Government Vision and Mission for Dairy Development in India

India holds a remarkable position in global dairy – it is the world’s largest producer of milk, contributing over 25% to global output. Yet, the sector is far from reaching its full potential. Millions of small and marginal farmers still rely on low-yielding animals, fodder remains scarce in several regions, and disease outbreaks continue to cost the economy heavily. Recognising these challenges, the Government of India has laid out a comprehensive vision and mission for dairy development – one that goes well beyond just increasing milk volumes. It covers genetic improvement of livestock, conservation of indigenous breeds, disease control through mass immunisation, fodder development, rural infrastructure building, and clean milk production. Together, these pillars form a strategy that links animal welfare to farmer welfare, and milk productivity to rural prosperity.

India’s big picture: why a government vision for dairy matters 🔗

The dairy sector in India is not just about milk – it is a livelihood for an estimated 450 million people from 90 million rural households, with women making up the majority of the dairy workforce. The sector contributes close to 40% of total agricultural output and is a key driver of rural employment and income. Given this scale, the government’s vision is not just a policy document – it is a framework that directly shapes the livelihoods of crores of Indian families. The nodal agency responsible for implementing this vision is the Department of Animal Husbandry and Dairying (DAHD) under the Ministry of Fisheries, Animal Husbandry and Dairying.

The government’s mission rests on several interconnected goals: improving the genetic quality of cattle and buffaloes, conserving indigenous breeds, controlling animal diseases through systematic immunisation, strengthening fodder availability, developing dairy infrastructure, and ensuring clean and quality milk reaches consumers and markets. Each of these is backed by specific schemes and financial allocations.

Genetic upgradation of cattle and buffaloes 🔗

One of the most critical challenges in Indian dairy is low productivity per animal. A large share of India’s bovine population consists of non-descript, low-yielding breeds, and these animals are predominantly with small and marginal farmers. To address this, the government launched the Rashtriya Gokul Mission (RGM) in December 2014. The mission focuses on genetic upgradation of the bovine population and has been extended through 2026 under the umbrella programme Rashtriya Pashudhan Vikas Yojana, with a budget outlay of ₹2,400 crore.

Key tools of genetic upgradation 🔗

The government’s approach to genetic improvement relies on technology and scale. Under RGM, over 38,000 Multi-Purpose Artificial Insemination Technicians in Rural India (MAITRIs) have been trained and deployed to deliver AI services at farmers’ doorsteps – free of cost. Sex-sorted semen technology, which ensures up to 90% accuracy in producing female calves, has been operationalised at five government semen stations across Uttar Pradesh, Uttarakhand, Gujarat, Tamil Nadu, and Madhya Pradesh. Additionally, 22 bovine In-Vitro Fertilization (IVF) laboratories have been established across the country to accelerate breed improvement, particularly for indigenous breeds. Farmers are offered a subsidy of ₹5,000 per IVF pregnancy under the programme.

A significant technological advancement under RGM has been the development of an indigenously developed genomic chip for Indian breeds – a first of its kind – which helps identify high genetic merit bulls with greater precision. The combined impact of these measures has been notable: milk production grew by 63.5% over the past decade, rising from 146.31 million tonnes in 2014-15 to 239.3 million tonnes in 2023-24, while productivity of indigenous and non-descript cattle improved by over 39%.

Conservation of indigenous dairy breeds 🔗

India’s indigenous bovine genetic wealth is vast but under threat. The country has 41 recognised indigenous cattle breeds and 13 buffalo breeds, some of which – like Punganur, Vechur, and Krishna Valley – are rapidly declining. The government’s mission explicitly includes the scientific conservation and development of these breeds, given their adaptability to local conditions, disease resistance, and production of A2 milk, which has growing health-based consumer interest.

