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Uttar Pradesh is the highest milk-producing state in the country contributing about 16 percent of the country's total milk production. Only about 10 percent of the marketable surplus milk is being processed by the organized sector in the state, whereas India's average milk processing is about 17 percent. There is a huge gap between the milk processing capacity and the amount of marketable surplus milk in the state, for which there is a huge potential for investment in new industries in this area. In the changing environment, on the one hand, the disposable income of the people is increasing, and the public is becoming aware of the importance of balanced nutrition, and on the other hand, new technologies and sufficient raw material (milk) are available for milk processing and manufacturing of value-added milk products. There is a great need to translate the potential of the dairy sector into reality by motivating the investors and entrepreneurs. The Uttar Pradesh Dairy Development and Milk Products Promotion Policy-2022 is being promulgated to ensure maximum benefits for all stakeholders by augmenting existing capacity utilization, creating new processing capacity and increasing means of livelihood by making use of technological upgradation, appropriate use of information technology and capacity development. This policy aims at creating employment, ensuring nutritional security and steering the state towards one trillion-dollar economy.


Objectives of the Policy
The objectives of the Uttar Pradesh Dairy Development and Milk Products Promotion Policy-2022 are as follows-

To encourage the establishment of milk-based industries in the State.To achieve the target of capital investment of Rs. 5000 crores in the next five years in the State.To ensure market- based remunerative price of milk to the milk producers.To increase the level of milk processing in the state from the present 10% to 25% and to increase the installed capacity of milk processing from present 44% to 65% of the marketable surplus.To make high-quality processed milk products available to the consumers.To promote market development and exports to other states and countries.To generate new employment opportunities in the field of dairy industry and to upgrade the competencies and skills of available manpower.To encourage new technologies and information technology based solutions.To develop and manage a strong database for collection of market intelligence and technical advice and accordingly develop a framework for the same.Reform of Primary Milk Cooperative Societies, Milk Unions and Pradeshik Cooperative Dairy Federation Limited (PCDF Ltd.)Simplification of procedures to facilitate investors.

Areas covered for financial grants and concessions under the dairy industry sector
F.P.Os (Farmer Producers Organizations),M.P.Cs (Milk Producers Companies), cooperative institutions of the state and private sector entrepreneurs will be benefited as determined by the government in the following areas:

(i) Establishment of new Greenfield milk processing and milk products manufacturing units.
(ii) Expansion of Capacity of the existing Milk Processing and Milk Products Manufacturing Dairy Units (Minimum 25% increase in existing capacity).
(iii) Establishment of new cattle feed and cattle nutritional products manufacturing units or expansion of existing cattle feed and cattle nutritional products manufacturing units (Minimum 25% increase in existing capacity).
(iv) Establishment of new manufacturing units of value added milk products like cheese, ice cream etc. under micro and small enterprises sector.
(v) Installation of new dairy technologies and information technology such as traceability equipment and ancillary software like SCADA system.
(vi) Purchase of equipment’s for Milk Chilling Centre, Bulk Milk Cooler, Refrigerated Van/ Cooling Van / Road Milk Tanker, Ice Cream Trolley etc. for setting up of Cold Chain.