The signing of MoU between the Department of Animal husbandry and Dairying (DAHD) and the Ministry of Food Processing Industry(MoFPI)

DAHD and MoFPI to work together to achieve the goal for income generation for sustainable development of rural poor

As part of Azadi Ka Amrit Mahostav, Shri Atul Chaturvedi, Secretary, Department of Animal husbandry and Dairying, Ministry of Fisheries, Animal Husbandry & Dairying and Smt. Pushpa Subrahmanyam, Secretary, Ministry of Food Processing Industry signed an MoU between DAHD and MoFPI for Extension of benefits to Dairy Entrepreneurs/ Dairy industries through the convergence of various schemes of Department of Animal Husbandry and Dairying (DAHD),

MoFAHD in the presence of Shri Parshottam Rupala, Union Minister of Fisheries, Animal Husbandry and Dairying, Shri Pashupati Kumar Paras, Union Minister of Food Processing Industries and the Ministers of State of Fisheries, Animal Husbandry and Dairying Dr Sanjeev Kumar Balyan and Dr L. Murugan, as also the Minister of State for Food Processing Industries Shri Prahlad Singh Patel.

The objectives of MoFPI & DAHD are interlinked and complementary in nature. Hence, the DAHD and MoFPI will work together to achieve the goal for income generation for sustainable development of the rural poor through the extension of benefits of various schemes to the beneficiaries whenever they require credit support for establishment/ extension/ strengthening of quality control, dairy processing and its value addition, meat processing and value addition infrastructure, animal feed plant and technology-assisted breed improvement farms without any limitation.

Union Minister for Fisheries, Animal Husbandry and Dairying, Shri Parshottam Rupala highlighted that the Dovetailing and synergizing efforts of the DAHD and the MoFPI especially in the context of the common objective of helping the farmers and double their income through the livestock sector is the need of the hour.

The livestock sector is an important subsector of agriculture in the Indian economy. It grew at a CAGR of 8.2 per cent during 2014-15 to 2018-19. India is the world’s largest producer and consumer of milk & milk products. Milk production in the country has increased from 146.3 million tonnes in 2014-15 to 198.4 million tonnes in 2019-20 with the annual Growth Rate of 6.28%. Per capita availability of milk has increased from 307 grams in 2013-14 to 406 grams in 2019-20 showing a growth of 32.2%. Also, we have a large domestic market with a growing demand for livestock products including dairy and dairy products.

Despite these, the sector is facing many challenges. Almost 60% of the sector is unorganized, scattered production and has inadequate processing infrastructure. There is a Shortage of Milk quality testing infrastructure and a Shortage of village cold chain infrastructure, which are affecting the huge export possibilities. Presently, the export of Dairy products by India is 0.1% of the world.

In order to overcome these challenges, GoI is trying to develop new developmental and production-oriented schemes/programmes along with Increasing organized offtake of produce through expanding Network of Cooperatives and  FPOs, Setting up low-cost support infrastructures like chilling units and testing centres at the village level, Focus on Easier availability of Credit, Expansion of processing, value addition, marketing infrastructure, Increased demand through exports, premium niche products, inclusion in Poshan Abhiyan and a Shift focus to Entrepreneurship based Models.

With the above-mentioned objectives, the Department of Animal Husbandry is implementing many schemes. National Programme for Dairy Development is to provide assistance through Grants for creating/strengthening of infrastructure for the production of quality milk, Procurement, Processing and Marketing of Milk & Milk Products through the State Implementing Agency (SIA) i.e State Cooperative Dairy Federation. JICA assisted projects (UP and Bihar) will provide Credit link Grant Assistance to Dairy  Cooperatives.

Dairy Processing and Infrastructure Development Fund (DIDF), is another important programme of the department, wherein assistance at a subsidised rate of interest (Interest Subvention) will be given. The project focuses on building an efficient milk procurement system by setting up processing and chilling infrastructure & installation electronic milk adulteration testing equipment at the village level.

Supporting Dairy Cooperatives and Farmer Producer Organizations engaged in dairy activities (SDCFPO) will provide Interest Subvention on working capital to Dairy Cooperatives/Milk Unions/MPC. Also, Animal Husbandry Infrastructure Development Fund was in Interest Subvention and credit guarantee to help to increase milk and meat processing capacity and product diversification thereby providing greater access for unorganized rural milk and meat producers to organized milk and meat market.

Ministry of Food Processing Industry is also implementing various schemes with similar objectives and aims. Under the “One District One Product (ODOP)” scheme, Credit link grant assistance will be provided for Dairy, Fisheries, poultry and animal feed. Under this, New units for ODOP products will be supported for capital investment. Also, implementing Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) which provides Incentives on Sales & Investment to support and PM Kisan SAMPADA Yojana, a comprehensive package which will result in the creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet

Disclaimer : This is an official press release by PIB.