Reasons to Invest

Infrastructure gap of 120 -130 MMT with investment potential of $18-20 Bn
Market for butter and spreads is predicted to grow at an 8% CAGR to $4.2 Bn by 2026.
Dairy is the single largest agricultural commodity contributing 5% of the national economy, witnessing 6.4% (CAGR) in the past 5 years.

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Policy Advisory/Representation

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Regulatory Clearance Facilitation

FDI Norms

100% FDI permitted through automatic route for Animal Husbandry (including breeding of dogs, fish farming, aquaculture, under controlled conditions). 100% FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured and/or produced in India. 100% FDI permitted through automatic route for food processing. The Dairy sector has seen substantial foreign direct investment (FDI) constituting about 40% of FDIs Indian food sector.

Please refer to FDI policy here.

100%

FDI Allowed

Growth Drivers
100% FDI permitted through automatic route for Animal Husbandry (including breeding of dogs, fish farming, aquaculture, under controlled conditions). 100% FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured and/or produced in India. 100% FDI permitted through automatic route for food processing. The Dairy sector has seen substantial foreign direct investment (FDI) constituting about 40% of FDIs Indian food sector.

Please refer to FDI policy here.

Government Support

Dairy Processing and Infrastructure Development Fund

The objective of the scheme is to upgrade the milk processing and chilling plants, including value addition in dairy infrastructure. The total project outlay under the scheme is INR 11,184 Cr.

All eligible entities would receive a 2.5% interest subsidy on the loan component.   

To know more click here- https://dahd.nic.in/schemes/programmes/didf 

Animal Husbandry infrastructure development fund

Prime Minister's AtmaNirbhar Bharat Abhiyan stimulus package mentioned the creation of a INR 15,000 Cr Animal Husbandry Infrastructure Development Fund (AHIDF). The scheme's principal purpose is to boost milk and meat processing capability and product variety, raise farmers' price realisation, and encourage exports and increase the livestock industry's export contribution.

AHIDF scheme has been approved for incentivizing investments to establish:

(I) Dairy processing and product diversification infrastructure
(II) Meat processing and product diversification infrastructure
(III) Animal feed plant
(IV) Breed Improvement Technology and Breed Multiplication Farms
(V) Setting up of Veterinary Vaccine and Drugs Production Facilities
(VI) Animal  Waste to Wealth Management (Agri waste management)

Interest subvention: 3% for all Eligible Entities
Maximum repayment Period: 8 years inclusive of moratorium of 2 years on principal amount. 
Credit Guarantee Fund of INR 750 Cr with Guarantee Coverage upto 25% of Credit facility has been setup and would be managed by NABARD. Beneficiaries can also avail credit guarantee cover from CGTMSE scheme for the loan amount upto INR 2 Cr with the guarantee cover of 85% of loan amount.

To know more click here- https://ahidf.udyamimitra.in/PDF/ANIMAL-HUSBANDRY-INFRASTRUCTURE-DEVELOPMENT-FUND.pdf 

National Programme for Dairy development

In July 2021, the scheme has been realigned. The revised NPDD Scheme would be implemented from 2021-22 to 2025-26, with a budget of INR 1790 Cr. The scheme intends to improve the quality of milk and dairy products while boosting involvement in organised procurement, processing, value addition, and marketing. This scheme consists of two components:

(i) Component 'A' focuses on the development and advancement of infrastructure for quality milk testing equipment as well as primary chilling facilities for State Cooperative Dairy Federations/District Cooperative Milk Producers' Union/SHGs/MPCs/FPOs.

(ii) As per the project agreement, component 'B' provides financial support from the Japan International Cooperation Agency (JICA). The central government's contribution to this project is proposed to be supported through NPDD (Component A).

To know more click here- 
https://dahd.nic.in/sites/default/filess/enclosure_NPDD%2Bguidelines_compressed.pdf 

Pradhan Mantri Kisan Sampada Yojana

"Pradhan Mantri Kisan Sampada Yojana (PMKSY)' has been extended till March 2026 with an allocation of INR 4,600 crore. 

The following schemes will be implemented under PM Kisan SAMPADA Yojana :

1. Integrated Cold Chain and Value Addition Infrastructure
2. Creation/ Expansion of Food Processing and Preservation Capacities (Unit Scheme)
3. Infrastructure for Agro-processing Clusters
4. Food Safety and Quality Assurance Infrastructure
5. Human Resources and Institutions –Research & Development
6. Operation Greens

PM Kisan SAMPADA Yojana is estimated to leverage investment of INR 11,095.93 crore, benefiting 28,49,945 farmers and generating 5,44,432 direct/indirect employment in the country by the year 2025-26.

To know more click here- https://www.mofpi.gov.in/sites/default/files/PMKSY%20letter.pdf 

Kisan Credit Cards (KCC) to Livestock Farmers

The Kisan Credit Card scheme aims at providing adequate and timely credit support from the banking system under a single window with the flexible and simplified procedures to the animal husbandry and fisheries farmers for their working capital requirements. Under a nationwide KCC campaign by the Department of Animal Husbandry and Dairy,  as on 10.11.2023, more than 29.87 Lakh fresh KCCs were sanctioned for AHD Farmers.

