Lok Sabha Question No. 3255 (UNSTARRED), answered on 2018-08-07
Subject: Production of Milk, Paneer and Khoya
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Sarfaraz Alam

O.I.H.

## GOVERNMENT OF INDIA

## MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF ANIMAL HUSBANDRY, DAIRYING AND FISHERIES LOK SABHA

UNSTARRED QUESTION NO.3255 TO BE ANSWERED ON 7 TH  AUGUST, 2018

## PRODUCTION OF MILK, PANEER AND KHOYA

## 3255.  SHRI SARFARAZ ALAM:

## Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ षि और ककसान कल्याण मंत्री be pleased to state:

- (a) Whether  the  production  of  milk,  paneer  and  khoya  in  the  country  is  less  than  the consumption and if so, the details thereof;
- (b) Whether  the Government  proposes  to formulate any  scheme to increase their production;
- (c) If so, the details of the said scheme, and
- (d) The  details  of  the  scheme  formulated  by  the  Government  for  the  farmers  who  are engaged in animal husbandry State-wise?

## ANSWER

## THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE

## (SHRIMATI KARISHNA RAJ)

- (a) As per available records of the Department, there is no report of consumption of milk. However, per capita availability is 355 gram per day and milk production in the country is 165.4 Million Tonne during 2016-17.  Per capita availability is 374 gram per day and milk production is 176.34 Million Tonne (Provisional) during 2017-18.  As regards production and consumption of paneer and khoya, no such study has so far been conducted. However, as per Vision 2022, the projected gap in processing capacity for value added products is 18253 Metric Tonne per Day by 2021-22.
- (b) Department  of  Animal  Husbandry,  Dairying  and  Fisheries,  Government  of  India  has been implementing dairy development schemes to supplement the efforts of State Governments, to increase production of milk and milk products.  Details are as follows:

(i)              National  Programme  for  Dairy  Development:  The  scheme  aims  at  creating  and strengthening  infrastructure  for  procurement,  processing  and  marketing  of  milk.  Some  of  the major components of the scheme are Bulk Milk Cooler (BMC), Milk Processing capacity, Lab Equipment and Training.

(ii) National  Dairy  Plan  (Phase-I):  The  scheme  aims  at  increasing  productivity  of  milch animals and thereby milk production. The major components of the scheme are Progeny testing, Pedigree selection, Strengthening of Semen stations, Ration Balancing, Fodder Development and Village Based Milk Procurement System covering setting up of BMCs.

(iii) Dairy Entrepreneurship Development Scheme (DEDS): The scheme aims at setting up of small dairy units, heifer rearing, bringing structural change in unorganised sector, upgradation of traditional technology to handle milk on commercial scale. Some of the major components of the scheme are setting up of small dairy units, heifer rearing, Cold Storage facilities, Equipment for  manufacture  of  indigenous  milk  products,  purchase  of  milking  equipment  and  dairy marketing outlets.

(iv)     Dairy Processing and Infrastructure Development Fund: The scheme has been launched in  December  2017  and  aims  at  helping  the  producer  owned  and  controlled  institutions  to increase their share of milk, thereby providing greater opportunities of ownership, management and market access to rural milk producers in the organised milk market. The scheme envisages investment  of    Rs.  8004  crore  as  interest  bearing  loan,  Rs.  2004  crore  as  milk  cooperative contribution,  Rs. 12 crore as contribution by National Dairy Development Board (NDDB) and National  Cooperative  Development  Corporation  (NCDC)  and  Rs.  864  crore  as  interest subvention by Department of Animal Husbandry, Dairying & Fisheries, Government of India. The scheme envisages to make an investment of 27.83% of the total investment of Rs. 10881 crore towards creation of capacity of value added products.

(c) and (d)  Details of above schemes are given at Annexure I, II, III & IV.

## National Programme for Dairy Development (NPDD)

National Programme for Dairy Development (NPDD) was launched in February, 2014 with the objective of to create and strengthen infrastructure for procurement, processing and marketing of milk.

Under  the  programme,  83  projects  in  28  States  have  been  approved  with  the  total  outlay  of Rs.848.48  crore  (Central  Assistance  Rs.  650.85  crore)  against  which  Rs.348.34  crore  has  been released and an amount of Rs.168.89 crore has been utilized upto 30.6.2018

This Department has approved establishment/modification of 20.36 LLPD capacity dairy plant, installation of 15.73 LLPD capacity chilling plant and creation of 8206 dairy cooperative society (DCS) till 30.06.2018.

## National Dairy Plan Phase I (NDP I)

A Central Sector Scheme of Government of India, is a scientifically planned multi-state initiative being implemented by National Dairy Development Board (NDDB) with the network of End Implementing Agencies (EIAs) for the period 2011-12 to 2018-19 with the following objectives:

- (i)         Increase productivity of milch animals and thereby increase milk production to meet the rapidly growing demand for milk.
- (ii)         Provide rural milk producers with greater access to the organised milk processing sector.

