Lok Sabha Question No. 3319 (UNSTARRED), answered on 2023-03-21
Subject: Cooperative Milk Production Centres
Ministry: FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
Asked by: DNV Senthilkumar. S., Supriya Sadanand Sule

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

UNSTARRED QUESTION NO.3319 TO BE ANSWERED ON 21 ST  MARCH 2023

## COOPERATIVE MILK PRODUCTION CENTRES

3319. DR. D.N.V. SENTHILKUMAR S: SHRIMATI SUPRIYA SULE:

Will the Minister of FISHERIES, ANIMAL HUSBANDRY AND DAIRYING मत्स्यपालन , पशुपालन और डेयरी मंत्री be pleased to state:

- (a) whether the Government has formulated any concrete policy to provide loans to the farmers at cheaper rate to increase milk productivity and if so, the details thereof;
- (b)  the  total  number  of  cooperative  milk  production  centres  in  the  country,  State-wise  including Maharashtra  and  Tamil  Nadu  along  with  the  details  of  policy  to  improve  the  condition  of  these centres;
- (c) whether dairy cooperatives sell milk to consumers at much higher rate though they purchase it at very low rate from the dairy farmers who contribute immensely in dairy market and industry in the country including Maharashtra and Tamil Nadu;
- (d) if so, the details thereof and the reaction of the Government thereto;
- (e)  whether  the  Government  proposes  to  fix  the  minimum  support  price  for  milk  to  ensure remunerative prices of milk and milk products to dairy farmers; and
- (f) if so, the details thereof?

## ANSWER

## THE MINISTER FOR FISHERIES, ANIMAL HUSBANDRY AND DAIRYING (SHRI PARSHOTTAM RUPALA)

- (a) Department  of  Animal  Husbandry  and  Dairying  (DAHD),  Government  of  India  is implementing following schemes to provide loans to the farmers at cheaper rate to increase milk productivity:
- i. Animal  Husbandry  Infrastructure Development  Fund:  The  scheme  provides Interest subvention @3% per annum on loan component of the project cost for setting up of animal feed plant, breed improvement technology and breed multiplication farm, amongst others.
- ii. Rashtriya  Gokul  Mission  :  50%  capital  subsidy  is  available  for  eligible  entrepreneurs (individual/SHGs/FCO/FPO/JLGs  and  section  8  companies)  for  establishment  of  breed multiplication  farm  preferably  of  indigenous  breeds  on  hub  and  spoke  model  under Rashtriya Gokul  Mission. Balance 50%  will be Loan  and  beneficiary contribution (Beneficiary contribution shall not exceed 37.5%).
- iii. Dairy  Processing  and  Infrastructure  Development  Fund:  :  The  scheme  provides  Interest subvention upto @2.5% per annum on loan component of the project cost for setting up of Cattle feed/feed supplement plants and Cattle feed go-downs to support milk productivity.
- iv. National Programme for Dairy Development-Component B (Dairying through Cooperatives) provides for 90% grant assistance to the eligible end borrowers namely, Milk Unions,  Multi  State  Milk  Cooperatives,  State  Milk  Federations,  and  Milk  Producer Companies for Productivity Enhancement including nutritional intervention, fodder development  and  crop  residue  management  amongst  others.  It  aims  to  benefit  enrolled farmer-members.
- (b) DAHD  is  implementing  following  dairy  development  schemes  for  development  of  Dairy Sector including dairy co-operatives:
- (i) National Programme for Dairy Development (NPDD)
- (ii) Dairy Processing and Infrastructure Development Fund (DIDF)
- (iii)  Supporting  Dairy  Cooperative  and  Farmer  Producer  Organizations  engaged  in  dairy activities (SDCFPO)

The total  number of dairy cooperative societies in the country, State-wise including Maharashtra and Tamil Nadu is given at Annexure.

(c) & (d) Based on the inputs received from Cooperative Dairy Federations/Milk unions, all India average sale price, including Maharashtra and Tamil Nadu, of full cream milk (6% fat and 9% solid not fat) to the consumers is about Rs 60.68 per litre and average procurement price offered to the farmer is about Rs 46.15 per Kg for milk (6% fat and 9% solid not fat). About 76% of the consumer rupee is paid back to the primary producers/farmer. Further, farmer-members of the cooperatives also receive annual  bonuses  plus  various  input  services  like veterinary services, Artificial Insemination (AI), cattle feed at subsidized rates etc and market access.

(e) & (f) DAHD does not regulate the procurement and sale prices of milk in the country. Prices are decided by  the  cooperative  and  private  dairies  based  on  their  cost  of  production  and,  by  market forces, in general. Since milk pricing is free from Government control, this Department does not have any proposal to fix Minimum Support Price (MSP) for milk in the country.

****

## State-wise Dairy Cooperative Societies in the country

| Sr. No.   | STATE NAME       |   Number of Organised DCS/MPPs (000 Nos) |
|-----------|------------------|------------------------------------------|
| 1         | ANDHRA PRADESH   |                                     7.23 |
| 2         | ASSAM            |                                     0.49 |
| 3         | BIHAR            |                                    27.9  |
| 4         | CHHATTISGARH     |                                     1.1  |
| 5         | GOA              |                                     0.18 |
| 6         | GUJARAT          |                                    22.38 |
| 7         | HARYANA          |                                     7.96 |
| 8         | HIMACHAL PRADESH |                                     1.07 |
| 9         | JAMMU &KASHMIR   |                                     0.91 |
| 10        | JHARKHAND        |                                     0.88 |
| 11        | KARNATAKA        |                                    17.04 |
| 12        | KERALA           |                                     3.38 |
| 13        | MADHYA PRADESH   |                                    11.18 |
| 14        | MAHARASHTRA      |                                    19.4  |
| 15        | MANIPUR          |                                     0.23 |
| 16        | MEGHALAYA        |                                     0.02 |
| 17        | MIZORAM          |                                     0.06 |
| 18        | NAGALAND         |                                     0.05 |
| 19        | ODISHA           |                                     6.65 |
| 20        | PUDUCHERRY       |                                     0.11 |
| 21        | PUNJAB           |                                     8.67 |
| 22        | RAJASTHAN        |                                    23.26 |
| 23        | SIKKIM           |                                     0.65 |
| 24        | TAMILNADU        |                                    10.86 |
| 25        | TELANGANA        |                                     6.84 |
| 26        | TRIPURA          |                                     0.13 |
| 27        | UTTAR PRADESH    |                                    38.29 |
| 28        | UTTARAKHAND      |                                     4.11 |
| 29        | WEST BENGAL      |                                     3.71 |
|           | Total            |                                   224.72 |

Source: Milk Unions/Federation/Milk Producer Organisations

Data pertain to organised Dairy Cooperative Societies (DCS) and Milk Pooling Points (MPP)

## Annexure