New Delhi, August 12, 2026: India’s dairy sector is undergoing significant modernisation as the Government expands milk procurement, processing, chilling, quality testing and value-addition infrastructure through programmes such as the National Programme for Dairy Development (NPDD) and the Animal Husbandry Infrastructure Development Fund (AHIDF).

Union Minister for Fisheries, Animal Husbandry and Dairying Shri Rajiv Ranjan Singh alias Lalan Singh said these initiatives are aimed at increasing milk production and productivity while strengthening the dairy value chain and improving the efficiency and sustainability of the sector.

NPDD Supports Dairy Infrastructure Development

Under the National Programme for Dairy Development (NPDD), financial assistance is being provided to strengthen milk procurement, chilling and quality assurance infrastructure.

The programme provides:

  • 50% grant assistance for strengthening milk procurement, chilling and quality assurance infrastructure.

  • 75% Central Grant assistance for modern milk procurement, dairy processing, value addition and cold-chain infrastructure.

  • 70% Central Grant assistance for quality assurance infrastructure in hilly areas and the North Eastern Region (NER).

The initiative aims to increase the share of organised milk procurement and improve the quality and efficiency of dairy operations.

Over 36,000 New Dairy Cooperatives Organised

As of June 2026, financial assistance under NPDD has supported the organisation of 36,611 new Dairy Cooperative Societies (DCS) at the village level.

A further 34,557 existing Dairy Cooperative Societies have been strengthened.

The programme has also helped create approximately 168 lakh litres per day (LLPD) of milk chilling capacity, while 76,748 quality testing devices have been distributed.

These facilities are expected to improve milk collection, quality assessment and storage, particularly at the grassroots level.

AHIDF Boosts Dairy Processing and Value Addition

The Animal Husbandry Infrastructure Development Fund (AHIDF) is supporting the establishment of modern dairy processing, value-addition and cold-chain infrastructure.

Eligible beneficiaries receive a 3% interest subvention for setting up such projects in both the cooperative and private sectors.

As of June 2026, projects with a combined milk processing and value-addition capacity of 418 LLPD have been approved under AHIDF.

The expansion of processing capacity is expected to support greater value addition and strengthen the dairy industry's overall supply chain.

Milk Production Increases by Nearly 18% in Five Years

India has recorded a steady increase in milk production over the past five years.

YearMilk Production (Million Metric Tonnes)Per Capita Availability (Gram/Day)
2020-21209.96427
2021-22222.07446
2022-23230.58459
2023-24239.30471
2024-25247.87485

Milk production increased from 209.96 million metric tonnes in 2020-21 to 247.87 million metric tonnes in 2024-25.

This represents an increase of approximately 18% over the five-year period. During the same period, per capita milk availability rose from 427 grams per day to 485 grams per day.

Focus on Farmers' Income and Organised Markets

The Government's dairy-sector initiatives are focused not only on increasing milk production but also on improving the infrastructure connecting farmers to organised markets.

Investment in milk collection, chilling, quality testing, cold storage, processing and value addition can help reduce post-collection losses and improve the efficiency of the dairy value chain.

The expansion of organised procurement also provides dairy farmers with better access to formal markets for their milk.

Dairy Sector Enters a New Phase of Modernisation

The continued growth in milk production, combined with investments in processing and infrastructure, highlights the expanding role of the dairy sector in India's rural economy.

Through NPDD and AHIDF, the Government is seeking to build stronger dairy infrastructure from village-level milk collection to large-scale processing and value addition.

The initiatives are expected to support higher productivity, improve milk quality, strengthen the dairy value chain and contribute to better income opportunities for milk producers.