Executive Summary:
This document provides a response to Lok Sabha Starred Question No. 37, addressing subsidy schemes for dairy farmers. The response clarifies that there are no direct subsidy schemes for dairy farmers since 2021 under the Department of Animal Husbandry and Dairying (DAHD). Instead, DAHD supports states/UTs through various schemes aimed at improving milk productivity, strengthening dairy infrastructure, and enhancing animal health services. The response was tabled on July 22, 2025.
Key Points / Main Content:
DAHD's Support for Dairy Development:
No Direct Subsidies: There are no subsidy schemes for dairy farmers since 2021 within the Department of Animal Husbandry and Dairying (DAHD).
Support through Schemes: DAHD supports States/UTs via the implementation of schemes to improve milk productivity, strengthen dairy infrastructure, enhance feed and fodder availability, and provide animal health services.
Key Schemes and Components:
Rashtriya Gokul Mission (RGM):
Focus: Development and conservation of indigenous breeds, genetic upgradation of bovines, and enhanced milk production.
Components:
Nationwide Artificial Insemination Program: Enhances artificial insemination coverage in districts with less than 50% coverage.
Accelerated Breed Improvement Program: Uses IVF technology and sex-sorted semen for rapid genetic upgradation.
MAITRIs: Training and equipping Multipurpose Artificial Insemination Technicians to deliver AI services.
Breed Multiplication Farms: 50% capital subsidy for entrepreneurs to produce high genetic merit animals.
National Programme for Dairy Development (NPDD):
Focus: Creating/strengthening infrastructure for quality milk testing and primary chilling.
Components:
Component "A": Infrastructure for quality milk testing and chilling facilities for cooperatives, SHGs, and FPOs.
Component "B": Increasing milk and dairy product sales through organized markets, upgraded processing facilities, and enhanced producer-owned institutions.
Supporting Dairy Cooperatives Farmer Producer Organisations (SDCFPO):
Assistance: Provides interest subvention (regular 2% and additional 2% on prompt repayment) on soft working capital loans to State Dairy Cooperative Federations during adverse market conditions or natural calamities.
Animal Husbandry Infrastructure Development Fund (AHIDF):
Incentive: Offers interest subvention at 3% per annum for creating/strengthening livestock product processing and diversification infrastructure.
National Livestock Mission (NLM):
Focus: Entrepreneurship development and breed improvement in poultry, sheep, goat, piggery, and fodder.
Incentives: Provided to individuals, FPOs, SHGs, and Section 8 companies for entrepreneurship development, and to State Governments for breed improvement infrastructure.
Livestock Health and Disease Control Programme (LHDCP):
Focus: Prophylactic vaccination, capacity building of veterinary services, disease surveillance, and strengthening veterinary infrastructure.
Pashu Aushadhi: New component ensuring availability of affordable generic veterinary medicine through PMKSK and Cooperative Societies.
Impact Analysis:
Dairy Farmers:
Impact: Dairy farmers do not receive direct subsidies but benefit from schemes that improve milk productivity, animal health, and market access.
Action Required: Farmers should engage with state and local animal husbandry departments and cooperatives to leverage the benefits of the RGM, NPDD, NLM and LHDCP schemes, including participating in training programs and utilizing available infrastructure.
State Governments/Union Territories:
Impact: Responsible for implementing and managing the DAHD-supported schemes.
Action Required: State governments/UTs need to effectively implement the RGM, NPDD, NLM and LHDCP schemes, ensuring proper fund allocation, infrastructure development, and monitoring of program outcomes.
Dairy Cooperatives, Farmer Producer Organizations (FPOs), and Self-Help Groups (SHGs):
Impact: Benefit from infrastructure development, market access, and financial assistance.
Action Required: Dairy cooperatives, FPOs, and SHGs should actively participate in the NPDD and SDCFPO schemes to improve their processing capabilities, expand market reach, and manage financial challenges.
Entrepreneurs:
Impact: Opportunity to establish breed multiplication farms and livestock processing units with financial assistance.
Action Required: Entrepreneurs should apply for capital subsidies under the RGM and interest subvention under the AHIDF to establish or expand their businesses in the livestock and dairy sectors.
