India Boosts Dairy Sector with INR 9,800 Crore Revamp
The Indian government has allocated INR 9,800 crore to revamp and expand dairy sector schemes, aiming to attract total investments of INR 54,618 crore over five years, starting from 2021-22. This move aims to boost the country's largest agricultural commodity, which contributes 5% to the national economy and employs over 80 million farmers directly.
India, the world's largest milk producer with a 23% global share, seeks to leverage its dairy potential. The government has earmarked INR 15,000 crore for the Dairy Processing and Infrastructure Development Fund, targeting private sector investments in processing, value addition, and animal feed plants.
The Indian dairy industry, driven by indigenous breeds (buffaloes: 45%, cows: 20%, crossbred bovines: 28%), has significant growth prospects. Goat milk, contributing 3% to total production, is another niche area. Globally, the dairy market was valued at USD 481.08 billion in 2019 and is expected to grow at a CAGR of 2.5% until 2027.
To further boost the sector, the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) is being implemented. This scheme aims to create global food manufacturing champions, increase employment opportunities, and ensure remunerative prices for farmers. In 2020-21, India exported dairy products worth INR 1,491.66 crore (USD 201.37 million) to countries like the UAE, Bangladesh, USA, Bhutan, and Singapore.
With the revised schemes and increased investments, the Indian dairy sector is poised for growth. The government's initiatives aim to make India a global dairy hub, driving the rural economy and benefiting millions of farmers.
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