## Policy Summary: Strengthening Milk Processing Infrastructure in Bihar (July 29, 2025)
This document summarizes initiatives by the Department of Animal Husbandry & Dairying (DAHD), Government of India, and the State Government of Bihar to enhance milk production, processing, and marketing in the state, with a particular focus on the Koshi-Seemanchal region.
**National Programme for Dairy Development (NPDD):** The DAHD implements the NPDD scheme nationwide, with two key components:
* **Component A:** Focuses on infrastructure development for quality milk testing and primary chilling facilities, targeting State Cooperative Dairy Federations, District Cooperative Milk Producers Unions, Self Help Groups (SHGs), Milk Producer Companies, and Farmer Producer Organizations (FPOs).
* **Component B:** "Dairying through Cooperatives," aims to improve market access for farmers, upgrade dairy processing facilities and marketing infrastructure, and enhance the capacity of producer-owned institutions.
**Bihar's Initiatives in Koshi-Seemanchal:** While Bihar has not submitted specific projects for milk processing units in Koshi-Seemanchal under the NPDD scheme, the state government has undertaken the following:
* Sanctioned a 0.50 LLPD (lakh liters per day) milk chilling plant for Madhepura district.
* Approved expansion of processing capacity from 1 LLPD to 2 LLPD for Khagaria district under the Aspirational District Scheme, managed by Deshratna Dr. Rajendra Prasad Milk Union (DRMU), Barauni.
* Purnea district, under the Kosi Dairy Project (KDP) of COMFED, Patna, has a procurement of 0.74 LLPD and an installed processing capacity of 2.00 LLPD.
* Saharsa, Supaul, and Madhepura districts are served by the Kosi Milk Union (KMU), Supaul, which has a processing plant with a capacity of 2.00 LLPD and a milk procurement of approximately 1.00 LLPD in 2024-25.
**Other DAHD Schemes:** The DAHD implements several schemes nationally to support milk production and processing:
1. **Rashtriya Gokul Mission (RGM):** Focuses on development and conservation of indigenous breeds, genetic upgradation, and enhancing milk production.
2. **National Programme for Dairy Development (NPDD):** (Described above).
3. **Supporting Dairy Cooperatives & Farmer Producer Organisations (SDCFPO):** Provides interest subvention to State Dairy Cooperative Federations for working capital loans.
4. **Animal Husbandry Infrastructure Development Fund (AHIDF):** Offers 3% interest subvention for strengthening livestock product processing infrastructure.
5. **National Livestock Mission (NLM):** Emphasizes entrepreneurship development and breed improvement in poultry, sheep, goat, piggery, and fodder.
6. **Livestock Health and Disease Control Programme (LHDCP):** Supports vaccination, veterinary services, disease surveillance, and infrastructure, including the "Pashu Aushadhi" component for affordable veterinary medicine.
**Schemes of Government of Bihar:**
1. **Saat Nishchay-2 Yojna:** Aims to establish 7,000 new Dairy Cooperative Societies between 2021 and 2025 to expand dairy infrastructure and promote rural self-reliance.
2. **Desi Gaupalan Protsahan Yojana:** Promotes indigenous cow breeds with subsidies up to 75% for SC/ST/EBC beneficiaries.
3. **Samagra Bhains Palan Yojana:** Offers financial support (₹1.21-1.81 lakh) for purchasing high-yielding buffaloes like Murrah and Bhadawari.
4. **Samagra Gavy Vikas Yojana:** Supports dairy units with 2-20 animals, with subsidies ranging from 40% to 75% based on unit size and category.
**Milk Processing Capacity in Bihar:** As of July 2025, the total milk processing capacity across various locations in Bihar is 4855 thousand liters per day (TLPD). Patna (275 TLPD), Muzaffarpur (290 TLPD), Barauni (500 TLPD), and Samastipur (835 TLPD) have the highest processing capacities.
