National Programme for Dairy Development (NPDD)

The National Programme for Dairy Development (NPDD) is a centrally‑launched scheme by the Department of Animal Husbandry & Dairying, Government of India, set up in February 2014. Its goal is to address major challenges in the dairy sector – such as low‑quality milk, weak market linkages for farmers, and infrastructure gaps in procurement, processing and marketing. In plain terms, many small and marginal dairy farmers, self‑help groups (SHGs), milk cooperative societies and farmer‑producer organisations (FPOs) struggle to access organised markets, ensure good milk quality and obtain fair prices. NPDD helps by supporting infrastructure – like chilling units and testing labs – as well as better collection, processing and marketing systems. The programme’s broad target group is dairy producers in India: individual farmers, SHGs, producer‑companies and cooperatives. It is part of India’s agriculture scheme framework aimed at raising incomes, improving quality and organising dairy production and marketing in a more inclusive way.

Overview of the Scheme

The NPDD is a Central Sector scheme launched by the Department of Animal Husbandry & Dairying (DAHD) under the Ministry of Fisheries, Animal Husbandry & Dairying, Government of India in February 2014 by merging three earlier dairy‑schemes. It is implemented nation‑wide with state‑level participation.

Implementing agencies & institutions

• The scheme is implemented through State Implementing Agencies such as the State Dairy Federations or District Milk Producers’ Unions.
• Producer organisations like milk cooperatives, milk‑producer companies, SHGs and FPOs also participate in project sub‑components.

Funding pattern & outlay

• As per its revised version (2021‑22 to 2025‑26), NPDD is a 100 % central grant scheme for most of its components.
• For specific activities (bulk milk coolers, milk‑processing plants, etc) the central share varies: e.g., 50 % in NDP‑states; 75/90 % in non‑NDP states depending on profitability; 90 % in hilly/NE regions.
• In the March 2025 cabinet approval, the revised outlay stood at ₹ 2,790 crore for the 2021‑26 cycle.

Coverage: major sectors / components

• Component A: Infrastructure for quality‑milk testing, primary chilling, milk collection centres.
• Component B (Dairying through Cooperatives): Upgrading dairy processing, marketing infrastructure, linking farmers to organised markets.
• Other coverage: Training of dairy farmers; strengthening village‑level dairy cooperatives or producer companies.

Current status

• The scheme was restructured in July 2021 for implementation during 2021‑22 to 2025‑26.
• It is currently ongoing across India, with approved projects under both components and tracking of physical and financial progress.

For example, under Component A a state dairy federation may install new milk‑testing labs and collection‑chilling units; under Component B a milk‑cooperative society may upgrade its processing plant and access organised market outlets.

Objectives 

• Create and strengthen infrastructure for production of quality milk, including cold‑chain links between the farmer and the consumer.
• Create and strengthen infrastructure for procurement, processing and marketing of milk.
• Create training infrastructure to build skills of dairy farmers and institutions.
• Strengthen village‑level dairy cooperative societies and producer companies owned by farmers.
• Increase milk production by providing technical input services like cattle‑feed and mineral supplements.
• Assist in the rehabilitation of viable milk federations/unions so they can become more sustainable.

Key Features / Benefits 

• Infrastructure support for milk‑quality & chilling
  Provides grants to build or upgrade milk testing labs and village‑level chilling units. (For example: a cooperative sets up a Bulk Milk Cooler.)
• Aid for milk procurement, processing & marketing
  Helps build milk‑collection centres, processing plants and outlets so farmers can access markets.
• Technical input services for dairy farmers
  Funds cattle‑feed plants, fodder block units and other input‑services so farmers get better productivity.
• Training and skill‑development assistance
  Covers the cost of training dairy farmers, cooperative staff and producer‑companies in hygienic milk production, management and marketing.
• Special subsidy for cattle‑induction (SC/ST/BPL, and women farmers)
  Subsidy for bringing in new milch animals: up to 50 % of cost generally; up to 75 % for women milk producers.
• Higher central grant‑share for hilly/NE/UT regions
  In non‑NDP states or hilly/NE areas, central grant can go up to 90 % for certain major infrastructure items.
• Working‑capital and management grant for village cooperatives
  Helps cover costs of 21‑day milk procurement working capital and provides tapering grants to village societies for first‑years. 

Eligibility Criteria 

Farmers (individual dairy producers)

• Must be Indian citizens engaged in dairy production.
• Should produce milk and be part of a producer‑organisation or union where applicable.
• Must submit identity (Aadhaar), address proof, bank passbook, land records (if owning cattle shed/farm) and any other state‑level dairy registration.
• Not eligible: Farmers already availing identical support for the same infrastructure under another central scheme, if duplication is prohibited (EIA required undertaking).

Self‑Help Groups (SHGs)

• Must be registered and functional; registered with state Rural Livelihood Mission or equivalent.
• Must have a bank account linked, and be actively involved in dairy activities (milk collection/processing) to apply.

Farmer Producer Organisations (FPOs) / Milk Producer Companies / Cooperatives

• Must be legally registered under Co‑operative Societies Act or Companies Act as applicable.
• Must be functional and in operations (at least one full financial year) in case of producer companies. (The guidelines state one full financial year of functioning for New Generation Milk Producer Companies.)

Entrepreneurs / Startups / MSMEs

• Although NPDD mainly works through cooperatives/unions, infrastructure projects may require entrepreneurs registered under appropriate laws. Must be registered, GST/UDYAM registration where applicable. (While NPDD guidelines emphasise federations and cooperatives, entrepreneurs eligible under other linked dairy schemes may participate.)

