NDP-II with world bank in 2023 dairynews7x7

The ambitious plan


Started in February 2012

Financial outlay of ₹2,241 crore

Objective: To increase the productivity of milch animals and improve market access of milk producers


Milk production per animal increased from a baseline of 5.03 litres per day in 2012 to 6.09 litres per day in 2019

Share of milk sold to the organised sector up from 45 per cent in 2012 to 75 per cent in 2019

Milk Producers under Producer Companies (PCs): 0 in 2012 to 8,34,400 in November 2019

Proportion of total milk sold to total production: 66%


Due to start in April 2023

Financial outlay expected at ₹1,500 crore

Objective: To support cooperative dairying in unexplored/less explored States dairy. The World Bank will support the programme in the form of a grant

The second phase of ambitious dairy development project, National Dairy Plan (NDP-II), with the support of the World Bank is set to kick-off from April next year, with a targeted focus on the unexplored dairy-potential areas in the country.

This comes about three years after the first phase NDP-I ended with the financial closure in March 2020.

“The NDP-II is on course. The outlay for the second phase of the dairy plan will remain the same. It will be focused on forming dairy cooperatives (in new areas), and enabling testing equipment etc,” Meenesh Shah, Chairman, National Dairy Development Board (NDDB), told Businessline on the sidelines of the recently-concluded International Dairy Federation (IDF) World Dairy Summit 2022 at Greater Noida.

“There have been no issues from the World Bank. The NDP-II will rollout from April next,” said Shah.

The World Bank’s support will be a grant and the plan’s coverage area will be restricted to a few States where the dairying potential is still untapped or less explored.

untapped states

This means the dairy rich states such as Gujarat, Maharashtra, Karnataka, Punjab are likely to be knocked off, and the States likely to be considered would include Eastern states of Odisha, Jharkhand and parts of North-East.

The NDP-II would keep the funding for processing infrastructure out of its purview, as it as the same is already being supported through Central schemes of dairy infrastructure development. Also, in contrast to the earlier discussions, the private sector may not get any direct benefit from the NDP-II.

NDP-I performance

NDDB is the implementing agency for the NDP that was first started in 2012 with World Bank support to increase the productivity of milch animals and improve market access of milk producers in project areas.

The phase-I outlay was ₹2,242 crore, while the second phase is expected to be about ₹1,500 crore.

Shah also stated that the productivity enhancement programmes continued parallelly irrespective of the NDP but with the Central support under the Rashtriya Gokul Mission (RGM).

Source : The Hindu Business Line 20 sep 2022 by Rutam Vora

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