Dairy sector expects to raise Rs 60,000 cr as new investment in 5 years

The dairy sector of the country expects to experience up to Rs 60,000 crore of new investment and creation of 10 million jobs in five years, at the backdrop of Union Budget proposals.

The finance minister Nirmala Sitharaman in her budget proposal, had announced a target of doubling the annual milk processing capacity to 106 million tonnes, from the existing 53 million tonnes (or from 140 million litres a day to 300 million) in five years.

“To process this massive capacity, the industry requires between Rs 20 and 40 crore investment for every 100,000 litres of processing. Thus, the sector would attract a fresh investment of at least Rs 60,000 crore. As every 100,000 litres of milk production creates 6,000 new jobs, the sector will see 10 million new jobs by 2025,” said R S Sodhi, Managing Director, Gujarat Cooperative Milk Marketing Federation, holder of the Amul brand.