Question : Promotion of Dairy Industry

a) Whether the Dairy industry is facing several challenges like high taxation on dairy products, sub-standard breeds of most cows and buffaloes, lack of organized dairy farms, lack of investment, high pricing of dairy machinery and equipment and duties being imposed on dairy equipment;
b) Whether the Government proposes to make the investment in dairy sector a part of Corporate Social Responsibility (CSR) in order to deal with these problems and to increase investment in the dairy sector; and
c) if so, the details thereof ?

ANSWER

THE MINISTER OF STATE FOR AGRICULTURE & FARMERS WELFARE
(SMT. KRISHNA RAJ)
a) India ranks first among the world’s milk producing nations, achieving an annual output of 165.4 million tonnes during 2016-17. As per Breed Survey Report-2013, the country has 160.39 million Non-Descript Cattle and Buffalo population which is 53.46% of the total bovine population in the country. These bovines have low productivity and are maintained by the farmers on low input and low output basis. In India most of milk is produced by small & marginal farmers and landless laborers by producing 1 to 3 liters of milk per day in their own household level.
i) As regards the taxation on dairy products, it is stated that the milk and Indigenous Milk Products like Curd, Lassi, Butter Milk, Chenna or Paneer (other than put in unit container and bearing a registered brand name) are at 0% GST rate. All other dairy products have been placed from 5 to 12% GST rate except Ice-Cream, which has been placed at 18% GST rate, fixed by Govt. of India.
ii) Further, the taxation on Dairy Equipment, the Dairy Equipment have been placed from 12 to 28% GST rate, fixed by Govt. of India.



iii) As regards the investment in dairy sector, this Deptt’s is implementing following schemes;
1. Rashtriya Gokul Mission
2. National Dairy Plan-I
3. Central Cattle Breeding Farms
4. Central Herd Registration Scheme
5. Central Frozen Semen Production & Training Institute.
6. Dairy Entrepreneurship Development Scheme
7. National Program for Dairy Development
8. Dairy Processing & Infrastructure Development Fund

b) As per the Ministry of Corporate Affairs, no such proposal is under consideration under section 135 (3) & (4) of the Companies Act, 2013, empowers the Board of the Company, and its Corporate Social Responsibility (CSR) Committee to select programmes/project/activities to be undertaken, allocation and utilization of CSR funds towards various development activities etc.

c) Details of part a) are provided in answer (a) itself.