Overview of the Dairy Industry
Milk is a fundamental requirement for every household in India. There is a considerable need for milk and its by-products all year round. The reason for milk's rising demand is that it is used to make various goods, including cheese, butter, curd, ice cream, butter, ghee etc. Therefore, operating a dairy farm in India is a successful business idea. The cost to start a dairy farm in India ranges from 10 to 20 lakhs. Over the past three years, India's dairy product exports have steadily increased. India exported 108,711 MT of dairy products to the world in 2021–2022 for a total of Rs. 2,928.79 crores (US$ 391.59 million), with Bangladesh, the UAE, Bahrain, Malaysia, Saudi Arabia, and Qatar serving as key export markets. The government has also taken steps to support the infrastructure for Dairy Industry, including the National Dairy Plan (a framework for the industry focused on sustainable growth) and general empowerment programmes like the Jan Dhan Yojana and the Start-up India initiative. The market potential for these commercial operations is enormous in several states that produce the most milk and milk-related goods.
Advantages of Setting up a Dairy Industry
The sector supports more than eight crore small and medium-scale farmers and makes up nearly 5% of the country's GDP. India's dairy business has expanded over the past ten years thanks to several government initiatives. Between 2014–15 and 2020–21, the country's milk output increased at a CAGR of 6.2%, from 146.31 million tonnes (MT) to 209.96 MT, indicating a non-stop consumption of milk and various dairy products over these years. India also has a huge advantage, after establishing itself as one of the biggest exporters when it comes to dairy products exports. The Indian food processing industry is known for the value-addition of dairy products, including spreads, cheese infant food preparations, milk albumin, milk powder, butter, and butterfat.
Prerequisites for Dairy Unit Registration in India
In India, operating a Dairy Industry does not necessitate hiring highly skilled labour. The number of mature cows and female buffaloes in a dairy or gaushala can be classified into five categories: Category-I (up to 25 animals), Category II (26–50 animals), Category–III (51–75 animals), Category–IV (76–100 animals), and Category–V (above 100 animals). The municipal veterinarian and dairy development departments' registration is also required for setting up the dairy farm. Depending on where the dairy farm will be located, one must contact the Municipal Corporation Department or a nearby panchayat to obtain a licence to begin a dairy farm.
Documents required for Setting up a dairy Industry
Small-scale dairy and dairy product processing is included in the Orange Category because it has the potential to pollute the air and water. The manufacturing of dairy products and milk processing are included in the red category of industries built as integrated projects. The following documents will be required while setting up a Dairy Industry
Stage 1: Setting up a Dairy Processing Plant
Entrepreneurs starting Dairy Industry should concentrate on calculating capacity, process scheduling, selecting the best plant structure, and managing waste and by-product management. Following are the steps the milk goes through in the dairy processing plant.
Stage 2: Licences and Authorisation Requirement
Depending on their activities, establishing a Dairy Industry and dairy farm/gaushalas will necessitate the acquisition of the following licences.
Stage 3: Operation and regular upkeep of the Unit
Records Keeping in a Dairy Processing Plant: The Dairy Processing Plant must abide by the Industrial Acts (Factories Act), Boiler Acts, Labour-Related Rules, and different food-related regulations
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Benefits of the Dairy Industry in India
Companies looking to register their dairy Industry can approach the team of professionals at Corpbiz for expert assistance in obtaining authorisation and licences with ease.