THE UTTAR PRADESH MILK ACT,1976

  

144 

   THE UTTAR PRADESH MILK ACT, 19761 

[ U. P. ACT No. 7 of 1976 ] 

 [Passed in Hindi by the Uttar Pradesh Legislative Assembly 

on April 8, 1976 and by the Uttar Pradesh Legislative Council on 

April 6, 1976. 

Received the assent of the Governor on April 16, 1976 under 

Article 200 of the Constitution of India and was published in the 

Uttar Pradesh Gazette, Extraordinary, dated April 17, 1976. ] 

 AN 

ACT 

 
to provide for the regulation and control of production, supply and 

distribution of milk and its conversion into milk products with a view to 

development of dairy industry in the State, and for matters connected 

therewith.   

IT IS HEREBY enacted in the Twenty-seventh Year of the Republic 

of India as follows ; 

 

Short title, 
extent and 
commence-

ment. 

CHAPTER  I 

1. (1) This Act may be called the Uttar Pradesh Milk Act, 1976. 

(2) It extends to the whole of Uttar Pradesh.  

 (3) It shall come into force on such 2 date as the State 

Government may by notification appoint in this behalf, and different 

dates may be appointed for different areas of Uttar Pradesh and for 

different provisions of this Act.   

Definitions 2. In this Act,— 

(a) “authorized person” and “authorized agency”, respectively, 

mean a person and agency authorized by the Board by notification for 

any purpose under this Act ;  

 
(b) “Board” means the Uttar Pradesh Rajya Dugdh Parishad, 

constituted by the State Government by notification under section 3 ;  

(c) “dairy” means any premises where machinery is used for 

cooling, heating or any other treatment of milk or for converting milk 

into milk products or packaging of milk or milk products ;  

 
(d) “Fund” means the Uttar Pradesh Milk Development Fund 

created under section 9 ;  

—————————————————————————————————————————— 
1.  For Statement of Objects and Reasons see U. P. Gazette Extraordinary, dated April 8, 1976. 

2.  Under notification no. 1494-C (3) XII-C, B—8-73, dated May 11, 1976. The Governor is hereby appoint 

May 11, 1976 as a date on which all the sections except 11, 12, 13, 14, 16 and 17 of the said Act shall 

come into force.   

 Under notification no. 646/XII-E-4-8-73, dated August 10, 1976. Governor hereby appoint August 15, 

1976 as a date on which sections 11, 12, 13, 14, 16 and 17 of the said Act shall come into force.   



[The Uttar Pradesh Milk Act, 1976]  

146 

 
(e) “licence” means a licence issued by the Licensing Authority 

under this Act ; 

(f) “Licensing Authority” means an officer authorized by the Milk 

Commissioner in this behalf ; 

 
(g) “manufacturer” means a person or establishment engaged in 

the manufacture of milk products or in the preparation of items 

containing milk solids ; 

 
(h) “processor” means a person or establishment engaged in the 

collection or treatment of liquid milk, such as chilling, heating or any 

other treatment for augmenting the marketable life of milk ;  

 
(i) “milk” means lacteal secretion from cow or buffalo ; 

(j) “Milk Commissioner” means the Milk Commissioner appointed 

under section 7 ;  

 
(k) “milk product” means any commodity manufactured from 

milk, separated milk, butter milk or whey, and includes powders, 

condensed or evaporated milk, cream, cheese, ghee, khoya, dahi, 

chhena, casein, ice-cream or any other product as may be notified by 

the Board to be milk products ;  

 
(l) “reserved area” means the area specified in an order made 

under section 12.  

 
CHAPTER  II 

CONSTITUTION AND FUNCTIONS OF THE BOARD 

Constitution 
of the Board 

3. The State Government shall, by notification and with effect 

from a date to be specified therein, constitute a Board to be known as 

the Uttar Pradesh Rajya Dugdh Parishad which shall be a body 

corporate with power, subject to the provisions of this Act and the rules 

made thereunder, to acquire, hold and dispose of property.  

