Lok Sabha Question No. 1494 (UNSTARRED), answered on 2021-12-07
Subject: Discontinuation of Dairy Entreneurship Development Scheme (DEDS)
Ministry: FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
Asked by: Abdul Majeed Ariff

## GOVERNMENT OF INDIA

MINISTRY OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING DEPARTMENT OF ANIMAL HUSBANDRY AND DAIRYING LOK SABHA UNSTARRED QUESTION NO.1494 TO BE ANSWERED ON 7 TH  DECEMBER, 2021

## DISCONTINUATION OF DAIRY ENTRENEURSHIP DEVELOPMENT SCHEME (DEDS)

1494:  ADV. A.M. ARIFF:

## Will the Minister of FISHERIES, ANIMAL HUSBANDRY AND DAIRYING मत्स्यपाऱन , पशुपाऱन और डेयरी मंत्री

be pleased to state:

- (a) whether  the  Government  is  aware  that  dairy  farmers  in  the  country  are  protesting  against  the decision to tax the milk cooperatives under section 194Q of IT Act, if so, the action taken thereon;
- (b) the details of the schemes implemented by the Government for the development of dairy sector in the country in the FY 2021-22 and the state wise allocations in this regard;
- (c) the  reason  for  the  discontinuation  of  the  Dairy  Entrepreneurship  Development  Scheme  (DEDS) implemented through NABARD from 2020-21; and
- (d) whether the Government will consider providing requisite allocation  for  the  continuation  of  the DEDS scheme, if not, the reasons therefor?

## ANSWER

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

- (a) Yes, Sir.  Some of the farmers owned dairy cooperatives in the country are protesting against the decision to tax the milk cooperatives under Section 194Q of the Income Tax Act, 1961. Kerala Cooperative  Milk  Marketing  Federation  (Milma),  Karnataka  Milk  Federations  and  Punjab  Milk Federations have represented against the move to tax dairy cooperatives under Section 194Q of the Income Tax Act. As per NDDB, the Gujarat Cooperative Milk Marketing Federation Ltd. Anand (GCMMFL) and the Panchmahal District Co-Operative Milk Producers Union Ltd., have together challenged the provisions of Section 194Q of the Income Tax Act, 1961 and its applicability to dairy cooperative societies in the Hon'ble High Court of Gujarat and the matter is subjudice.
- (b) The Department of Animal Husbandry and Dairying is implementing following schemes for dairy development in the country in the FY 2021-22:-
- i. National Programme for Dairy Development(NPDD) :-Launched in Feb-2014 and restructured/realigned in July 2021 for implementation from 2021-22 to 2025-26 through the State Implementing  Agency  (SIA)  i.e  State  Cooperative  Dairy  Federation  with  a  budget  allocation  of Rs.1790  crore. The  scheme  has  two  (2) components.  The Component  'A' focuses towards

creating/strengthening of infrastructure for quality milk testing equipment as well as primary chilling facilities to be implemented The Component 'B' provides financial assistance as a loan from Japan International  Cooperation  Agency  (JICA)  as  per  project  agreement  already  signed  with  them.  The central  Government  share  in  this  project  is  proposed  to  be  funded  through  NPDD.  The  budgetary allocation under NPDD during the FY 2021-22 is Rs.255.00 crore.

Under the NPDD, till date, 159 projects in 27 States and 3 Union Territory covering 501 districts have been approved with the total cost of Rs. 2121.15 crore (Central Share Rs. 1677.46 crore) from 2014-15 to 2021-22 (15.11.2021). An amount of Rs.838.30 crore has been utilized.

ii. Dairy Processing and Infrastructure Development Fund (DIDF) :- Launched in December 2017 with an Objective t o create/ modernize the milk processing, chilling and value addition infrastructure in  the  form  of  loan  with  interest  subvention  of  2.5%  (with  effect  from  11.09.2020).  The Funding under DIDF is made available by National Bank for Agriculture and Rural Development (NABARD) through National Dairy Development Board (NDDB)/ National Cooperative Development Corporation (NCDC). The budgetary allocation for interest subvention for the FY 2021-22 is Rs.70 crore. As on 31.10.2021, under DIDF, 47 Projects from 13 States with a total outlay of Rs. 5477.67 Crore with a loan component of Rs. 3763.96 Crore have been sanctioned by NDDB and NCDC and Rs. 1225.43 Crore of loan has been disbursed.

iii.  Supporting  Dairy  Cooperatives  and  Farmer  Producer  Organizations  engaged  in  dairy activities  (SDCFPO) : L aunched  during  2017-18  being  implemented  through  National  Dairy Development Board (NDDB) with an 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,  a new component 'interest subvention on Working capital  loans  for  Dairy  sector' was  introduced  with  an  outlay  of  Rs  203  Cr  for  2020-21. Temporarily, the other component namely 'working Capital loan' was kept in suspension during 202021  and  2021-22.   SDCFPO  has  been  approved  as a  part  of  Umbrella  Scheme '  Infrastructure Development Fund ' from 2021-22 to 2025-26 with an outlay of Rs 500 Cr. An amount of Rs.100 crore has been allocated during the FY 2021-22. Under the Scheme an amount of Rs. 149.03 crore has been sanctioned to 35 Dairy Cooperatives/Milk Producers Companies against the bank loan amount of Rs. 10285 crore as on 30.11.2021.

The above schemes are demand driven and therefore State-wise allocation has not been made.

- (c) and  (d): As  per  Evaluation  study  of  White  Revolution  conducted  by  NITI  Aayog,  the   Dairy Development schemes of the Department were realigned/restructured for implementation during 2021-22 to 2025-26. The schemes now focuses on initiatives for improving quality, Strengthening/creation  of  infrastructure  for  milk  collection  chilling,  processing,  value  addition, testing and working capital requirement.

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