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Posted on August 10, 2026 at 10:48 AM

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A New Growth Catalyst For West Bengal’s Dairy Economy

A major investment in West Bengal’s dairy and food-processing sector is set to reshape the state’s dairy value chain. The Kaira District Co-operative Milk Producers Union plans to establish the project at Sankrail in Howrah district. The facility is expected to become the world’s largest curd manufacturing plant.

India is not only the leading producer of milk in the world but also continues to record impressive growth in its production levels. In FY2023-24, India registered a milk production of more than 239 million tonnes. Similarly, the per capita availability has also risen, touching 471 grams per person per day, and reflects the rise in organised consumption of milk in the country.

Dairy is one of the pillars of the rural economy, being the major source of livelihood for millions of Indians. Against this backdrop, Amul’s ₹700 Crore Bengal Dairy Project assumes significant economic importance.

The Scale That Makes This Project Different

Particular	Value
Total Investment	₹700 crore
Land area	~30 acres
Milk processing capacity	15 lakh litres/day
Commissioning target	2028

 

The scale of the investment gives the project significant economic relevance. Based on the information provided, it can be concluded that the project is of national importance. The details are given below:

Strengthening the rural dairy economy

Dairy is one of the major sources of subsidiary income for small and marginal farmers in West Bengal. A plant that processes 15 lakh litres of milk a day would need an extensive purchasing network and will generate a regular stream of income for the farmers along with enhancing trade in the region.

Employment generation across multiple sectors

Large dairy projects create jobs at various levels. First, there is job provision during the construction phase. Permanent jobs are also provided as the plants require skilled, unskilled, and administrative people. Secondly, such projects create indirect employment. Some of the key functional areas that provide indirect jobs through large dairy projects are listed below:

• Transporters
• Chillers
• Packers
• Cold chain operators
• Veterinary authorities
• Feed production companies
• Retailers

Besides, due to the multiplicative effects that dairy processing facilities have on economic development, investments in food processing lead to job creation with a big multiplier effect.

Accelerating food processing and allied industries

One potential advantage from Amul’s ₹700 Crore Bengal Dairy Project is the value addition which will come from processing rather than mere collection of milk. Value addition in the form of processing will create products such as curd at a large scale which in turn will lead to relatively higher margins. It will diversify the company’s production base and also lead to ancillary industries like packaging and retailing.

Infrastructure and market integration

A project of this magnitude requires extensive road, power, water, and logistics infrastructure. Better collection routes and cold-chain infrastructure would ensure minimal loss and enhanced quality of milk products, while Sankrail’s proximity to the Kolkata Metropolitan market facilitates faster disposal and a more efficient dairy supply chain.

Expanding organised dairy consumption

Organised dairy processing in India is uneven across states. Adding a large branded processing facility would improve access to quality-tested dairy products in eastern India, promoting higher standards of food safety, consumer confidence, and a formalized dairy market.

Long-term economic implications

The bigger-picture significance of Amul’s 700 Crore Bengal Dairy project lies in its scope to create agri-business, manufacturing, logistics, and consumer value chain. It is an investment that will drive rural income generation, industrial development, and create supply chains in the region.

Its impact will be visible in higher procurement of dairy products, higher cash flows from rural farmers, a rise in food processing investments, cold chain development, and organized dairy consumption in the state.

Looking ahead

The ultimate economic outcome will depend on timely execution, farmer participation, procurement expansion, and sustained consumer demand. However, the project already signals rising confidence in West Bengal’s dairy and food-processing potential.

If implemented as planned by 2028, Amul’s ₹700 Crore Bengal Dairy Project could become one of the most influential agro-industrial investments in the state, supporting both rural prosperity and industrial growth over the coming decade.

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