MEMBERS' REFERENCE SERVICE LARRDIS LOK SABHA SECRETARIAT, NEW DELHI REFERENCE NOTE. No.56/RN/Ref./Nov/2017

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1 MEMBERS' REFERENCE SERVICE LARRDIS LOK SABHA SECRETARIAT, NEW DELHI REFERENCE NOTE No.56/RN/Ref./Nov/2017 For the use of Members of Parliament NOT FOR PUBLICATION 1 DAIRY SECTOR: PRESENT SCENARIO AND NEW INITIATIVES Prepared by Dr. Ranbir Kumar, Additional Director ( ) and Smt. Vandana Chauhan, R.O. of Lok Sabha Secretariat under the supervision of Smt. Kalpana Sharma, Joint Secretary and Dr. P.J. Antony, Director. reference materia is for person The Reference Note is for personal use of the Members in the discharge of their Parliamentary duties, and is not for publication. This Service is not to be quoted as the source of information as it is based on the sources indicated at the end/in the text.

2 bers in the DAIRY SECTOR: PRESENT SCENARIO AND NEW INITIATIVES Introduction In India, the Dairy Sector has grown substantially over the years. India ranks first among the world's milk producing countries, with an annual output of million tonnes during as compared to million tonnes during recording a growth rate of 6.27 per cent. According to the present Chairman of National Dairy Development Board (NDDB), dairying in India is more about livelihoods to millions of small holders than simply a business, as it is a source of stable cash flow unlike the more uncertain crop cultivation and for its contribution towards nutritional security for families owning milch animals. The value of Indian dairy market is expected to grow at 15 per cent annually of which the contribution of milk products would be significant which represents both an opportunity and challenge to the Dairy Sector. Schemes of Dairy Development The efforts of the Government (Department of Animal Husbandry, Dairying and Fisheries) are concentrated on promotion of dairy activities with emphasis on building up cooperative infrastructure, revitalization of sick dairy cooperatives, milk unions and creation of infrastructure in the States for the production of quality milk and milk products. Some of the important schemes of Dairy Development are: National Dairy Plan(NDP): To increase the productivity of milch animals and to help the rural milk producers with greater access to the organised milk processing sector, the Government of India has approved the National Dairy Plan Phase-I (NDP-I) with an outlay of Rs crores for implementation during to It is being implemented in 18 major milk producing States. Under NDP-I, 364 projects have been approved with a total outlay of Rs crore, out of which Rs crores has been released by NDDB for implementation till December, 2016.

3 2 Dairy Entrepreneurship Development Scheme (DEDS): DEDS scheme is being implemented through the National Bank for Agriculture and Rural Development (NABARD) which provides financial assistance to commercially bankable projects with loan from commercial, cooperative, urban and rural banks. The activities covered under this scheme includes establishment of the small dairy units, purchase of milking machines, milk processing equipments, transportation, cold storage facilities etc,. The scheme has a budget provision of Rs crore during the 12 th Five Year Plan. Under this scheme 2,74,396 projects were approved in 29 States and one Union territory with an assistance of Rs crore disbursed by NABARD upto June, National Programme for Dairy Development (NPDB): NPDB Scheme was approved during with a budget provision of Rs. 600 crore for implementing during the 12 th Five Year Plan. The objective of the scheme is to create dairy infrastructure for improved procurement, processing and marketing of milk and milk products. Under the scheme, 31 projects have been approved with a total outlay of Rs crore out of which crore have been released for implementation upto December Intensive Dairy Development Programme (IDDP): This scheme has been subsumed under the scheme National Programme for Bovine Breeding and Dairy Development in Since its inception, 114 projects have been approved out of which 60 projects are under implementation and 54 projects have been completed. Upto December, 2016 a total sum of Rs crore has been released to the concerned State Governments and the Milk Union/ State Milk Federations. Upto December, 2016 about lakh farmers have benefitted from these projects. National Action Plan Dairy Development: The Government has prepared a draft National Action Plan for Dairy Development with a target to double the income of dairy farmers through increasing organised milk handling from 20 per cent to 50 per

