National Programme for Dairy Development (NPDD)

Context

The Union Minister for Fisheries, Animal Husbandry and Dairying visited Sikkim to inaugurate a microbiology laboratory for the Sikkim Milk Union under the National Programme for Dairy Development (NPDD).

About the Scheme

1. Nature & Funding: A Central Sector Scheme, fully funded by the Central Government.
2. Implementing Agency: Managed by the DAHD (Department of Animal Husbandry and Dairying) under the Ministry of Fisheries, Animal Husbandry and Dairying.
3. Launch & Restructuring: Launched in February 2014 and restructured following a NITI Aayog evaluation; the revised framework was approved for 2021–22 to 2025–26.
4. Core Objectives:

• Enhance the overall quality of milk and dairy products.
• Expand organised milk procurement, processing capacity, value addition, and market access.
• Strengthen rural dairy infrastructure and support dairy cooperative

Key Components

1. Component A (Dairy Infrastructure Development):

• Focus: Funds milk testing equipment and primary chilling facilities to stop contamination and improve safety (e.g., Sikkim microbiology lab).
• Beneficiaries: State Dairy Federations, Milk Unions, SHGs (Self-Help Groups), and FPOs (Farmer Producer Organisations).

2. Component B (Dairying via Cooperatives):

• Focus: Boosts organised sales, processing infrastructure, and institutional capacity for farmer-owned bodies.
• Funding & Coverage: Supported by JICA (Japan International Cooperation Agency) concessional loans (1.5% interest) across 9 focus states (Bihar, UP, Punjab, Rajasthan, MP, AP, Telangana, Uttarakhand, West Bengal).

Significance

1. Milk Quality: Testing and chilling infrastructure reduce spoilage and ensure better food safety.
2. Farmer Income: Organised market access gives dairy farmers fair and reliable prices.
3. Women’s Empowerment: Drives women’s leadership in dairy and aims to create 3.2 lakh jobs.
4. Regional Growth: Promotes essential dairy infrastructure in underserved areas, including the Northeast.
5. Cooperative Model: Strengthens the Anand Pattern of dairy cooperatives and supports White Revolution 2.0.

Key Challenges

1. Low Organised Share: Most milk production stays in the unorganised sector, hindering quality control and fair prices.
2. Infrastructure Gaps: Lack of village-level chilling units and testing labs, especially in remote and hilly areas.
3. Regional Imbalance: Project implementation remains concentrated in a few states, causing uneven dairy growth.
4. Fragmented Producers: Small farmers face resource constraints and limited bargaining power.

Way Forward

1. Infrastructure Expansion: Rapidly establish village-level chilling facilities and testing laboratories to cut spoilage.
2. Cooperative Strengthening: Empower DCSs (Dairy Cooperative Societies), FPOs (Farmer Producer Organisations), and producer companies with credit and training.
3. Regional Focus: Prioritise infrastructure investment in Northeastern and hilly states to address disparities.
4. Policy Continuity: Provide clear regulatory guidelines to extend NPDD (National Programme for Dairy Development) past 2025–26.

FAQs

Q1. Which department implements the NPDD?
Ans. Department of Animal Husbandry and Dairying under the Ministry of Fisheries, Animal Husbandry and Dairying.

Q2. What type of scheme is the NPDD?
Ans. A fully Centre-funded Central Sector Scheme.

Q3. What is the main aim of the NPDD?
Ans. To improve milk quality and strengthen organised milk procurement, processing, value addition and marketing.

Q4. When was the NPDD launched and restructured?
Ans. Launched in February 2014 and restructured for 2021–22 to 2025–26.