Centre strengthens dairy processing, digital livestock management and veterinary services while reaffirming market-driven milk pricing

Key Highlights

• No proposal to introduce a Minimum Support Price (MSP) for milk
• Government continues to invest in dairy processing, cold chain and livestock infrastructure
• 113 AHIDF projects worth ₹4,700.13 crore approved in Maharashtra
• National Digital Livestock Mission assigns every registered animal a unique 12-digit digital ID
• Flagship schemes focus on disease control, breed improvement, veterinary care and dairy entrepreneurship

News

The Centre has reiterated that there is no proposal to introduce a Minimum Support Price (MSP) for milk, while highlighting a series of initiatives aimed at modernising India’s dairy and livestock sector through infrastructure development, digital reforms and expanded veterinary services.

Replying to multiple questions in the Lok Sabha, Union Minister for Fisheries, Animal Husbandry and Dairying Rajiv Ranjan Singh (Lalan Singh) said milk prices will continue to be determined by dairy cooperatives and private dairies based on market conditions.

Instead of price intervention, the government said it is focusing on strengthening the dairy value chain by increasing milk procurement, expanding processing capacity, improving milk quality testing and establishing modern dairy infrastructure across the country.

Infrastructure Push Through AHIDF

The Minister said the Animal Husbandry Infrastructure Development Fund (AHIDF) is driving investments in:

• Dairy processing plants
• Meat processing facilities
• Animal feed manufacturing units
• Value-added livestock products

The Department is also conducting awareness campaigns, training programmes and stakeholder outreach through State Governments, Common Service Centres (CSCs) and industry bodies to encourage wider participation in the scheme.

According to the Ministry, the infrastructure being created under AHIDF is helping livestock farmers improve market access and secure better returns for their produce.

Digital Livestock Management Expands

The government also highlighted progress under the National Digital Livestock Mission (NDLM).

Every registered animal is now assigned a 12-digit digital Tag ID, enabling lifetime digital records of vaccination, breeding, treatment and veterinary services.

The Ministry said the platform uses AES-256 encryption and Transport Layer Security (TLS) to safeguard livestock data. However, Mobile Veterinary Units are not yet integrated with the portal, and no proposal has been received to integrate banking APIs.

Dairy Development Programmes Continue

The Centre is implementing several flagship programmes to improve milk production, livestock health and rural livelihoods, including:

• National Livestock Mission (NLM)
• Livestock Health and Disease Control Programme (LHDCP)
• Animal Husbandry Infrastructure Development Fund (AHIDF)

These initiatives support entrepreneurship, disease prevention, breed improvement, veterinary infrastructure and access to affordable veterinary medicines.

In Maharashtra alone, the government has approved 113 AHIDF projects worth ₹4,700.13 crore, with ₹123.46 crore released as interest subvention.

Hospitality Industry Impact

The continued expansion of dairy processing infrastructure is expected to strengthen milk and dairy product supply chains for hotels, restaurants, cafés and institutional catering businesses. Investments in processing capacity and quality testing could improve the availability and consistency of dairy products such as milk, cheese, butter, paneer and value-added dairy ingredients used across the hospitality sector.

The government’s focus on livestock health and disease control may also contribute to more reliable production and better quality standards, supporting food safety across the foodservice industry.

Travel & Tourism Impact

A stronger dairy ecosystem can benefit food tourism by supporting regional dairy products, artisanal cheese, traditional sweets and farm-based culinary experiences. Improved dairy infrastructure may also enhance the supply of locally sourced ingredients for hotels and restaurants catering to domestic and international travellers.

Why It Matters

While ruling out an MSP for milk, the government is signalling that future growth in the dairy sector will be driven through infrastructure investment, digital livestock management and productivity enhancement rather than direct price intervention. For the hospitality and foodservice industry, these measures could strengthen dairy supply chains and improve access to quality products over the long term.