India to add ‘two Amul’s milk capacity in 3 years

The Dairy Processing Infrastructure Fund with Rs 8,000 crore corpus announced in the budget on Wednesday would strengthen India’s numero uno position as the world’s largest milk producer.

The special fund will help set up processing capacity of additional 500 lakh litres milk per day in the country. In other words, it will add capacity twice that of Amul or process milk that can meet demand of 10 milk markets of the size of Delhi.

In first year, the government has announced to give Rs 2,000 crore.

Organized players in the country including dairy cooperatives and private players currently have capacity to process an estimated ten crore litres (1,000 lakh) litres milk per day. Of these, the dairy co-operatives alone have a capacity of 668 lakh litres per day as on March 2016, sources in the National Dairy Development Board (NDDB) said. Amul commands a major share with nearly 290 lakh litres processing capacity.

“Since Independence, it is for the first time that government has announced special funds for enhancing milk processing capacities.

It will convert into setting up processing facility for additional 500 lakh litres milk per day which means dairy farmers will have an additional income of Rs 50,000 crore per annum,” said R S Sodhi, managing director of the Gujarat Cooperative Milk Marketing Federation, the apex body that markets Amul brand products.

The dairy industry had been demanding special fund to replace the existing infrastructure that has become obsolete. “The infrastructure created during Operation Flood is 30-40 years old. We will be able to use this funds for building new plants and renovating old ones,” said Sodhi.

“This fund will be used for creating around 200 lakh litres per day milk processing capacity, setting up additional milk powder manufacturing capacity of 340 metric tonnes per day, increasing cattle feed manufacturing capacity by 1,100 metric tonnes per day. It will also help in setting up milk chilling facilities at village level by 260 lakh litres per day and installation of 35,000 electronic milk testing equipment at village level.

It will help build marketing infrastructure in small towns by which around 600 small new towns can be covered and it will build ICT infrastructure in the dairy co-operatives,” said chairman of the National Dairy Development Board Dilip Rath.

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