• The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Revised National Programme for Dairy Development (NPDD).

• The scheme has been enhanced with an additional Rs 1,000 crore, bringing the total budget to Rs 2,790 crore for the period of the 15th Finance Commission cycle (2021-22 to 2025-26). 

• This initiative focuses on modernising and expanding dairy infrastructure, ensuring the sector’s sustained growth and productivity.

National Programme for Dairy Development (NPDD)

• The Department of Animal Husbandry & Dairying (DAHD) has been  implementing the ‘National Programme for Dairy Development (NPDD)’ across the country since February 2014.

• The scheme was restructured in July 2021 for implementation from 2021-22 to 2025-26.

There are two components:

1) Component A focuses on creating/strengthening of infrastructure for quality milk testing equipment as well as primary chilling facilities for State Cooperative Dairy Federations/ District Cooperative Milk Producers’ Union/SHGs/Milk Producer Companies/Farmer Producer Organisations. It also supports the formation of new village dairy cooperative societies and strengthens milk procurement and processing in the North Eastern Region (NER), hilly regions, and Union Territories, especially in remote and backward areas, as well as the formation of two Milk Producer Companies (MPCs) with dedicated grant support.

2) Component B — Dairying through Cooperatives — aims to increase sales of milk and dairy products by increasing farmers’ access to organised market, upgrading dairy processing facilities and marketing infrastructure and enhancing the capacity of producer owned institutions. It will continue to foster dairy development through cooperation with the government of Japan and Japan International Cooperation Agency (JICA) as per agreements signed. This component focuses on the sustainable development of dairy cooperatives, improving production, processing, and marketing infrastructure in nine states — Andhra Pradesh, Bihar, Madhya Pradesh, Punjab, Rajasthan, Telangana, Uttarakhand, Uttar Pradesh, and West Bengal.

Achievements under NDPP:

• Under Component A, 110 projects have been approved across the country with the total outlay of Rs 2,247.46 crore (including central share of Rs 1,658.29 crore).

• Under Component B, 22 projects have been approved with a total project cost of Rs 1,130.62 crore (including loan amount of Rs 705.53 crore, grant of Rs 329.70 crore & participating institution contribution of Rs 93.38 crore) during last five years (2019-20 to 2023-24). 

• The implementation of NPDD has made a huge socio-economic impact already benefiting over 18.74 lakh farmers and has created over 30,000 direct and indirect jobs and increased milk procurement capacity by an additional 100.95 lakh liters per day. 

• The NPDD has also supported in promoting cutting-edge technology for better milk testing and quality control. 

• Over 51,777 village-level milk testing laboratories have been strengthened, while 5,123 bulk milk coolers with a combined capacity of 123.33 lakh liters have been installed. 

• In addition, 169 labs have been upgraded with Fourier Transform Infrared (FTIR) milk analysers, and 232 dairy plants now have advanced systems for detecting adulteration.

Expected outcomes of revised NPDD:

• The revised NPDD will give an impetus to the dairy sector by creating infrastructure for milk procurement, processing capacity, and ensuring better quality control. 

• This programme will help improve rural livelihoods, generate jobs, and build a stronger, more resilient dairy industry that benefits millions of farmers and stakeholders across the country.

• It is intended to help farmers gain better access to markets, to ensure  better pricing through value addition, and improve the efficiency of the supply chain, leading to higher incomes and greater rural development.

• The revised NPDD is expected to establish 10,000 new Dairy Cooperative Societies, processing in northeast region. 

• It will help in formation of two Milk Producer Companies with dedicated grant support in addition to the ongoing projects of NPDD to generate an additional 3.2 lakh direct and indirect employment opportunities, particularly benefiting women, which constitute 70 per cent of the dairy workforce.

• It will transform India’s modern infrastructure, in sync with White Revolution 2.0 and will further support the newly formed cooperatives by providing new technology, and quality testing labs.

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