Members of 
the Board 

4. The Board shall consist of the following :–  

(a) Commissioner and the Secretary to the State Government, 

incharge of Agriculture Production and Rural Development, who shall be 

the Chairman of the Board, ex-officio ; 

 (b) The Chairman, Pradeshik Co-operative Dairy Federation Ltd., 

ex-officio, who shall be the Vice-Chairman of the Board, ex-officio ; 

(c) the Secretary to the State Government, Finance Department, 

Uttar Pradesh, ex-officio ; 

 (d) Special Secretary or Joint Secretary, as the case may be, to 

the State Government in the Pashudhan Department, Uttar Pradesh,  

ex-officio ; 

(e) the Director of Animal Husbandry, Uttar Pradesh, ex-officio ; 

 (f) the Director of Agriculture, Uttar Pradesh, ex-officio ;  

(g) the Registrar, Co-operative Societies, Uttar Pradesh, ex-officio ; 



[The Uttar Pradesh Milk Act, 1976]  

148 

 
(h)  the Director of Medical and Health Services, Uttar Pradesh, 

ex-officio ;  

(i) four representatives of milk producers, unions, to be 

nominated by the State Government ;  

 
(j) two representatives of dairies registered under the Industries 

(Development and Regulation) Act, 1951, in Uttar Pradesh, to be 

nominated by the State Government ;  

 
(k) two persons representing the consumer’s interests, to be 

nominated by the State Government ; and  

(l) the Milk Commissioner, ex-officio, who shall be the Member-

Secretary of the Board.   

Term of non-
official 
members. 

5. The term of office of non-official members shall be three years 

from the date of notification of their appointment.  

Functions of 

the Board 
6. (1) Subject to the provisions of this Act, the functions of the 

Board shall generally be to plan, control, develop and regulate milk 

production and dairy industry in the State.  

 
(2) In particular and without prejudice to the generality of the 

provisions of sub-section (1), the Board may take such steps as it may 

think fit — 

(a) to prepare plans and schemes for the development of dairy 

industry in the State ;  

 
(b) to regulate and provide for the supply of milk to dairies and 

processors and manufacturers of milk or processed milk, for 

manufacture and sale of milk products ;  

 
(c) to assist entrepreneurs in preparing projects for setting up 

new dairies and to accord approval for the same ;  

(d) to initiate, guide and co-ordinate activities concerning 

breeding of livestock, provision of balanced cattle feed and fodder to 

producers and control and treatment of cattle diseases ;  

 
(e) to regulate the price of milk and milk products ;  

(f) to secure funds for and to incur expenditure in connexion with 

the discharge of functions undertaken by the board ; and  

(g) to take such other measures as may be prescribed.  

Appointment 
of Milk 

Commissioner 

7. The State Government shall for purposes of this Act appoint a 

Milk Commissioner who shall perform the duties and exercise all powers 

conferred or imposed upon him by or under this Act.  

Employees of 
the Board 

8. (1) The Milk Commissioner shall be the Chief Executive Officer 

of the Board. 

(2) Subject to any general or special orders of the State 

Government the Board may, appoint such officers and employees as it 

considers necessary for the efficient performance of its functions under 

this Act and on such terms and conditions as it thinks fit.  



[The Uttar Pradesh Milk Act, 1976]  

150 

 
(3) Subject to the superintendence of the Board, the general 

control and direction over all the officers and employees referred to in 

sub-section (2) shall be vested in the Milk Commissioner. 

Milk 
Development 
Fund 

9. (1) There shall be established a fund to be called the Uttar 

Pradesh Milk Development Fund, which shall be administered and 

controlled by the Board and to which all moneys received on behalf of 

the Board shall be credited.  

 (2) In particular, and without prejudice to the generality of the 

provisions of sub-section (1), the income of the Board from the following 

sources shall be credited to the fund :— 

(a) amount to be credited to the fund by Government out of the 

proceeds of cess to be imposed under section 16 ;  

 (b) licensing fees received under the provisions of this Act ; 

(c) grants and subventions received from the State or Central 

Government or from any other organisation or body.   

