The Union government has planned a multi-state initiative to raise milk production from 2012-13, with a total outlay of Rs 2,040 crore for the first phase.
The National Dairy Plan would have a total outlay of Rs 17,300 crore and span the 12th and 13th Plan periods.
Officials said producer cooperatives would be registered under the Companies Act to cover the entire value chain in milk production process.
Officials said this would provide the same legal and regulatory framework enjoyed by companies but would protect the basic principles of cooperatives like voluntary and open membership, democratic member-control and independence. Producer companies would be set up primarily in areas where cooperatives were not present or had low procurement.
The model is to follow a joint financing pattern, with funds pooled from the company/co-op, members of the company and seed money from the NDP.
The capacities created by the private sector in the dairy sector over the last 15 years equal that set up by cooperatives in the last 30 years,” said an official source. Cooperatives procure 16 per cent of the national marketable milk surplus, covering around 21 per cent of villages and 18 per cent of rural milk producing households.
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The total outlay for NDP-I includes World Bank credit of Rs 1,584 crore, the Government of India share of Rs 176 crore, about Rs 280 crore from end-implementing agencies (EIA) and Rs 200 crore from National Dairy Development Board and its subsidiaries.
Other aims of NDP -I are increasing productivity through scientific breeding and feeding, a pilot model for doorstep artificial delivery services through professional service providers, animal ration balancing programmes and fodder development.