In a significant policy push to strengthen the dairy sector in Uttar Pradesh, the state government has approved amendments to its Dairy Development and Milk Production Promotion Policy 2022, enhancing subsidies for both new and existing dairy ventures. The revised policy increases financial assistance from 10% to 35% or up to ₹5 crore, aiming to attract private investment and modernise dairy infrastructure.
Animal Husbandry and Dairy Development Minister Dharampal Singh stated that this realignment brings parity with the Food Processing Industry Policy 2023, which already provides similar subsidy levels. “Now, new dairy units and existing ones undergoing upgrades will be eligible for a 35% subsidy, capped at ₹5 crore,” Singh confirmed.
Breakdown of Subsidy Benefits:
- New Units & Upgrades: 35% subsidy or up to ₹5 crore
- Plant Modernisation: 35% or up to ₹2.5 crore
- Machinery & Equipment: 35% or up to ₹1 crore
- Cold Chain Infrastructure: 35% or up to ₹1 crore
This move is expected to energise the Indian dairy industry, especially in Uttar Pradesh, by encouraging technological adoption, improving production efficiency, and strengthening the dairy cold chain—a key factor in ensuring milk quality and shelf life.
Support for Gram Panchayats
In a parallel effort to empower rural governance structures, the state Cabinet also approved a unique revenue-matching assistance model for Gram Sabhas and Panchayats. If a local body generates income through initiatives like fish farming or local markets, the government will provide a matching grant, five times their earnings, up to a cap of ₹5 lakh. For example, a panchayat earning ₹1 lakh will receive ₹5 lakh in support from the state.
Finance Minister Suresh Khanna emphasised that this approach is designed to make rural governance units financially self-sufficient, thereby promoting decentralised development aligned with local opportunities.
