Reasons to Invest

Target to achieve a liquid milk production capacity of 255 MMT by 2022.
VAPDs like butter are projected to grow @ 5.3% CAGR from 2019-2025.
Dairy is the single largest agricultural commodity contributing 5% of the national economy, witnessing 6.4% (CAGR) in the past 5 years.

How We Help Investors

Research Content Provider

Location Analysis

Policy Advisory/Representation

Stakeholders Meeting

Issue Resoution

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.

Please refer to FDI policy here.

100%

FDI Allowed

Growth Drivers

Urbanization: Increasing rate of urbanization from 34% to 37% by 2025.
Conducive Government Policies: Investor friendly government schemes like Animal Husbandry Infrastructure Development Fund (AHIDF), and Dairy Infrastructure Development Fund (DIDF) to spur growth in the sector.
Disposable Income: Increase in per capita disposable income from Rs 1,09,315 in FY 16 to Rs 1,54,178 in FY 20 at a CAGR of 9% has increased demand.
Stringent Quality: FSSAI guidelines harmonised with global standards.
Huge Consumer Base: The proportion of Indian populace in the age group of 15-65 years increased from 55.4% in 1991 to 67% in 2019 and the Indian median age is 28.7 years. 

Government Support

Dairy Processing and Infrastructure Development Fund

The scheme aims to provide subsidized loan @6.5% to capital stressed milk cooperatives for primarily replacing their decades-old chilling and processing plants and addition of value-added product plants.
 

Animal Husbandry infrastructure development fund

This scheme aims to help to increase of meat processing capacity and product diversification thereby providing greater access for unorganized Dairy producers to organized the Dairy market.

National Programme for Dairy development

The objective of the scheme is to create and strengthen dairy infrastructure for procurement, processing and marketing of milk and milk products by the State Implementing Agencies (SIAs) i.e. State Cooperative Dairy Federations/ District Cooperative Milk Producers’ Union.
 

Pradhan Mantri Kisan Sampada Yojana

PM Kisan SAMPADA Yojana is a comprehensive package which will result in creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet.
i. Cold Storage Scheme: The scheme aims to provide integrated cold chain, preservation and value addition infrastructure facilities without any break. 

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. 
 

Production Linked Incentive Scheme for Food Processing Industry 

Incentivising manufacturing of Mozzarella Cheese.
 

Trade Scenario

India exported 51,421.85 MT of dairy products worth $186.71 mn in 2019-20, major destinations being: a) UAE b) Bhutan c)Turkey d) Egypt e) the United States of America
India's Butter export is valued at $ 50.65 mn with 13,512.81 MT in 2019-2020, major destinations being: a) Turkey b) Egypt c) UAE d) Morocco e) Bahrain
India exported 2286 MT of Processed Cheese worth $ 12.84 mn in 2019-20, major destination being: a) Bhutan b) USA c) UAE d) Singapore e) Qatar
India exported 935.41 MT of Skimmed Milk in Powder worth $ 3 mn in 2019-20, major destination being: a) Afghanistan b) UAE c) Bhutan d) Pakistan e) the Gambia

Major Investors

Product Profiles

The share of organized milk is projected to grow from 23% in 2019 to 50% in 2025.
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.

Team Articles

Oct 14, 2021
The DAHD Virtual Roundtable

The Office of the Principal Scientific Advisor, with the…

By:
Feb 24, 2021
A $20 Bn Opportunity: The Indian Dairy Sector

The dairy sector is a significant contributor to our…

FAQ

FAQs

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

Vision 2022 envisions to increase the total quantity of milk handled and sold by the organized sector (cooperatives & private sector). Under the project, milk handling by the private sector is targeted to increase from 10% to 30%. It also aims to double milk producers’ income at farm level by 2021-22 by increasing access to the private sector.
 

Was it helpful?

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.   

Was it helpful?

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.

Was it helpful?

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 USD 1.5 billion, out of which, USD 1.14 billion shall be loan from NABARD to NDDB/NCDC, USD 286 million  shall be end borrowers contribution, USD 1.7 million would be NDDB/NCDC’s share and USD 123.5 million shall be contributed by DAHD toward interest subvention  

Was it helpful?

VIEW ALL

Invest India Timeline

2021
DRAG TO VIEW MORE

Disclaimer: All views and opinions that may be expressed in the posts on this page as well as post emanating from this page are solely of the individual in his/her personal capacity