External 

Control 
10. (1) The Board shall furnish to the State Government, at such 

times and in such form and manner as the State Government may by 

general or special order direct, such returns, reports and statements as 

the State Government may from time to time require.  

 (2) Without prejudice to the provisions of sub-section (1), the 

Board shall, within two months after the end of each financial year, 

submit to the State Government giving a true and full account of its 

activities, policies and programmes during the previous financial year.  

 (3) The accounts of the Board shall be deemed to be a local fund 

and be audited by the Examiner, Local Fund Accounts, Uttar Pradesh.   

 (4) In the discharge of its functions, the Board shall be guided by 

such directions on questions of policy as may be given to it by the State 

Government.  

 (5) If any question arises whether any matter is or is not a matter 

as respects which the State Government may issue a direction under 

sub-section (4), the decision of the State Government shall be final.  

 CHAPTER  III 

REGISTRATION, LICENCE, CESS AND RESTRICTIONS 

Licensing of 
Dairy, 
Processor or 
Manufacturer 

11. (1) No person shall after the commencement of this Act set 

up a dairy or milk processing unit handling or having installed capacity 

for handling milk or milk products in quantities exceeding the limit 

specified by the Board in this behalf except under a licence in that 

behalf.   

 
(2) No person shall on or after the date to be appointed in this 

behalf  by  the  State  Government  by  notification  (such date being not  



[The Uttar Pradesh Milk Act, 1976]  

152 

 
earlier than three months after the commencement of this Act), carry on 

business of dairy or as processor or manufacturer, handling or having 

installed capacity for handling milk or milk products in quantities 

exceeding the limits specified by the Board by notification in this behalf, 

except under a licence in that behalf. 

 
(3) Notwithstanding anything contained in sub-sections (1) and 

(2) a milk processing unit licensed under the Industries (Development 

and Regulation) Act, 1951 shall not be refused licence under this Act, if 

it makes an application in the prescribed manner and complies with the 

prescribed conditions and furnishes such security and pays such fee as 

may be prescribed.  

 
Explanation I — Different dates may be appointed by the State 

Government in such notification for different areas or for different 

categories, namely, dairies, processors or manufacturers.  

 
Explanation II — Different rates or fees may be prescribed for 

the categories mentioned in Explanation I or for different classes thereof.  

Reserved 
Area 

12. (1) The Board may, by notification, declare an area to be a 

reserved area to ensure the availability of sufficient milk at fair prices.  

 (2) When an area has been declared a reserved area, the dairy or 

dairies in such area shall, if so directed by the Board, purchase all the 

milk offered by the producers in the area at such price as may be 

notified by the Board having regard to relevant factors such as 

availability and quality of milk and price of milk in that area during the 

preceding year.  

Licensing of 
Transporter 

13. No person other than an authorized person or agency shall 

collect, carry or transport milk or milk products from any place within a 

reserved area to any place outside such area without obtaining license in 

this regard from the licensing authority :  

 Provided that nothing in this section shall apply to transport or 

carriage of ghee, or milk and milk product in quantities not exceeding 

prescribed limits by any person for personal consumption.  

Grant of 
licence 

Suspension 
or 
Cancellation 
Forfeiture of 

security and 
ban on claim 
for 

compensation 

14. (1) A licence under the provision of this Act shall be granted 

or renewed by the licensing authority in the prescribed manner, subject 

to prescribed conditions and on furnishing of such security and payment 

of such fees as may be prescribed.  

(2) If any licensee contravenes any of the provisions of this Act or 

the rules made thereunder or any condition of the licence, then without 

prejudice to his liability for punishment under section 20, the licensing 

authority may, after giving him an opportunity of explanation, cancel his 

licence :  

 Provided that the licensing authority may, while issuing notice 

for cancellation of licence under this sub-section, suspend the licence. 

 (3) Where any licensee has been convicted of an offence under 

any law relating to purity or quality standards of milk or milk products  



[The Uttar Pradesh Milk Act, 1976]  

154 

 
for the time being in force, the licensing authority may, having regard to 

the nature and gravity of the offence and the circumstances, in which it 

was committed, modify or cancel his licence. 

