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ARTICLE : Dairy Development
Tuesday, 09 July 2013 11:42


Dairy Development


The Indian dairy sector has acquired substantial growth momentum from 9th Plan onwards as a result of which the country now ranks first among the world's milk producing nations, achieving an annual output of about 130 milliontonnes. This represents sustained growth in the availability of milk and milk products for our growing population. Dairying has become an important secondary source of income for millions of rural families and has assumed the most important role in providing employment and income generating opportunities particularly for marginal and women farmers. The per capita availability of the milk has reached a level of 290 grams per day by the year 2012, which is more than the world average of 284 grams per day. Most of the milk in the country is produced by small, marginal farmers and landless labourers. About 14.78 million farmers have been brought under the ambit of 1,48,965 village level dairy corporative societies up to March 2012. Farmers of marginal, small and semi-medium operational holdings (area less than 4 ha) own about 87.7% of the livestock. India is endowed with the largest livestock population in the world. It accounts for about 57.3 per cent of the world's buffalo population and 14.7 per cent of the cattle population.

Animal husbandry and dairying play an important role in national economy and in socio-economic development of the country. These activities play a significant role in generating gainful employment in the rural areas, particularly among the landless, small and marginal farmers and women, besides providing cheap and nutritious food. Livestock are the best insurance for farmers against vagaries of nature like drought and other natural calamities. Several measures have been initiated by the Government to increase the productivity of milch animals, which has resulted in increasing the milk production significantly.

National Dairy Plan

In order to meet the rapidly growing demand for milk with a focus to improve milch animal productivity and increase milk production, the Government has also approved National Dairy Plan Phase-1(NDP-1) in February, 2012 with a total investment of about Rs. 2242 crore to be implemented upto 2016-17.  NDP-1 will help to meet the projected national demand of 150 million tonnes of milk by 2016-17. This is envisaged through productivity enhancement, strengthening and expanding village level infrastructure for milk procurement and provide producers with greater access to markets. NDP-1 would focus on 14 major milk producing states – Uttar Pradesh, Punjab, Haryana, Gujarat, Rajasthan, Madhya Pradesh, Bihar, West Bengal, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Orissa and Kerala which account for over 90% of the country's milk production. A total sum of Rs.79.00 crore has been released to NDDB upto31-12-2012, for implementation of the scheme.

Dairy Entrepreneurship Development Scheme

A modified scheme namely Dairy Entrepreneurship Development Scheme (DEDS) was launched on 1-9-2010, for promoting private investment in the dairy sector.  The Scheme aims at increasing investment in dairy sector for increasing milk production in the country apart from helping in poverty reduction through self employment opportunities.  It is being implemented through NABARD and provides financial assistance to the bankable projects through Commercial, Cooperative, Urban and Rural Banks with a back ended capital subsidy of 25% of the project cost for general category and 33.33% of the project cost for SC & ST beneficiaries as Central assistance subject to norms of the scheme.  Farmers, individual entrepreneurs, group of unorganized and organized sector are eligible to benefit under this.  Group of organized sector includes self-help groups, dairy cooperative societies; district level Milk Unions, State Milk Federation, etc.

Since inception, NABARD has disbursed an amount of Rs.251.20 crore to the beneficiaries for sanctioning 62,046 dairy units upto 31st December, 2012.  Further, the Government has released an amount of Rs.140 crore to NABARD during 2012-13 for the implementation of the scheme, out of which NABARD has released back ended capital subsidy of Rs.127.13 crore for establishment of 32,749 dairy units upto 31-12-2012.

Assistance to Cooperatives

This Scheme was started during the year 1999-2000, with the objective to rehabilitate the sick dairy Cooperative Milk Union at the district level and Milk Federations at the State level.  The Scheme is being implemented on 50:50 sharing basis between the Government and the State Government concerned through NDDB.  The rehabilitation plan is prepared by National Dairy Development Board (NDDB) in consultation with the concerned State Milk Federation/ District Milk Union.  Each rehabilitation plan is prepared in such a manner that the net worth of the sick Cooperative will become positive within a period of seven years from the date of its approval.

Since inception, the Department has approved 42 rehabilitation projects for the sick Milk Unions at a total cost of Rs.310.91 crore with the Central share of Rs. 155.64 crore upto   31-12-2012 in the States of Madhya Pradesh,Chattisgarh, Haryana, Karnataka, Uttar Pradesh, Kerala, Maharashtra, Assam Nagaland, Punjab, West Bengal and Tamil Nadu. A total sum of Rs. 120.64 crore as central share has been released to the sick Cooperative Milk Unions upto 31stDecember, 2012.