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Government Of Assam Animal Husbandry & Veterinary Directorate of Dairy Development

Schemes and Projects

Schemes under Central Government:

  1. Dairy Processing and Infrastructure Development Fund (DIDF):

To ensure that Dairy Cooperatives remain competitive for the sustained benefit of farmers, the Government of India had announced creation of Dairy Processing and Infrastructure Development Fund with the objective to create/ strengthen/ modernize the milk processing plants and value-added product making facilities.

 A total scheme outlay of Rs. 11,184 crore for implementation during 2018-19 to 2022-23. Under the scheme, a corpus fund of Rs. 8004 crore has been set up for creation of dairy processing infrastructure. Out of the remaining amount, Rs. 2001 Crore shall be End Borrowers contribution, Rs. 12 Crore shall be the share from National Dairy Development Board (NDDB) / National Cooperative Dairy Corporation (NCDC) and Rs. 1167 Crore shall be contributed by DAHD, Government of India (GoI) towards interest subvention. Under the scheme, NDDB can also directly provide funds to the End Borrowers from its own resources, apart from funding from NABARD.

The various components under this scheme are as follows: Dairy Processing plants, Milk Powder Plants, Value added milk products plant, Bulk Milk Cooler, Electronic Milk Adulteration testing equipment, Cattle feed plants, milk transportation, marketing infrastructure, cold storage, Commodity and Cattle feed go-downs, ICT (block chain technology servers, IT solutions, Near Real Time devices etc.) and renewable energy plants to support dairy plants, pet bottle/ packaging material manufacturing units for dairy purposes etc.

Dairy Co-operatives, Multi State dairy Co-operative, Milk Producer Companies, SHGs and FPOs are registered under co-operative and companies act are the eligible agencies under this scheme.


  1. National Programme for Dairy Development (NPDD) (2021-26):

The NPDD scheme aims to enhance quality of milk and milk products and increase share of organized milk procurement, processing, value addition and marketing. The scheme has two components:

Under NPDD, Fund sharing Pattern of Centre & State is as under:

Component 'A' focuses towards creating/strengthening of infrastructure for quality milk testing equipment as well as primary chilling facilities for State Cooperative Dairy Federations/ District Cooperative Milk Producers’ Union/SHG run private dairy/Milk Producer Companies/Farmer Producer Organisations. The scheme will be implemented across the country for the period of five year from 2021-22 to 2025-26.

Component 'B' (Dairying Through Cooperatives) provides financial assistance from Japan International Cooperation Agency (JICA) as per project agreement already signed with them. It is an externally aided project, envisaged to be implemented during the period from 2021-22 to 2025-26 on pilot basis in Uttar Pradesh and Bihar initially with the objective of creation of necessary dairy infrastructure for the purpose of providing market linkages for the produce in villages and for strengthening of capacity building of stake-holding institutions from village to State level.

The State Cooperative Dairy Federations/ Unions (for cooperatives), State Rural Livelihood mission (for SHGs) and National Dairy Development Board (for MPCs and FPOs) are the implementing agencies for the scheme.

The scheme will provide the following componenets like Bulk Milk Coolers, Milk Testing Laboratories, Certification and Accreditation, ICT training, Awareness, P&M and R&D etc.

The Central Project Steering Committee (CPSC) and Project Sanctioning Committee (PSC) under the Chairmanship of Secretary (AHD) will be responsible for implementing and monitoring of the scheme.


  1. Supporting Dairy Cooperatives and Farmer Producer Organizations (SDCFPO):

A Scheme named “Supporting Dairy Cooperatives and Farmer Producer Organizations engaged in dairy activities” was approved to provide working capital loan to State Cooperatives and Federations.

It aims at assisting the Dairy Cooperatives and Farmer Producer Organizations by providing interest subvention on working capital loan and loan in the form of working capital requirement of the Dairy Cooperatives and Farmer Producer Organizations.

The main objectives of the scheme are as follows:

  • To assist the State Dairy Cooperative Federations by providing soft working capital loan to tide over the crisis on account severely adverse market conditions or natural calamities.
  • To provide stable market access to the dairy farmers.
  • To enable State Cooperative Dairy Federations to continue to make timely payments of dues to the farmers.
  • To enable the cooperatives to procure milk at a remunerative price from the farmers, even during the flush season.
  • On account of economic difficulties faced by the dairy cooperatives and Producer Owned Institutions due to Covid-19 lockdown, it was decided to incorporate the component of “Interest Subvention on working capital loans” as one of the components under its scheme. The interest subvention component is being implemented by the Department through NDDB.