 
(4) Without prejudice to the provisions of section 20 or of sub-

section (1), if the licensing authority is satisfied that a licensee has 

contravened any of the conditions of the licence and that a forfeiture of 

his security deposit is called for, it may, after giving him an opportunity 

of explanation, by order forfeit the whole or part of his security deposit.  

 
(5) A copy of every order suspending or cancelling or modifying 

the licence under sub-section (2) or sub-section (3) or an order forfeiting 

security deposit under sub-section (4) shall be communicated to the 

licensee.   

 
(6) Any person aggrieved by an order of the licensing authority 

under sub-section (2), sub-section (3) or sub-section (4) may, within 

sixty days of the communication of the order to him, appeal to the 

Chairman of the Board in the prescribed manner.  

 
(7) The licensee shall not be entitled to compensation or refund 

of licence fee on cancellation or suspension of his licence.  

Prohibition 
or regulation 

of sale and 
transport and 
export of 

milk and 
milk 
products  

15. The State Government may, in the public interest and 

subject to the provisions of this At and the rules made thereunder, by 

notification regulate or fix prices in respect of — 

(a) the sale or supply of milk, or the manufacture, sale or supply 

of any milk product in a  particular area ; and  

 (b) the transport of milk or any milk product from one area in the 

State to another area in the State or its export to any place outside the 

State.  

Cess on 
purchase of 
milk 

16. (1) The State Government may by notification impose, levy 

and charge tax on the sale or purchase or on carriage by road of milk or 

milk products in such manner and at such rate or rates as may be 

prescribed not exceeding 10 per cent of the price of the milk or milk 

products, as the case may be, and such tax shall be payable by the 

dairy or by a processor, manufacturer or transporter of milk or milk 

product outside the State. 

 
(2) Any tax imposed under sub-section (1) shall be levied at only 

one point and in such manner as may be prescribed.  

(3) A tax imposed under this section shall be called “Milk Cess”.  

 
(4) The authority empowered to collect the cess may forward to 

the Collector, a certificate under his signature specifying the amount of 

arrears due from the person concerned, and the Collector, on receipt of 

such certificate, shall proceed to recover from such person the amount 

specified therein as if it were an arrear of land revenue.  



[The Uttar Pradesh Milk Act, 1976]  

156 

Proceeds of 
cess to go to 
Milk 

Development 
Fund 

17. At the beginning of each financial year, after due 

appropriation has been made by law, the State Government shall 

withdraw from and out of the Consolidated Fund of the State the full 

amount of the proceeds of the cess imposed under section 16, and 

recovered by it during the preceding financial year after deduction of 

collection charges, and place it to the credit of the Uttar Pradesh Milk 

Development Fund, and the crediting of such monies to the said Fund 

shall be a charge on the Consolidated Fund of the State.  

 
CHAPTER  IV 

PENALTIES AND PROCEDURE 

Cognizance 
of offence 

18. No court shall take cognizance of any offence punishable 

under this Act except on the report of a police officer with the previous 

sanction of the Board or any person authorised by the Board for the 

purpose, made within six months next after the commission of the 

offence.  

Jurisdiction 
of Court 

19. No court inferior to that of a magistrate of the first class shall 

try an offence punishable under this Act.  

Penalty 20. Whoever contravenes any of the provisions of this Act or of 

any rule or regulation made thereunder or fails to comply with any order 

issued under this Act or the rules or regulations made thereunder shall 

be punishable with fine which may extend to five thousand rupees and 

in the case of a continuing offence, with a further fine which may extend 

to five hundred rupees for every day during which such offence 

continues, after conviction for the first commission of offence.  

Offence by 
Companies 

21. (1) If the person committing an offence under this Act is a 

company, the company as well as every person incharge of, and 

responsible to, the company for the conduct of its business at the time of 

the commission of the offence, shall be liable to be proceeded against 

and punished as if this offence was committed by himself :  

 Provided that nothing contained in this sub-section shall render 

any such person liable to any punishment if he proves that the offence 

was committed without his knowledge or, that he exercised all due 

diligence to prevent the commission of such offence.  

