The Union Cabinet has approved the Revised National Program for Dairy Development (NPDD).
The Revised National Program for Dairy Development (NPDD)
- It is a Central Sector Scheme focused on modernizing and expanding dairy infrastructure, ensuring the sector’s sustained growth and productivity.
- Budget: The total budget to Rs.2790 crore for the period of the 15th Finance Commission cycle (2021-22 to 2025-26).
- Nodal Ministry: Department of Animal Husbandry & Dairying (DAHD)
- Features:
- Infrastructure Creation: It will create infrastructure for milk procurement, processing capacity, and ensuring better quality control.
- Market Access: It is intended to help farmers gain better access to markets, to ensuring better pricing through value addition
- Rural Development: It also aims to improve the efficiency of the supply chain, leading to higher incomes and greater rural development.
- Components:
- Component A:
- It is dedicated to improving essential dairy infrastructure, such as milk chilling plants, advanced milk testing laboratories, and certification systems.
- To establish 10,000 new Dairy Cooperative Societies, processing in the North Eastern Region (NER), hilly regions, and Union Territories (UTs)
- The formation of 2 Milk Producer Companies (MPCs) with dedicated grant support
- Component B or “Dairying through Cooperatives (DTC)”:
- It will foster dairy development through cooperation with the Government of Japan and Japan International Cooperation Agency (JICA)
- This component focuses on the sustainable development of dairy cooperatives, improving production, processing, and marketing infrastructure in the nine States ie.
- Andhra Pradesh, Bihar, Madhya Pradesh, Punjab, Rajasthan, Telangana, Uttarakhand, Uttar Pradesh, and West Bengal.
Present Status of Dairy Sector in India
- Market Size: The India dairy market size reached INR 18,975 Billion in 2024.
- Growth Rate: The market is expected to reach INR 57,001.8 Billion by 2033, exhibiting a growth rate (CAGR) of 12.35% during 2025-2033.
- Milk Production: India is the world’s largest milk producer, contributing 24% of global milk production
- Liquid milk dominates the market as the primary dairy product segment with A2 milk represents the fastest-growing segment in the dairy market
- Share of National Income: The dairy industry contributes 5% to the national economy
- Employment Generator: The dairy industry directly employs more than 8 crore farmers with 35 percent of women participating in dairy cooperatives.
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