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Cooperatives for Milk, Milk Products and Animal Feed


Department of Animal Husbandry and Dairying, Government of India is implementing “National Programme for Dairy Development (NPDD)” scheme across the country since Feb-2014 with an objective of creating/strengthening of infrastructure for production of quality milk, Procurement, Processing and Marketing of Milk and Milk products.

The scheme has been restructured/realigned in July2021. The restructured NPDD Scheme will be implemented from 2021-22 to 2025-26 with a total outlay of Rs.1790 crore. The restructured scheme has two components:  

Component'A' focuses towards creating/strengthening of infrastructure for quality milk testing equipment as well as primary chilling facilities.

Component'B' (Dairying through Cooperatives-DTC) provides financial assistance from Japan International Cooperation Agency (JICA) for creation of necessary dairy infrastructure, providing market linkages for the produce in villages and for strengthening of capacity building of stake-holding institutions from village to State level.

Financial Progress:

Component A:

191 projects in 28 States and 2 Union Territory have been approved with the total cost of Rs.3053.03 crore (Central Share Rs.2321.22 crore) from 2014-15 to 2022-23 (30.06.2023).  A total sum of Rs.1795.60 crore hasbeen released for implementation of these projects up to 18.07.2023. An amount of Rs.1321.53crore has been utilized under the approved projects.

Component B:

In total 22 projects has been approved with a total project cost of Rs 1130.64 Cr having loan component of Rs705.54 Cr, grant component of Rs 329.70 Cr and Producer Institutions (PIs) share of Rs 95.37 Cr. A total grant of Rs 9.30 Cr has been released to National Dairy Development Board for further disbursement to PIs for the implementation of the projects.

Government of India (GoI) has approved the “Dairying through Cooperatives-Key to Sustainable livelihood” project as Component B of the National Programme for Dairy Development (NPDD) scheme. The project will be implemented from 2021-22 to 2025-26 and will continue till 2027-28 with the total outlay of Rs. 1568.28 Crore comprising Rs.924.56 Crore as an Official Development Assistance(ODA) loan from Japan International Cooperation Agency (JICA), Rs.475.54 Crore as Government of India’s (GoI) contribution and Rs.168.18Croreas State/Participating Institution’s (PI) contribution.

The major objective of the project is to increase sales of milk and dairy products by increasing farmers' access to organized market, upgrading dairy processing facilities and marketing infrastructure and enhancing the capacity of producers owned institutions, there by contributing to increase in returns to milk producers in the project tarea”. The project is being implemented in 9 states namely Bihar, Uttar Pradesh, Punjab, Rajasthan, Madhya Pradesh, Andhra Pradesh, Telangana, Uttarakhand and West Bengal. The schemes upports the  establishment Milk Processing Facilities and Manufacturing Facilities (milk & milk products and cattle feed).

This information was given by Parshottam Rupala, Union Minister of Fisheries, Animal Husbandry & Dairying in a written reply in Lok Sabha today.