India Accelerates Dairy Growth with Revised NPDD, Strengthening Infrastructure and Rural Livelihoods

The Revised NPDD is set to transform India’s dairy sector by strengthening milk procurement, upgrading dairy processing facilities, and ensuring better quality control.

In a significant step toward bolstering India’s dairy sector, the Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the Revised National Program for Dairy Development (NPDD). The program, a Central Sector Scheme, has been enhanced with an additional allocation of Rs. 1000 crore, bringing the total financial outlay to Rs. 2790 crore for the 15th Finance Commission cycle (2021-22 to 2025-26). This enhanced budget aims to modernize and expand dairy infrastructure, ensuring long-term growth, sustainability, and enhanced farmer incomes across the country.

Key Objectives and Vision of the Revised NPDD

The Revised NPDD is set to transform India’s dairy sector by strengthening milk procurement, upgrading dairy processing facilities, and ensuring better quality control. The primary objectives include:

• Expansion of milk procurement infrastructure.
• Enhancement of processing capacities in rural and remote regions.
• Establishment of advanced milk quality testing laboratories.
• Development of better market access for dairy farmers.
• Strengthening of dairy cooperatives, especially in underserved areas.
• Employment generation and rural economic empowerment, with a special focus on women, who constitute 70% of the dairy workforce.

By investing in modernizing the dairy infrastructure, the scheme aims to provide farmers with better pricing through value addition, ultimately improving supply chain efficiency and fostering greater rural economic development.

Core Components of the Revised NPDD

The Revised NPDD consists of two major components that address different aspects of dairy development:

Component A: Strengthening Dairy Infrastructure and Expanding Cooperatives

This component focuses on improving essential dairy infrastructure and expanding cooperative societies to enhance milk procurement. Specific initiatives include:

• Establishing milk chilling plants, bulk milk coolers, and modernized dairy processing facilities.
• Strengthening milk testing and certification laboratories to ensure better quality control.
• Formation of 10,000 new Dairy Cooperative Societies (DCS) to increase participation of small dairy farmers.
• Special assistance for the North Eastern Region (NER), hilly regions, and Union Territories (UTs) to improve accessibility to dairy markets.
• Formation of two new Milk Producer Companies (MPCs) with financial grants to empower rural milk producers.

Component B: Dairying through Cooperatives (DTC) – A Collaboration with Japan

The second component, known as Dairying through Cooperatives (DTC), focuses on collaboration with the Government of Japan and Japan International Cooperation Agency (JICA) to strengthen dairy cooperatives. This component aims to:

• Develop sustainable dairy production, processing, and marketing infrastructure.
• Provide technical expertise and advanced processing technology.
• Enhance dairy development in nine key states: Andhra Pradesh, Bihar, Madhya Pradesh, Punjab, Rajasthan, Telangana, Uttarakhand, Uttar Pradesh, and West Bengal.

This international collaboration is expected to elevate the quality and efficiency of India’s dairy industry, enabling better market reach and improved product standards.

Impact and Achievements of NPDD

Since its implementation, the NPDD has already yielded significant socio-economic benefits, including:

• 18.74 lakh farmers benefitted, leading to higher incomes and better market access.
• Creation of over 30,000 direct and indirect jobs, contributing to rural economic development.
• Increased milk procurement capacity by 100.95 lakh liters per day, addressing rising consumer demand.
• Strengthened 51,777 village-level milk testing laboratories, ensuring high-quality dairy production.
• Installation of 5,123 bulk milk coolers with a total capacity of 123.33 lakh liters, improving milk storage and reducing spoilage.
• Upgradation of 169 milk testing laboratories with Fourier Transform Infrared (FTIR) milk analyzers, ensuring rigorous quality checks.
• Modernization of 232 dairy plants with advanced adulteration detection systems, improving consumer safety and product credibility.

Projected Growth and Future Prospects

The Revised NPDD is set to further enhance India’s dairy sector with ambitious targets, including:

• Formation of 10,000 new Dairy Cooperative Societies across the country.
• Additional employment opportunities for 3.2 lakh individuals, particularly benefiting women.
• Strengthened dairy processing and marketing channels in the North Eastern Region (NER).
• Expansion of milk production infrastructure to support White Revolution 2.0, emphasizing self-reliance in dairy production.
• Increased adoption of cutting-edge dairy technology for testing, quality control, and processing.

With a growing focus on sustainable and efficient dairy farming practices, the NPDD is expected to create a robust framework that not only enhances milk production but also ensures fair pricing for farmers, reduces wastage, and meets global quality standards.

Conclusion: A Transformative Leap for India's Dairy Sector

The Revised National Program for Dairy Development represents a significant leap forward in India’s dairy industry, reinforcing its role as the largest producer of milk in the world. By emphasizing modern infrastructure, cooperative growth, and international collaboration, the program will help millions of farmers gain better access to resources and fair pricing mechanisms.

As India moves towards a more technologically advanced and self-sufficient dairy industry, the NPDD will play a crucial role in enhancing rural livelihoods, generating employment, and fortifying the nation’s food security. This comprehensive initiative marks another milestone in India’s journey towards White Revolution 2.0, fostering long-term prosperity for dairy farmers and stakeholders alike.