There are 40 milk plants in the state with 30 of them run by private sector and 10 by the government under the aegis of Milkfed ( Punjab state milk federation). Nearly 80% of these [plants comes under MSMEs with an installed capacity of 35 lakhs lpd. Smaller plants got closed in initial phase of lock down, some of the large plants continued to convert milk into SMP and ghee in the absence of milk demand. However they also got their working capital and warehouses choked during this period. The demand of milk and milk products has crushed by 50 % as per the Metro dairy Jullundur. The dairies have around 20% excess stocks of SMP and ghee as per Chankya dairy  at Mandi Gobindgarh.

Out of total of 340 lakh lpd of milk production in the state , nearly 170 lakh lpd is marketable surplus .Currently the capacity utilization of private sector plants I nearly 30% as per Dr Inderjit singh director Punjab dairy development board.