Lok Sabha Question No. 987 (UNSTARRED), answered on 2022-02-08
Subject: Improvement of Dairy Sector
Ministry: FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
Asked by: B. Y. Raghavendra, Annasaheb Shankar Jolle, Umesh G. Jadhav, Prathap Simha, S. Muniswamy, Sanganna Amarappa Karadi

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

UNSTARRED QUESTION NO.987 TO BE ANSWERED ON 8 TH  FEBRUARY, 2022

## IMPROVEMENT OF DAIRY SECTOR

## 987. SHRI B.Y. RAGHAVENDRA:

SHRI ANNASAHEB SHANKAR JOLLE:

DR. UMESH G. JADHAV:

SHRI PRATHAP SIMHA:

SHRI S. MUNISWAMY:

SHRI SANGANNA AMARAPPA:

## Will the Minister of FISHERIES, ANIMAL HUSBANDRYAND DAIRYING

## मत्स्यपाऱन , पशुपाऱन और डेयरी मंत्री

be pleased to state:

- (a) whether  the  Government  has  formulated  any  scheme  to  improve  the  condition  of  the  Dairy Sector including co-operative milk federations;
- (b) if so, the details thereof;
- (c) the amount of funds earmarked, released, and utilized under such schemes during the last three years, year-wise and State-wise, including the State ofKarnataka;and
- (d) the achievements made under these schemes during the said period?

## ANSWER

MINISTER FOR FISHERIES, ANIMAL HUSBANDRY AND DAIRYING (SHRIPARSHOTTAMRUPALA)

- (a) The  Department  of  Animal  Husbandry  and  Dairying  is  implementing  following  schemes  for Dairy Development across the country:
- 1)  National Programme for Dairy Development (NPDD)
- 2)  Dairy processing and Infrastructure Development Fund (DIDF)
- 3) Supporting  Dairy  Cooperatives  and  Farmer  Producer  Organizations  engaged  in  dairy activities (SDCFPO)
- (b) The details of the schemes are at Annexure-I.
- (c) Since  the  schemes  are  demand  driven,the  state  -wise  allocation  is  not  made.  The  State-wise, Year-wise details  of  the  schemes  of  funds  released,  utilized  under  during  the  last  three  years, including the State of Karnataka for NPDD, DIDF and SDCFPO are at Annexure-II, AnnexureIII and Annexure IV.
- (d) The achievement made under NPDD, DIDFand SDCFPO is at Annexure-V.

## The details of the schemes NPDD, DIDF and SDCFPO are as under:

## 1. National Programme for Dairy Development

The  Department  is  implementing  Central  Sector  Scheme-NPDD  across  the  country  since  Feb-2014 with an objective of creating/strengthening of infrastructure for Production of quality milk, Procurement, Processing and Marketing of Milk & Milk Products.

The scheme has been restructured/realigned in  July  2021.  The  restructured  NPDD  Scheme  is  being implemented from 2021-22. The restructured scheme havetwo components:

- 1.1 Component 'A' focuses towards creating/strengthening of infrastructure for quality milk testing equipment as well as primary chilling facilities for State Cooperative Dairy Federations/ District Cooperative  Milk  Producers'  Union/SHG  run  private  dairy/Milk  Producer  Companies/Farmer Producer Organisations.
- 1.2  Component B (Dairying through Cooperatives (DTC)) Dairying through Cooperatives' aims at increasing  sales  of  milk  and  dairy  products  by  increasing  farmer's  access  to  organised  market, upgrading dairy processing facilities, marketing infrastructure and enhancing the capacity of producer owned institutions thereby contributing to increase in return to milk producers in the project area.

## 2. Dairy processing and Infrastructure Development Fund (DIDF)

The Department launched DIDF in December 2017 with the objective of creation/ strengthening of Milk  Processing,  Value  addition  &  chilling  facilities  for  Dairy  Co-operative,  Multi  State  Dairy Cooperative, Milk Producer Companies (MPC), NDDBs subsidiaries, Self Help Groups (SHGs) and Farmer Producer Organisations (FPOs) registered under State Cooperative and Companies Act.