4 3 cent by The Action Plan includes creation of milk chilling facilities including for bulk milk cooling and by providing for processing infrastructure, value addition, organisation of milk collection centres/dairy cooperative societies, milk transportation facility and marketing infrastructure to meet the requirement of increased milk handling. Rashtriya Gokul Mission: The Rashtriya Gokul Mission was launched in December, 2014 exclusively for the development and conservation of the indigenous breeds in a scientific and holistic manner with an allocation of Rs.500 crore for the first time in the country. Till date, Projects from 27 States have been approved with an allocation of Rs crore. Out of this Rs crore has been released to the States for implementation of the scheme upto March Strengthening of Cooperatives: During the Financial Year , NDDB launched a new scheme for financial assistance to Dairy Cooperatives/Producer Companies with effect from 1 July Under the new scheme, NDDB provides technical and financial support to Dairy Cooperatives and Producer companies in the areas of infrastructure activities and skill development, trainings and awareness programmes. Under the new scheme, up to 31 October 2016, investment plans of 3 dairy cooperatives/producer companies have been approved with a total outlay of Rs crore, of which, NDDB's financial assistance is Rs crore. Recent Initiatives taken in the Dairy Sector Dairy Processing and Infrastructure Development Fund (DIDF): The Cabinet Committee on Economic Affairs approved a Dairy Processing and Infrastructure Development Fund in September 2017, with an outlay of Rs. 10,881 crore for to The project will focus on building an efficient milk procurement system by setting up of chilling infrastructure and installation of electronic milk adulteration testing equipments, creation/modernization/expansion of processing infrastructure and

5 4 manufacturing facilities for Value Added Products for the Milk Unions/Milk Producer Companies. Out of Rs. 10,881 crore of financial outlay for project components of DIDF, Rs crore shall be a loan from NABARD to the National Dairy Development Board (NDDB) and the National Dairy Development Cooperation (NCDC) and Rs crore shall be the end borrowers' contribution. Pashudhan Sanjivani: It is an animal Wellness Programme, encompassing provision of Animal Health Cards (Nakul Swasthya Patra) along with Unique Identification (UID) number of animals in milk and a National Data Base. Under the scheme 8.5 crore animals in milk will be identified using UID. This will play a crucial role in controlling animal diseases and will also lead to increase in the trade of the livestock and livestock products. E-Pashudhan Haat Portal: Under the National Mission on Bovine Productivity an E-Pashudhan Haat Portal has been developed. This portal will play an important role in connecting breeders and farmers of indigenous breeds. Through this portal farmers will be aware about breed-wise information on indigenous breeds and can directly deal in the sale and purchase of indigenous breeds. Information on all forms of germplasm has been uploaded on the portal for the benefits of the farmers. Major Achievements of Dairy Sector With the launch of several initiatives and the implementation of the various schemes; the Dairy Sector has made considerable progress in recent years. Some of the major achievements are: India has become the top producer of milk with production of million tonnes milk in (Annexure-I) Per capita availability of milk has reached to 337 grams per day during , which is more than the world average of 299 grams per day.

6 5 Dairy farmers income has increased by per cent during the years million farmers are covered under village level dairy cooperative societies. Average milk procured by the cooperative milk unions has increased to million kg per day in as compared to 38 million kg per day in Goals to be achieved in the Dairy Sector Increase the milk production to 200 million tonnes by lakhs farmers from 50,000 villages would be benefitted under the Dairy Processing and Infrastructure Development Fund Scheme. Additional milk processing capacity of 126 lakh liter per day, milk drying capacity of 210 million tonnes per day and milk chilling capacity of 140 lakh litre per day would be created. Installation of Bulk Milk Coolers (BMCs) along with electronic milk adulteration testing equipment would be done. Value added products manufacturing capacity of lakh litre per day of milk equivalent would be created. Generation of direct employment opportunities for about 40,000 people and about 2 lakh indirect employment opportunities will be created on account of the expansion of milk product marketing operations. Conclusion At the national level, the milk production is by and large sufficient to meet the domestic demand of milk and milk products in the country. But there is still vast potential to increase the milk production in the country especially for commercial uses. The Department of Animal Husbandry, Dairying and Fisheries under the Ministry of Agriculture and Farmers'

7 6 Welfare is implementing a large number of schemes for further strengthening milk cooperatives in various States of the country. Sources: 1. India, Ministry of Agriculture and Farmers' Welfare, Department of Animal Husbandry and Fisheries, Annual Report, , (pp.55-58,61 and 65). 2. National Dairy Development Board Press Release dated Press Information Bureau Release, Ministry of Agriculture dated Press Information Bureau Release, Ministry of Agriculture dated Press Information Bureau Release, Ministry of Agriculture dated Press Information Bureau Release, Ministry of Agriculture dated Press Information Bureau Release, Ministry of Agriculture dated Lok Sabha Unstarred Question No. 316 dated Lok Sabha Unstarred Question No.6128 dated

8 7 Annexure STATEWISE MILK PRODUCTION Milk Production (Million Milk Production (Million Name of States/UTs Litre) Litre) # Andhra Pradesh Arunachal Pradesh Assam Bihar Chhattisgarh Goa Gujarat Haryana Himachal Pradesh Jammu & Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Orissa Punjab Rajasthan Sikkim Tamil Nadu Telangana Tripura Uttar Pradesh Uttarakhand West Bengal A&N Islands Chandigarh D.& N. Haveli Daman & Diu Delhi Lakshadweep Puducherry All India # Estimates of are Provisional Source: Lok Sabha Starred Question No. 316 dated