**Source:** This information was provided by Union Minister of State, Ministry of Fisheries, Animal Husbandry and Dairying, Prof. S.P. Singh Baghel, in a written reply in Lok Sabha on July 29, 2025. (PIB Delhi, AA Release ID: 2149838)
Key Entities Referenced
Ministry of Fisheries, Animal Husbandry and Dairying: The central ministry responsible for policies related to fisheries, animal husbandry, and dairying in India.
Bihar: A state in India focusing on milk processing and dairy development initiatives.
National Programme for Dairy Development (NPDD): A scheme implemented by the Department of Animal Husbandry and Dairying, Government of India, to enhance milk processing infrastructure and farmers' access to markets.
Rashtriya Gokul Mission (RGM): A scheme implemented for development and conservation of indigenous breeds, genetic upgradation of bovine population and enhancement of milk production and productivity of bovines.
Koshi Seemanchal: A region in Bihar with dairy potential, where the state government is taking steps to strengthen the milk processing sector.
Khagaria district, Bihar: A district in Bihar where expansion of processing capacity has been sanctioned under the Aspirational District Scheme.
COMFED, Patna: An organisation with Kosi Dairy Project KDP in Purnea district, Bihar.
Saat Nishchay2 Yojna: A scheme of the Government of Bihar focusing on expansion of dairy infrastructure to promote rural self-reliance.
Ministry of Fisheries, Animal Husbandry & Dairying
Milk Processing Centres in Bihar
Posted On: 29 JUL 2025 5:47PM by PIB Delhi
Department of Animal Husbandry & Dairying (DAHD), Government of India is implementing the National
Programme for Dairy Development (NPDD) scheme across the country to complement and supplement the
efforts for milk processing infrastructure made by the State Government. NPDD scheme is being implemented
with following 2 components:
i. Component ''A'' of NPDD focuses on creating/strengthening of infrastructure for quality milk testing
equipment as well as primary chilling facilities for State Cooperative Dairy Federations/ District
Cooperative Milk Producers’ Union/ Self Help Groups (SHGs)/ Milk Producer Companies/ Farmer
Producer Organizations.
ii. Component ''B'' of the NPDD scheme "Dairying through Cooperatives” aims to increase sale of milk
and dairy products by increasing farmer’s access to organized market, upgrading dairy processing
facilities and marketing infrastructure and enhancing the capacity of producer owned institutions.
State Government of Bihar has not submitted any project for setting up of milk processing units in Koshi-
Seemanchal under NPDD scheme. However, in view of the dairy potential of the Koshi-Seemanchal region,
State Government of Bihar has informed the following status/ steps taken for strengthening milk processing/
organized dairy sector in the region: -
i. A milk chilling plant of 0.50 lakh liters/day (LLPD) capacity has been sanctioned for Madhepura district
during the Pragati Yatra, 2025, of the Hon’ble Chief Minister of Bihar.
ii. Expansion of processing capacity from 1 LLPD to 2 LLPD has been sanctioned under the Aspirational
District Scheme for Khagaria district, covered under Deshratna Dr. Rajendra Prasad Milk Union
(DRMU), Barauni.
iii. Purnea district falls under the Kosi Dairy Project (KDP) of COMFED, Patna, with a procurement of
0.74 LLPD and an installed processing capacity of 2.00 LLPD.
iv. Saharsa, Supaul, and Madhepura districts are served by the Kosi Milk Union (KMU), Supaul, which
has a processing plant with a capacity of 2.00 LLPD with milk procurement of about 1.00 LLPD in
2024–25.
The details of location and capacity of milk processing centres in Bihar is at Annexure-I.
