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Ministry of Cooperation approves dairy plants and lab worth Rs 290 crore in Madhya Pradesh

Public and Policy Editorial DeskUpdated 2 Oct 20263 min readSource: PIBHow we report

The Ministry of Cooperation is inaugurating four major dairy infrastructure projects in Madhya Pradesh on October 3, 2026, with combined capital investment of Rs 290 crore. Union Home Minister and Minister of Cooperation Amit Shah will lay foundation stones and cut ribbons for these facilities, which are designed to boost milk processing capacity and strengthen the rural dairy sector across the state.

The initiatives align with the government’s “Sahkar se Samriddhi” vision of building prosperity through cooperative institutions. The projects will directly benefit milk producers, livestock rearers, dairy cooperative members, and women engaged in dairy farming across Madhya Pradesh.

Key facts

  • Date of inauguration: October 3, 2026, at Dussehra Maidan, Bhopal
  • Milk Processing Plant, Ujjain: 3 lakh litres per day capacity, Rs 255 crore cost (foundation stone)
  • Product Dairy Plant, Bhopal: 40,000 litres per day capacity, Rs 16.5 crore cost
  • State-Level Central Laboratory, Bhopal: Rs 12.42 crore cost
  • Mini Dairy Plant strengthening, Shivpuri: Rs 6.5 crore cost
  • Total dividend to be distributed: Rs 15.10 crore to dairy cooperative members
  • Dr. Bhimrao Ambedkar Kamdhenu Yojana: Two sanction letters to be issued
  • MoU to be signed between KRIBHCO and Madhya Pradesh State Biodiversity Board for urban forest project

The four major projects

The Ujjain Milk Processing Plant will be the largest facility, designed to handle 3 lakh litres of milk daily once operational. At Rs 255 crore, it represents a substantial investment in expanding the state’s dairy processing infrastructure and will help reduce post-harvest milk losses by enabling immediate processing closer to production areas.

The Product Dairy Plant in Bhopal, constructed at Rs 16.5 crore, will process 40,000 litres daily. This facility will focus on manufacturing value-added dairy products such as paneer, ghee, butter, yoghurt and milk powder, creating additional income streams for dairy cooperative members.

A new State-Level Central Laboratory at Bhopal, costing Rs 12.42 crore, will provide quality testing and food safety services for dairy products across Madhya Pradesh. This facility ensures that milk and dairy products meet safety standards before reaching consumers.

The Mini Dairy Plant in Shivpuri will undergo strengthening work worth Rs 6.5 crore to improve its operational efficiency and processing capabilities. Together, these four projects will substantially increase Madhya Pradesh’s ability to process, store and distribute milk and dairy products.

Cash transfers and recognitions

The government will distribute Rs 15.10 crore as dividend among members of Dairy Cooperative Societies across the state. Members of Bhopal and Indore Milk Unions will receive bonus payments through a digital system, allowing instant fund transfers. Financial assistance will also be provided to Gaushalas (cow shelters) digitally.

The event will specifically honour “Gopalak Didis”, women livestock rearers and dairy farmers who play a crucial role in the cooperative dairy ecosystem. Two sanction letters will be issued under the Dr. Bhimrao Ambedkar Kamdhenu Yojana, a central scheme supporting dairy farmers and cattle rearers.

Broader government vision

These projects reflect the Ministry of Cooperation’s strategy to transform rural cooperatives into engines of rural development. By strengthening dairy cooperative institutions, the government aims to raise incomes for milk producers and livestock rearers, particularly women members who form a significant portion of dairy workers but often face barriers to economic participation.

The inauguration event also includes an exhibition on the Bharatiya Nyaya Sanhita (Criminal Law), India’s new criminal code that came into effect in 2023, with displays highlighting how Madhya Pradesh Police has implemented these new legal provisions.

What this means for you

If you are a member of a dairy cooperative in Madhya Pradesh, you will receive dividend payments without visiting offices. Milk producers will gain access to modern processing facilities that reduce waste and enable value addition. Women engaged in dairy farming will receive specific recognition and support through government schemes.

Consumers in Madhya Pradesh may benefit from more locally processed dairy products meeting standardised food safety norms. Livestock rearers and small farmers will have better market access through strengthened cooperative infrastructure.

What happens next

The Ujjain Milk Processing Plant is still under construction, with the foundation stone being laid digitally on October 3, 2026. The other three facilities are ready for inauguration on the same date. The Rs 15.10 crore dividend distribution to cooperative members will be completed following the event.

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