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Dairy Processing & Infrastructure Development Fund (DIDF)


In a country where agriculture is a cornerstone of the economy, dairy farming holds a special place. Recognizing the importance of the dairy sector and the need for its systematic development, the Indian government introduced the Dairy Processing & Infrastructure Development Fund (DIDF).

This initiative aims to transform the dairy landscape by providing financial support for infrastructure development and processing facilities. In this blog, we will delve into the key aspects of DIDF and how it contributes to the growth of the dairy industry in India.

Understanding DIDF

The DIDF was launched with the objective of modernizing the dairy sector and enhancing the income of dairy farmers. Established as a corpus fund, it operates as a part of the National Dairy Plan Phase-I (NDP-I) with a focus on boosting milk productivity and market access for farmers.

The fund is managed by the National Dairy Development Board (NDDB), reflecting the government’s commitment to fostering collaboration between public and private sectors for the development of the dairy industry.

Key Components of DIDF

  • Infrastructure Development: DIDF allocates funds for the creation and strengthening of infrastructure related to the dairy industry. This includes the establishment of modern processing units, chilling infrastructure, and bulk milk coolers. The aim is to reduce post-harvest losses and enhance the overall efficiency of dairy operations.
  • Expanding Milk Procurement: One of the primary goals of DIDF is to increase the procurement of milk from farmers. By supporting the establishment of new milk collection and transportation infrastructure, the fund facilitates the smooth flow of milk from farms to processing units, ensuring fair prices for dairy farmers.
  • Capacity Building: DIDF recognizes the importance of knowledge and skill development in the dairy sector. It allocates funds for training programs and workshops aimed at enhancing the capabilities of dairy farmers and industry professionals. This investment in human capital is crucial for the sustainable growth of the dairy sector.
  • Promoting Innovation: To stay competitive in the global market, the dairy industry needs to embrace innovation. DIDF encourages the adoption of advanced technologies and practices, fostering a culture of innovation in dairy processing and production.

Impact on Dairy Farmers

The implementation of DIDF has already started to make a positive impact on dairy farmers across the country. By improving infrastructure and increasing milk procurement, farmers are experiencing enhanced market access and better prices for their produce. The fund has become a catalyst for rural development, creating employment opportunities and boosting the overall socio-economic status of dairy-dependent communities.

Challenges and the Way Forward

While DIDF has shown promise, it is essential to address challenges such as last-mile connectivity, awareness among farmers, and the effective utilization of funds. Continuous monitoring and evaluation will be crucial to ensuring that the intended benefits reach the grassroots level.


the Dairy Processing & Infrastructure Development Fund (DIDF) represents a significant step towards the holistic development of the dairy sector in India.

As the initiative continues to evolve, it has the potential to not only transform the lives of dairy farmers but also position India as a global leader in dairy production and processing. Through a collaborative approach and sustained efforts, DIDF paves the way for a thriving and sustainable future for the Indian dairy industry.

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