Rashtriya Gokul Mission

The Rashtriya Gokul Mission has been extended till 2026 with a INR 2400 Cr commitment to boost productivity and milk output, making dairying more profitable for farmers. It also strives to accomplish genetic improvement in the bovine population as well as the creation and preservation of indigenous bovine breeds.

1. 50% Capital subsidy up to INR 2 Cr to eligible entrepreneurs, individuals, FPOs / FCOs, SHGs, JLGs and Section 8 companies for the establishment of breed multiplication farms.
2. 50% subsidy to farmers for use of sex-sorted semen
3. Accelerated breed improvement programme under the component subsidy of INR 5000 per IVF pregnancy

To know more click here- https://dahd.nic.in/sites/default/filess/Operational%20guidelines_RGM.pdf 

National Livestock Mission

The focus of the scheme is on entrepreneurship development and breed improvement in poultry, sheep, goat and piggery including feed and fodder development. The scheme is implemented with the following three Sub-Missions:

1. Sub-Mission on Breed Development of Livestock & Poultry
2. Sub-Mission on Feed and Fodder development
3. Sub-Mission on Extension and Innovation

Beneficiaries of the Scheme- Individual / SHGs / FPOs / FCOs / JLGs and Section 8 companies

To know more click here- https://dahd.nic.in/sites/default/filess/NLM%20Operational%20Guidelines.pdf

 

Trade Scenario

India's Export of Dairy products was 67572.99 MT to the world for the worth $284.65Mn during the year 2022-23. Major Export Destinations (2022-23): Bangladesh United Arab EMTs, Saudi Arab, USA and Bhutan
India's Butter, Ghee and Dairy Spreads export is valued at $ 43.65 Mn with 8106.54 MT in 2022-2023, major destinations being: Saudi Arab, Bahrain, UAE, USA, Qatar
India exported 9262.63 MT of Cheese worth $ 46.84 Mn in 2022-23, major destinations being: UAE, USA, Bhutan, Singapore, Saudi Arab
India exported 16,696.75 MT of Skimmed Milk in Powder worth $ 63.90 Mn in 2022-23, major destinations being: Bangladesh, UAE, Sri Lanka, Kuwait, Oman

Major Investors

Infrastructure Map

Product Profiles

Milk production is growing at the rate of 2% in the world, whereas in India, its growth rate is more than 6%.
Investments in technologies like Bulk Milk Coolers (BMCs), immersion coolers and advanced milk testing kits.
Opportunities in setting up organized and certified farms for rearing and breeding quality heifers.
Investible opportunities in Blockchain technology, RFID tags, IoT and sensor-enabled vehicles and packing systems.
The packaged fresh milk category is projected to grow at a 3.4% CAGR from 2021 to 2026, attaining a market value of $20 Bn

Team Articles

Feb 08, 2023
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Sep 05, 2022
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Feb 02, 2022
Budget 2022: Food Processing Industry Gets a Major Thrust

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FAQ

FAQs

What is the National Action Plan for Dairy Development Vision 2022? 

Department has prepared a National Action Plan (NAP) on Dairy Development with following two key goals:

  • To double national milk production from 155 MMT in 2015-16 to 254.55 MMT by 2021-22 and 300 MMT by 2023-24 to meet the increasing milk demand by domestic milk production and also ensuring nutritional security at household level as well as exports of milk and milk products
  • To double the income of milk producers at farm level by 2021-22 by providing the milk producers with greater access to the organised milk processing sector
     

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How much grant-in-aid is provided for the establishment of frozen storage/deep freezers by the government?

Under the Scheme for Integrated Cold Chain, Value Addition and Preservation Infrastructure, a grant-in-aid @ 50% for General Areas and @ 75% for North East States, Himalayan States, Islands & ITDP Areas, will be provided. The scheme is to provide integrated cold chain, preservation and value addition infrastructure facilities without any break. It will enable all groups of producers to processors for a well-equipped supply chain and cold chain.   

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What is Information Network for Animal Productivity and Health (INAPH)?    

INAPH is a desktop/notebook/ android based field IT application that facilitates the capturing of real time reliable data on breeding, nutrition and health services delivered at farmers doorstep. It facilitates farmers and other stakeholders to monitor the progress of the project.

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What is Dairy Processing & Infrastructure Development Fund?          

The Scheme envisages providing loan assistance to State Dairy Federations, District Milk Unions, Milk Producers Companies, Multi State Cooperatives and NDDB subsidiaries across the country who are termed as Eligible End Borrowers (EEBs). It focuses on building an efficient milk procurement system by setting up of processing and chilling infrastructure and other facilities. It has a financial outlay of $1.5 Bn, out of which, $1.14 Bn shall be loan from NABARD to NDDB/NCDC, $286 Mn shall be end borrowers contribution, $1.7 Mn would be NDDB/NCDC’s share and $123.5 Mn shall be contributed by DAHD toward interest subvention  

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