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Cabinet Approves Revised Dairy Development Program to Boost Farmers and Rural Economy

RR Team, March 19, 2025March 19, 2025

The Union Cabinet, under the leadership of Prime Minister Narendra Modi, has given its approval to the Revised National Program for Dairy Development (NPDD), marking a significant step toward strengthening India’s dairy sector. With an additional budget allocation of ₹1,000 crore, bringing the total to ₹2,790 crore for the 15th Finance Commission cycle (2021-22 to 2025-26), this initiative is set to modernize and expand dairy infrastructure, ensuring sustainable growth and improved productivity.

The revised program aims to enhance milk procurement, expand processing capacities, and improve quality control, ultimately benefiting millions of farmers. By providing better market access and value addition opportunities, it is expected to improve rural incomes and create a more efficient dairy supply chain. Special attention will be given to developing milk processing facilities in remote and backward regions, including the North Eastern states, hilly areas, and Union Territories. The program will also support the formation of 10,000 new Dairy Cooperative Societies and two Milk Producer Companies, fostering collective growth in the sector.

One of the key aspects of this initiative is its commitment to improving infrastructure. The program will fund the installation of milk chilling plants, advanced milk testing laboratories, and certification systems to ensure high-quality dairy products. Additionally, cooperation with Japan and the Japan International Cooperation Agency (JICA) will further strengthen dairy cooperatives in nine states—Andhra Pradesh, Bihar, Madhya Pradesh, Punjab, Rajasthan, Telangana, Uttarakhand, Uttar Pradesh, and West Bengal.

The NPDD has already had a significant impact, benefiting over 18.74 lakh farmers and generating more than 30,000 direct and indirect jobs. Milk procurement capacity has seen a substantial rise, increasing by 100.95 lakh liters per day. Additionally, over 51,777 village-level milk testing laboratories have been strengthened, and 5,123 bulk milk coolers with a combined capacity of 123.33 lakh liters have been installed. Technological advancements have also played a crucial role, with 169 laboratories being upgraded with Fourier Transform Infrared (FTIR) milk analyzers and 232 dairy plants now equipped with advanced systems for detecting adulteration.

The revised NPDD is expected to create an additional 3.2 lakh employment opportunities, with women—who constitute 70% of the dairy workforce—being the primary beneficiaries. By aligning with the vision of White Revolution 2.0, the program is set to revolutionize India’s dairy industry by integrating modern technology, enhancing quality standards, and providing necessary support to newly formed cooperatives.

This initiative represents a crucial step toward a stronger and more resilient dairy sector, ensuring better livelihoods for millions of farmers and securing India’s position as a global leader in dairy production. Through infrastructure upgrades, employment generation, and increased market access, the Revised NPDD holds the promise of transforming rural economies and making India’s dairy industry more competitive and sustainable.

 

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