DIDF is to be implemented from 2018-19 to 2022-23 and repayment period upto 2030-31 with spill over to first quarter of the FY 2031-32. Under the scheme, NABARD raise the fund from market and disburse  this as loan to NDDB/ NCDC which is then disbursed by them to End Borrowers.  NDDB has now been also allowed to disburse loan to End Borrowers from its own  resources. GoI provide 2.5 % interest subvention to NABARD.

Componentsof  DIDF :  Milk  Processing,  Value  addition  &  chilling  facilities,  Cattle  feed/  feed supplement plants, Milk transportation system (Refer van/insulated tankers etc), Marketing infrastructure  (including  e-market  system,  bulk  vending  system,  Parlour,  deep  freezer,  cold  storage etc., Commodity and Cattle feed go-downs, ICT infrastructure (e.g. block chain technology, servers, IT solutions, Near Real Time devices etc), R&D (lab & equipment, new technology, innovations, product development etc), Renewable energy infrastructure/ plants, trigen/ energy efficiency infrastructure, Pet bottle/packaging material manufacturing units for dairy purposes, Training centre (complete with civil and other necessary infrastructure).

- 3.Supporting  Dairy  Cooperatives  and  Farmer  Producer  Organizations  engaged  in  dairy activities (SDCFPO):

This Central Sector Scheme was launched during 2017-18. The scheme is being implemented through National Dairy Development Board (NDDB). Main objective of the scheme is to assist the Cooperative Societies  and  farmer  producer  organizations  engaged  in  dairy  activities  by  providing  soft  working capital  loan  to  tide  over  the  crisis  on  account  of  severely  adverse  market  conditions  or  natural calamities.  Due  to  Economic  Impact  of  Covid-19  on  Dairy  Sector,Ministry  of  Fisheries,  Animal Husbandry and Dairying has introduced a new component 'interest subvention on Working capital loans for Dairy sector' as one of the component under this scheme.Under this component 2% interest subvention is provided on working capital and an additional interest subvention of 2% is provided on timely payment.

Annexure-II The State-wise, Year-wise details of funds released, utilized during the last three years, including the State of Karnataka under NPDD:

