Private Dairies Await Clarity On FM's Announcement

Hail move to double milk processing capacities, but remain anxious about policy support

- Rutam Vora

Even as Finance Minister Nirmala Sitharaman announced in her Budget speech an aim to double the country’s milk processing capacities by 2025, there remain some areas of concern for small and big private players in terms of policy support for building additional capacities.

While the dairy sector was upbeat over the announcement to double the milk processing capacities from the current 53.5 million tonnes a day to 108 million tonnes by 2025, nervousness persisted over the uneven treatment given to cooperatives and corporate dairies in terms of incentives and support.

BusinessLine spoke to several mid and large private dairy players, who hailed the government’s intention to strengthen the dairy economy but were skeptical of achieving that targets without government support.

‘No clarity on funding’

“The government plans to double processing capacities but there is no clarity on where the investments are going to come from. Is it from the cooperative dairies or private dairies?