National Programme for Dairy Development (NPDD)

The National Programme for Dairy Development funds the dairy infrastructure that sits between the milking shed and the processing plant: village-level collection, chilling and milk quality testing.

That chain matters more than it sounds. Milk that is not chilled quickly loses quality and value, and milk that is not tested objectively is paid for on someone's estimate rather than on measured fat and SNF content.

How the money flows

NPDD funds are assigned to states and implemented through state dairy cooperative federations and milk unions, not paid to individual farmers. ₹242.14 crore was assigned to states under Component A in 2023-24 and ₹165.10 crore in 2024-25.

The official annexure publishes only the Component A fund flows. The programme's detailed components and the terms for a village society are not in it. Your state dairy cooperative federation or district milk union is the operative source.

• Village-level dairy infrastructure — milk collection, chilling and quality testing equipment — provided through the cooperative structure.
• Objective milk testing means payment based on measured fat and SNF, which generally benefits the farmer whose milk is good.
• Strengthening of village dairy cooperative societies, which is the route through which a smallholder gets a reliable buyer, a regular payment cycle and access to feed and veterinary services.

For a farmer, the practical benefit comes from being a member of a functioning village dairy cooperative society rather than from applying to NPDD directly.

• Dairy farmers through their village dairy cooperative society.
• Milk cooperatives, unions and federations, which are the implementing bodies.
• Dairy Farmer Producer Organisations, where the state works through them.

Individual farmers do not apply to NPDD. The benefit reaches you through your society.

• This is not a direct benefit scheme for individual farmers. Funds go to states and are implemented through the cooperative structure.
• Availability depends on your state's dairy federation and on whether a cooperative society operates in your village.
• The full component list and terms were not published in the available official sources.

How to benefit from it

1. Join your village dairy cooperative society. This is the step that gives you access to the collection, chilling and testing infrastructure that NPDD funds, plus a reliable buyer and payment cycle.
2. If there is no society in your village, ask your district milk union or state dairy cooperative federation how one is formed. This is also the route through which NPDD infrastructure is requested.
3. Once you are supplying, ask to see how your milk's fat and SNF are measured and how your rate is calculated from them. Understanding that is how you know whether you are being paid correctly.
4. For larger dairy infrastructure as a business, look at AHIDF, which offers 3% interest subvention on loans of up to 90% of project cost, and at NLM for feed and fodder units.

Department of Animal Husbandry and Dairying official website · National Dairy Development Board

• Membership application for the village dairy cooperative society
• Identity proof and bank account details
• Animal details