Executive Summary:
This document outlines the Indian government's response to questions regarding milk processing units in Bihar, specifically the Koshi-Seemanchal region. It details existing and planned milk processing infrastructure, as well as various schemes aimed at increasing milk production and farmer income. The information was provided in response to questions raised in Lok Sabha on July 29, 2025.
Key Points / Main Content:
* **Milk Processing Infrastructure in Koshi-Seemanchal:**
* Bihar has not submitted any projects for setting up milk processing units in Koshi-Seemanchal under the National Programme for Dairy Development (NPDD) scheme.
* A 0.50 LLPD milk chilling plant has been sanctioned for Madhepura district.
* Expansion of processing capacity from 1 LLPD to 2 LLPD has been sanctioned for Khagaria district.
* Purnea district, under the Kosi Dairy Project (COMFED), has a procurement of 0.74 LLPD and a 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.
* **National Programme for Dairy Development (NPDD) Scheme:**
* Component A: Focuses on creating/strengthening infrastructure for quality milk testing and primary chilling facilities.
* Component B: Aims to increase milk and dairy product sales by improving market access, upgrading processing facilities, and enhancing producer-owned institutions.
* **DAHD Schemes for Increasing Milk Production and Farmer Income:**
* Rashtriya Gokul Mission (RGM): Development and conservation of indigenous breeds, genetic upgradation, and enhancement of milk production.
* Supporting Dairy Cooperatives & Farmer Producer Organisations (SDCFPO): Provides interest subvention for working capital loans.
* Animal Husbandry Infrastructure Development Fund (AHIDF): Provides interest subvention for livestock product processing and diversification infrastructure.
* National Livestock Mission (NLM): Focuses on entrepreneurship development and breed improvement in poultry, sheep, goat, piggery and fodder.
* Livestock Health and Disease Control Programme (LHDCP): Provides for vaccination, capacity building, disease surveillance, and strengthening veterinary infrastructure.
* **Schemes of Government of Bihar:**
* Saat Nishchay-2 Yojna: Aims to organize 7,000 new Dairy Cooperative Societies between 2021 and 2025.
* Desi Gaupalan Protsahan Yojana: Promotes indigenous cow breeds with subsidies.
* Samagra Bhains Palan Yojana: Supports purchase of high-yielding buffaloes.
* Samagra Gavy Vikas Yojana: Supports dairy units with 2-20 animals, offering subsidies.
* **Milk Processing Capacity in Bihar:**
* The total processing capacity for the listed locations in Bihar is 4855 thousand liters per day.
Impact Analysis:
**State Government of Bihar:**
* Impact: The State Government is responsible for submitting projects under the NPDD scheme to obtain funding for milk processing units. The state also implements its own schemes to promote dairy development and increase farmer income.
* Action Required: The State Government should assess the dairy potential of the Koshi-Seemanchal region and submit proposals under the NPDD scheme to strengthen milk processing infrastructure. Continue implementing and monitoring existing schemes to increase milk production and farmer income.
**Dairy Farmers/Milk Producers in Bihar (Specifically Koshi-Seemanchal):**
* Impact: Farmers will benefit from increased milk processing capacity, access to organized markets, and various government schemes aimed at improving milk production and income.
* Action Required: Farmers should organize themselves into cooperatives and FPOs to access the benefits of NPDD and other schemes. They should also adopt improved animal husbandry practices to increase milk production and quality.
**State Cooperative Dairy Federations/District Cooperative Milk Producers Union/Self Help Groups (SHGs)/Milk Producer Companies/Farmer Producer Organizations:**
* Impact: These entities are eligible for support under the NPDD scheme, including infrastructure development for milk testing and chilling. They can also benefit from schemes that provide interest subvention for working capital loans.
* Action Required: These organizations should apply for funding under the NPDD scheme to upgrade their infrastructure and improve their operations. They should also participate in government initiatives to promote dairy development and increase farmer income.
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 eastern India where milk processing centers are being established and schemes are being implemented to increase milk production and farmer income.
National Programme for Dairy Development (NPDD): A scheme implemented by the Department of Animal Husbandry Dairying, Government of India, to support milk processing infrastructure.
Koshi-Seemanchal: A region in Bihar comprising districts like Khagaria, Saharsa, Supaul, Madhepura and Purnia where there is potential for milk production.
Rashtriya Gokul Mission (RGM): A scheme implemented for development and conservation of indigenous breeds, genetic upgradation of bovine population and enhancement of milk production.
Animal Husbandry Infrastructure Development Fund (AHIDF): A fund providing interest subvention for creation and strengthening of livestock product processing and diversification infrastructure.
Saat Nishchay-2 Yojna: A scheme of the Government of Bihar focused on the expansion of dairy infrastructure to promote rural self-reliance.
Deshratna Dr. Rajendra Prasad Milk Union (DRMU), Barauni: A milk union in Barauni, Bihar where processing capacity expansion is being done.
O.I.H
GOVERNMENT OF INDIA
MINISTRY OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
DEPARTMENT OF ANIMAL HUSBANDRY AND DAIRYING
LOK SABHA
UNSTARRED QUESTION NO. 1585
TO BE ANSWERED ON 29th JULY 2025
MILK PROCESSING CENTRES IN BIHAR
1585. SHRI RAJESH RANJAN:
SHRI DINESH CHANDRA YADAV:
Will the Minister of FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
मत्स्यपालन, पशुपालन और डेयरी मंत्री
be pleased to state:
(a) whether the Government proposes to set up milk processing units in Koshi-Seemanchal
region particularly in Khagaria, Saharsa, Supaul, Madhepura and Purniaj in Bihar as large
quantities of milk produced in these areas;
(b) the locations of milk processing centres are set up in Bihar and their processing capacity;
(c) the names of the schemes being run by the Government to increase milk production and
increase the income of farmers in the State; and
(d) the features of the said schemes?
Answer
THE MINISTER OF STATE FOR FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
(PROF. S.P. SINGH BAGHEL)
(a) 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.
(b) The details of location and capacity of milk processing centres in Bihar is at Annexure-I.
(c) & (d) 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:
Total Processing Capacity
S No. Location (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