Lok Sabha Question No. 2778 (UNSTARRED), answered on 2018-03-13
Subject: Modernization of Dairy Cooperatives
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: M. UDHAYAKUMAR

## GOVERNMENT OF INDIA

## MINISTRY OF AGRICULTURE  AND  FARMERS WELFARE DEPARTMENT OF ANIMAL HUSBANDRY, DAIRYING & FISHERIES

## LOK  SABHA

UNSTARRED QUESTION NO. 2778

TO BE ANSWERED ON 13 TH  MARCH, 2018

## MODERNIZATION OF DAIRY COOPERATIVES

2778.  ADV. M. UDHAYAKUMAR:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ षि एवं ककसान कल्याण मंत्री be pleased to state:

be pleased to state:

- (a)  Whether it is a fact that the dairy processing infrastructure of cooperatives needs modernization and capacity enhancement and with most cooperatives sharing their profits with milk producers, there is a need to provide support and if so, the details thereof;
- (b) Whether the Government had approved a plan in this regard and if so, the details thereof; and
- (c)  Whether  it  is  also  true  that  the  Government  has  prepared/approved  the  operational  guidelines  to disburse the funds and if so, the details thereof?

## Answer

## THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE (SHRIMATI KRISHNA RAJ)

(a)  to  (c)  Yes  Madam,  The  Department  of  Animals  Husbandry,  Dairying  &  Fisheries  Government  of India has initiated a new Central Sector Scheme 'Dairy processing & Infrastructure Development Fund (DIDF)' in December, 2017 with a corpus of Rs 8004 crore with National Bank for Agriculture and Rural Development (NABARD),  to help dairy Co-operative Milk Unions, State Co-operative Dairy Federations,  Multi  State  Milk  Co-operatives,  Milk  Producers  Companies  and  NDDB  Subsidiaries  to expand and modernize infrastructure for dairy processing and value added products.

DIDF is targeted to create additional milk processing capacity of 12.6 Million liters per day in the co-operative  sector  during  the  project  period.  39  profit  making  milk  unions  shall  be  covered  initially. However,  other  Milk  Cooperatives  shall  be  eligible  subject  to  fulfilment  of  eligibility  criteria.  The department has issued the administrative approval and operational guidelines on 21st December, 2017. Salient features of the scheme is annexed.

***

## Annexure in reference to Reply to part (a) to (c) of the un-starred Question No 2778 due for answer on 13.03.2018.

## Salient  features  of  Dairy  processing  &  Infrastructure  Development  Fund (DIDF):

- 1) The approved outlay of DIDF is Rs. 10881 crore  (which consists of Rs. 8004 crore as interest  bearing  loan,  Rs. 2001  crore  as  contribution  from  Milk  Cooperatives,  Rs.  864 crore  as  interest  subvention  through  budgetary  support  from  DADF.  NDDB  &  NCDC will contribute Rs. 12 crore for Project Management & Learning Support) for three years i.e 2017-18 to 2019-20.
- 2) Dairy  processing  &  Infrastructure  Development  Fund  (DIDF)  envisages  focusing  on creation/ modernization/expansion of processing infrastructure and manufacturing facilities  for  Value  Added  Products  for  the  Milk  Cooperatives.  The  scheme  will  also support  in  building  an  efficient  milk  procurement  system  by  setting  up  of  chilling infrastructure & installation of electronic milk adulteration testing equipments at village level.
- 3) NABARD raises the fund from market and passes to NDDB/NCDC.  NDDB and NCDC are the Nodal Loaning Entities under DIDF. NDDB/NCDC shall provide the loans @6.5 %  to  Eligible  End  Borrowers  (Co-operative  Milk  Unions,  State  Cooperative  Dairy Federations,  Multi-State  Milk  Cooperatives,  Milk  Producer  Companies  and  NDDB subsidiaries.)
- 4) The major components proposed under the scheme are given below:
- A. Modernization & creation of - milk processing facilities and manufacturing facilities for Value added Products
- B. Creation of village level chilling infrastructure
- C. Setting up of electronic milk adulteration testing equipment at BMC location
- D. Project Management and Learning
- 5) With this investment, 95,00,000 farmers in about 50,000  villages would be benefitted. Additional Milk processing capacity of 126 lakh litre per day, milk drying capacity of 210 MT per day, milk chilling capacity of 140 lakh litre per day, installation of 28000 Bulk  Milk  Coolers  (BMCs)  along  with  electronic  milk  adulteration  testing  equipment and  value  added  products  manufacturing  capacity  of  59.78  lakh  litre  per  day  of  milk equivalent shall be created.