Lok Sabha Question No. 2350 (UNSTARRED), answered on 2021-03-09
Subject: Schemes for Dairy Farmers
Ministry: FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
Asked by: Jayadev Galla

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

UNSTARRED QUESTION No. 2350 TO BE ANSWERED ON 9 th  March, 2021

## SCHEMES FOR DAIRY FARMERS

## 2350. SHRI JAYADEV GALLA:

Will the Minister of FISHERIES, ANIMAL HUSBANDRY AND DAIRYING

मत्स्यपाऱन , पशुपाऱन और डेयरी मंत्री

be pleased to state:

- (a) whether  it  is  true  that  a  new  scheme  is  being  implemented  for  dairy  farmers  with  interest subvention;
- (b) if so, the details of the scheme and whether the Government has started implementing the same;
- (c) the  number  of  dairy  farmers  going  to  be  benefited  from  the  scheme  and  whether  the Government is planning to take this scheme to every nook-and-corner of the country since many are not aware of this scheme as they are staying in rural areas; and
- (d) the  details  of  funds  allocated  for  this  scheme  and  whether  there  are  plans  to  extend  this  till 2021-22?

## ANSWER

MINISTER OF STATE FOR FISHERIES, ANIMAL HUSBANDRY AND DAIRYING (DR. SANJEEV KUMAR BALYAN)

- (a) This Department is implementing following schemes for dairy farmers with interest subvention:
- i. Dairy Processing and Infrastructure Development Fund (DIDF)
- ii. Support to Dairy Cooperatives and Farmer Producer Organisation (SDCFPO)
- iii. Animal Husbandry Infrastructure Development Fund (AHIDF)
- (b) The details of the schemes are as under:
- i. DIDF is  being  implemented  in  the  country  with  objective  to  modernize  the  milk  processing plants and machinery and to create additional infrastructure for processing more milk since December 2017 with total outlay of Rs. 11,184 Crore and loan component of Rs. 8,004 Crore. As on 31.01.2021, 40 projects costing Rs. 4972.32 Crore have been approved with Rs. 3393.41 Crore as loan component; against  which  Rs.  1109.97  Crore  has  been  disbursed  to  the  End  Borrowers  (Cooperatives  and  Milk Producer Companies). Under this scheme milk processing capacity of 45 Lakh Litre per Day (LLPD), milk  powder  manufacturing  capacity  of  165  Metric  Ton  per  day  (MTPD),  Value  Added  Product capacity of 6.76 LLPD (milk equivalent) and 113 Bulk Milk Coolers of 3.40 LLPD capacity have been established as on 31.01.2021
- ii. SDCFPO was launched during 2017-18 with a corpus of Rs. 300 crore to be kept in perpetuity with  National  Dairy  Development  Board  (NDDB)  for  providing  soft  loans  for  working  capital  to enable Cooperative Societies and farmer producer organizations to maintain a stable market access to farmers.  Due  to  Economic  Impact  of  Covid-19  on  Dairy  Sector,  a  new  component  was  introduced namely 'interest  subvention  on  working  capital  loans  for  Dairy  sector'    under  this  scheme  with  an outlay of Rs 203 Cr. Under this new component, 2% per annum interest subvention on working capital loan  is  provided  and  for  prompt  and  timely  repayment,  additional  2%  interest  subvention  will  be payable at the end of the loan repayment period. As on 26.02.2021, Interest Subvention amount of Rs 131.49 crore has been approved against working capital loan amount of Rs 12,023.64 Cr @ 2% p.a and Rs 38.58 Cr has been released by NDDB as interest subvention amount.
- iii. AHIDF: Under Aatmanirbhar Bharat package, AHIDF has been approved on 24.06.2020 with an  outlay  of  Rs.  15,000  crore  for  incentivising  investment  by  individual  entrepreneurs,  private companies, MSME (Medium and Small scale Enterprises), Farmer Producer Organisations (FPOs) and section 8 companies to establish infrastructure for value addition in dairy processing, meat processing and  animal  feed.  The  scheme  provides  3%  interest  subvention  for  loan  upto  90%  of  the  estimated/ actual project cost from the Scheduled Banks based on the submission of viable projects by eligible beneficiaries. This Department has started implementation of the scheme.

(c) Yes, these schemes are to be implemented throughout the country. The number of dairy farmers to  be  benefited  from  the  DIDF  scheme  is  95  lakhs.  Since  the  scheme  SDCFPO  provides  working capital, there is no target set for the farmer members. However, a substantial number of farmer will be benefitted indirectly. AHIDF is a demand driven scheme and no target for farmers has been projected.

(d) Yes,  these  schemes  are  to  be  implemented  during  2021-22.  The  funds  allocated  for  these schemes as interest subvention during 2020-21 are as under:

| Year    | (Rs in Crore)   | (Rs in Crore)   | (Rs in Crore)   |
|---------|-----------------|-----------------|-----------------|
| Year    | DIDF            | SDCFPO          | AHIDF           |
| 2020-21 | 10.00           | 100.00          | 77.00           |

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