Madhya Pradesh is set to give a major push to its dairy sector with the approval of a ₹2,973 crore Dairy Development Scheme. The initiative aims to expand dairy cooperatives across rural areas, strengthen milk collection and processing infrastructure, and increase the market reach of the Sanchi dairy brand.
Over the next five years, the government plans to bring more villages under the cooperative dairy network. The expansion is expected to provide milk producers with more organized procurement channels and better access to markets, while strengthening the entire dairy value chain from production to sales.
At present, dairy cooperative societies operate across 7,331 villages in Madhya Pradesh. Under the new plan, this network will be expanded to 26,000 villages over the next five years. A wider cooperative network is expected to make it easier for farmers and livestock owners to sell milk locally while improving regular milk collection in rural areas.
The state currently collects around 12 lakh kg of milk per day. The government aims to increase this capacity to 52 lakh kg per day within five years. Higher procurement capacity could allow dairy cooperatives to source milk from a much larger number of farmers and livestock owners, creating a more reliable market for milk producers.
The scheme also focuses on significantly expanding milk processing infrastructure. Madhya Pradesh currently has a processing capacity of around 17.8 lakh litres per day, which is planned to increase to 63.3 lakh litres per day. The additional capacity will enable greater processing of milk into value-added dairy products and support the expansion of the dairy products market.
Sanchi Milk Sales Target Set at 35 Lakh Litres Daily:
The state's major dairy brand, Sanchi, is also expected to undergo a significant expansion. Its current packaged milk sales stand at around 7 lakh litres per day. The government has set a target of increasing this to 35 lakh litres per day. Expanding Sanchi's market presence could increase demand for milk while strengthening the connection between dairy producers and organized markets.
Artificial Insemination Coverage to Increase to 50%:
Improving livestock productivity is another key component of the dairy development plan. The government intends to expand artificial insemination coverage from the current level of around 15% to 50%. The expansion is aimed at supporting breed improvement and enhancing the future milk-producing potential of the state's livestock population.
NDDB Partnership to Support Dairy Development:
The dairy sector's expansion is also backed by collaboration with the National Dairy Development Board (NDDB). The Madhya Pradesh government, MP State Cooperative Dairy Federation, affiliated milk unions and NDDB entered into a cooperation agreement on April 13, 2025, to strengthen the operation and management of the state's dairy cooperative system. Under this framework, NDDB has given in-principle approval to the ₹2,973 crore Dairy Development Scheme. The state government will provide a ₹500 crore grant for dairy infrastructure. In addition, around ₹241 crore as state share under various central government schemes has been approved along with implementation of other components of the programme.
How Will Farmers and Livestock Owners Benefit?
The scheme is expected to strengthen the rural dairy economy by expanding cooperative societies to 26,000 villages, increasing milk procurement and processing capacity, and widening the market for Sanchi products. For farmers and livestock owners, a stronger cooperative network could mean easier access to local milk collection centers and more organized markets. Increased processing capacity could also support the production of higher-value dairy products. At the same time, greater focus on breed improvement and artificial insemination could help raise milk productivity over the longer term.
FAQs:
1. What is the cost of the Madhya Pradesh Dairy Development Scheme?
The Madhya Pradesh Dairy Development Scheme has been approved with an outlay of ₹2,973 crore.
2. How many villages will have dairy cooperative societies?
The dairy cooperative network is planned to expand from 7,331 villages to 26,000 villages over the next five years.
3. What is the target for daily milk collection?
The daily milk collection target is planned to increase from around 12 lakh kg to 52 lakh kg.
4. What is the target for Sanchi milk sales?
Sanchi packaged milk sales are targeted to increase from around 7 lakh litres per day to 35 lakh litres per day.
5. What is the artificial insemination target?
Artificial insemination coverage is planned to increase from around 15% to 50% in Madhya Pradesh.
