The Indian government’s strategy to double farmer incomes involves a ₹110 billion push for the dairy sector

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  • At least 22 dairy infrastructure projects are now underway in five states - Haryana, Punjab, Karnataka, Maharashtra and Gujarat, with a total cost of ₹31 billion.
  • In addition, around ₹80 billion has been allocated towards establishing a fund to equip dairy farmers with cooling technology and milk testing equipment.
  • Separately, the government is also drafting a plan to provide a subsidy for dairy farmer cooperatives to transition to solar power equipment.
While the recent interim budget presented by Acting Finance Minister Piyush Goyal involved a cash handout programme for farmers, it seems that the Modi government knows that this won’t be enough to solve their problems.

In line with the government’s goal to double farmers’ incomes by 2022, Radha Mohan Singh, the Union Minister for Agriculture, just outlined his ministry’s plans to develop the dairy sector.

According to an official statement, at least 22 projects are underway in five states - Haryana, Punjab, Karnataka, Maharashtra and Gujarat, with a total cost of ₹31 billion.

In addition, around ₹80 billion has been allocated towards establishing a fund to equip dairy farmers with cooling technology and milk testing equipment as well as expanding dairy product manufacturing facilities.

The projects broadly fall under three separate schemes - National Programme for Dairy Development, National Dairy Plan Phase-I, and Dairy Entrepreneurship Development Scheme. Recent efforts are aimed at boosting procurement and production process for milk and milk products.

India is the world’s largest producer of milk, according to Singh, with a total production of 176.4 million tonnes in the previous fiscal year. The government wants this to increase to 254.5 million tonnes in the next three years.

India’s interim budget was met with a broad degree of approval from India’s dairy farmers. A highlight was the provision of a 2% interest subsidy on loans for farmers engaged in animal husbandry.

Separately, the government’s ministry of renewable energy is also drafting a plan to provide a subsidy for dairy farmer cooperatives to transition to solar power equipment. Given the fact that power outages affect the ability of farmers to store milk, solar power could provide a solution.


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