Cabinet Approves Revised National Program for Dairy Development

Union Cabinet approved Revised National Program for Dairy Development (NPDD) with an additional allocation of ₹1,000 crore, raising total budget to ₹2,790 crore for 15th Finance Commission cycle (2021–22 to 2025–26). This revised Central Sector Scheme aims to modernize and expand India’s dairy infrastructure, boost milk production, and enhance rural employment opportunities, especially for women, who constitute a large share of dairy workforce.

About Revised NPDD

• Launch Year: NPDD was first introduced in 2014 and later restructured in 2021.
• Implementing Agency: Department of Animal Husbandry & Dairying (DAHD), under the Ministry of Fisheries, Animal Husbandry & Dairying.

Key Objectives of Revised NPDD

1. Establishment of 10,000 New Dairy Cooperative Societies (DCSs) to increase milk procurement and rural participation.
2. Strengthening of Milk Procurement and Processing Infrastructure in the North Eastern Region (NER), remote and backward areas, hilly regions, and Union Territories (UTs).
3. Formation of 2 Milk Producer Companies (MPCs) with dedicated grant support to enhance milk production and marketing.
4. Employment Generation: The scheme aims to create 3.2 lakh direct and indirect employment opportunities, with 70% participation from women, boosting rural incomes.

Key Components of NPDD

Component A – Dairy Infrastructure Development

This component focuses on the following areas:

• Milk Chilling Plants and Bulk Milk Coolers: To enhance milk storage and processing capacity.
• Advanced Milk Testing Laboratories: Strengthening 51,777 village-level milk testing labs and upgrading 169 labs with Fourier Transform Infrared (FTIR) milk analyzers for accurate quality checks.
• Adulteration Detection Systems: Modernizing 232 dairy plants with advanced adulteration detection technologies.
• Village Dairy Cooperative Societies (DCSs): Support for forming new DCSs in underdeveloped regions.

Component B – Dairying Through Cooperatives (DTC)

This component supports the sustainable development of dairy cooperatives through collaboration with the Government of Japan and Japan International Cooperation Agency (JICA). Key areas of focus include:

• Production, Processing, and Marketing Infrastructure Improvement in nine states: Andhra Pradesh, Bihar, Madhya Pradesh, Punjab, Rajasthan, Telangana, Uttarakhand, Uttar Pradesh, and West Bengal.

Achievements of NPDD

Increased Milk Procurement Capacity: The program has enhanced milk procurement by an additional 100.95 lakh liters per day.

Cutting-Edge Technology Adoption:

• Installation of 123.33 lakh liters of bulk milk coolers to improve milk storage.
• Upgraded 169 milk testing labs with FTIR milk analyzers for better quality control and adulteration detection.
• Adulteration detection systems installed in 232 dairy plants to ensure milk purity.

Employment Impact: Benefiting over 18.74 lakh farmers and creating 30,000+ direct and indirect jobs.

Benefits of Revised NPDD

• Enhanced Milk Production and Processing: Strengthened infrastructure will support higher milk procurement, better processing capacity, and improved quality control.
• Market Access for Farmers: By supporting value addition and improving the supply chain, farmers will gain better access to markets and receive higher incomes through fair pricing.
• Increased Employment Opportunities: The scheme will generate lakhs of rural jobs, particularly benefiting women in the dairy sector.
• Alignment with White Revolution 2.0: The revised NPDD is expected to further boost India’s dairy production and transform the sector in sync with White Revolution 2.0, which focuses on improving dairy infrastructure and technology adoption.