Dairy Krishi Schemes in India: A Comprehensive Guide
Overview of India’s Dairy Sector
India’s dairy sector—powered largely by small and marginal dairy farmers—forms the backbone of rural livelihoods. To modernize this sector, improve rural incomes, and strengthen infrastructure, both Central and State Governments have launched robust schemes under Krishi (agriculture) and dairy development frameworks.
Recent reforms include the revamped National Program for Dairy Development (NPDD), massive infrastructure funding through AHIDF, and cooperative-strengthening initiatives. These target everything from milk production and procurement to processing, quality testing, and market linkage.
National Program for Dairy Development (NPDD)
The Revised NPDD, approved by the Union Cabinet in March 2025, now carries a total outlay of ₹2,790 crore for the period 2021–22 to 2025–26, up from its initial allocation.(Prime Minister of India, DD News, smetimes.in)
- Component A: Building and improving dairy infrastructure—e.g., milk chilling plants, testing laboratories, certification systems, and new village-level dairy cooperative societies in remote and backward regions, including the Northeast and hilly areas.(Prime Minister of India)
- Component B (Dairying through Cooperatives – DTC): Supported by JICA, this strengthens cooperative production, processing, and marketing infrastructure across nine key states, including Andhra Pradesh and Telangana.(Prime Minister of India)
Achievements So Far:
- Benefited 18.74 lakh dairy farmers
- Created over 30,000 direct and indirect jobs
- Increased milk procurement capacity by 100.95 lakh litres per day
- Set up 51,777 village-level testing labs, 5,123 bulk milk coolers, and advanced adulteration detection systems in 232 dairy plants(Prime Minister of India)
Future Ambitions:
- Establish 10,000 new Dairy Cooperative Societies
- Form 2 grant-supported Milk Producer Companies (MPCs)
- Create 3.2 lakh jobs, with 70% priority to women farmers(Prime Minister of India)
Why It Matters: NPDD is central to White Revolution 2.0, empowering rural dairy value chains and boosting farmer incomes.
Animal Husbandry Infrastructure Development Fund (AHIDF)
AHIDF, expanded recently with a revised allocation of ₹29,610 crore (from ₹15,000 crore), focuses on building modern livestock and dairy infrastructure.(dollons.com)
- Beneficiaries include dairy cooperatives, FPOs, and entrepreneurs
- Supports technologies for processing, cold chains, and feed units
- Offers:
- 3% interest subvention for eight years (up from earlier 2.5%)
- Credit guarantee of up to 25% of the term loan via Agri Credit Guarantee Fund
- Loans up to 90% of project cost, combinable with other subsidies(dollons.com)
Why It Matters: AHIDF catalyzes capital investments in value-added dairy infrastructure with low-cost financing.
Other Supportive Programs
(a) Dairy Entrepreneurship Development Scheme (DEDS)
Run by the Department of Animal Husbandry in partnership with NABARD:
- Offers 25% project cost subsidy for general category entrepreneurs
- 33% subsidy for SC/ST categories
- Promotes individual and group ventures in dairy processing(Wikipedia)
(b) ePashuHaat
An online portal enabling farmers to buy/sell livestock, access feeds, semen, and embryo markets, and use integrated communication tools like chat and email.(Wikipedia)
(c) Disease Control and Farmer Protection
- National Animal Disease Control Program (NADCP) aims to vaccinate against FMD and brucellosis—strengthening dairy herd health with central funding.(Wikipedia)
- The focus remains not on price controls but on building robust infrastructure and cooperative systems.(Legality Simplified)
Dairy Incentives at the State Level
UP – Nandini Krishak Samriddhi Yojana
- For setting up dairy units with 25 milch cows (breeds such as Gir, Sahiwal)
- 50% subsidy (~₹31.25 lakh on ₹62.5 lakh unit) in three phases
- Requires 3 years’ dairy experience and 0.5–1.5 acres for fodder(Business Standard)
Assam – Milk Subsidy
- ₹5 per litre subsidy for up to 30 litres/day per farmer
- Targets 20,000 farmers under cooperative societies
- ₹10 crore budget allocated for 2025–26(Telegraph India)
Gujarat
- Amul-led initiatives converting whey to bioethanol
- GCMMF and NDDB also converting cattle dung to compressed biogas (CBG), with collective investment expansions(The Times of India)
How Farmers Can Benefit from Dairy Schemes
Eligibility and Access:
- NPDD: Apply via district Animal Husbandry offices or cooperatives
- AHIDF: Available through recognized banks and state nodal agencies
- DEDS: Submit proposals to state KVIC or livestock departments
- State Schemes: Check respective state portals or dairy cooperatives
Documentation Typically Required:
- Business/project proposal
- Land/identity documents, Udyam/MSME registration (if applicable)
- Cooperative or FPO affiliation where required
Application Tips:
- Engage with FPOs or cooperatives for streamlined access
- Use ePashuHaat for livestock selection and connectivity
- Leverage DEDS or AHIDF with combined subsidies and credit guarantees
- Align with NPDD for infrastructure and cooperative formation
Summary Table: Dairy Scheme Highlights
| Scheme | Objective | Coverage/Amount |
|---|---|---|
| NPDD | Infrastructure & cooperative support | ₹2,790 cr; 10k cooperatives; 3.2L jobs |
| AHIDF | Infrastructure financing | ₹29,610 cr; 3% subvention; loan up to 90% |
| DEDS (DEDS) | Entrepreneurship support | Subsidy 25% (SC/ST 33%) |
| ePashuHaat | Livestock trade platform | Nationwide online livestock marketplace |
| NADCP | Disease control (FMD, brucellosis) | Nationally vaccinated initiative |
| UP’s Nandini Yojana | Dairy unit subsidy | 50% subsidy on ~₹62.5 lakh project |
| Assam Milk Subsidy | Per litre dairy subsidy | ₹5/litre for 30 litres/day |
Click Hear to Apply
India’s dairy sector is rapidly gaining momentum through integrated Central and State schemes—modernizing infrastructure (NPDD), enabling low-cost finance (AHIDF), encouraging new entrepreneurs (DEDS), and supporting cooperatives and animal husbandry services. These measures, reinforced by online tools and cooperative support, are transforming the dairy landscape and significantly improving livelihoods for rural producers.
Want a state-level shortlist (like Andhra Pradesh or Telangana) showing relevant dairy scheme links and application portals? I can add that too!