Central government schemes designed to boost dairy development in India, focusing on infrastructure upgrades, financial support, and modernization of practices.
The dairy sector in India plays a pivotal role in the national economy, providing significant employment opportunities and contributing substantially to rural livelihoods. To support and advance this vital industry, the Indian government has introduced a range of schemes aimed at modernising infrastructure, boosting production, and fostering entrepreneurship. This article explores the major government schemes designed to propel dairy development in India.
Overview of the Dairy Sector
Dairy farming is a cornerstone of India’s agricultural economy, contributing 5% to the national GDP and employing over 8 crore individuals directly. India is the world’s largest producer of milk, with an annual production of 230.58 million tonnes. The value of the packaged dairy products market was estimated at INR 3 lakh crore in 2022. Major dairy-producing states include Uttar Pradesh, Rajasthan, Punjab, Madhya Pradesh, and Himachal Pradesh. Leading industry players include Kwality Limited, Aavin, Dudhsagar Dairy, Orissa State Cooperative Milk Producers Federation, Mother Dairy, and Amul.
Rashtriya Gokul Mission (RGM)
Launched in December 2014, the Rashtriya Gokul Mission aims to enhance the productivity of bovine livestock. The mission focuses on:
- Genetic Improvement: Providing high-quality germplasm and expanding the artificial insemination network.
- Breed Conservation: Developing and conserving indigenous breeds.
- Skill Development: Training farmers in advanced dairy farming techniques.
- Innovation and R&D: Supporting research and development in bovine breeding and management.
National Programme for Dairy Development (NPDD)
Introduced in February 2014 and restructured in July 2021, the NPDD focuses on strengthening dairy infrastructure and improving milk quality. With a budget of INR 1,790 crores for the 2021-22 to 2025-26 period, the scheme aims to:
- Enhance Infrastructure: Support the development of milk procurement and processing facilities.
- Training Programs: Educate farmers on good manufacturing practices, hygienic production, and feed management.
- Quality Improvement: Improve the quality and safety of milk and dairy products through better practices and infrastructure.
Dairy Processing and Infrastructure Development Fund (DIDF)
The DIDF, established with a budget of INR 11,184 crore for 2018-19 to 2022-23, provides financial assistance for modernizing dairy processing infrastructure. Key objectives include:
- Plant Modernization: Upgrading milk processing plants and machinery.
- Infrastructure Expansion: Establishing bulk milk coolers and manufacturing facilities for value-added dairy products.
- Employment Generation: Creating job opportunities across various skill levels through project activities.
Support to State Dairy Cooperative Societies & Farmers Producers Organisations (SDCFPO)
The SDCFPO scheme offers financial support to cooperatives and farmer producer organizations, especially during crises and market disruptions. The scheme’s features include:
- Loan Support: Providing working capital loans for dairy products like ghee, white butter, and milk powders.
- Market Stability: Ensuring timely payments to farmers and stabilizing market access.
- Infrastructure Funding: Assisting with infrastructure development for dairy production and processing.
Animal Husbandry Infrastructure Development Fund (AHIDF)
The AHIDF is designed to boost investments in dairy processing infrastructure. With a budget of INR 29,610.25 crore, the scheme supports:
- Infrastructure Development: Expanding and upgrading milk processing facilities.
- Capacity Enhancement: Increasing milk processing capacity by 141.04 lakh liters per day.
- Incentives: Providing incentives to cooperatives, MSMEs, private companies, and individual entrepreneurs.
National Livestock Mission (NLM)
The NLM, initiated in 2014-15, aims to promote entrepreneurship in livestock and dairy farming. It provides a 50% capital subsidy (up to INR 2 crore) for:
- Cattle Breeding Projects: Establishing dairy cow and buffalo farming ventures.
- Entrepreneurial Support: Encouraging private investment and improving dairy farming practices.
Additional Initiatives and Support
In addition to these key schemes, the government supports dairy development through:
- Research and Development: Funding research in dairy farming technologies and practices.
- Farmer Training Programs: Offering training on modern dairy management techniques, financial management, and marketing strategies.
- Infrastructure Upgrades: Investing in cold storage facilities, milk collection centers, and processing plants to enhance supply chain efficiency.
India’s government schemes for dairy development are instrumental in transforming the sector by enhancing infrastructure, improving production practices, and supporting entrepreneurship. These initiatives play a crucial role in advancing dairy farming, boosting productivity, and ensuring the sector’s sustained growth. Stakeholders in the dairy industry can leverage these programs to enhance their operations, contribute to the sector’s prosperity, and support rural development.