UP mulls policy to boost dairy

The Uttar Pradesh government is considering a policy for dairy development with the aim of recognising the state's full potential in this field.

A seminar was organised where entrepreneurs from all over the state as well as other states were roped in to explore the possibilities in the sector.

"We need a uniform policy for both the organised and unorganised sectors to work in the direction of dairy development. The need of the hour is effective marketing of the surplus product so that producers can get their fair share," said Anees Ansari, agriculture production commissioner (APC).

Uttar Pradesh contributes around 16 per cent of the total milk production in the country. However employment generation and per capita income of the people in this field are very low.

"This is basically because the bulk of milk is used in the raw form. Processing and packaging of the surplus will definitely lead to value addition and will add to the income of the producers," said Ansari.

Harbhajan Singh, MD, UP Pradeshik Co-operative Dairy Federation said the government was keen to invite the private sector for setting up production units.

The federation is planning to implement structural changes at the village level for quality enhancement. This will include technological upgrade of the system by installing automatic milk collection and analysing machines, along with bi-cooling machines.

"Previously, the producers were paid at rates meant for average quality. This was harming those producers who had an edge over others as far as quality is concerned," said Singh.

These machines will evaluate the fat and solid content of the milk and the rates will be calculated accordingly. This will ensure that producers get the correct price for their produce.

"We are also planning to introduce minimum support price for milk like wheat has, but any decision regarding this will be taken by the Cabinet," said Ansari. A provision should also be made for milk producers to have a card on the lines of the kisan credit card.

UP has a trade tax of 8 per cent on dairy while in Delhi, where VAT is operational, this is only 4 per cent. This is the reason why many investors in western UP prefer Delhi to UP.

"The most important issue is of procurement. Suitable procurement will reduce losses and also help in the revival of sick units," said Ansari.