National Programme for Dairy Development (NPDD)

The National Programme for Dairy Development (NPDD) scheme was launched by the Government of India. The NPDD scheme is designed to provide technical and financial assistance for the dairy development and thereby creating any infrastructure related to the processing, production, marketing and procurement by the milk federation/unions while extending their activities by providing training facilities to the farmers. This scheme is implemented with the view to dairying activities in a scientific and holistic manner and integrate milk production so as to attain higher levels of milk production and its productivity, ultimately to meet the increasing demand for milk in the country. Dairying and its other activities have become a very important secondary source of income for millions of rural families and have the most important role in providing income-generating opportunities and employment opportunities particularly for marginal and women farmers as most of the milk that is produced by animals reared by small, marginal farmers and landless labours.

Objectives of the Scheme

To strengthen and create the necessary infrastructure for the production of quality milk including the creation and development of cold chain infrastructure that will enhance the linkage between the farmers and their consumers.
To strengthen and create the infrastructure required for the production, procurement, marketing and processing of milk.
To create appropriate training infrastructure and facilities for the training of dairy farmers.
To strengthen the dairy Producer Companies/cooperative societies at the village level
To increase the production of milk by providing the most needed technical input services like mineral mixture and cattle feed, etc; to assist the rehabilitation potential and viable milk unions/federations.

Areas of Operation

National Dairy Plan Phase-I (NDP-I) will cover the case of States (i.e, Andhra Pradesh, Rajasthan, Bihar, Gujarat, Karnataka, Haryana, Kerala, Maharashtra, Madhya Pradesh, Orissa, Tamil Nadu, Punjab, West Bengal, Uttar Pradesh).
Implementation of NPBBDD will be done throughout the country.

Financial Ceilings and other Limitations

Central governmental assistance will be provided for the project and will be restricted to a total of Rs.15 crores per District.
Any form of assistance provided for the “technical input services” will be subject to a ceiling of 15% of its project cost.
For milk powder plants, the central grant per district will be limited to an amount of Rs.5 crores per district.
The central grant for the establishment of milk powder plant will be limited to dairy cooperatives only.
For the establishment/up gradation of milk powder plant of 30 metric tonnes capacity, surplus milk from milk shed that covers a cluster of districts may be pooled together to ensure the economic viability of the milk powder plant.
Any assistance for the cattle induction shall be allowed only for BPL families, Scheduled Tribes and Scheduled Castes.
The subsidy for Cattle Induction will be restricted to a total of 50% in all cases except for the women farmers.
The Cost of calculating the subsidy shall include: cost of cattle, animal insurance and transportation cost.
The Cattle Induction will be subjected to a maximum ceiling of 10% of the total project cost.
The assistance of manpower and skill development will be provided for setting up and/or upgrading a Training Centre for skill development. The total assistance under this component shall not be more than Rs.75 lakh or 5% of the total project cost, whichever is lower.
The detailed Planning and Monitoring will be limited to 5% of the project cost.
The subsidy element for cattle induction will have a maximum ceiling of 75% cost for women milk producers.
Necessary assistance for Information and Communication Technology networking shall be subject to a maximum ceiling of 10% of the project cost.
Any assistance for Working Capital shall be restricted to the total value of “21 days milk procurement”, as projected in the terminal year of the Project.
The rehabilitation assistance as the central grant will be restricted to a ceiling of Rs.5 Crores.

Training Institutes Covered under Skill Development of NPDD

Training centres at Krishi Vighyan Kendras
Training institutes at Central/State Agriculture/Veterinary/Dairy Science University/Colleges.
Training centres at Milk Producer Companies
Training centres at State Milk Federations/District Milk Unions
Training centres at Department of Animal Husbandry/Dairy Development of the State.
For strengthening/upgrading of the above training, centres will be taken up with the purpose of holding/conducting training of milk producer members of dairy PRIs/cooperatives for a period of almost 3 years or more during the implementation of the project under NPDD.

Administrative Body of training centres and SIA may make such arrangement after mutually agreeing to certain terms and conditions.

