This was decided at the one-hour meeting between Jammu and Kashmir Chief Minister Mufti Mohammad Sayeed and GCMMF chairman V. Kurien in Vadodra.
Sayeed was leading a 10-member team on a two-day visit to Anand to invite Kurien to set up a milk project in the state and study the pattern of development of the dairy industry there, known across the world for its white revolution.
The Anand team would study procurement, processing and marketing of milk and prepare a roadmap for the dairy project.
Sayeed said the J&K farmers were not aware of marketing possibilities of milk and therefore were not getting the appropriate prices.
The dairy unit would help them to become self-reliant, he added. Over 200,000 litres of milk is produced in the state every day.
According to sources, the Indian Diary Machinery Company (IDMC), whose representative will also be part of the Anand team, has offered to set up a milk plant within 6-7 months.
Setting up of the dairy unit will initially cost Rs 5 crore and the federation has agreed to provide Rs 10 crore credit for the project.
After making it economically viable, the federation will hand over the dairy unit to the state government. The initial loss will be borne by the federation.
Kurien said to set up a dairy unit, a co-operative base would have to the created in the Valley. He said he was prepared to set up the unit in any part of the state.
Kurian said the federation would do it on its own and there was no question of setting a joint venture company.