**Executive Summary**
This document is the official response from the Minister of Fisheries, Animal Husbandry and Dairying to Unstarred Question No. 575, posed in Lok Sabha by SHRI VISHNU DATT SHARMA, regarding the promotion of cooperative dairy and milk infrastructure. The response details government schemes implemented through the National Dairy Development Board (NDDB) and state cooperatives. This was addressed on 3rd February 2026.
**Key Points / Main Content**
* **Government Schemes:**
* The Department of Animal Husbandry and Dairying (DAHD) is implementing schemes to promote sustainable dairy development and support farmers.
* Schemes are implemented through NDDB, State/District cooperative dairies, Milk Producer Organizations, and private dairies.
* **National Programme for Dairy Development (NPDD):**
* Implemented with two components.
* Component A focuses on creating/strengthening infrastructure for quality milk testing and primary chilling facilities.
* Component B, "Dairying through Cooperatives” assisted by Japan International Cooperation Agency (JICA), aims to increase the sale of milk and dairy products by increasing farmer's access to the organized market, upgrading dairy processing facilities and marketing infrastructure and enhancing the capacity of producer-owned institutions.
* **Supporting Dairy Cooperatives & Farmer Producer Organisations (SDCFPO):**
* Provides interest subvention to State Dairy Cooperative Federations (2% regular and 2% additional on prompt repayment) for working capital loans to overcome adverse market conditions or natural calamities.
* **Animal Husbandry Infrastructure Development Fund (AHIDF):**
* Provides interest subvention at 3% per annum for creation/strengthening of livestock product processing and diversification infrastructure, increasing access for unorganized producers to organized markets.
* **Implementation in Madhya Pradesh (MP):**
* Under Component A of NPDD, Jabalpur and Bundelkhand Milk Unions are covered.
* Katni is part of Jabalpur Milk Union, and Panna is part of Bundelkhand Milk Union.
* **Physical Progress in Katni and Panna (MP):**
* Katni: 1 Bulk Milk Cooler (3000 Litres), 23 Dairy Cooperative Societies (14 Functional), 651 Members, 732 Kilograms per Day Procurement.
* Panna: 1 Bulk Milk Cooler (2000 Litres), 96 Dairy Cooperative Societies (39 Functional), 690 Members, 2696 Kilograms per Day Procurement.
**Impact Analysis**
**Small and Marginal Dairy Farmers across the country, including Madhya Pradesh (MP)**
* **Impact**: Improved access to sustainable dairy development support through government schemes and collaboration with NDDB, State/District cooperative dairies, Milk Producer Organizations, and private dairies.
* **Action Required**: To participate in the schemes and leverage the available support for dairy farming activities.
**State Dairy Cooperative Federations:**
* **Impact:** Access to interest subvention (regular 2% and additional 2% on prompt repayment) for soft working capital loan to tide over the crisis on account severely adverse market conditions or natural calamities.
* **Action Required**: To apply for and utilize the interest subvention for managing working capital during adverse market conditions or natural calamities.
**Unorganized Producer Members:**
* **Impact:** Greater access to organized markets through interest subvention at the rate of 3% per annum for creation/ strengthening of livestock product processing and diversification infrastructure.
* **Action Required**: To leverage the AHIDF to access the organized market.
Key Entities Referenced
National Programme for Dairy Development (NPDD): A scheme implemented by the Department of Animal Husbandry and Dairying focusing on strengthening dairy infrastructure.
Department of Animal Husbandry and Dairying (DAHD): The Government of India department responsible for implementing schemes related to animal husbandry and dairying.
Madhya Pradesh (MP): Indian state where dairy cooperative development projects are being implemented, including Katni and Panna districts.
National Dairy Development Board (NDDB): An organization that collaborates with the government on schemes to promote cooperative dairy and milk infrastructure.
Animal Husbandry Infrastructure Development Fund (AHIDF): A fund that provides interest subvention for strengthening livestock product processing infrastructure.
GOVERNMENT OF INDIA
MINISTRY OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
DEPARTMENT OF ANIMAL HUSBANDRY AND DAIRYING
LOK SABHA
UNSTARRED QUESTION NO. 575
TO BE ANSWERED ON 3RD FEBRUARY 2026
PROMOTION OF COOPERATIVE DAIRY AND MILK INFRASTRUCTURE
575. SHRI VISHNU DATT SHARMA:
Will the Minister of FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
मत्स्यपालन, पशुपालन और डेयरी मंत्री
be pleased to state:
(a) whether the Government is promoting cooperative dairy and milk infrastructure through
schemes run in collaboration with National Dairy Development Board (NDDB) or State
cooperative dairies, focusing on cold‑chain, chilling centres, farmer training, and
value‑addition, if so, the details thereof;
(b) whether any such dairy cooperative development projects have been implemented in
Katni and Panna districts in Khajuraho Lok Sabha Constituency in Madhya Pradesh;
(c) if so, the details of infrastructure created, number of cooperative members (especially
women and small holders) trained or covered, and volume of milk procured or processed;
and
(d) if not, the reasons for exclusion of these regions and steps planned to extend dairy
cooperative benefits to these areas?
ANSWER
THE MINISTER OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
(SHRI RAJIV RANJAN SINGH ALIAS LALAN SINGH)
(a) Department of Animal Husbandry and Dairying (DAHD), Government of India (GoI) is
implementing the following schemes through National Dairy Development Board
(NDDB) and State/ District cooperative dairies/ Milk Producer Organization/ Private
dairies to supplement the efforts made by the State Government to promote sustainable
dairy development and support to small and marginal dairy farmers across the country
including Madhya Pradesh (MP):
1. National Programme for Dairy Development (NPDD): NPDD is
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”
Japan International Cooperation Agency (JICA) assisted, 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.
2. 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.
3. 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.
These schemes are helping in expanding network of dairy cooperatives, strengthening of
dairy infrastructure, working capital requirement, enhancing availability of feed and
fodder. These interventions help to reduce the cost of milk production and also help to
enhance income of milk producer from dairy farming.
(b) Under Component A of NPDD, Jabalpur and Bundelkhand Milk Unions are covered as
Implementing Agencies. Katni is part of Jabalpur Milk Union and Panna is part of
Bundelkhand Milk Union.
(c) The physical progress reported by MP State Cooperative Milk Federation is tabulated
below:
Bulk Milk Coolers Dairy Cooperative Producer Average Milk
Area (BMC) Societies (DCSs) Members Procurement
Number Capacity Organised Functional (Numbers) (Kilograms per Day)
Katni 1 3000 Litres 23 14 651 732
Panna 1 2000 Litres 96 39 690 2696
(d) Does not arise in view of (b) above.
*****