Uttar Pradesh Milk Policy 2018

The Uttar Pradesh Milk Policy 2018 was launched by the Government of Uttar Pradesh through the Dairy Development Department, Uttar Pradesh (under the Department of Animal Husbandry, Dairy & Fisheries) on 7 June 2018. The purpose of the policy is to promote the dairy sector in the State by encouraging investment into milk production, processing and value‐addition, improving infrastructure, ensuring remunerative prices to milk producers, boosting rural livelihoods (especially small and marginal farmers), and consequently enhancing the production and processing of milk in Uttar Pradesh. The benefit to you as an MSME is that if your enterprise engages in dairy processing, milk value-additions or allied services in UP, you can access incentives, subsidies and concessions under this policy.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

Capital subsidy up to 25%: If you plan to set up a new dairy processing unit or expand an existing one, the policy covers 25% of your eligible infrastructure cost (building, machinery, etc) as subsidy. This lowers your upfront investment burden.
Interest subsidy: For MSME units in milk processing, the policy allows full interest subsidy for five years (i.e., interest cost borne by government) which improves viability; for non-MSME units a 7% interest subsidy is offered, making the loan cheaper.
Subsidy on DPR cost: Preparing a detailed project report is often a cost for entrepreneurs. This feature halves that cost — making project planning more accessible.
Exports/market support: To encourage processed milk products to reach markets outside the state/abroad, the policy provides logistic/freight-subsidies and testing subsidisation. If you produce value-added dairy goods, this is relevant.
Quality/Patent support: To promote premium quality products and innovation, the policy reimburses part of the cost of certification/testing and encourages patenting/design filing by bearing a large portion of those fees.

Financial Assistance

Component	Assistance Provided	Detailed Explanation & Example
Capital subsidy on infrastructure/expansion	Up to 25% of cost	Example: You set up a milk-processing plant costing ₹ 1 crore in eligible items → subsidy ≈ ₹ 25 lakh.
Interest subsidy for MSME / nonMSME processing units	100% interest subsidy for MSME units for 5 years; 7% interest subsidy for non-MSME units for 5 years	Example: You borrow ₹ 50 lakh at let's say 11% interest for 5 years; if MSME you pay zero interest (govt covers); if non-MSME you get 7% subsidy reducing effective interest to ~4% (11%-7%).
Subsidy on DPR preparation	50% subsidy on cost of DPR	Example: DPR cost ₹2 lakh → subsidy ₹1 lakh; you pay remaining ₹1 lakh.
Export/marketing support subsidies	50% sample testing cost; 25% freight to port; 20% FOB cost for 3 years	Example: You export value-added cheese; sample testing abroad cost ₹1 lakh → subsidy ₹50,000; freight cost ₹10 lakh → subsidy ₹2.5 lakh etc.
Quality certificate / patent support	50% reimbursement of quality testing; 75% reimbursement of patent filing one time	Example: Patent filing cost ₹4 lakh → reimbursement ≈ ₹3 lakh (75%); you pay ₹1 lakh.

Eligibility Criteria

Who Can Apply:

Units in the State of Uttar Pradesh engaged in milk processing and dairy-based manufacturing (value added products).
Both MSME units and non-MSME units are eligible, with different interest subsidy conditions.
Projects involving creation of new infrastructure or expansion/diversification of existing facilities.

Who Cannot Apply:

Projects outside the state of Uttar Pradesh.
Units that do not undertake processing or value-addition of milk/dairy.
Projects that are not covered by the definitions of “processing unit” under the policy.
Units not fulfilling state-specific procedural requirements (if any) under guidelines.

Documents Required

Application form as per policy.
Detailed Project Report (DPR) covering project cost, capacity, value addition plan, marketing.
Proof of land/lease and location details.
Financial statements / funding plan.
Bank sanction letter (if applicable).
Technical details of processing unit (machinery, layout, capacity).
Export plan (if seeking export incentives) including sample testing cost.
Certificate of MSME status (if applicable).
Any prior clearances required (environment, etc) depending on scale.

Application Process for the Scheme

Option 1: Apply with Bullit (Recommended)

Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.

Recommended for: Lean teams. Designed to save you time and effort. Access expert help from start to finish.

Option 2: Direct Application via State Portal

Visit the official state investment-promotion portal of Uttar Pradesh (e.g., via Invest UP).
Download the Milk Policy 2018 notification and application guidelines.
Prepare your Detailed Project Report (DPR) and gather documents.
Submit the application form along with the DPR and required documents to the nodal department (Dairy Development / Animal Husbandry).
On sanction, avail the subsidies and incentives as per the policy.

Option 3: Through District Industries Centre / Nodal Agency

Approach the district-level Industries or Dairy Development office in your area.
Seek pre-application counselling and guidance on incentives under the Milk Policy 2018.
Submit the project proposal and follow the sanction process under state guidelines.

Power Combos with The Scheme