The Uttar Pradesh government has amended its Dairy Development and Milk Production Promotion Policy 2022 to significantly increase subsidies aimed at attracting investments in the dairy sector. The revised policy now offers a 35% subsidy, up to ₹5 crore, for establishing new dairy units or upgrading existing ones. Previously, the subsidy was capped at 10%.
Additional incentives include a 35% subsidy, up to ₹2.5 crore, for modernizing dairy plants, and a similar subsidy, up to ₹1 crore, for purchasing machinery and equipment. Furthermore, a 35% subsidy, up to ₹1 crore, is available for setting up cold chain infrastructure for dairy products.
Animal Husbandry and Dairy Development Minister Dharampal Singh stated that these changes align the dairy policy with the state’s Food Processing Industry Policy 2023, which also offers a 35% subsidy. The objective is to create a more conducive environment for investment in the dairy sector, thereby boosting production and processing capabilities
Industry Insight:
This policy revision positions Uttar Pradesh as a more attractive destination for dairy sector investments, potentially leading to increased production, enhanced supply chain infrastructure, and greater competitiveness in both domestic and export markets.
Source : Dairynews7x7 May 17th 2025 The Indian express