Dairy Development Policy 2022

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Identification and establishment of FPOs, Milk Producer’s Company, milk producers etc.
as determined by Government benefitted in a sector:

  • New (Greenfield) Milk Processing and Milk Product Manufacturing Installation
  • Improve the capacity of existing dairy units by 25 percent
  • Establishment of Cattle Feed & Cattle Nutritional Products Manufacturing Unit and improve the capacity of cattle feed and cattle nutritional products by 25%
  • Establishment of units for value added products of milk like cheese, ice cream by creating MSME units
  • Creation of cold value chain by establishing milk chilling centres, bulk milk coolers
  • Connecting software systems like SCADA for information technology and traceability to milk dairy units

Key Policy Highlights

Capital Investment Grants:

10 percent of capital subsidy up to 5 crores of establishment of dairy units for machinery, tech etc.

Interest Subsidy:

  • For establishing new milk processing units and dairy manufacturing units (plan machinery, technical civil works, spare parts etc.) the interest subsidy of 5 percent or actual loan whichever is lower for 5 years for maximum of 10 crores
  • For Establishment of cattle feed units and cattle nutritional feed unit’s establishment the interest subsidy of 5 percent or actual loan whichever is lower for 5 years for maximum of 7.5 crores
  • Technological upgradation for dairy units the interest subsidy of 5 percent or actual loan whichever is lower for 5 years for maximum of 2.5 crores
  • For New Technology in field of dairy like quality control equipment and traceability etc. the interest subsidy of 5 percent or actual loan whichever is lower for 5 years for maximum of 1 crore
  • For establishing the cold value chain like refrigerator van, bulk milk cooler, etc.  the interest subsidy of 5 percent or actual loan whichever is lower for 5 years for maximum of 1 crore
  • For expansion of diary units the interest subsidy of 5 percent or actual loan whichever is lower for 5 years for maximum of 2.5 crores
  • For establishment of cattle feed and cattle nutritious product the interest subsidy of 5 percent or actual loan whichever is lower for 5 years for maximum of 2.5 crores
  • For value added product units establishment of milk the interest subsidy of 5 percent or actual loan whichever is lower for 5 years for maximum of 2 crores

Market Development Incentives:

  • Grant for transportation of milk  produced in the state to ports of about 25 percent that will be payable to up maximum of 20 lakhs for 3 years.
  •  Grant for Freight on Board of about 20 percent that will be payable to up maximum of 40 lakhs for 3 years.
  • 50 percent of the unit cost subject to a maximum of `0 5.00 lakh per beneficiary will be permissible

Standardization incentives:

  • For standardization purpose the subsidy of 50% of testing charges and fees will be provided up to maximum fees of 5 lakhs

Patent and Design Registration Provision:

  • Fees up to 75% and up to maximum of 5 lakh will be payable once.

Electric Subsidies for new dairy milk units by electric department after the assessment of the permissible amount
Stamp duty subsidy:

Human Resource Development:

  • Training on clean milk and breed improvement to milk producers
  • Training for MSME milk, FPOs, Milk Producer Companies professionals on technical, finance aspects of dairy etc.
  • Training for professional will be provided by renowned institutes are desired by state government  

Dedicate Portal and Database management and Project Facilitation Centre Reform of Regional Cooperative Dairy Federation Limited (PCDFL)

Image of Uttar Pradesh Milk Policy 2018