India’s Union Cabinet, under Prime Minister Narendra Modi, has approved the Revised National Program for Dairy Development (NPDD) with a total budget of ₹2,790 crore. The initiative aims to enhance dairy infrastructure, boost milk procurement, and strengthen quality control. The program will support cooperatives, introduce advanced milk testing systems, and generate over 320,000 jobs across multiple states, including Andhra Pradesh, Bihar, and Uttar Pradesh.
The Union Cabinet of India, led by Prime Minister Narendra Modi, has approved the Revised National Program for Dairy Development (NPDD), significantly enhancing the country’s dairy infrastructure. The program now has a total budget of ₹2,790 crore for the 15th Finance Commission period (2021-22 to 2025-26), with an additional ₹1,000 crore allocated for modernization and capacity expansion.
The NPDD, initiated by the Department of Animal Husbandry and Dairying, aims to strengthen India’s dairy sector by increasing milk procurement and processing capacity, improving quality control, and supporting dairy cooperatives. The program is expected to enhance farmers’ market access, improve value-added pricing, and create job opportunities, particularly in states like Andhra Pradesh, Bihar, and Uttar Pradesh.
Program Highlights
The revised NPDD consists of two main components:
- Component A: Infrastructure Development
This segment focuses on upgrading milk chilling plants, establishing advanced milk testing laboratories, and implementing certification systems. It also aims to create new dairy cooperative societies, particularly in remote regions such as the North East, hilly areas, and Union Territories. - Component B: Dairying through Cooperatives (DTC)
In collaboration with Japan’s government and the Japan International Cooperation Agency (JICA), this component seeks to improve dairy production, processing, and marketing in nine Indian states.
Impact of the Revised Program
The NPDD has already benefited 1.87 million farmers and generated over 30,000 jobs. It has increased India’s daily milk procurement capacity by 10.1 million liters, improved 51,000 village-level testing laboratories, and introduced Fourier Transform Infrared (FTIR) milk analyzers in 169 laboratories. Additionally, 232 dairy plants have upgraded adulteration detection systems to ensure higher milk quality.
With the revised budget, the program aims to establish 10,000 new dairy cooperative societies, create two Milk Producer Companies, and generate an estimated 320,000 direct and indirect jobs—with women expected to make up 70% of the workforce.
Strengthening India’s Dairy Industry
This initiative aligns with India’s broader strategy under “White Revolution 2.0”, aimed at modernizing the dairy sector by supporting cooperatives, implementing advanced technology, and improving quality testing. The NPDD will help strengthen the country’s dairy supply chain, boost rural incomes, and contribute to economic growth.
