The first phase with an outlay of Rs. 2242 cr. is part of an ambitious 15-year-long National Dairy Plan with an estimated project cost of Rs. 17,300 crores. The credit support of Rs. 1584 cr, by the International Development Agency of World Bank, the GOI share of Rs. 176 cr, share of Rs 282 cr of the End Implementing Agencies of the participating states and Rs. 200 cr from NDDB together constitute the fund outlay of the Phase I. This six-year first phase will be implemented in the 14 major milk producing States of Punjab, Uttar Pradesh, Gujarat, Orissa, Madhya Pradesh, Rajasthan, West Bengal, Bihar, Maharashtra, Karnataka, Andhra Pradesh, Tamil Nadu, Haryana and Kerala.
Aimed at increasing productivity of the 2.7 million milch animals, providing the milk producers from 40000 villages greater access with organized processing sector and to modernizing village-level infrastructure for milk collection and storage, this multi agency-state initiative got administrative approval from the Dept. of Animal Husbandry, Dairying and Fisheries on 16 March 2012
With a production of 116.2 million tonnes of milk, India remained on top and contributed 16% of the world milk production. India will require about 150 million tonnes of milk by 2016-17 and 200-210 million tonnes by 2021-22. While the production of milk grows at 3% per annum, the consumption grows by 5%. The current efforts are aimed at bridging the gap in demand and supply. The milk processing and marketing capacity created by the cooperative sector over 30 years is equalled by the private sector in the last 15 years. Covering 21% of india’s villages and 18% rural households, the cooperative sector procures 16% of the country’s marketable surplus of milk. This sector expects a procurement rate of 20% of the marketable surplus by 2016-17 and 50% share of that handled by the organized sector.