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Dairy Development

The Indian, dairy industry has acquired substantial growth from the Eighth Plan onwards, achieving an annual output of over 104.8 million tonnes (provisional) of milk at the end of 2007-08. India's milk output has not only placed the industry first in world, but also represents sustained growth in the availability of milk & milk products. The Government is implementing following schemes for the development of dairy sector during 2008-09.

  • Intensive Dairy Development Programme (IDDP): The Schemes, modified as Intensive Dairy Development Programme on the basis of the recommendation of the evaluation studies was launched during Eighth Plan period and is being continued during the Eleventh Plan with an outlay of Rs.32.49 crore for 2009-10. So far 86 projects with an outlay of Rs.489.84 crore have been sanctioned in 25 States and one UT. A sum of Rs.373.82 crore has been released to various State Governments upto 31st March, 2009 and 207 districts have been covered. The scheme has benefited about 18.79 lakh farm families and organized about 26882 village level Dairy Cooperative Societies till 31st March, 2009.
  • Strengthening Infrastructure for Quality and Clean Milk Production (CMP): A centrally sponsored scheme was launched in October 2003, with the main objective of improving the quality of raw milk produced at the village level in the country. Under this scheme, assistance is provided for training of farmers on good milking practices. The scheme is being implemented on 100% grant-in-aid basis to District Coop Milk Unions and State Coop. Milk Federation through the State Governments/UTs for components viz. training of farmer member, detergents, stainless steel utensils, strengthening of existing laboratory facilities whereas 75% financial assistance is provided for setting up of milk ceiling facilities at village level in the form of Bulk Milk Coolers. Since inception 131 projects at a total cost of Rs.195.17 crore with central share of Rs.159.33 crore have been approved up to 31st March, 2009 under this scheme. A total sum of Rs.128.11 crore as a central share has been released to the concerned State Governments for implementation of approved project activities up to 31.03.09. The scheme has benefited 5,30,468 farmer members by imparting training and by installing 21.05 lakh litre capacity of Bulk Milk Coolers to facilitate marketing of milk produced by them and keeping its quality intact as on 31.03.09.

Assistance to Cooperative

The scheme aims at revitalizing the sick Dairy Cooperatives Unions at the District level and Co-operative Federations at the State level. Under the scheme rehabilitation programmes are prepared by National Dairy Development Board (NDDB) (External website that opens in a new window) in consultation with Milk Union Federation/State Government. A central grant is released to milk union/Federations through NDDB. The scheme is being continued during Eleventh Five Year Plan with a tentative outlay of Rs.50 crore. Since inception in 1999-2000, 34 rehabilitation proposals of milk union in 12 States namely, Madhya Pradesh, Chhattisgarh, Karnataka, Uttar Pradesh, Haryana, Kerala, Maharashtra, Assam, Nagaland, Punjab, West Bengal and Tamil Nadu at a total cost of Rs.230.94 crore with a central share of Rs.115.66 crore have been approved upto 31.3.09. A total sum of Rs.88.19 crore has been released till 31.03.2009. An amount of Rs.9.00 crore has been provided in BE 2009-10 out of which a sum of Rs.155.495 lakh has been released to the concerned Milk Unions during current financial year till 20.8.2009.

Dairy Venture Capital Fund

To bring about structural changes in unorganized sector, measures like milk processing at village level, marketing of pasteurized milk in a cost effective manner, quality upgradation of traditional technology to handle commercial scale using modern equipments and management skills, a new scheme viz. Dairy Venture Capital Fund was initiated in the Tenth Five Year Plan. The assistance under the scheme is provided to the rural/urban beneficiaries under a schematic proposal through bankable projects with 50% interest free loan component.

The scheme is implemented through NABARD and the funds released by GOI to NABARD are kept as revolving fund. Under the scheme the entrepreneur has to contribute 10% and arrange 40% loan from local bank. Government of India provides 50% interest free loan through NABARD. Government of India also subsidizes the interest component payable by the farmer's agricultural activities to the extent of 50% only in case of regular/timely repayment.

This scheme was approved in Dec-2004 with a total outlay of Rs.25.00 crore. The scheme is being implemented through NABARD and the funds released to NABARD to be kept as revolving fund. Since inception, a sum of Rs.112.99 crore has been released to NABARD for implementation of the scheme up to 31st March 2009. There is a provision of Rs.38.00 crore for implementation of the scheme during 2009-10, out of which 10.00 crore have been released till, 31.07.2009.

Milk and Milk Product Order-1992

The Government of India notified the Milk and Milk Product Order on June 1992. As per the provisions of this order, any person/dairy plant handling more than 10,000 liters per day of milk or 500 MT of milk solids per annum needs to be registered with the registering authority appointed by the Central Government. With the Enactment of Food Safety Standard Act-2006, at present the work related to MMPO-92 is under Food Safety and Standard Authority of India (FSSAI), M/o Health & Family Welfare.

National Dairy Plan

Government is also examining launching a National Dairy Plan with an outlay of more than Rs.17,300 crore to achieve a target of 180 million tonnes of Milk producing annually by 2021-22. Milk production is expected to grow at 4% with an annual incremental output of 5 million tonnes in the next 15 years. Under this plan the government is contemplating to enhance milk production in major milk producing areas, strengthen and expand infrastructure to production, process and market milk through the existing and new institutional structures. The plan envisages breed improvement through Al and through nature service, setting up plants to augment cattle feed, bypass protein and mineral mixture. The plan also proposed to bring 65% of the surplus milk produced under the organized sector for procurement as against the present 30%. Efforts are on the tap for World Bank funding for this project.

Source: National Portal Content Management Team, Reviewed on: 07-01-2011