Transforming India's Dairy Sector: An In-Depth Look at Restructured National Programme for Dairy Development

The National Programme for Dairy Development (NPDD) has been a cornerstone in the growth and enhancement of the dairy sector across India. Initiated in February 2014, the Central Sector Scheme has been a catalyst for creating a robust infrastructure, improving the quality of milk and milk products, and increasing the share of organized procurement, processing, value addition, and marketing. A recent restructuring in July 2021 has further augmented the program's goals, setting the stage for impactful changes until 2025-26.

Restructuring for Progress

The restructured NPDD aims to elevate the quality of milk and milk products while promoting organized procurement. Divided into two components, the program focuses on creating and strengthening infrastructure for quality milk and fostering dairying through cooperatives (DTC).

Component A: Infrastructure Development

Since its inception, 195 projects in 28 states and 2 Union Territories have received approval under Component A, with a total cost of Rs. 3311.10 crore. The Central Share accounts for Rs. 2479.06 crore. As of November 30, 2023, Rs. 1824.60 crore has been released, and Rs. 1429.62 crore has been utilized for the implementation of these projects.

Major Achievements

• Membership Expansion: 15.82 lakh new farmers have benefitted from the membership of dairy co-operative societies.

• Increased Procurement: 57.31 lakh additional liters of milk have been procured under the approved projects.

• Infrastructure Strengthening: 82 dairy plants have been fortified, adding 22.30 lakh liters per day of new milk processing capacity.

• Cold Chain Installation: 3864 Bulk Milk Coolers with 84.4 lakh liters chilling capacity have been installed at village-level milk collection centers, reducing milk spoilage.

• Technological Integration: 30074 Automatic Milk Collection Units, Data Processing, and Milk Collection Units, along with 5205 Electronic Milk Adulteration Testing Machines, have been deployed at village-level dairy cooperative societies.

• Laboratory Enhancement: 233 dairy plant laboratories have been equipped to detect adulterants in milk, and one State Central laboratory is being established in 15 states.

Component B: Dairying through Cooperatives (DTC)

Under Component B, 22 projects have been approved, with a total project cost of Rs. 1130.63 crore. This includes a loan component of Rs. 705.53 crore, a grant component of Rs. 329.70 crore, and Producer Institutions' (PIs) share of Rs. 95.40 crore.

Major Achievements

• Financial Disbursement: A total grant of Rs. 74.025 crore and a loan of Rs. 10.00 crore have been released to the National Dairy Development Board for further disbursement to PIs.

• Societal Impact: By the project's end, 7703 new milk collection societies will be created, with an additional enrollment of 279,000 farmers (50% women).

• Increased Capacity: The initiative will generate an additional milk procurement of 13.41 lakh liters per day, a value-added product manufacturing capacity of 350 MTPD, and a Cattle Feed production capacity of 486 MTPD.

The NPDD continues to play a pivotal role in transforming India's dairy landscape. Through strategic infrastructure development and cooperative initiatives, the program is not only ensuring the quality enhancement of dairy products but also uplifting the lives of countless farmers across the nation.