## a. Component A:

|        |                   | (Rs. in lakh)   | (Rs. in lakh)   | (Rs. in lakh)   | (Rs. in lakh)   | (Rs. in lakh)   | (Rs. in lakh)   |
|--------|-------------------|-----------------|-----------------|-----------------|-----------------|-----------------|-----------------|
| S. No. | Name of State/UT  | 2018-19         | 2018-19         | 2019-20         | 2019-20         | 2020-21         | 2020-21         |
| S. No. | Name of State/UT  | Released        | Utilised        | Released        | Utilised        | Released        | Utilised        |
| 1      | Andhra Pradesh    | 70.66           | 70.66           | 878.97          | 878.53          | 0.00            | 0.00            |
| 2      | Arunachal Pradesh | 0.00            | 0.00            | 511.19          | 0.00            | 0.00            | 0.00            |
| 3      | Assam             | 0.00            | 0.00            | 85.00           | 82.72           | 0.00            | 0.00            |
| 4      | Bihar             | 3793.47         | 3793.47         | 1971.65         | 1902.58         | 9966.15         | 2544.20         |
| 5      | Chhattisgarh      | 0.00            | 0.00            | 464.88          | 230.11          | 250.95          | 0.00            |
| 6      | Goa               | 0.00            | 0.00            | 42.50           | 41.15           | 0.00            | 0.00            |
| 7      | Gujarat           | 4325.53         | 3580.47         | 573.60          | 588.31          | 446.95          | 160.71          |
| 8      | Haryana           | 161.99          | 161.99          | 616.10          | 415.44          | 0.00            | 0.00            |
| 9      | Himachal Pradesh  | 1262.91         | 1221.47         | 655.93          | 61.54           | 61.55           | 39.64           |
| 10     | Jammu &Kashmir    | 1539.35         | 1539.35         | 672.13          | 672.13          | 949.52          | 949.52          |
| 11     | Jharkhand         | 0.00            | 0.00            | 410.78          | 87.00           | 0.00            | 0.00            |
| 12     | Karnataka         | 1011.00         | 1011.00         | 2018.00         | 2018.00         | 3564.00         | 1128.14         |
| 13     | Kerala            | 2381.24         | 2381.24         | 3096.60         | 2947.46         | 705.38          | 600.95          |
| 14     | Madhya Pradesh    | 2085.27         | 2085.27         | 1503.33         | 1503.33         | 1013.48         | 0.00            |
| 15     | Maharashtra       | 184.12          | 184.12          | 1314.88         | 902.48          | 1693.29         | 285.67          |
| 16     | Manipur           | 51.09           | 51.09           | 575.76          | 575.76          | 514.62          | 510.65          |
| 17     | Meghalaya         | 427.77          | 427.77          | 628.10          | 628.17          | 821.98          | 166.30          |
| 18     | Mizoram           | 0.00            | 0.00            | 700.45          | 579.58          | 20.38           | 17.65           |
| 19     | Nagaland          | 0.00            | 0.00            | 349.80          | 349.80          | 16.78           | 0.00            |
| 20     | Odisha            | 839.71          | 801.28          | 804.88          | 747.11          | 292.50          | 0.00            |
| 21     | Puducherry        | 0.00            | 0.00            | 42.50           | 42.50           | 0.00            | 0.00            |
| 22     | Punjab            | 368.83          | 368.83          | 1311.75         | 1311.75         | 612.50          | 186.56          |
| 23     | Rajasthan         | 4290.27         | 4281.78         | 2439.70         | 2406.70         | 1750.22         | 740.70          |
| 24     | Sikkim            | 0.00            | 0.00            | 394.10          | 263.95          | 1047.25         | 1006.28         |
| 25     | Tamil Nadu        | 759.62          | 759.62          | 1314.04         | 107.48          | 3859.76         | 732.03          |
| 26     | Telangana         | 0.00            | 0.00            | 957.09          | 844.10          | 919.75          | 919.75          |
| 27     | Tripura           | 1337.14         | 181.70          | 5.60            | 5.32            | 78.99           | 0.00            |
| 28     | Uttar Pradesh     | 2096.03         | 0.00            | 501.64          | 82.78           | 0.00            | 0.00            |
| 29     | Uttarakhand       | 0.00            | 0.00            | 1674.07         | 1643.71         | 0.00            | 0.00            |
| 30     | West Bengal       | 0.00            | 0.00            | 101.79          | 101.79          | 0.00            | 0.00            |
|        | Grand total       | 26986.00        | 22901.13        | 26616.80        | 22021.28        | 28586.00        | 9988.75         |

Source: State Cooperative Federations

Annexure-III The  State-wise,  Year-wise  details  of  loan  sanctioned  and  disbursed  under  DIDF  (as  on 30.11.2021):

