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List of Central Government Schemes for Dairy Development in India

Updated on 11th April, 2024, By Akshay Pokharkar
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List of Central Government Schemes for Dairy Development in India
The dairy sector provides employment to millions of individuals in India. It has made a major contribution to the country's overall economy. The government supports several schemes for dairy development in India. Their objectives range from the promotion of entrepreneurship and modernisation of infrastructure to the conservation of indigenous cattle breeds.

Table of Contents

Overview of the Dairy Sector

Dairy has a 5% share of India's national economy, making it the largest agricultural commodity. Also, it gives direct employment to over 8 crore farmers. Milk production in India stands at 230.58 million tonnes annually. In 2022, the worth of the packaged dairy products market was noted to be INR 3 lakh crore.

Dairy products are mainly produced in Uttar Pradesh, Rajasthan, Punjab, Madhya Pradesh, and Himachal Pradesh. Also, the key players in this industry are Kwality Limited, Aavin, Dudhsagar Dairy, Orissa State Cooperative Milk Producers Federation, Mother Dairy and Amul.

Government Schemes for Dairy Farming

The Indian government considers dairy a high-priority sector because of its socio-economic importance. Thus, the government is committed to dairy development in India. For this purpose, it is actively boosting developments across the sector via the introduction of various programs and schemes.

Let us explore some major government schemes for dairy farming in India.

Rashtriya Gokul Mission (RGM)

Dairy Development Schemes - Rashtriya Gokul Mission

Rashtriya Gokul Mission was implemented in Dec 2014 aims to enhance milk output and productivity through enhancing the bovine's productivity. The programme seeks to achieve the goal through following:

  • Making High genetic Merit Germplasm available
  • Extending the Artificial Insemination Network
  • Develop and conserve indigenous breeds
  • Skill Development
  • Awareness among farmers
  • Innovation and R&D in Bovine Breeding

National Programme for Dairy Development (NPDD)

Dairy Development Schemes - National Programme for Dairy Development

NPDD was implemented in Feb 2014 to strengthen infrastructure and produce high-quality milk. It also assists the State Cooperative Dairy Federation or State Implementing Agency in procuring, processing and marketing milk and its products. The National Programme for Dairy Development scheme was restructured and realigned in July 2021. 

The redesigned NPDD has been implemented for a period of 2021-22 to 2025-26. Its budget has been set at INR 1,790 crores. It functions to improve the quality of milk and its products along with enhancement in organised milk procurement.

This scheme offers farmers training in relation to good manufacturing practices and good hygienic practices. They are educated in several aspects, including mineral mixture, green fodder, adoption of cattle feed, milch animal rearing and clean milk production.

Dairy Processing and Infrastructure Development Fund (DIDF)

Dairy Development Schemes - Dairy Infrastructure Development Fund

The Indian government created DIDF with a total outlay of INR 11,184 crore for the period of 2018-19 to 2022-23. This scheme offers loan assistance to Eligible End Borrowers (EEBs) like Multi State Cooperatives, Milk Producers Companies, District Milk Unions, State Dairy Federations and NDDB subsidiaries nationwide.

The repayment period of loans is set to be extended up to 2030-31. The objective of the Dairy Processing and Infrastructure Development Fund is the modernisation of milk processing plants and machinery. Also, additional infrastructure is being financed to process more milk.

DIDF has helped increase direct and indirect employment opportunities for unskilled, skilled and semi-skilled workers. Several project activities are covered by this dairy loan scheme, including expanding and modernising milk processing facilities, establishing bulk milk coolers (BMCs), manufacturing facilities for value-added products, and opening new processing plants.

Support to State Dairy Cooperative Societies & Farmers Producers Organisations (SDCFPO)

Dairy Development Schemes - Support to State Dairy Cooperative Societies and Farmers Producers Organisations

SDCFPO offers loans to farmer producer organisations (FPOs) and cooperative societies to provide support during natural calamities and unreliable market conditions. Other key objectives include providing stable market access to dairy farmers. The eligible organisations can pay their dues to farmers in a timely manner.

During 2022-23, INR 100 crore was allocated for these organisations to provide interest subvention on working capital loans. This dairy loan scheme helps to provide working capital loans for several products like Ghee, White Butter, Whole Milk Powder (WMP), and Skimmed Milk Powder (SMP).

Financial assistance is offered by the National Bank for Agriculture and Rural Development (NABARD) via NDDB for infrastructure development in dairy production. During the flush season, this scheme allows farmers to gain higher profits by selling milk to cooperatives.

Animal Husbandry Infrastructure Development Fund (AHIDF)

AHIDF has been introduced to increase investments in infrastructure related to dairy processing. It involves incentives for a range of players like FPOs, MSMEs, private companies and individual entrepreneurs.

The scheme was extended up to 2025-26 under the Infrastructure Development Fund with a budget of INR 29,610.25 crore.

Since its introduction, AHIDF has increased the milk processing capacity by 141.04 lakh litre per day (LLPD).

National Livestock Mission (NLM)

National Livestock Mission was started in 2014-15 to develop entrepreneurship to establish cattle breeding projects. Under this scheme, you can get a 50% capital subsidy (up to INR 2 crore) to establish entrepreneurship related to dairy cow farming and dairy buffalo farming.

Farmers, cooperatives, and other stakeholders in the dairy sector can use government schemes for dairy farming to improve their infrastructure and increase their income. The government is working towards a prosperous future for the dairy sector, and everyone involved in it.

Frequently Asked Questions on List of Central Government Schemes for Dairy Development in India

1. What is the subsidy for dairy farming?

Subsidy is the government's financial assistance that helps dairy farmers and organisations establish and grow their businesses. For example, a 50% capex subsidy with a ceiling of INR 2 crores is available for breed multiplication farms.

In Budget 2024, the Finance Minister of India focused on robust dairy development with a 3% interest subvention for dairy cooperatives to modernise their plants.

For setting up dairy units, NABARD offers a subsidy of 25% of outlay and 33.33% of outlay for general people and SC/ST, respectively.

No, dairy farming is not tax-free.

Yes, you can get credit up to ₹10 lakh under the Pradhan Mantri MUDRA Yojana scheme for dairy farming.

Akshay Pokharkar
Published By
Akshay Pokharkar
Akshay holds a B.Tech in agriculture engineering from Dr Balasaheb Sawant Konkan Krishi Vidyapeeth. He is an expert in tractors and implements. With over 6 years of experience in the tractor industry, he is known to simplify even the most complex technical things. An avid YouTuber by choice, he is currently working as a Senior Content Manager.
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