 Union Cabinet approved implementation of Supporting Dairy Cooperatives and Farmer Producer Organizations engaged in dairy activities (SDCFPO) as a part of Umbrella Scheme “Infrastructure Development Fund” from 2021-22 to 2025-26 with an outlay of Rs 500 Cr.


  1. Animal Husbandry Infrastructure Development Fund (AHIDF):

The recently announced Prime Minister’s Atma Nirbhar Bharat Abhiyan stimulus package mentioned about setting up of Rs. 15000 crore Animal Husbandry Infrastructure Development Fund (AHIDF).

The Animal Husbandry Infrastructure Development (AHIDF) has been approved for incentivizing investments by individual entrepreneurs, private companies, Farmers Producers Organizations (FPOs) and section 8 companies to establish:

  • The dairy processing and product diversification infrastructure,
  • Meat processing and product diversification infrastructure,
  • Animal feed plant,
  • Breed Improvement Technology & Breed Multiplication Farm.

The objectives of AHIDF are as follows:

  • To help increasing of milk and meat processing capacity and product diversification thereby providing greater access for unorganized rural milk and meat producers to organized milk and meat market
  • To make available increased price realization for the producer
  • To make available quality milk and meat products for the domestic consumer
  • To fulfill the objective of protein enriched quality food requirement of the growing population of the country and prevent malnutrition in one of the highest malnourished children population in the world
  • Develop entrepreneurship and generate employment
  • To promote exports and increase the export contribution in the milk and meat sector.
  • To make available quality concentrated animals feed to the cattle, buffalo, sheep, goat, pig and poultry to provide balanced ration at affordable prices.
  • Dairy processing : Under the dairy processing infrastructure the EE can avail benefit for establishment of the following :
  • Establishment of new units and strengthening of existing dairy processing units with quality and hygienic milk processing facilities, packaging facilities or any other activities related to dairy processing.
  • Value added product manufacturing : The EE can also avail loan for establishment of new units and strengthening on existing manufacturing units for value addition of the following milk products:
  • Ice Cream unit
  • Cheese Manufacturing Unit
  • Ultra high temperature (UHT) milk processing unit with tetra packaging facilities
  • Flavoured milk manufacturing unit
  • Milk Powder manufacturing unit
  • Whey powder manufacturing unit
  • Any other milk products and value addition manufacturing unit.


  1. State Owned Priority Development (SOPD) : Under State Government


Assam is having small-scale milk producers who have the potential to meet the required increased demand in milk and milk products in growing urban centers where there is a demand. Due to agro climatic condition production potential are there. The Artificial Insemination (AI) programme and animal health care services amongst the rural dairy farmers of the state taken up by the Animal Husbandry & Veterinary Department. But improvements are required for integrating small holders and smallholder groups in the production chain and marketing chain.

The main objective is to attract small holders into the supply cycle is to provide increased returns for their produce to stimulate production and encourage uptake of improved technologies. This applies marketing of milk from farm level where hygienic quality and safe milk is encouraged to be produced and marked right up to consumer level. This will also encourage value addition and other effective and adaptable technologies by organised groups of producers who collectively can take up the activities. The main aims to improve the livelihood of dairy farmers through organizing them in to Dairy Cooperative Societies and providing them both forward and back ward linkages in order to make them more competitive and to give them remunerative price for their produce. It will also look at ways and means to improve the existing traditional milk markets.

Organization of Dairy Cooperative Societies

Assistance to Dairy Cooperative Societies.

  1. 1. Administrative Approval
  2. 2. Guidelines
  3. 3. Targeted Dairy Cooperative Societies during 2017-18. 
  1. Bankable Schemes
  • 1. Kisan Credit Card
  • 2. Provision of seed money to Dairy Co-operative Societies
  • 3. Cattle rearing
  • 4. Milk Production
  • 5. Milk processing
  • 6. Value Addition
  • 7. Milk and milk product Marketing