Context: The Uttar Pradesh Cabinet has approved amendments to the UP Dairy Development and Milk Production Promotion Policy, 2022.
More on News:
- To encourage investment in the dairy sector, the state government has decided to raise the subsidy for establishing new units or upgrading existing ones to 35 percent, up to a maximum of ₹5 crore.
- The Animal Husbandry and Dairy Development Minister stated that under the existing policy, the state government had been providing only a 10 percent subsidy.
- In contrast, policies like the Food Processing Industry Policy 2023 offer a 35 percent subsidy or up to ₹5 crore.
- In a similar move, the Uttar Pradesh Dairy Development and Milk Production Promotion Policy will now also provide a 35 percent subsidy, up to ₹5 crore, for setting up new dairy units and upgrading existing ones.
- A subsidy of 35 percent of the cost, up to ₹2.5 crore, will also be provided for the modernization of dairy plants, while 35 percent or up to ₹1 crore will be offered for purchasing machinery and equipment.
- Additionally, a 35 percent subsidy, up to ₹1 crore, has been offered for establishing cold chain infrastructure for dairy products.
Dairy Sector of UP
- UP is largest milk-producing state with 16.21% of the country’s total milk production.
- Livestock sector contributes 7% in U.P. as compared to 5.2% for the country.
- 86% of farmers are landless and small (0-1 Ha).
- Buffalo: Ranks 1st in both number of in-milk buffaloes (1.2 crore) and milk production.
- Cow: Ranks 1st in number of in-milk cows (0.66 crore), but 2nd in milk production.
- 50% of milk production comes from Western U.P.; 14% (Central); 31% (Eastern); 5% (Bundelkhand).
- Government Initiatives:
- UP Dairy Policy 2022
- UP Food Processing Policy 2023
- UP Industrial Investment & Employment Promotion Policy
- PM Micro Food Processing Enterprises Scheme
- UP MSME Scheme
- Dairy Processing and Infrastructure Development Fund
- Nand Baba Mission: Grant for set up of 35 mid-size dairy farm units of 25 animals.
