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The Indian processed dairy industry has grown and diversified enormously in the last few years. To ensure the proper development and growth of this industrial sector, the Government of India has instituted various laws and regulations.

Regulatory framework: The Government of India had promulgated the Milk and Milk Product Order (MMPO) in 1992 (External website that opens in a new window) after de-licensing the dairy sector in 1991. According to this order, any person or dairy plant that handles more than 10,000 litres of milk per day or 500 metric tonnes of milk solids per year needs to be registered with the registering authority selected by the Central Government. The main purpose of this order is to increase the supply of liquid milk of a certain quality for consumption by the general public and maintain this level. It is also used to regulate the production, processing and distribution of milk and milk products such as butter, cream and cheese.

Recognizing the necessity for suitable amendments in the Milk and Milk Product Order of 1992 for a faster pace of growth in the dairy sector, the government has passed amendments from time to time. This has made the Milk and Milk Product Order more liberal and dairy entrepreneur friendly. Currently, there is no restriction on the setting up of new capacities.

Some of the features of the new amendments are as follows:

  • The provision of assigning milk sheds has been done away with.
  • The registration under MMPO-92 now covers sanitary, hygiene, quality and food safety.
  • The provision of examination of dairy plant has been made flexible.
  • The provision to grant registration in 90 days has been brought down to 45 days.
  • The power of registration of State registering Authority has been raised from one lakh litres per day (LLPD) to two lakh litres per day.

No license is required for setting up a dairy project in India. Only a memorandum has to be submitted to the Secretariat for Industrial Approvals (SIA) and an acknowledgment is to be obtained. However, a Certificate of Registration is necessary under the Milk and Milk Products Control Order (MMPO) 1992.

For complete information click on the Milk and Milk Product Order of 1992 and application forms for registration (WORD - 158KB) .

Source: National Portal Content Management Team, Reviewed on:16-02-2011