Under RGM, Gokul Grams – integrated cattle development centres – have been funded across the country to serve as hubs for breeding, nutrition, veterinary care, and extension services for indigenous breeds. Two National Kamdhenu Breeding Centres have been established – one at Kiratpur, Itarsi in Madhya Pradesh, and another at Chintaladevi, Nellore in Andhra Pradesh – as repositories of indigenous bovine germplasm. The mission also promotes the use of high genetic merit bulls of indigenous breeds for natural service, as well as the formation of Breeders’ Associations to standardise breed characteristics and connect sellers and buyers of quality livestock.

National immunisation to control animal diseases 🔗

Animal diseases are one of the biggest threats to dairy productivity in India. Foot and Mouth Disease (FMD) alone causes an estimated economic loss of up to ₹20,000 crore annually, leading to sharp declines in milk yield, infertility, reduced draught capacity, and barriers to livestock exports. Brucellosis, another endemic disease in Indian cattle and buffaloes, causes abortion, delayed lactation, and loss of calves – directly hitting farmer income.

To tackle these threats at scale, the government launched the National Animal Disease Control Programme (NADCP) in September 2019, with a total outlay of ₹13,343 crore. The programme targets 100% vaccination of cattle, buffalo, sheep, goat, and pig populations against FMD, and 100% vaccination of bovine female calves aged 4-8 months against Brucellosis. Vaccination drives are conducted twice a year – typically in March and September – using a trivalent FMD vaccine covering serotypes O, A, and Asia1.

How disease tracking works 🔗

Each vaccinated animal is ear-tagged for identification, and all data is uploaded to the Information Network for Animal Productivity and Health (INAPH), a digital platform developed by the National Dairy Development Board (NDDB). This system enables traceable, reliable vaccination records at the individual animal level, supporting India’s long-term goal of achieving disease-free status and gaining access to international dairy export markets.

Developing fodder resources 🔗

No amount of genetic improvement can translate into higher milk output without adequate nutrition for animals. Fodder scarcity is a persistent structural problem in Indian dairy, with media reports frequently highlighting distress sales of cattle by small farmers during lean fodder seasons. In parts of Kerala, for instance, the cost of hay has risen as high as ₹17-18 per kg in certain seasons, squeezing farmer margins. The government’s mission addresses this through the National Fodder Mission and fodder development components integrated into RGM and other schemes. Gokul Grams, for example, are designed to produce green and dry fodder on-site, prepare balanced dry fodder blocks, and supply area-specific mineral mixtures to improve animal health and reproduction.

Building infrastructure for animal husbandry and dairying 🔗

Improving animals and controlling disease is only part of the equation. The government’s vision also calls for robust infrastructure at every level – from the village to the processing plant – to ensure that more milk enters the organised market, farmers get better prices, and consumers receive quality products.

National Programme for Dairy Development (NPDD) 🔗

The National Programme for Dairy Development (NPDD), first launched in 2014 and restructured in 2021, is the government’s primary vehicle for dairy infrastructure creation. It focuses on milk procurement, chilling, processing, and marketing infrastructure, particularly for cooperatives, Self Help Groups (SHGs), and Farmer Producer Organisations (FPOs). The Union Cabinet recently approved a revised NPDD with an additional ₹1,000 crore, bringing the total budget to ₹2,790 crore for the 15th Finance Commission period (2021-22 to 2025-26). The revised scheme targets the establishment of 10,000 new Dairy Cooperative Societies, formation of two Milk Producer Companies with dedicated grant support, and the generation of 3.2 lakh additional direct and indirect employment opportunities – with a focus on women, who constitute 70% of the dairy workforce.

Animal Husbandry Infrastructure Development Fund (AHIDF) 🔗

For private investment in dairy and livestock infrastructure, the government created the Animal Husbandry Infrastructure Development Fund (AHIDF) with a revised outlay of ₹29,610 crore. The fund provides credit-linked financial support for setting up dairy processing plants, animal feed units, breed improvement farms, veterinary vaccine production facilities, and animal waste management units. Eligible entities include Farmer Producer Organisations, private companies, individual entrepreneurs, and MSMEs, enabling a wide ecosystem of private participation in dairy infrastructure growth.

