POLICY WATCH : DAIRY SECTOR IN INDIA




1. INTRODUCTION

• In a major boost for dairy farmers the union cabinet has approved 4458 crore

scheme for the dairy sector for stop the more will benefit as many as 9500000

milk producers in the country.

• The cabinet committee on economic affairs has also given its approval for

upward revision of interest subvention to 2.5 % per annum under the scheme

dairy processing and infrastructure development fund with the revised outlay of

rupees 11184 crore.


2. INSIGHTS

• The government aims to double the milk processing capacity from 53.5 million

metric tonnes currently 2108 million metric tonnes by the year 2025.

• The objective of doubling farmers income along with increasing the processing

capacity is a big target.

• There is a gap in existing processing capacity and to fill this particular gap the

scheme has been introduced.

• first time it has been envisaged that investment the tool for more than 10000

crore have been made in dairy sector to increase our processing capacity.

• India is number one in milk production since 1998. the major concern is to

increase the individual productivity of animal which is very less.

• India has more than 70 million milk producers. For every 1 lakh liters of milk

production it creates 6,000 jobs. In next five years, 15 million new jobs to be

generated.

• Logistics is also a big concern for the sector. Milk is produced largely in 15 major

producing states in the country for stop there are few States where production

is comparatively less than the conjunction. So, it has to flow from surplus states

to deficit States.

• India needs to increase the genetic potential of for animals to do that

government has launched many programs input assistance in form of brain

development, productivity improvement and reduction in feed and fodder cost

are important to double farmers income.

• Lots of initiatives have been taken in direction of improving quality of milk and

milk products. export markets for dairy products are untapped yet, it is hardly

1% of entire World export market for stop this particular is also going to help in

tap in the potential of exports. Once we have good quality of milk, process milk

converted into value added products then naturally it is going to be a

competitive in world market.

• Our milk plants are also obsolete in technology and huge sum of money is

required to revamp them. With this money the plants will be more equipped and

quality will also increase.

• what is the government has launched dairy entrepreneur development scheme.

❖ where entrepreneurship is a primary focus because it is told through

which investment would increase.

❖ department is also focusing on preparing new initiatives “animal

husbandry infrastructure development fund”, under which there is a

focus on entrepreneurship development and we are also trying to pull

funds from private sector.


• State governments also has to take equal initiative to ensure the awareness

campaigns are reaching to each farmer.

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