Value addition to food can be done through processing. Dairy industry has globally undergone a sea change over the last few years. Driven by the consumers lifestyle, their demographic, socio – economic, cultural background and the environment, a whole range of new product formulations to suit the palate of the consumers have evolved. The dairy farmers are now taking up milk business as a livelihood in most of the districts. These farmers need some assistance for making value added products like paneer, dahi, channa, Khoa etc. and these products have good market value. Progressive milk producers are also not having equipments for making homemade dairy products and with some simple equipments like burners (Diesel or LPG), 100 lit SS vat they can make such products in their houses. To meet the needs of such emerging dairy farmers, the scheme of providing cottage dairy units to eligible dairy farmers is proposed. Through the scheme, 30 (thirty) dairy farmers shall be benefitted with a cottage dairy unit comprising of paneer making equipment, incubator, milk analyser etc. All the registered dairy cooperative societies (DCS) can apply for availing the benefits of the scheme. The details of the scheme can be derived from the district dairy offices.