In the budget for 2024, Finance Minister Nirmala Sitharaman celebrated India’s status as the world’s leading milk producer and revealed extensive plans to bolster the nation’s dairy sector.
Recognizing India’s pivotal role in global milk production, the Managing Director of the Gujarat Cooperative Milk Marketing Federation (GCMMF), Jayen Mehta, commended the government’s visionary approach, envisioning India’s transformation into the “dairy hub of the world.”
Addressing challenges faced by the dairy sector, including low milch-animal productivity, the finance minister outlined a comprehensive programme building on the success of existing initiatives such as the Rashtriya Gokul Mission, the National Livestock Mission, and Infrastructure Development Funds for dairy processing and animal husbandry.
Major industry player Amul expressed gratitude for the government’s support, foreseeing the proposed programme as a key driver for India to contribute to one-third of the world’s milk production in the next decade. With India contributing to 24% of global milk production, the initiative is poised to make a significant impact.
In a nod to the significance of the dairy sector, the Union Cabinet, under the leadership of Prime Minister Narendra Modi, approved the continuation of the Animal Husbandry Infrastructure Development Fund (AHIDF) under the Infrastructure Development Fund (IDF) with a substantial outlay of Rs 29,610.25 crore for the next three years until 2025–26. The scheme aims to incentivize investments in various aspects of the dairy industry.
The government’s commitment also includes a 3% interest subvention for eight years, benefiting dairy cooperatives in their modernization efforts. Amul, demonstrating confidence in the initiative, announced investments of Rs. 11,500 crores over the next 2–3 years to expand its dairy processing infrastructure.
Industry leaders, including Devendra Shah, Chairman of Parag Milk Foods, applauded the government’s dedication, acknowledging the dairy sector’s role in supporting the livelihoods of 80 million dairy farmers. Shah emphasized the positive impact of the comprehensive programme, which places a strong emphasis on promoting indigenous breeds and fostering research and development in the dairy sector. The Budget 2024 is poised to mark a historic turning point for the flourishing dairy industry in India.