Lok Sabha Question No. 109 (STARRED), answered on 2021-07-27
Subject: Loss to Dairy Business due to Pandemic
Ministry: FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
Asked by: Malook Nagar

## GOVERNMENT OF INDIA MINISTRY OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING DEPARTMENT OF ANIMAL HUSBANDRY AND DAIRYING LOK SABHA STARRED QUESTION No. 109 TO BE ANSWERED ON 27 th July 2021

## LOSS TO DAIRY BUSINESS DUE TO PANDEMIC

## 109. SHRI MALOOK NAGAR:

Will the Minister of Fisheries, Animal Husbandry and Dairying

## मत्स्यपाऱन , पशुपाऱन और डेयरी मंत्री

be pleased to state:

- (a) whether dairy business has almost come to a standstill due to Corona pandemic and lockdown due to which lakhs of litres of milk of dairy farmers got spoiled and it has brought all the farmers dependent on dairy business on the verge of starvation;
- (b) whether the Government has made any effective policy to conduct survey at the village level regarding the losses incurred by them and compensate them; and
- (c) if so, the details thereof?

## THE MINISTER OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING

(SHRI PARSHOTTAM RUPALA)

- (a) to (c) A statement is laid on the Table of the House

## STATEMENT REFERRED TO IN REPLY OF LOK SABHA STARRED QUESTION NO. 109  PART  (a)  TO  (c)  ON  'LOSS  TO  DAIRY  BUSINESS  DUE  TO  PANDEMIC'  TO  BE ANSWERED ON 27.07.2021

- (a) The  average  milk  procurement  from  dairy  farmers including  procurement  price paid by cooperative sector to dairy farmers has remained stable during the Covid pandemic.  The average milk procurement per day during April 2019 was 473.4 Lakh litres per day (LLPD)   which got increased to 480.56 LLPD in April 2020 and was 512.13 LLPD in April 2021.  The average milk procurement price  paid to dairy farmer by  cooperative sector during April 2019 was Rs 34.38 per kg, during April 2020 was Rs 38.01 per kg and during April 2021 was Rs 39.23 per kg (for 6% fat content  and  9%  solid  not  fat  content).  State-wise  statement  of  average  milk  procurement  from dairy farmers and price paid to dairy farmers in cooperative sector during April 2019, April 2020 and April 2021 is at Annexure .
- (b) &  (c) This  Department  is  reviewing  the  milk  situation  in  the  country  to  monitor  the  milk procurement,  sale,  price  and  stocks  of  skimmed  milk  powder  (SMP),  butter  and  ghee  etc  on regular basis. During Covid pandemic in 2020 and 2021, this department collected information on milk procurement, price, sale and stocks on daily and weekly basis from cooperatives to analyse the  dairy  business  situation  in  the  country.  Based  on  the  information  received  and  analysed assessment, following measures were taken:
- i) On  13.05.2020, a new  component  was  introduced in ongoing central sector  scheme 'Supporting State Dairy Cooperatives and Farmer Producer Organizations' scheme (SDC&FPO) for providing 2% interest subvention on working capital loan to cooperatives and milk producers companies and additional 2% interest subvention for prompt payment. Under the scheme, Rs. 10588.64 Crore worth working capital loan from bank has been approved by NDDB for interest subvention for 55 milk Unions/ milk producer companies and Rs. 150.57 Cr has been approved as interest subvention as on 30.06.2021.
- ii) As a part of Atmanirbhar Bharat package, Department launched 'Campaign for Kisan Credit Cards (KCC) for providing working  capital  loan  to  dairy  farmers  of  Milk  Cooperatives  and Milk  Producer  Companies'  from  June  2020 to December  2020.  52.49  lakh  applications  of Dairy farmers got filled up by Milk Unions and so far more than 12.00 lakh fresh KCC has been sanctioned for dairy Farmers.
- iii) As  a  part  of  Atmanirbhar  Bharat  package,  the  procedures  of  Central  Sector  scheme  'Dairy Processing  and  Infrastructure  Development  Fund  (DIDF)'  has  been  made  simpler  and effective. The major changes in the scheme made is as given below:
- a. Interest subvention fixed upto maximum level of   2.5%
- b. Besides National Bank for Agriculture and Rural Development (NABARD); National Dairy Development Board (NDDB) and National Cooperative Development Corporation (NCDC) have been allowed to provide loan directly to the cooperatives and milk producer companies from their own resources.
- c. New  components for assistance like Cattle feed plants, milk transportation, marketing infrastructure, cold storage, Commodity & Cattle feed godowns, Information and Communication Technology (ICT) infrastructure, Research & Development  (R&D)  facility, Renewable  energy  &  packaging  material  plant  to support dairy plants etc has been added to create demand.
- iv) Since  the  fund  under  DIDF  was  available  to  only  the  Cooperatives  and  Milk  Producer Companies (MPC); Government of  India has  introduced  a  new  scheme  namely  Animal Husbandry  Infrastructure  Development  Fund  (AHIDF)  with  outlay  of  Rs  15000  Cr  of which Rs 8000 Cr has been earmarked for assisting milk processing and product plants for Farmer  Producer Organization (FPO), Private companies, Individual entrepreneurs, Section  8  companies,  Micro  Small  and  Medium  Enterprises  as  eligible  implementing agencies
- v) This Department  had  requested  State Governments  of  Rajasthan,  Gujarat, Punjab, Karnataka,  Tamil  Nadu,  Maharashtra  and also  to  Ministry  of  Women  and  Child Development  and  Ministry  of  Education to introduce  milk/  milk  powder  through aanganwadis/  Mid-Day  meal  network.  The  states  of  Madhya  Pradesh,  Uttar  Pradesh, Karnataka, Bihar and Punjab have been providing Skimmed Milk Powder (SMP)/ Whole Milk Powder (WMP)/ Ghee to ease out the situation.

