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INCENTIVES BY PUNJAB GOVT- DAIRY

SECTOR

BY:

BALRAM SINGLA

MANISH LATH

RAJENDRA KUMAR DAS

RITESH MEHTAROHAN MOON

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Punjab is an agrarian state.

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 greateremphasis on technology adoption.

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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 grams per day.

Daily milk production is about 257 Lac liters. 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 handlingcapacity of 66.60 lac liters.

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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 theyear 2008-09.

Rs. 1250.00 Lac in State Plan and Rs. 1594.00 Lac are proposed to

be invested in the year 2010-11.

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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 Centers established to

provide dairy training near the homes of the farmers. State has now eight Dairy Training & Extension Centers.

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 programs like Milk Testing Techniques, Milk

Processing Technologies etc. are being introduced.

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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 areestablished every year with Bank Loan of over Rs. 90.00 crores.

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.

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A special Embryo Transfer Technology project is beingimplemented at Guru Angad Dev Veterinary and Animal SciencesUniversity, Ludhiana in collaboration with Animal HusbandryDepartment., Punjab with the financial assistance from Punjab DairyDev. Board.

With Embryo Transfer Technology, 7 Calves have born, 13 cows arepregnant and 90 embryos are frozen.

LNG Containers are supplied on 25% subsidy to the DairyEntrepreneurship training pass-outs.

Four Dairy Training Centers are running private A.I workers trainingrun by Animal Husbandry Department.

Herd Registration program is being implemented under the PunjabHerd Registration Act. Turn key contract for the registration andpreparation of Herd book of 20000 HF cross bred cows has beengranted.

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Quality control on Cattle Feed exerted under the Punjab Cattle FeedConcentrates & Mineral Mixture Control Order-1988 (The only stateto 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.

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Herd Registration program is a very big task and needs hugeresources. Intervention of centre is therefore, needed.

Milk price fluctuates very widely, which calls for establishment ofMilk Price Stabilization Fund.

Cost of milk production may be estimated on regular basis

throughout the country by a Central Agency like NDDB. Theinformation may be made available to all the stakeholders.

Market intelligence in milk and milk products and dairy farm inputsmay be gathered, analyzed and periodical reports made availableby NDDB or any other central agency so that the different operatorsin the sector can plan their operations scientifically.

Govt. of India is running Strengthening of infrastructure for cleanmilk production scheme only for cooperative sector. The milkavailable in the state beyond cooperative sector needs to becovered under this scheme also.

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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 Department, 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.

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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 harvester, silage

cutter, TMR Wagon, Milking machine, milking parlor 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.

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