Special categories / geographic areas

• Certain activities (e.g., cattle induction) are allowed only for persons from Scheduled Castes (SC), Scheduled Tribes (ST) and BPL families.
• The scheme also gives higher grant‑share support in hilly/NE/UT regions for certain infrastructure components.

Mandatory documents (general list)

• Aadhaar/ID proof of applicant
• Bank passbook / account details
• Land records / lease deed (if private farm)
• Registration certificate of SHG/FPO/cooperative
• Project proposal/Detailed Project Report (DPR) with quotations for equipment
• Financial statements (for FPO/cooperative) and proof of operations for at least one year (where required)

Application Process

1. Where to apply
   Visit the official scheme page at https://dahd.gov.in/schemes/programmes/npdd. For district‑level applications you may contact your State Dairy Federation or the district milk union.
2. Registration / Login
   If the State implements an online portal, register with your Aadhaar, bank account and mobile number. If offline, obtain the printed application form from the district dairy office.
3. Fill the application form
   Section A – Beneficiary details (name, Aadhaar, farmer/SHG/FPO status)
   Section B – Farm/land/animal details (cattle numbers, milk collection details)
   Section C – Component selected under NPDD (e.g., chilling unit, testing lab)
   Section D – Bank account, GST/UDYAM (if applicable), and linked cooperative/federation.
4. Upload or submit documents
   • Aadhaar/ID proof, address proof
   • Bank passbook copy
   • Ownership/lease of land or milk‑collection centre
   • SHG/FPO registration certificate or cooperative society proof
   • Detailed Project Report (DPR) or quotation for equipment/infrastructure
   • GST/UDYAM registration (for entrepreneurs/MSMEs)
5. Fee
   No application fee is specified in the official guidelines.
6. Acknowledgment / Application ID
   After submission you will get an application reference number or acknowledgment slip (online or offline) to track progress.
7. Verification / Field Inspection
   The implementing agency will verify details and may conduct a field inspection of your farm, milk collection centre or infrastructure site.
8. Approval & Assistance release
   Once approved, the grant/assistance under NPDD is released according to scheme guidelines (often through Direct Benefit Transfer or to the implementing agency). Be ready to follow up if delays occur.
9. Offline route
   If online portal is not active in your state, visit the District Animal Husbandry / Dairy Development Officer’s office or the Block‑level ATMA office to get the application form and guidance.

Tips

• Check that your name, Aadhaar and bank account details exactly match; mismatches delay approval.
• Ensure you upload genuine land/lease/ownership and milk‑centre documents to avoid rejection.
• Choose the correct scheme component (e.g., chilling unit vs. testing lab) to meet eligibility.
• Submit before the deadline for your State’s call – late applications may not be accepted.

Challenges or Limitations 

The National Programme for Dairy Development (NPDD) is widely beneficial, but applicants may face some common challenges. Being aware of these can help avoid delays and rejections.

• Verification delays → Ensure all land, Aadhaar, and bank documents are correct and up-to-date to speed up field checks.
• Incomplete application forms → Double-check every section before submission, especially component selection and bank details.
• Seasonal constraints → Plan applications around local milk production cycles to meet inspection and infrastructure timelines.
• Document mismatch → Keep SHG/FPO registration, lease deeds, and cooperative proofs ready and consistent.
• Limited state-level funds → Apply early and coordinate with your district dairy office to secure allocation.
• Technical issues on portal → Save copies offline and submit physically if the online system fails.
• Delayed fund release → Track application status using acknowledgment number and follow up with implementing agency promptly.
• Misunderstanding eligibility → Read official NPDD guidelines carefully to avoid applying for ineligible components.

Government Support & Future Outlook 

The NPDD scheme is designed to converge and work alongside other major agriculture‑and‑livestock schemes to create stronger support for dairy farmers. Some of the key linkages include:

• Working with Animal Husbandry Infrastructure Development Fund (AHIDF) – cooperatives under NPDD can also tap AHIDF support for infrastructure.
• Aligning with PM FME (Pradhan Mantri Formalisation of Micro food processing Enterprises) and Dairy Sahakar (Dairy Entrepreneurship Development through Cooperatives) for value addition‑processing of milk.
• Connecting with state‑level agriculture extension schemes like ATMA (Agricultural Technology Management Agency) for training and capacity building of dairy farmers.

For instance: a farmer‑producer organisation might use NPDD support to set up a milk‑chilling unit, then use PM FME funds to install value‑addition equipment, and utilise AHIDF loans for infrastructure – together enhancing income and productivity.

Future plans & updates: The scheme was restructured for the period 2021‑22 to 2025‑26. A fresh outlay of ₹ 407.37 crore was approved for 2025‑26.

Conclusion 

The National Programme for Dairy Development (NPDD) plays a key role in strengthening India’s dairy sector by improving milk quality, infrastructure, and market access. Small and marginal farmers, SHGs, FPOs, and cooperatives benefit most through better incomes, technical support, and organized marketing. To participate, check your eligibility on the official NPDD portal, prepare all necessary documents, and coordinate with your local dairy or agriculture office.We’ve covered this scheme in detail along with many other related government programmes – all explained clearly with updated information in our SCHEME section. Always check the latest official guidelines before applying to stay accurate. For personal help or queries, contact us at +91 8484002628 – our team will guide you through every step.