A multi-pronged series  of  interventions  are  being  undertaken  under  NDP  I  to  meet  the  twin objectives  of  NDP  I.  The  key  interventions  being  implemented  under  NDP  I  are  provided below:

- a) Progeny Testing Programme
- b) Pedigree Selection Programme
- c) Strengthening of Semen Stations
- d) Pilot Doorstep AI Delivery Services
- e) Ration Balancing Programme
- f) Fodder Development Programme
- g) Village Based Milk Procurement System
- h) Project Management and Learning

## Dairy Entrepreneurship Development Scheme (DEDS)

The  scheme  has  been  launched  in    September,  2010  and    implemented  through  NABARD. The scheme aims at setting up of small dairy units, heifer rearing, bringing structural change in unorganised sector, upgradation of traditional technology to handle milk on commercial scale. Some of the major components of the scheme are setting up of small dairy units, heifer rearing, Cold  Storage  facilities,  Equipment  for  manufacture  of  indigenous  milk  products,  purchase  of milking equipment and dairy marketing outlets.

## Pattern of Assistance

- I. Back ended capital subsidy @ 25% of the project cost for general category and @ 33.33 % for SC/ST farmers. The component-wise subsidy ceiling will be subject to indicative cost arrived at by NABARD from time to time.
- II. Entrepreneur contribution (Margin) for  loans beyond  Rs.1 lakh* -10% of project cost (Minimum)
- III. Bank Loan - Balance portion

## COMPONENTS OF THE SCHEME :

| S. No   | Component                                                                       |
|---------|---------------------------------------------------------------------------------|
| i       | Setting up of milch cattle(2-10 animals)                                        |
| ii      | Heifer rearing dairy units (upto 20 animals)                                    |
| iii     | Vermi compost unit                                                              |
| iv      | Purchase of milking machines /milk-o-testers/bulk milk cooling units (upto 5KL) |
| v       | Equipment for manufacture of indigenous milk products                           |
| vi      | Dairy product transportation                                                    |
| vii     | Cold storage facilities                                                         |
| viii    | Establishment of private veterinary clinics                                     |
| ix      | Dairy marketing outlet / Dairy parlour                                          |

## Dairy Processing & Infrastructure Development Fund (DIDF)

- I. The scheme has been launched in December 2017 with total scheme outlay of Rs.10881 crore.  The scheme aims at helping the producer owned and controlled institutions to increase their  share  of  milk,  thereby  providing  greater  opportunities  of  ownership,  management  and market  access  to  rural  milk  producers  in  the  organised  milk  market.  The  scheme  envisages investment  of    Rs.  8004  crore  as  interest  bearing  loan,  Rs.  2004  crore  as  milk  cooperative contribution,  Rs. 12 crore as contribution by National Dairy Development Board (NDDB) and National  Cooperative  Development  Corporation  (NCDC)  and  Rs.  864  crore  as  interest subvention by Department of Animal Husbandry, Dairying & Fisheries, Government of India. The scheme envisages to make an investment of 27.83% of the total investment of Rs. 10881 crore towards creation of capacity of value added products.  The scheme is implemented through National Dairy Development Board (NDDB)  and National Cooperative Development Corporation (NCDC).

## Major components:

- I. Modernization & creation of new milk processing facilities
- II. Manufacturing facilities for Value added Products
- III. Milk Chilling infrastructure
- IV. Setting up electronic milk testing equipment at village level
- V. Project Management and Learning
- VI. Any other activity related to the dairy sector targeted to contribute to the objectives of DIDF and decided by Government of India in consultation with the stakeholders.

## Important points regarding DIDF:

- I. Year of implementation: 2017-18 to 2019-20 with the proposed outlay of Rs. 10881 crore.
- II. Consists  of  Rs.  8004  crore  as  interest  bearing  loan,  Rs. 2001  crore  as  contribution  from  Milk Cooperatives, Rs. 864 crore as interest subvention through budgetary support from DADF
- III. NDDB & NCDC will contribute Rs. 12 crore for Project Management & Learning Support).

## Salient Features of the DIDF scheme:

- I. 95 Lakh milk producers will be benefited by covering 50,000 villages.
- II. Establishment  of  28000  Bulk  Milk  Coolers  with  140  Lakh  Liters  per  Day  as  additional  milk chilling capacity.
- III. Providing 28000 Milk Testing Equipments to check adulteration in milk.
- IV. Creation of additional 210 Metric Ton per Day Milk Drying capacity.
- V. Modernization, expansion and creation of Milk Processing capacity of 126 Lakh Litres per Day.