The dairy co-operative sector is happy with the announcement of Rs 8000 crore fund for dairy sector. It is expected to help set up processing facility for additional 500 lakh litre milk per day.
It was the demand of the dairy sector as the existing infrastructure had become obsolete. “The co-operative sector did not have funds to invest. The infrastructure created during the Operation Flood movement had become 30 to 40 years old,” said RS Sodhi, managing director at Gujarat Cooperative Milk Marketing Federation (GCMMF).
The Union Budget announced creation of Dairy Infrastructure Development Fund of Rs 8000 crore over next three years with Nabard. In the first year, the government announced to give Rs 2000 crore for creation of the fund.
According to Sodhi, this is a huge investment and will help create an additional rural income of Rs 50,000 per annum. “It will have a multiplier effect on the rural economy and the dairy sector,” said Sodhi.
India is world’s largest milk producer and co-operative sector commands a major share in the dairy industry of the country.