|                             |                             | No of                       | (Rs. in Crore)              | (Rs. in Crore)              | (Rs. in Crore)              | (Rs. in Crore)              | (Rs. in Crore)              | (Rs. in Crore)              | (Rs. in Crore)              |
|-----------------------------|-----------------------------|-----------------------------|-----------------------------|-----------------------------|-----------------------------|-----------------------------|-----------------------------|-----------------------------|-----------------------------|
| S No                        | State                       |                             | Project Cost                | Project Cost                | Loan disbursed              | Loan disbursed              | Loan disbursed              | Loan disbursed              | Loan disbursed              |
|                             |                             | Projects                    | Total                       | Loan                        | 2018-19                     | 2019-20                     | 2020-21                     | 2021-22                     | Total                       |
| Projects sanctioned by NDDB | Projects sanctioned by NDDB | Projects sanctioned by NDDB | Projects sanctioned by NDDB | Projects sanctioned by NDDB | Projects sanctioned by NDDB | Projects sanctioned by NDDB | Projects sanctioned by NDDB | Projects sanctioned by NDDB | Projects sanctioned by NDDB |
| 1                           | Andhra Pradesh              | 1                           | 97.75                       | 78.20                       | 0.00                        | 16.60                       | 18.13                       | 0.00                        | 34.73                       |
| 2                           | Gujarat                     | 3                           | 1070.35                     | 822.59                      | 0.00                        | 156.30                      | 12.98                       | 34.71                       | 203.99                      |
| 3                           | Haryana                     | 3                           | 162.93                      | 130.34                      | 0.00                        | 0.00                        | 0.00                        | 0.00                        | 0.00                        |
| 4                           | Karnataka                   | 8                           | 1626.39                     | 914.90                      | 396.15                      | 227.31                      | 79.68                       | 6.74                        | 709.88                      |
| 5                           | Kerala                      | 1                           | 15.25                       | 12.20                       | 0.00                        | 0.00                        | 0.00                        | 0.00                        | 0.00                        |
| 6                           | Maharashtra                 | 3                           | 455.76                      | 256.35                      | 0.00                        | 52.83                       | 78.20                       | 0.00                        | 131.03                      |
| 7                           | Punjab                      | 4                           | 316.91                      | 249.78                      | 41.85                       | 13.16                       | 39.00                       | 28.18                       | 122.20                      |
| 8                           | Rajasthan                   | 1                           | 79.33                       | 59.77                       | 0.00                        | 0.00                        | 0.00                        | 33.87                       | 33.87                       |
| 9                           | Telangana                   | 3                           | 261.51                      | 156.70                      | 0.00                        | 0.00                        | 0.00                        | 0.00                        | 0.00                        |
| 10                          | West Bengal                 | 1                           | 130.00                      | 104.00                      | 0.00                        | 0.00                        | 0.00                        | 0.00                        | 0.00                        |
| 11                          | Tamil Nadu                  | 4                           | 379.30                      | 303.43                      | 0.00                        | 0.00                        | 0.00                        | 0.00                        | 0.00                        |
| 12                          | Bihar                       | 1                           | 113.27                      | 78.80                       | 0.00                        | 0.00                        | 0.00                        | 0.00                        | 0.00                        |
| Sub-Total                   | Sub-Total                   | 33                          | 4708.75                     | 3167.06                     | 438.00                      | 466.20                      | 228.00                      | 103.50                      | 1235.70                     |
| Projects sanctioned by NCDC | Projects sanctioned by NCDC | Projects sanctioned by NCDC | Projects sanctioned by NCDC | Projects sanctioned by NCDC | Projects sanctioned by NCDC | Projects sanctioned by NCDC | Projects sanctioned by NCDC | Projects sanctioned by NCDC | Projects sanctioned by NCDC |
| 1                           | Tamil Nadu                  | 5                           | 307.44                      | 245.96                      | 0.00                        | 0.00                        | 0.00                        | 0.00                        | 0.00                        |
| 2                           | Madhya Pradesh              | 1                           | 83.85                       | 50.00                       | 0.00                        | 0.00                        | 0.00                        | 0.00                        | 0.00                        |
| Sub-Total                   | Sub-Total                   | 6                           | 391.29                      | 295.96                      | 0.00                        | 0.00                        | 0.00                        | 0.00                        | 0.00                        |
| GRAND TOTAL                 | GRAND TOTAL                 | 39                          | 5100.04                     | 3463.02                     | 438.00                      | 466.20                      | 228.00                      | 103.50                      | 1235.70                     |

Source: National Dairy Development Board and National Cooperative Development Corporation.

