In India milk production is growing by 6.4% during the last 5 years and has increased from 146.3 million MT in 2014-15 to 187.7 million MT in 2018-19. About 54% of milk produced is marketable surplus and remaining 46% is retained in villages for local consumption. Out of the marketable surplus available with farmers only 36% is handled by organised sectors evenly shared by cooperative and private sector. There is a need to bring the remaining 64% surplus milk under the organized fold through various interventions. During last 2 years milk procurement is also growing by about 9% in Cooperative sector.
Department of Animal Husbandry & Dairying is continuously working towards increasing milk productivity through genetic improvement and reduction of input cost. Special programme has also been launched recently for improvement of milk quality by providing required testing facilities at village and dairy plant level for safe human consumption. It is proposed to further intensify the Quality Milk Programme for both cooperative and private sector with fund sharing basis. With a thrust on better productivity, reduced input cost and better quality milk and milk product, the competitiveness and profitability in the dairy sector will get enhanced leading to increased demand of dairy products in domestic and international market. This would also bring private investments in the sector to boost growth in rural income and also employment.
Public investment to further incentivise private investments would be facilitated for increasing processing facilities through convergence and leveraging the schemes of Department of Animal Husbandry & Dairying, Ministry of Food Processing Industries, Department of Agriculture, Cooperation & Farmers Welfare, Department of Rural Development and State Governments.