The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Revised National Programme for Dairy Development (NPDD), increasing its budget by Rs 1,000 crore. The total outlay now stands at Rs 2,790 crore for the 15th Finance Commission cycle (2021-22 to 2025-26). This initiative aims to strengthen India’s dairy sector by modernising infrastructure, boosting milk procurement and processing, and ensuring better quality control. It also focuses on improving market access for farmers and enhancing their earnings through value addition.
The revised programme will establish 10,000 new Dairy Cooperative Societies and support two new Milk Producer Companies (MPCs) with dedicated grant assistance. Special emphasis has been placed on North Eastern, hilly, and remote regions, ensuring that dairy farmers in these areas receive better pricing and improved processing facilities. The scheme will also enhance milk testing infrastructure, with new chilling plants, advanced laboratories, and certification systems to ensure higher standards of milk quality.
The NPDD is structured into two key components. Component A focuses on building critical dairy infrastructure, including village-level milk procurement, quality testing systems, and expanding milk processing capacity in remote areas. Component B, titled “Dairying through Cooperatives (DTC),” is supported by the Government of Japan and the Japan International Cooperation Agency (JICA). It aims to develop dairy cooperatives in nine states—Andhra Pradesh, Bihar, Madhya Pradesh, Punjab, Rajasthan, Telangana, Uttarakhand, Uttar Pradesh, and West Bengal—by improving production, processing, and marketing infrastructure.
Since its launch, the NPDD has already benefited over 18.74 lakh farmers and contributed to the creation of over 30,000 direct and indirect jobs. It has significantly increased India’s milk procurement capacity by 100.95 lakh litres per day. The programme has also promoted cutting-edge technology in milk testing and quality control, with 51,777 village-level milk testing laboratories strengthened and 5,123 bulk milk coolers installed, offering a combined capacity of 123.33 lakh litres. Additionally, 169 laboratories have been upgraded with Fourier Transform Infrared (FTIR) milk analysers, while 232 dairy plants have been equipped with advanced adulteration detection systems.
Looking ahead, the Revised NPDD is expected to generate 3.2 lakh additional employment opportunities, with women—who form 70 per cent of the dairy workforce—being the primary beneficiaries. This initiative aligns with the government’s vision of “White Revolution 2.0”, aiming to create a resilient, modern, and technology-driven dairy industry. By fostering sustainable dairy cooperatives, strengthening rural economies, and ensuring high-quality milk production, the programme is set to further solidify India’s position as the world’s leading milk producer.
