1. To develop the skills of dairying in rural people and prepare them to accept this activity as a joint business along with farming.
  2. To develop Co-operative societies at village,taluka and district level.
  3. To encourage dairying in Co-operative sector and to strengthen the Co-operative dairies and unions to be economically strong.
  4. To outline various programmes for efficient working of dairies in Govt. sector.
  5. To ensure even production of milk in flush and lean season
  6. To supply unadulterated and wholesome milk regularly to the people of urban area at reasonable rates.

Govt.  implementing its policies to reach objective by operating programmes like Operation Flood, Strengthening Infrastructure For Quality & Clean Milk Production (SIQ &CMP), Assistance to cooperatives, Intensive dairy development programme (IDDP), Rashtriya Krishi Vikas Yojana       (RKVY) , National Mission for Protein Supplement (NMPS), Accelerated Dairy Development Programme  (ADDP), National Project for Bovine Breeding and Dairy Development(NPBBDD), Integrated Dairy Farm Project (IDFP)  and packages like Vidharbha Vikas, Package, Marathwada Vikas Package. As a result of operating these programmes, substantial improvement in quality and increase in quantity noticed

As production of milk increases numbers of  milk processing dairies were build. Central Dairy, Aarey was constructed for processing and packing of milk which was collected from Aarey Milk Colony and to supply same to consumer of Mumbai city. This Dairy is pioneer of it's kind in entire Asia. After 1970 milk produced in rural area was also received in this dairy. It distributes milk in Western Suburbs of Mumbai City. Worli Dairy is established in 1961 situated at Worli Seaface, Worli, Mumbai. Dairy has processing and packaging capacity of Rs. 4.50 lakhs litres of milk handling per day. Milk product like Energee , Lassi, Dahi and Masala Milk are also daily manufactured in the plant. Dairy helps to meet the need of consumers in the Central and Southern part of Mumbai city. (Colaba to Mahim & Sion). Mother Dairy, Kurla started under World Food Program (W.F.P. 6.18) financed by National Dairy Development Board in the year 1975. Milk is processed, packed and distributed in Eastern Suburban Region of Mumbai. Ghee is distributed under Aarey brand since 1979. Agmark for ghee started from 07.08.1996. There are three cold store for White Butter having total capacity 240 ton.

As effect of expansion of Co-op. sector, entry of private sector in dairy business grip of Govt. on this business started loosening. Year 1985 to 1995 was transition period for Dairy business. With commencing of  State Federation Dairy in Mumbai market of Govt. milk in Mumbai started reducing.

Even though part of Govt. milk in the market reduced, Govt. always give importance to improve quality and quantity of milk produced. Being milk is perishable product utmost care is taken at various stages to keep good quality of milk till it reaches to consumer. This include  operation of various programmes, Schemes,various training programmes  to train the producers and to staff handling milk

In order to raise the quality standards of milk produced by the farmers, Central Gov. has introduced “Strengthening of Infrastructure for Quality & Clean Milk Production Scheme”. The scheme started in 2004-05 for creation of necessary infrastructure for  production of quality milk and milk products at the farmers level up to the points of consumption by improvement of milking procedure at the farmers level, training and strengthening of infrastructure to create mass awareness about importance of clean milk production. The scheme is implemented through the State Government by District/ Taluka Cooperative Milk Unions/ State Level Milk Federation. Other points included in this programme are, to improve the quality of raw milk produced by providing training & creating mass awareness among milk producers & also by installation of bulk milk cooler facilities at milk collection centers for immediate chilling of raw milk,Training of farmers, DCS staff, village level extension worker etc.,Supply of detergents, antiseptic solution, muslin cloth, SS utensils and accessories for clean milk production to the farmer members, Milking machine & other equipment for hygienic handling of milk at village farmer level, Can/ Crate washinf facility for BMC/Chilling/Dairy plants, Srengthening/ establishment of lab as per required quality norms under PFA & Codex standards, Devices/ equipments used to implement HACCP (Hazardous Analysis  Critical Control Point) to ensure Food Safety.

The Scheme Assistance to Cooperatives is a Central Sector Plan Scheme  started during 1999-2000 . Its aims is to revitalize sick dairy co-operative union at district level and  cooperative federation at State level. The assistance is given on 50:50 sharing basis between Govt. of India   and concerned State Government.

The three schemes of IDDP, SIQ&CMP and DED/ Assistance to Cooperatives are  merged into a single scheme National Programme for Bovine Breeding and Dairy Development for implementation during the 12th Five Year Plan with wider coverage and increased outlay. This scheme is implemented through State Dairy Federation (Mahanand)   from May 2014. All the developmental activities under Dairy development component are proposed to be on 100 % grant-in-aid basis except activities like installation of bulk milk coolers, milk and milk product processing plants where there shall be 50% for Federations/Unions/ in NDP States with rest of 50% to be funded out of loan or from own resources of the Project Implementing Agency (PIA). The pattern of assistance for non-NDP States would be 50 % for milk Federations/Unions/ with net accumulated profit of Rs.1 crore and above as on 31st March of the previous year along with loan component from a financial institution.

 Objectives  of     Integrated Dairy Farm Project are, to ensure integration of dairying & veterinary services in a location   specific  context,   professionalisation of  dairying as an enterprenual  activity through the Dairy Co-op. Societies, to increase milk production & procurement  through dairy farms,  to provide efficient marketing services by making milk routes viable,  to provide supplementary income to the farmers,  establishment of backward & forward linkages to production in location specific context.

Highlights of  of     Integrated Dairy Farm Project are, the project is implemented in the milk deficit regions of state i.e Vidharbha,  Marathwada & Konkan. The total no. of projects is 46 (2 projects per district- in 23 districts), the project was sanctioned in the year 2008-09, the grants were received from Agri. Dept. - November 2009, the approval of GoM for distribution of funds to DCS - July 2010,total grants received : Rs 21.60 crores, total Expenditure incurred: Rs 21.17 crores, output: Milk production  of the project completed DCS has been increased by avg. 150 lts per day.

The components   included in  Accelerated Dairy Development Programme  (ADDP) are ,supply of accessories for milk production like SS  cans, SS buckets, kettles  plungers etc., laboratory equipments like Milkotester,  Automatic Milk Collection Units, milk chilling equipments – i.e Bulk Milk Coolers, installation of Chilling Centre. ( upto 4000 ltrs. cap.), installation of Dairy plant    (upto 10 TLPD)