The Uttar Pradesh government is actively pursuing a multi-pronged strategy to enhance its dairy sector, aiming to boost rural economies, increase milk production, and promote indigenous cattle breeds. This initiative is being driven through a series of dairy conclaves, investment summits, and targeted schemes designed to attract private investment and support dairy farmers across the state.
Dairy Conclaves Foster Investment and Awareness
Recent conclaves held in Lucknow and Agra have underscored the government’s commitment to the dairy sector. The ‘Swarnim Dugdhamrit Samvad Samagam’ in Agra, themed ‘Swadeshi Unnat Govansh, Samriddh Nivesh, Surakshit Bhavishya – Khushhaal Uttar Pradesh,’ brought together farmers, investors, and stakeholders from the Agra-Aligarh division. These events aim to foster dialogue on improved indigenous cow breeds, investment opportunities in cattle rearing, and securing the future of farmers and ‘gopalaks’ (cattle rearers), thereby strengthening Uttar Pradesh’s economy. Dairy Commissioner Dhanalakshmi noted that Uttar Pradesh has already received investment proposals worth nearly ₹28,000 crore. Similarly, a conclave in Lucknow marked 50 years of the Dairy Development Department, resulting in the signing of Memorandums of Understanding (MoUs) worth ₹3,000 crore. These MoUs are anticipated to generate over 13,000 jobs. Previously, 796 MoUs totaling ₹25,000 crore had been executed, with the potential to create over 60,000 employment opportunities.
‘Operation-4’ and Scheme-Based Support
Central to the state’s dairy development push is ‘Operation-4,’ an integrated strategy encompassing four major schemes: the Mukhyamantri Swadeshi Gau Samvardhan Yojana, Mukhyamantri Pragatisheel Pashupalak Protsahan Yojana, Nandini Krishak Samriddhi Yojana, and Mini Nandini Krishak Samriddhi Yojana. These schemes are designed to support dairy units ranging from two to twenty-five cows, offering substantial financial assistance and subsidies. The government provides up to a 50% subsidy for establishing dairy units, with a financial model comprising 15% beneficiary contribution, 35% bank loan, and the remaining 50% as government support. The Mukhyamantri Swadeshi Gau Samvardhan Yojana, for instance, offers subsidies up to ₹80,000 for two-cow units. Incentives are also provided for cattle rearers maintaining high-yield indigenous breeds such as Sahiwal, Gir, Gangatiri, and Sindhi, with rewards ranging from ₹10,000 to ₹15,000. The initiative also focuses on the conservation and promotion of these indigenous breeds.
Policy Framework and Economic Impact
The Uttar Pradesh Dairy Development and Milk Products Promotion Policy-2022 serves as a foundational framework, aiming to make the state a significant dairy processing hub. This policy seeks to attract investments of around ₹5,000 crore, expand milk processing capacity, ensure remunerative prices for milk producers, and substantially increase milk processing levels. The policy offers incentives including capital subsidies, interest subsidies on loans, and stamp duty concessions for dairy processing units. Uttar Pradesh, consistently the highest milk-producing state in the country, contributing approximately 16% of India’s total milk production, has seen significant progress. Milk production has surged from approximately 277.70 lakh tonnes in 2016-17 to an estimated 388 lakh tonnes in 2024-25. However, the state’s milk processing level remains around 10%, compared to the national average of about 17%, indicating substantial potential for investment in processing and value-added products.
Focus on Value Addition and Rural Livelihoods
Beyond increasing milk production, the government is emphasizing value addition to dairy products. Promoting the development of paneer, cheese, butter, ghee, yogurt, flavored milk, ice cream, and milk powder is a key objective. Value addition is seen as a means to increase profitability for processors and generate employment. Dairy farming has become a crucial source of supplementary income for millions of rural households in Uttar Pradesh, offering a daily cash flow that contrasts with seasonal crop income. The integration of dairy with various government programs, such as rural livelihood missions and self-help groups, further enhances its role in improving rural incomes and diversifying livelihood sources. Digital payment systems and transparency initiatives are also being implemented to ensure timely and direct payments to farmers.
The state’s dairy sector is characterized by steady growth, driven by government initiatives, improved infrastructure, and a focus on farmer-centric development. Continued investment in technology, processing, quality improvement, and market access is expected to solidify dairy farming’s role as a significant engine of rural prosperity and agricultural growth in Uttar Pradesh.
The Chenab Times News Desk