 (2) Notwithstanding anything contained in sub-section (1), where 

any offence under this Act has been committed by a company and it is 

proved that the offence has been committed with the consent or 

connivance of, or that the commission of the offence is attributable to 

any neglect on the part of any director, manager, secretary or other 

officer of the company, such director, manager, secretary or other officer 

shall also be liable to be proceeded against and punished for the offence.  

 Explanation — For the purposes of this section— 

(a) “company” means anybody corporate and includes a firm or 

association of individuals, and  

 (b) “director”, in relation to a firm, means a partner in the firm.  

 



[The Uttar Pradesh Milk Act, 1976]  

158 

Composition 
of offence 

22. (1) The Milk Commissioner or any other officer of the Board 

authorized by it by general or special order in that behalf may, either 

before or after the institution of the proceedings, compound any 

offence punishable under this Act on such terms, including payment of 

composition fee, as he may think fit :  

 
Provided that no offence consisting of a failure to comply with 

an order issued by or on behalf of the Board shall be compounded 

until such order has, so far as practicable, been complied with.  

 
(2) Where an offence has been compounded, the offender, if in 

custody, shall be discharged and no further proceedings shall be taken 

against him in respect of the offence so compounded.  

 
CHAPTER  V 

MISCELLANEOUS 

Authentication 
of orders and 
documents of 
the Board 

23. All permissions, orders, decisions and other documents of 

the Board shall be authenticated by the signature of the Chief 

Executive Officer or any officer authorized by the Board in this behalf.  

Inspection of 
under taking 
etc. 

24. The licensing authority or any person authorized by the 

Milk Commissioner may inspect or examine or cause to be inspected or 

examined any premises, equipment or record and milk or milk 

products of any dairy, or any undertaking of a processor or 

manufacturer to satisfy itself or himself that no contravention of this 

Act or rules or regulations made thereunder has been, is being, or is 

likely to be committed.  

Protection for 

acts done in 
good faith. 

25. No suit, prosecution or other legal proceeding shall lie 

against any person for anything which is done or intended to be done 

in good faith under this Act or the rules and regulations made 

thereunder. 

Acts not to be 
invalid. 

26. No act of the Board shall be deemed to be invalid only 

because of any vacancy in its membership or any defect in its 

constitution or establishment.  

Power to make 
rules. 

27. (1) The State Government may, by notification, make rules 

for carrying out the purposes of this Act.  

(2) In particular, and without prejudice to the generality of the 

foregoing powers, such rules may provide for all or any of the following 

matters, namely :— 

 (a) the conduct of business by the Board ;  

(b) the duties, powers and functions of the Milk Commissioner ; 

(c) the appointment of members in casual vacancies in the Board;  

 (d) the preparation and submission of financial statements ;  

(e) the manner and form in which the Uttar Pradesh Dairy 

Development Fund shall be administered and payments from such 

fund ; 



[The Uttar Pradesh Milk Act, 1976]  

160 

 
(f) the manner of licensing and rates of licensing fees ;  

(g) the rates of milk cess and the manner of its imposition and 

collection ;  

 
(h) the statements and returns to be submitted by the Board to 

the State Government and the registers and other forms to be 

maintained by it or by dairies, manufacturers and processors ;  

 
(i) the reference to the Milk Commissioner of the disputes 

between a Milk Union, dairy, processor or manufacturer and the 

procedure to be followed by the Milk Commissioner in this regard ; and  

 
(j) any other matter which has to be and may be prescribed by 

the Board.  

Regulations 28. (1) The Board may, with the previous sanction of the State 

Government, make regulations consistent with this Act and the rules 

made thereunder.  

(2) In particular, and without prejudice to the generality of the 

foregoing power, the Board may make regulations providing for :– 

 
(a) the procedure in regard to the transaction of business of the 

Board or its committees ;  

(b) the functions and duties of the employees of the Board ;  

 
(c) the constitution, powers, duties and functions of Committees 

of the Board ; and  

(d) any other matter for which provision is to be or may be made 

in the regulations.  

 

 

————



 

2