Services Provided to Milk Producers

Doorstep Veterinary Emergence and Health Services at MPCS around 18 Lakh Artificial Insemination (AI) are done per year.
Cattle feed subsidy Rs.2-4/kg given (will be revised every month according to current market rates)
The Mineral mixture is supplied to the milk producers at a subsidy of Rs.25 per Kg.
Periodical animal health camps are conducted in villages for mass deworming and to treat infertility cases in almost all district milk unions.
Green fodder and fodder slips are provided to milk producers through fodder cultivation in union land.
FMD vaccinations carried out twice every year in coordination with the Animal Husbandry Department, covering around 17 lakh animals under cooperative ambit in Tamil Nadu.
Regular training is given to milk producers and village level workers in training centres.
The profits earned by the district unions are shared with the milk producers by giving incentive which ranges from 60 paise per litre to Rs.1.60 per litre.
Whenever the society earns any sort of profit, 50% of profit is ‘ploughed back’ to the milk produced as mentioned in the by-laws of the Milk Producers Cooperative Societies.
Bulk Milk Cooler (BMC) are installed when necessary as per the request of the producers and the budgeting done under this scheme.

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Frequently Asked Questions

Common questions about National Programme for Dairy Development: Infrastructure Assistance.

The National Programme for Dairy Development (NPDD) is a scheme launched by the Government of India to provide technical and financial assistance for dairy development, including infrastructure for processing, production, marketing, and procurement by milk federations and unions. It aims to integrate milk production and attain higher levels of productivity to meet the increasing demand for milk in the country.

The main objectives of the NPDD scheme are to strengthen and create necessary infrastructure for quality milk production and cold chain infrastructure, strengthen infrastructure for milk procurement, marketing, and processing, create training facilities for dairy farmers, strengthen dairy producer companies/cooperatives at the village level, and increase milk production by providing technical inputs like mineral mixture and cattle feed.

The National Dairy Plan Phase-I (NDP-I) covers the following states: Andhra Pradesh, Rajasthan, Bihar, Gujarat, Karnataka, Haryana, Kerala, Maharashtra, Madhya Pradesh, Orissa, Tamil Nadu, Punjab, West Bengal, and Uttar Pradesh.

The central government assistance under the NPDD scheme is restricted to a total of Rs. 15 crores per district. Additionally, there are specific ceilings for different components like technical input services (15% of project cost), milk powder plants (Rs. 5 crores per district), and cattle induction (10% of project cost).

Assistance for cattle induction under the NPDD scheme is allowed only for BPL (Below Poverty Line) families, Scheduled Tribes, and Scheduled Castes. The subsidy for cattle induction is restricted to a total of 50% in all cases, except for women farmers, where it can go up to 75% of the cost.

The training institutes covered under the skill development component of the NPDD scheme include Krishi Vigyan Kendras, Central/State Agriculture/Veterinary/Dairy Science University/Colleges, Training centres at Milk Producer Companies, Training centres at State Milk Federations/District Milk Unions, and Training centres at the Department of Animal Husbandry/Dairy Development of the State.

Some of the services provided to milk producers under the NPDD scheme include doorstep veterinary emergency and health services, artificial insemination, cattle feed subsidy, mineral mixture supply at a subsidized rate, animal health camps, fodder cultivation, FMD vaccinations, regular training, incentives based on profits earned by district unions, and installation of Bulk Milk Coolers.

According to the article, the profits earned by district unions are shared with milk producers by giving incentives ranging from 60 paise per litre to Rs. 1.60 per litre. Additionally, 50% of the profit is 'ploughed back' to the milk producers, as mentioned in the by-laws of the Milk Producers Cooperative Societies.

The NPDD scheme is designed to support dairying activities in a scientific and holistic manner, integrate milk production, and attain higher levels of milk production and productivity. This is done to meet the increasing demand for milk in the country and provide income-generating opportunities, particularly for marginal and women farmers.

The assistance for Information and Communication Technology networking under the NPDD scheme is subject to a maximum ceiling of 10% of the project cost.