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Annexure State-wise statement of milk procurement and average milk procurement price in cooperative sector for Milk (6% Fat and 9% Solids Not Fat) in Rs./kg

|                | Av. Milk Procurement per day (Lakh Kg. Per Day)   | Av. Milk Procurement per day (Lakh Kg. Per Day)   | Av. Milk Procurement per day (Lakh Kg. Per Day)   | Procurement Price of Milk (6% Fat and 9% SNF) in Rs./kg   | Procurement Price of Milk (6% Fat and 9% SNF) in Rs./kg   | Procurement Price of Milk (6% Fat and 9% SNF) in Rs./kg   |
|----------------|---------------------------------------------------|---------------------------------------------------|---------------------------------------------------|-----------------------------------------------------------|-----------------------------------------------------------|-----------------------------------------------------------|
| State          | April- 2019                                       | April- 2020                                       | April- 2021                                       | April- 2019                                               | April- 2020                                               | April- 2021                                               |
| Haryana        | 4.74                                              | 7.44                                              | 5.19                                              | 32.40                                                     | 37.80                                                     | 37.20                                                     |
| Punjab         | 19.9                                              | 25.5                                              | 22.88                                             | 35.97                                                     | 40.94                                                     | 41.81                                                     |
| Uttar Pradesh  | 2.98                                              | 4.61                                              | 2.99                                              | 32.50                                                     | 38.00                                                     | 43.00                                                     |
| Madhya Pradesh | 9.08                                              | 9.81                                              | 9.67                                              | 33.00                                                     | 36.00                                                     | 37.80                                                     |
| Bihar          | 19.83                                             | 19.52                                             | 14.77                                             | 37.62                                                     | 38.28                                                     | 39.24                                                     |
| Odisha         | 5.15                                              | 2.99                                              | 4.88                                              | 32.40                                                     | 38.11                                                     | 38.11                                                     |
| West Bengal    | 2.84                                              | 2.11                                              | 2.17                                              | 32.58                                                     | 32.58                                                     | 32.58                                                     |
| Gujarat        | 197.5                                             | 202.4                                             | 228.6                                             | 36.40                                                     | 40.00                                                     | 40.03                                                     |
| Maharashtra    | 46.04                                             | 44.7                                              | 42.58                                             | 34.00                                                     | 34.00                                                     | 39.00                                                     |
| Rajasthan      | 27.34                                             | 27.99                                             | 29.9                                              | 33.18                                                     | 44.34                                                     | 39.72                                                     |
| Andhra Pradesh | 17.41                                             | 17.33                                             | 19.94                                             | 33.00                                                     | 33.00                                                     | 39.00                                                     |
| Karnataka      | 70.22                                             | 69.37                                             | 77.32                                             | 31.67                                                     | 36.06                                                     | 36.31                                                     |
| Kerala         | 12.58                                             | 10.69                                             | 14.61                                             | 42.14                                                     | 44.21                                                     | 46.91                                                     |
| Tamil Nadu     | 31.5                                              | 31.35                                             | 32.05                                             | 35.00                                                     | 41.00                                                     | 41.00                                                     |
| Telangana      | 6.27                                              | 4.77                                              | 4.58                                              | 33.80                                                     | 35.76                                                     | 36.75                                                     |
| TOTAL          | 473.40                                            | 480.56                                            | 512.13                                            | 34.38                                                     | 38.01                                                     | 39.23                                                     |