## Annexure-IV

The State wise amount of interest subvention for 2020-21 disbursed under SDCFPO Scheme. (Rs in Crore)

| No.   | State          | Interest subvention sanctioned   | Interest subvention sanctioned   | Interest subvention released    | Interest subvention released       | Total Interest subvention Disbursed   |
|-------|----------------|----------------------------------|----------------------------------|---------------------------------|------------------------------------|---------------------------------------|
|       |                | No of Cooperatives               | Sanctioned @2%p.a.               | Regular Interest Subvention @2% | Additional Interest Subvention @2% |                                       |
| 1     | Andhra Pradesh | 3                                | 2.46                             | 1.12                            | 1.11                               | 2.23                                  |
| 2     | Bihar          | 5                                | 0.96                             | 0.71                            | 0.66                               | 1.37                                  |
| 3     | Gujarat        | 9                                | 120.08                           | 61.72                           | 61.46                              | 123.18                                |
| 4     | Haryana        | 2                                | 0.63                             | 0.45                            | 0                                  | 0.45                                  |
| 5     | Jammu& Kashmir | 1                                | 0.05                             | 0                               | 0                                  | 0                                     |
| 6     | Jharkhand      | 1                                | 0.06                             | 0.04                            | 0                                  | 0.04                                  |
| 7     | Karnataka      | 12                               | 9.81                             | 4.89                            | 4.89                               | 9.78                                  |
| 8     | Madhya Pradesh | 2                                | 0.62                             | 0.1                             | 0                                  | 0.1                                   |
| 9     | Maharashtra    | 2                                | 3.12                             | 1.86                            | 1.86                               | 3.72                                  |
| 10    | Punjab         | 1                                | 9.21                             | 5.11                            | 5.11                               | 10.22                                 |
| 11    | Rajasthan      | 7                                | 2.39                             | 1.74                            | 0.95                               | 2.69                                  |
| 12    | Tamil Nadu     | 4                                | 0.67                             | 0.34                            | 0.34                               | 0.68                                  |
| 13    | Telangana      | 2                                | 0.27                             | 0.13                            | 0.13                               | 0.26                                  |
| 14    | Uttar Pradesh  | 4                                | 0.68                             | 0.02                            | 0                                  | 0.02                                  |
|       | Total          | 55                               | 151.02                           | 78.23                           | 76.51                              | 154.74                                |

Source: National Dairy Development Board

## The achievements made under NPDD, DIDF and SDCFPO schemes are as under:

1. NPDD scheme: The achievements made during last three years are as under:
- i. 6351 dairy cooperative societies has been organised/revived with enrolment of 3.90 lakh new farmers/milk producers and procurement of 6.22 lakh litres of additional milk from farmers.
- ii. 14,321 dairy cooperative societies has been strengthened with installation of Automatic Milk Collection Unit.
- iii. 1925 Bulk Milk Coolers (BMC) with 34.25 lakh litres chilling capacity has been installed at village level.
- iv. 2097  Electronic  Milk  Adulteration  Testing  Equipments,  95  FTIR  Technology  based  Milk Analyser  and  537  ButyroRefractometer  have  been  installed  for  checking  adulteration  in milk.
- v. 6.00 lakh litres per day new milk processing capacity has been established to process and market additional milk procured from milk producers.
- vi. Establishment  of  State  Central  Laboratory  in  15  States  &  strengthening  of  milk  testing laboratories of District Cooperative Milk Unions have been approved.

## 2.  DIDF scheme:

Financial: As on 30.11.2021, a total outlay of Rs. 5100.40 Crore with loan component of Rs. 3463.02 Crore  has  been  sanctioned  by  NDDB  and  NCDC.  Further,  out  of  the  sanctioned  loan  amount.  Rs. 1235.70 Crore of loan has been disbursed.

Physical: As  on  30.11.2021,  45  Lakh  Liter  per  Day  (LLPD)  Milk  Processing  Capacity,  113  BMCs with 3.4 LLPD capacities, 165 Metric Tonne per Day (MTPD) Milk Drying capacity and 6.76 LLPD Value Added Products (VAP) manufacturing capacity have been established.

## 3.  SDCFPO scheme:

Financial :  As  on  14.01.2022,  NDDB  have  conveyed  sanction  of  Interest  Subvention  amount  of  Rs 151.02crore against working capital loan amount of Rs 10588.64 Cr @ 2% p.a and released Rs 154.74 Cr(Rs  78.23  Cr  as  regular  interest  subvention  and  Rs  76.51  Cr  as  additional  interest  subvention amount)for the year 2020-21.

Physical: Under the scheme 55 milk union /MPC were assisted.

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