Enhancing quality and clean milk production 🔗

Beyond quantity, the government’s mission places explicit emphasis on the quality of milk. Adulteration – including dilution with water and addition of urea – remains a significant problem in India’s informal milk supply chain, which still accounts for a substantial share of total milk handled. The NPDD directly supports this goal by funding milk testing equipment, bulk milk coolers, milk testing laboratories at village levels, and certification and accreditation infrastructure for dairy cooperative societies and FPOs. The Dairy Processing and Infrastructure Development Fund, with a corpus of ₹8,004 crore, specifically supports modernisation of milk processing plants and value-added product facilities – helping shift more milk into quality-controlled, organised channels.

The government’s approach also includes ICT integration – deploying blockchain-based servers, Near Real Time devices, and other digital infrastructure within dairy plants to ensure traceability and quality control across the supply chain. These efforts align with the broader goal of improving India’s standing in international dairy trade, where quality standards are non-negotiable.

Dairy development as a tool for rural employment and poverty reduction 🔗

The government’s vision for dairy is fundamentally a rural development vision. Dairy cooperatives currently cover 70% of India’s districts, with over 1.7 lakh cooperative societies operating across the country, supporting over 8 crore farmers directly or indirectly. The recent White Revolution 2.0, launched by the Ministry of Cooperation in 2024, builds on the legacy of Operation Flood and aims to expand and modernise dairy cooperatives further, with a focus on addressing regional disparities and empowering women farmers. In states like West Bengal and Odisha, fewer than 10% of villages are covered by dairy cooperative societies – closing this gap is a key priority.

Schemes like the NPDD are designed to generate employment at scale – the revised version alone targets 3.2 lakh additional jobs with a deliberate focus on women. The Rashtriya Gokul Mission similarly benefits women in particular, since they perform more than 70% of labour in livestock farming but are often excluded from formal income and credit systems. By improving animal productivity, bringing AI services to the doorstep, and building cooperative linkages, these programmes create real pathways out of poverty for rural women and marginal farmers.

How the pieces connect: a mission built for scale 🔗

What makes India’s government vision for dairy distinctive is that it does not treat any single intervention as sufficient. Genetic upgradation without disease control means healthier animals may still lose productivity to FMD outbreaks. Disease control without infrastructure means better milk has nowhere to go. Infrastructure without fodder development means animals cannot sustain higher yields. The mission recognises these interdependencies and addresses them through a portfolio of coordinated schemes – RGM, NPDD, NADCP, AHIDF, the National Fodder Mission, and White Revolution 2.0 – each targeting a different bottleneck but all connected by the common goal of making Indian dairying more productive, profitable, and sustainable.

India’s milk production target is not just a number on a policy document. It represents higher income for over 8.5 crore dairy farmers, better nutrition for a growing population, and a stronger position in global dairy markets. The government’s vision, backed by significant financial commitments and a clear operational architecture, provides the roadmap to get there.

What do you think? With so many parallel schemes running across genetics, disease control, infrastructure, and quality – which area do you think needs the most urgent attention to unlock faster growth in India’s dairy sector? And given that women perform the majority of dairy labour but often have limited access to formal benefits, how should future policies be designed to make them direct beneficiaries, not just participants?

References

1. https://www.impriindia.com/insights/indian-dairy-sector/
2. https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Dairy+and+Products+Annual_New+Delhi_India_IN2024-0049.pdf
3. https://dahd.gov.in/
4. https://dahd.gov.in/schemes/programmes/rashtriya_gokul_mission
5. https://pib.gov.in/PressReleasePage.aspx?PRID=2117330
6. https://dahd.gov.in/schemes/programmes/nadcp
7. https://beta.nddb.coop/information/press-release/nddbs-inaph-backbone-of-flagship-national-animal-disease-control-program/
8. https://dahd.gov.in/schemes/programmes/npdd
9. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2113351
10. https://visionias.in/current-affairs/news-today/2025-03-20/economics-(indian-economy)/cabinet-approves-revised-national-program-for-dairy-development-npdd