Lok Sabha Question No. 4436 (UNSTARRED), answered on 2019-01-08
Subject: Measures for Dairy Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: MOHANBHAI KALYANJIBHAI KUNDARIYA, SUNIL BALIRAM GAIKWAD

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

UNSTARRED QUESTION NO. 4436 TO BE ANSWERED ON 08 TH  JANUARY, 2019

## MEASURES FOR DAIRY FARMERS

## 4436.   SHRI KUNDARIYA MOHAN BHAI

KALYANJI BHAI:

DR. SUNIL BALIRAM GAIKWAD:

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

- (a)  whether  the  Government  has  taken  note  of  the  distress  being  faced  by  dairy  farmers  in  the country and if so, the details of the measures proposed to provide assistance to the dairy farmers;
- (b) whether the Government is considering to provide loans at low rate of interest to dairy farmers of the country and if so, the details thereof;
- (c) whether the Government has received several proposals from various States including Gujarat for expanding the dairy programmes;
- (d) if so, the response of the Government thereto; and
- (e)  the  other  steps  taken  by  the  Government  to  boost  the  production  of  dairy  products  in  the country?

## ANSWER

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

- (a) Central Government does not control milk prices across the country.  The procurement and sale price of milk are decided by the concerned State Governments in consultation with State Cooperative Milk Federations based on the input cost.  The measures taken by the Department of Animal Husbandry, Dairying and Fisheries  to provide assistance to the dairy farmers are as under:
- i) Increased  the  import  duty  of  Whey  Powder  from  30%  to  40%  vide  notification  dated 27.03.2018.
- ii) D/o  Commerce  vide  notification  dated  27.09.2018  has  allowed  20%  export  incentive under Merchandise Export from  India Scheme  (MEIS) for  dairy product export made between 27.09.2018 and 12.01.2019.
- iii) Advisory  to  all  the  States  to  include  supply  of  milk/milk  products  of  Cooperatives through  Mid-day  Meal  Scheme,  Anganwadis  under  Integrated  Child  Development Scheme (ICDS), Health schemes, Tribal Hostels and Government/Institutional canteen.
- iv) Advise to all State Governments and State Milk Federations to use Public Distribution System of State Governments to market surplus milk.
- v) A Scheme named 'Support to State Cooperative Dairy Federation' has been approved to provide  working  capital  loan  to  State  Cooperatives  and  Federations  with  a  corpus  of Rs.300 crore.
- (b) Under Dairy Entrepreneurship Development Scheme, to reduce the interest burden on dairy loan,  back-ended  capital  subsidy  up  to  25%  of  the  project  cost  for  general  category beneficiaries  (33.33%  for  SC,  ST  category  beneficiaries)  is  provided  for,  amongst  other, setting up of 2 to 10 cattle unit.

(c) &(d)

- (i) The Government of Gujarat has submitted three projects under 'National Programme for Dairy Development (NPDD)' scheme during 2017-18 and 2018-19. The projects have been approved by the Department with the total outlay of Rs.9769.75 lakh with a central share of Rs 5863.01 lakh. An amount of Rs 5416.06 lakh has been released under these projects.
- (ii) Under Rashtriya Gokul Mission, projects have been approved with a total outlay of Rs. 10657.91  lakh  and  an  amount  of  Rs.  1152.42  lakh  has  been  released  to  the  State  of Gujarat.
- (e) Under Dairy Processing and Infrastructure Development Fund (DIDF) with an outlay of Rs 10,881 crore, there is a provision for setting up of manufacturing facilities for Value added Products  across  the  country.  For  this  purpose,  loan  is  provided  to  eligible  end  borrowers namely, Milk Unions, State Dairy Federations, Multi-State Milk Cooperatives, Milk Producer Companies and NDDB subsidiaries at interest rate of 6.5% p.a. Components funded under the scheme  are  (i)  Modernization&  creation  of  -  milk  processing  facilities  and  manufacturing facilities for Value added Products; (ii) Creation of village level chilling infrastructure; and, (iii) Setting up of electronic milk testing equipment.

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