Key Entities Referenced
Department of Animal Husbandry and Dairying (DAHD): The department within the Ministry of Fisheries, Animal Husbandry and Dairying responsible for implementing schemes related to dairy and animal husbandry.
Rashtriya Gokul Mission (RGM): A scheme implemented for the development and conservation of indigenous breeds, genetic upgradation of bovine population and enhancement of milk production.
National Programme for Dairy Development (NPDD): A scheme implemented for creating/strengthening of infrastructure for quality milk testing and primary chilling facilities.
Supporting Dairy Cooperatives Farmer Producer Organisations (SDCFPO): A scheme to assist the State Dairy Cooperative Federations by providing interest subvention.
Animal Husbandry Infrastructure Development Fund (AHIDF): A fund that provides interest subvention for creation/strengthening of livestock product processing and diversification infrastructure.
National Livestock Mission (NLM): A mission focused on entrepreneurship development and breed improvement in poultry, sheep, goat, piggery and fodder.
Livestock Health and Disease Control Programme (LHDCP): A programme to provide for prophylactic vaccination against animal diseases, capacity building of veterinary services, disease surveillance, and strengthening veterinary infrastructure.
SHRI RAJIV RANJAN SINGH ALIAS LALAN SINGH: The Minister of Fisheries, Animal Husbandry and Dairying.
GOVERNMENT OF INDIA
MINISTRY OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
DEPARTMENT OF ANIMAL HUSBANDRY AND DAIRYING
LOK SABHA
STARRED QUESTION No. *37
TO BE ANSWERED ON 22nd JULY 2025
SUBSIDY SCHEMES FOR DAIRY FARMERS
*37. SHRI RAVINDRA DATTARAM WAIKAR:
SMT. SHAMBHAVI:
Will the Minister of FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
मत्स्यपालन, पशुपालन और डेयरी मंत्री
be pleased to state:
(a) the details of the funds allocated, sanctioned and disbursed under the Government subsidy
schemes for the dairy farmers in the country since 2021 along with the percentage of total
agricultural subsidies allocated to dairy farming, year and State-wise;
(b) the details of the small and marginal farmers who availed the benefit of subsidies under the dairy
farming since 2021, year and State-wise;
(c) the details of the Private Public Partnerships achieved by the Government to expand dairy farming
subsidies and technology adoption;
(d) the details of the steps taken by the Government to increase awareness among the dairy farmers
regarding available subsidies and promote adoption of high-yield cattle breeds through subsidies;
and
(e) whether the Government has any plans to increase the dairy exports by enhancing subsidy-backed
milk production, if so, the details thereof and projects in pipeline to achieve the same?
THE MINISTER OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
मत्स्यपालन, पशुपालन और डेयरी मंत्री
(SHRI RAJIV RANJAN SINGH ALIAS LALAN SINGH)
(a) to (e) A statement is laid on the Table of the HouseSTATEMENT REFERRED TO IN REPLY OF LOK SABHA STARRED QUESTION NO. 37
PART (A) TO (E) ON “SUBSIDY SCHEMES FOR DAIRY FARMERS” TO BE ANSWERED
ON 22.07.2025
(a) to (e) There is no subsidy scheme for dairy farmers since 2021 in the Department of Animal
Husbandry and Dairying (DAHD), Government of India. However, DAHD is supporting the
States/UTs through the implementation of following schemes for improving milk productivity
of bovines, strengthening of dairy infrastructure, enhancing availability of feed and fodder and
providing animal health services:
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 with the following major
components:
(i) Nationwide Artificial Insemination Program is being implemented to enhance
artificial insemination coverage in districts with less than 50% Artificial Insemination
Coverage;
(ii) Accelerated breed improvement programme using IVF technology and sex sorted
semen is being implemented for rapid genetic upgradation of bovine population;
(iii) Multi-purpose Artificial Insemination Technicians in Rural India (MAITRIs) are
trained and equipped to deliver quality Artificial Insemination services at farmers’
doorstep and
(iv) Under the component of establishment of breed multiplication farm, 50% capital
subsidy is provided to entrepreneurs for producing high genetic merit animals. This will
ensure availability of such animals to the dairy farmers.
2. 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” 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.
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