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Slide-1 Dairy Sector: Govt. of Punjab’s Perspective. Introduction. Punjab is an agrarian state. Milk production has been a natural ally. In the context of diversification of agriculture, dairying has come to occupy the centre stage.

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Slide-1Dairy Sector: Govt. of Punjab’s Perspective


  • Punjab is an agrarian state. Milk production has been a natural ally.
  • In the context of diversification of agriculture, dairying has come to occupy the centre stage.
  • State Govt. has identified dairying as the most potent alternative to agriculture.
  • Govt. has taken bold initiatives to give boost to this sector.
  • Punjab is witnessing a revolution in the establishment of commercial dairy farms.
  • State is poised for fast growth of dairy sector.
  • Production systems here are becoming demand driven with greater emphasis on technology adoption.

Slide-2Dairy Sector: Govt. of Punjab’s Perspective

Present Dairy Scenario in Punjab

  • Punjab is known as the Land of Milk.
  • It produces 9.38 Million MT of milk annually, which is about 9% of the total milk production of the Nation (108.5 Million MT).
  • The per capita availability of milk in the state is also the highest in the country, which is recorded as 923 gms per day.
  • Daily milk production is about 257 Lac litres.
  • About 55-60% of the total milk produced in the state is retained at the source for domestic consumption.
  • A vast infrastructure of milk procurement through cooperative and private sector milk plants has been created.
  • There are 74 Milk Plants registered under MMPR (11 in Cooperative sector and 63 in Private Sector) with aggregated daily milk handling capacity of 66.60 lac litres.

Slide-3Dairy Sector: Govt. of Punjab’s Perspective

Enhanced Financial Outlay

  • Rs. 13,600.00 Lac earmarked for dairy sector during 11th Five Year Plan.
  • Rs. 538.42 Lac in State Plan and Rs. 498.00 Lac in RKVY invested in the year 2007-08.
  • Rs. 1034.00 Lac in State Plan and Rs. 1236.25 Lac invested in the year 2008-09.
  • Rs. 1250.00 Lac in State Plan and Rs. 1594.00 Lac are proposed to be invested in the year 2010-11.

Slide-4Dairy Sector: Govt. of Punjab’s Perspective

Manpower Development

  • Dairy Science College at Guru Angad Dev Veterinary and Animal Sciences University, Ludhiana (GADVASU) established to provide Dairy Technology education.
  • Three new Dairy Training & Extension Centres established to
  • provide dairy training near the homes of the farmers.
  • State has now eight Dairy Training & Extension Centres.
  • About 20000 farmers are given basic training through one day
  • block level camps.
  • About 3000 farmers are given 15 days training under Self Employment Scheme.
  • About 1000 Dairy Farmers are given 45 days Dairy Entrepreneurship training.
  • New Training programmes like Milk Testing Techniques, Milk
  • Processing Technologies etc. are being introduced.

Slide-5Dairy Sector: Govt. of Punjab’s Perspective

Incentives for Commercialization of Dairy Farming

  • Rs. 1.50 Lac for erection of modern cattle shed is provided to improve the housing of dairy animals.
  • 50% subsidy on purchase of farm Bulk Milk Coolers is being provided to Dairy Farms to maintain the quality of milk.
  • About 1500 new Dairy Units of minimum 10 dairy animals are established every year with Bank Loan of over Rs. 90.00 crore.
  • 75% of three years insurance premium and cost of Electronic Chip is given as subsidy to the new dairy units raising Bank Loan.
  • 50% subsidy on Milking Machine & single row Fodder Harvester will now be given.

Slide-6Dairy Sector: Govt. of Punjab’s Perspective

Efforts for genetic upgradation of Milch Animals

  • A special Embryo Transfer Technology project is being implemented at Guru Angad Dev Veterinary and Animal Sciences University, Ludhiana in collaboration with Animal Husbandry Deptt., Punjab with the financial assistance from Punjab Dairy Dev. Board.
  • With Embryo Transfer Technology, 7 Calves have born, 13 cows are pregnant and 90 embryos are frozen.
  • LNG Containers are supplied on 25% subsidy to the Dairy Entrepreneurship training pass-outs.
  • Four Dairy Training Centres are running private A.I workers training run by Animal Husbandry Deptt.
  • Herd Registration programme is being implemented under the Punjab Herd Registration Act. Turn key contract for the registration and preparation of Herd book of 20000 HF cross bred cows has been granted.

Slide-7Dairy Sector: Govt. of Punjab’s Perspective

Regulatory & Support System

  • Quality control on Cattle Feed exerted under the Punjab Cattle Feed Concentrates & Mineral Mixture Control Order-1988 (The only state to have it).
  • Feed Manufacturers & Dealers are registered & quality regulated.
  • Samples of Cattle Feed at Farm level are tested to educate the Dairy Farmers.
  • Milk Plants are registered & regulated under MMPR-1992.
  • Milk Consumer Awareness Campaign is run through camps.
  • Mobile Laboratories equipped with automatic Milk & Feed Analyzers educate the consumers against the menace of adulteration.
  • Project to ascertain the cost of Milk Production assigned to GADVASU.

Slide-8Dairy Sector: Govt. of Punjab’s Perspective

Govt. of India’s Intervention needed

          • Herd Registration programme is a very big task and needs huge resources. Intervention of centre is therefore, needed.
  • Milk price fluctuates very widely, which calls for establishment of Milk Price Stabilisation Fund.
  • Cost of milk production may be estimated on regular basis throughout the country by a Central Agency like NDDB. The information may be made available to all the stakeholders.
  • Market intelligence in milk and milk products and dairy farm inputs may be gathered, analysed and periodical reports made available by NDDB or any other central agency so that the different operators in the sector can plan their operations scientifically.
  • Govt. of India is running Strengthening of infrastructure for clean milk production scheme only for cooperative sector. The milk available in the state beyond cooperative sector needs to be covered under this scheme also.



Slide-9Dairy Sector: Govt. of Punjab’s Perspective

Govt. of India’s Intervention needed

  • Major share of the milk is produced by the landless, marginal farmers and backyard ventures. The institutional finance is not available to this segment for want of land security. A new innovative scheme is needed for their help.
  • Silage making and community silage making needs to be promoted in a big way.
  • Some benefits of Venture Capital Fund of NABARD and IDDP of Animal Husbandry and Dairying Deptt, Govt. of India are not available for Punjab because of the implementation of Operation Flood. Operation Flood has ended long back hence, this anomaly now needs to be rectified.
  • Dairy farm income may be exempted from Income Tax on the pattern of agriculture income.



Slide-10Dairy Sector: Govt. of Punjab’s Perspective

Govt. of India’s Intervention needed

  • Crop loan is available for agriculture bearing 7% rate of interest, whereas there is no such facility in dairy farming although dairy is the most potential alternative to agriculture. This facility may be extended to dairy sector as well.
  • Commercial dairy farms need incentive on Fodder harvestor, silage cutter, TMR Wagon, Milking machine, milking parlour etc for the mechanization of dairy operations.
  • There is a need for a diversified product portfolio of milk products as most of the milk products being produced are traditional ones. Funds should be made available to the Universities for undertaking research to develop new milk products.


Director, Dairy Punjab.