developed by the Indian Dairy Machinery Company, a subsidiary of the National Dairy Development Board.
The project is being implemented under the National Programme for Dairy Development (NPDD) of the Ministry of Fisheries, Animal Husbandry and Dairying.
Funding Breakdown:
- ₹12.74 crore grant under NPDD
- ₹10 crore assistance from NDDF
- Remaining funds via Ladakh UT infrastructure financing (LUTDCF route)
Sustainable & High-Altitude Innovation
A key highlight of the project is its 350-kilowatt solar energy system, making it:
- Environment-friendly
- Cost-efficient
- Suitable for Ladakh’s high-altitude terrain
This ensures uninterrupted and sustainable dairy operations even in challenging climatic conditions.
Boost to Farmers & Local Economy
The initiative is expected to significantly benefit local farmers by:
- Expanding milk procurement networks
- Ensuring fair and timely digital payments
- Providing stable market access, especially through supply to the Indian Army
Impact So Far:
- Farmer network expanded from 74 to ~1,700 farmers
- Daily milk collection increased to ~7,000 litres
- Total payments to farmers exceeded ₹15 crore
Modern Dairy Infrastructure & Digital Push
Several supporting initiatives have also been launched:
- Mobile Milk Testing Laboratories
- Automated Milk Collection Systems (AMCS)
- Mobile Milk Collection & Cooling Units
- AI-based monitoring systems for transparency
These measures aim to improve quality control, efficiency, and transparency across the dairy supply chain.
Value Addition & Market Expansion
The project also promotes value-added dairy products, including:
- Paneer
- Curd
Partnerships with brands like Mother Dairy, Safal, and Dhara will help ensure:
- Better market access
- Availability of quality products in Ladakh
A Step Towards Atmanirbhar Ladakh
This initiative reflects the government’s broader vision of Atmanirbhar Bharat, focusing on:
- Cooperative-led rural growth
- Income stability for farmers
- Strengthening local value chains
Officials describe it as a comprehensive rural development model, combining sustainability, technology, and cooperative frameworks to uplift livelihoods in the region.