Lok Sabha Question No. 3265 (UNSTARRED), answered on 2018-08-07
Subject: Condition of Cooperative Milk Federations
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: VIKRAM USENDI

O.I.H.

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF ANIMAL HUSBANDRY, DAIRYING AND FISHERIES LOK SABHA

UNSTARRED QUESTION NO.3265 TO BE ANSWERED ON 7 TH  AUGUST, 2018

## CONDITION OF COOPERATIVE MILK FEDERATIONS

## 3265  SHRI VIKRAM USENDI

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

- (a) The details  of  the  schemes  formulated  by  the  Government  to  ameliorate  the  conditions  of Cooperative Milk Federations;
- (b) Whether  the  Government  proposes  to  keep  the  interest  on  loan  borrowed  by  the  dairy farmers at par with the interest paid by agriculture farmers;
- (c) If so, the details thereof;
- (d) Whether the Government proposes to provide loan on interest subvention on purchase of livestock since dairy farming is a supplementary occupation to agriculture; and
- (e)     If so, the time by which a final decision is likely to be taken by the Government in this regard.

## ANSWER

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

- (a)            Department of Animal Husbandry, Dairying and Fisheries, Government of India has been implementing following dairy development schemes to ameliorate the conditions of Cooperative Milk Federations in the country.   Details are given at Annexure below:

|   Sl.No. | Scheme Name                                          | Annexure   |
|----------|------------------------------------------------------|------------|
|        1 | National Programme for Dairy Development             | I          |
|        2 | National Dairy Plan (Phase-I)                        | II         |
|        3 | Dairy Entrepreneurship Development Scheme            | III        |
|        4 | Dairy Processing and Infrastructure Development Fund | IV         |

(b)& (c)    The Department is implementing DEDS in which Back Ended Capital Subsidy is given to farmer  instead  of  interest  subvention  to  reduce  the  burden  on  loan  borrowed  by  dairy  farmers. Under the scheme, back ended capital subsidy of 25% for general category beneficiaries (33.33% for SC/ST beneficiaries) is provided for components namely setting up of small cattle rearing unit, bulk milk cooler, testing equipment, transport facilities, indigenous product making facilities, cold storage, vermi compost unit and setting up private veterinary clinic.  There is a budgetary provision of Rs.323 crore during 2018-19.  Details of scheme are given at Annexure-III.

- (d) & (e)  In the budget announcement 2018-19, the facility of Kisan Credit Cards was extended to animal  husbandry  farmers,  to  help  them  meet  their  working  capital  needs  of  small  and  marginal farmers.    Thus  the  animal  husbandry  and  fisheries  farmers  would  get  the  same  benefit  of  interest subvention for their working capital requirement which is available to farmers.  Interest subvention on loan of purchase of livestock has not been approved.

## National Programme for Dairy Development (NPDD)

National  Programme  for  Dairy  Development  (NPDD)  was  launched  in  February,  2014  with  the objective  of  to  create  and  strengthen  infrastructure  for  procurement,  processing  and  marketing  of milk.

Under the programme, 83 projects in 28 States have been approved with the total outlay of Rs.848.48 crore (Central Assistance Rs. 650.85 crore) against which Rs.348.34  crore has been released and an amount of Rs.168.89 crore has been utilized upto 30.6.2018

This  Department  has  approved  establishment/modification  of  20.36  LLPD  capacity  dairy  plant, installation  of  15.73  LLPD  capacity  chilling  plant  and  creation  of  8206  dairy  cooperative  society (DCS) till 30.06.2018.

## National Dairy Plan Phase I (NDP I)

A Central  Sector  Scheme  of  Government  of  India,  is  a  scientifically  planned  multi-state  initiative being  implemented  by  National  Dairy  Development  Board  (NDDB)  with  the  network  of  End Implementing Agencies (EIAs) for the period 2011-12 to 2018-19 with the following objectives:

- (i)                  Increase  productivity  of  milch  animals  and  thereby  increase  milk production  to meet the rapidly growing demand for milk.
- (ii)         Provide rural milk producers with greater access to the organised milk processing sector.

