Govt to launch national dairy plan to boost milk production

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New Delhi, Sep 14 : Aiming to increase the country's milk production by up to 80%, the Centre is planning to launch a national dairy plan with an investment of over Rs 17,000 crore.

"The Union government is working on a comprehensive plan to increase milk production to reach a level of about 160 to 180 million tonne by 2021," Union agriculture minister Sharad Pawar said at a national conference of state ministers of animal husbandry and dairy development.

"Under the new initiative, a national dairy plan is being envisaged with an investment of more than Rs 17,000 crore," he said, adding that the government is exploring the possibility of tapping funds from the World Bank to provide cheap loans.

"As the World Bank does not finance 100% of the project, some responsibility will be taken by the Centre," Pawar said. The proposed investment will be spread over five to six years.

India is estimated to have produced about 102 million tonne of milk in 2007-08. The plan envisages bringing 65% of marketable surplus of milk produced under the organised sector for procurement compared with the present 30%.

"The National Dairy Development Board has prepared this plan of Rs 17,000 crore to strengthen cooperatives and producing societies," Pawar told reporters on the sidelines of conference.

"It has several aspects like upgrade of cattle, improvement of breeds, milk processing and marketing of milk products within and outside the country."

Pawar said that the Centre has been envisaging to introduce a national livestock policy for overall development of the sector.

Asked when the policy will be finalised, Pawar said: "It should be cleared today. The draft was circulated in 2004. Some states have submitted their suggestions. We have kept all these things for discussion today. I believe if today's meeting clears these proposals, the policy will be finalised."

The minister also expressed concern over less allocation of funds to the animal husbandry, dairy and fisheries sector under the Rashtriya Krishi Vikas Yojana.

He said the sector was granted only 13% of Rs 1,127.53 crore released under the scheme in 2007-08, while its contribution to the overall farm GDP is 31.7%.