Revised National Program for Dairy Development (NPDD)

GS II- Initiatives

Context (PIB):

The Union Cabinet has given its approval to the revised framework of the National Program for Dairy Development (NPDD).

Overview of the Revised NPDD

• About NPDD: Originally launched in 2014 as a Central Sector Scheme, the initiative aims to strengthen and modernize India’s dairy sector.
• Revised Version: The updated program emphasizes enhancing dairy infrastructure to ensure sustainable growth and higher productivity.
• Financial Allocation: The scheme’s funding has been increased by ₹1000 crore, raising the total budget to ₹2790 crore for the 15th Finance Commission cycle (2021-22 to 2025-26).
• Implementing Authority: The Department of Animal Husbandry & Dairying (DAHD), under the Ministry of Fisheries, Animal Husbandry & Dairying.

Key Objectives

• Expansion of Dairy Cooperatives: Establishment of 10,000 new Dairy Cooperative Societies, with a focus on the North Eastern Region (NER).
• Strengthening Milk Procurement & Processing: Enhancing the dairy supply chain in the NER and other underserved areas.
• Formation of Milk Producer Companies (MPCs): Two additional MPCs will be established with grant support under NPDD.
• Employment Generation: Expected to create 3.2 lakh direct and indirect job opportunities, with 70% of beneficiaries being women.

Components of the Scheme

Component A

• Focuses on building essential dairy infrastructure, including milk chilling units, advanced milk testing labs, and certification mechanisms.
• Encourages the formation of village-level dairy cooperative societies and expands milk procurement networks in remote, hilly, and backward regions, particularly in the North Eastern Region (NER).

Component B – “Dairying through Cooperatives”

• This component continues efforts to promote dairy development through international cooperation, particularly with Japan and the Japan International Cooperation Agency (JICA).
• Targets sustainable growth in dairy cooperatives while improving production, processing, and marketing infrastructure across nine states: Andhra Pradesh, Bihar, Madhya Pradesh, Punjab, Rajasthan, Telangana, Uttarakhand, Uttar Pradesh, and West Bengal.

Importance of the Scheme

• Strengthening Dairy Infrastructure: Enhances milk procurement, processing, and quality control capabilities.
• Market Access & Value Addition: Improves pricing mechanisms through value-added dairy products and streamlining the supply chain, benefiting rural livelihoods.
• Technological Advancements: Supports emerging dairy cooperatives with modern technology, advanced quality testing, and automation.

Achievements Under NPDD

• Employment Creation: Over 18.74 lakh farmers have benefitted, and 30,000+ direct and indirect jobs have been generated.
• Expansion of Milk Procurement: An additional 100.95 lakh litres per day has been integrated into the supply chain.
• Technology Integration:
  • Strengthened 51,777 village-level milk testing laboratories.
  • Installed 5,123 bulk milk coolers with a combined capacity of 123.33 lakh litres.
  • Upgraded 169 laboratories with Fourier Transform Infrared (FTIR) milk analysers.
  • Enhanced 232 dairy plants with advanced adulteration detection systems.