A  multi-pronged  series  of  interventions  are  being  undertaken  under  NDP  I  to  meet  the  twin objectives of NDP I. The key interventions being implemented under NDP I are provided below:

- a) Progeny Testing Programme
- b) Pedigree Selection Programme
- c) Strengthening of Semen Stations
- d) Pilot Doorstep AI Delivery Services
- e) Ration Balancing Programme
- f) Fodder Development Programme
- g) Village Based Milk Procurement System
- h) Project Management and Learning

## Dairy Entrepreneurship Development Scheme (DEDS)

The scheme has been launched in  September, 2010 and  implemented through NABARD. The  scheme  aims  at  setting  up  of  small  dairy  units,  heifer  rearing,  bringing  structural  change  in unorganised sector, upgradation of traditional technology to handle milk on commercial scale. Some of  the  major  components  of  the  scheme  are  setting  up  of  small  dairy  units,  heifer  rearing,  Cold Storage  facilities,  Equipment  for  manufacture  of  indigenous  milk  products,  purchase  of  milking equipment and dairy marketing outlets.

## Pattern of Assistance

- I. Back ended capital subsidy @ 25% of the project cost for general category and @ 33.33 % for SC/ST farmers. The component-wise subsidy ceiling will be subject to indicative cost arrived at by NABARD from time to time.
- II. Entrepreneur  contribution  (Margin)  for    loans  beyond    Rs.1  lakh*  -10%  of  project  cost (Minimum)
- III. Bank Loan - Balance portion

## COMPONENTS OF THE SCHEME :

| S. No   | Component                                                                       |
|---------|---------------------------------------------------------------------------------|
| i       | Setting up of milch cattle(2-10 animals)                                        |
| ii      | Heifer rearing dairy units (upto 20 animals)                                    |
| iii     | Vermi compost unit                                                              |
| iv      | Purchase of milking machines /milk-o-testers/bulk milk cooling units (upto 5KL) |
| v       | Equipment for manufacture of indigenous milk products                           |
| vi      | Dairy product transportation                                                    |
| vii     | Cold storage facilities                                                         |
| viii    | Establishment of private veterinary clinics                                     |
| ix      | Dairy marketing outlet / Dairy parlour                                          |

## Dairy Processing & Infrastructure Development Fund (DIDF)

- I. The  scheme  has  been  launched  in  December  2017  with  total  scheme  outlay  of Rs.10881 crore.  The scheme aims at helping the producer owned and controlled institutions to  increase  their  share  of  milk,  thereby  providing  greater  opportunities  of  ownership, management and market access to rural milk  producers  in  the  organised  milk  market.  The scheme envisages investment of  Rs. 8004 crore as interest bearing loan, Rs. 2004 crore as milk cooperative contribution,  Rs. 12 crore as contribution by National Dairy Development Board (NDDB) and National Cooperative Development Corporation (NCDC) and Rs. 864 crore  as  interest  subvention  by  Department  of  Animal  Husbandry,  Dairying  &  Fisheries, Government of India. The scheme envisages to make an investment of 27.83% of the total investment of Rs. 10881  crore towards creation of capacity of value added products.   The scheme is implemented through National Dairy Development Board (NDDB) and National Cooperative Development Corporation (NCDC).

## Major components:

- I. Modernization & creation of new milk processing facilities
- II. Manufacturing facilities for Value added Products
- III. Milk Chilling infrastructure
- IV. Setting up electronic milk testing equipment at village level
- V. Project Management and Learning
- VI. Any other activity related to the dairy sector targeted to contribute to the objectives of DIDF and decided by Government of India in consultation with the stakeholders.

## Important points regarding DIDF:

- I. Year of implementation: 2017-18 to 2019-20 with the proposed outlay of Rs. 10881 crore.
- II. 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
- III. NDDB & NCDC will contribute Rs. 12 crore for Project Management & Learning Support).

## Salient Features of the DIDF scheme:

- I. 95 Lakh milk producers will be benefited by covering 50,000 villages.
- II. Establishment of 28000 Bulk Milk Coolers with 140 Lakh Liters per Day as additional milk chilling capacity.
- III. Providing 28000 Milk Testing Equipments to check adulteration in milk.
- IV. Creation of additional 210 Metric Ton per Day Milk Drying capacity.
- V. Modernization, expansion and creation of Milk Processing capacity of 126 Lakh Litres per Day.