The details of schemes of Department of Animal Husbandry and Dairying (DAHD) and State Government in
Bihar to increase milk production and increase the income of farmers is as under:
I. DAHD is implementing the following schemes across the country to complement and supplement the
efforts for milk production and milk processing infrastructure made by the State Government
1. Rashtriya Gokul Mission (RGM): RGM is implemented for development and conservation of
indigenous breeds, genetic upgradation of bovine population and enhancement of milk production and
productivity of bovines.2. National Programme for Dairy Development (NPDD): NPDD is implemented with following 2
components:
iii. Component ''A'' of NPDD focuses on creating/strengthening of infrastructure for quality milk testing
equipment as well as primary chilling facilities for State Cooperative Dairy Federations/ District
Cooperative Milk Producers’ Union/ Self Help Groups (SHGs)/ Milk Producer Companies/ Farmer
Producer Organizations.
iv. Component ''B'' of the NPDD scheme "Dairying through Cooperatives” aims to increase sale of milk
and dairy products by increasing farmer’s access to organized market, upgrading dairy processing
facilities and marketing infrastructure and enhancing the capacity of producer owned institutions.
3. Supporting Dairy Cooperatives & Farmer Producer Organisations engaged in dairy activities
(SDCFPO): To assist the State Dairy Cooperative Federations by providing interest subvention (regular
2% and additional 2% on prompt repayment) with respect to soft working capital loan to tide over the
crisis on account severely adverse market conditions or natural calamities.
4. Animal Husbandry Infrastructure Development Fund (AHIDF): AHIDF provides interest
subvention at the rate 3% per annum for creation/ strengthening of livestock product processing and
diversification infrastructure thereby providing greater access for unorganized producer members to
organized market.
5. National Livestock Mission (NLM): to bring sharp focus on entrepreneurship development and breed
improvement in poultry, sheep, goat, piggery and fodder by providing the incentivization to the
individual, FPOs, SHGs, Section 8 companies for entrepreneurship development and also to the State
Government for breed improvement infrastructure
6. Livestock Health and Disease Control Programme (LHDCP): to provide for prophylactic
vaccination against animal diseases, capacity building of veterinary services, disease surveillance, and
strengthening veterinary infrastructure. Also, a new component of Pashu Aushadhi is added under the
scheme ensure availability of affordable generic veterinary medicine across the country through Pradhan
Mantri Kisan Samriddhi Kendras (PM-KSK) and Cooperative Societies. This will create an ecosystem
for Generic Medicine which will be affordable and of good quality.
These schemes are helping in improving milk productivity of bovines, expanding network of dairy
cooperatives, strengthening of dairy infrastructure, working capital requirement, enhancing availability of
feed and fodder and providing animal health services. These interventions help to reduce the cost of milk
production and also help to enhance income of milk producer from dairy farming.
II. Schemes of Government of Bihar:
1. Saat Nishchay-2 Yojna:- Expansion of dairy infrastructure to promote rural self-reliance. As part of
this initiative, the state aims to organize 7,000 new Dairy Cooperative Societies between 2021 and 2025.
2. Desi Gaupalan Protsahan Yojana – Promotes indigenous cow breeds with subsidies up to 75% for
SC/ST/EBC beneficiaries.
3. Samagra Bhains Palan Yojana – Offers ₹1.21–1.81 lakh support for purchasing high-yielding
buffaloes like Murrah and Bhadawari.
4. Samagra Gavy Vikas Yojana – Supports dairy units with 2–20 animals; subsidy ranges from 40% to
75% based on unit size and category.
Annexure-I
Details of location and capacity of milk processing centres in Bihar is as under:
S No. Location Total Processing Capacity(Thousand Litres Per Day)
1 Patna 275
2 Muzaffarpur 290
3 Barauni 500
4 Gaya 100
5 Arrah 300
6 Samastipur 835
7 Bhagalpur 200
8 Purnia 200
9 Kaimur 50
10 Gopalganj 10
11 Darbhanga 70
12 Biharsharif 400
13 Hajipur 10
14 Jamui 10
15 Dehri-on-Sone 500
16 Khagaria 100
17 Motihari 10
18 Kishanganj 5
19 Supaul 200
20 Sitamarhi 400
Total 4855
This information was given by Union Minister of State, Ministry of Fisheries, Animal Husbandry and
Dairying, Prof. S.P. Singh Baghel, in a written reply in Lok Sabha on 29th July, 2025.
****
AA
(Release ID: 2149838)