Lok Sabha Question No. 433 (STARRED), answered on 2025-04-01
Subject: Dairy Cooperatives in Telangana
Ministry: FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
Asked by: Shri Vamsi Krishna Gaddam

## GOVERNMENT OF INDIA MINISTRY OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING DEPARTMENT OF ANIMAL HUSBANDRY AND DAIRYING LOK SABHA STARRED QUESTION No. * 433 TO BE ANSWERED ON 1 st  APRIL 2025

## DAIRY COOPERATIVES IN TELANGANA

## * 433. SHRI VAMSI KRISHNA GADDAM:

Will the Minister of Fisheries, Animal Husbandry and Dairying

## मत्स्यपालन , पशुपालन और डेयरी मंत्री

be pleased to state:

- (a) the details of funds allocated and the percentage utilised by dairy cooperatives in Telangana during the last three years;
- (b) whether the Government has assessed reasons for the decline in cooperative milk production in districts like Nizamabad and Warangal;
- (c) the steps taken to revive ailing cooperatives; and
- (d) whether any request has been received from the State of Telangana for increasing central funds under cooperative development schemes, if so, the steps taken in this regard?

## THE MINISTER OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING (SHRI RAJIV RANJAN SINGH ALIAS LALAN SINGH)

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

## STATEMENT REFERRED TO IN REPLY OF LOK SABHA STARRED QUESTION NO. 433 PART (A) TO (D) ON 'DAIRY COOPERATIVES IN TELANGANA' ANSWERED ON 01.04.2025.

- (a) The details of funds released by the Department of Animal Husbandry and Dairying (DAHD), Government of India (GoI) under dairy development Schemes to Dairy Cooperatives in Telangana during the last three years (2021-22, 22-23 and 23-24) and the percentage utilized is as under:

|                                                                                                                         | (Rs in Cr)                                                         | (Rs in Cr)                                                        |                     |
|-------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------|-------------------------------------------------------------------|---------------------|
| Name of the Scheme                                                                                                      | Funds released during last three years (2021-22, 22-23 and 23- 24) | Funds utilized during last three years (2021-22, 22-23 and 23-24) | percentage utilized |
| National Programme for Dairy Development (NPDD)- Grant/Loan                                                             | 34.63                                                              | 27.64                                                             | 80%                 |
| Animal Husbandry Infrastructure Development Fund (AHIDF)* - Loan                                                        | 120.94                                                             | 120.94                                                            | 100%                |
| Supporting Dairy Cooperatives & Farmer Producer Organisations engaged in dairy activities (SDCFPO) -Interest subvention | 0.4                                                                | 0.4                                                               | 100%                |
| Total                                                                                                                   | 155.97                                                             | 148.98                                                            | 96%                 |

* Erstwhile Dairy Processing and Infrastructure Development Fund (DIDF)- Interest subvention @ 2.5%. Now merged in AHIDF - Interest subvention @3% to Pvt as well as Cooperatives on loan disbursed

- (b) The milk production in the Telangana increased to 5840 thousand tonnes in 2023-24 from 4207 thousand tonnes in 2014-15 with significant increase of 38.81 % in milk production over the past decade. However, the Government of Telangana has recognized and assessed the several factors that have contributed for decline in cooperative milk production in districts like Nizamabad and Warangal. Some of the factors are as under:
1. Inadequate green fodder facilities
2. Increased feeding costs- High costs of Feed ingredients and Concentrates
3. Low productivity from milch animals due to inadequate green fodder facilities

In order to strengthen fodder seed production chain to improve availability of certified fodder seed required for fodder production and encouraging entrepreneurs for establishment of fodder Block/ Hay Bailing/ Silage Making Units through incentivization, DAHD, GoI is implementing sub-Mission for feed and fodder development under National Livestock Mission (NLM). An amount of Rs 592 lakh has been released to Telangana for quality fodder seed production.

- (c) DAHD, GoI is implementing the following Dairy Development schemes across the country to supplement  the  efforts  made  by  the  State  Government  for  strengthening/  upgradation  of  milk processing infrastructure of Dairy Cooperatives:
- (i) National Programme for Dairy Development (NPDD): NPDD is implemented with following 2 components:
- a. Component 'A' of NPDD focuses on creating and strengthening infrastructure for quality milk testing and primary chilling facilities. It benefits State Cooperative Dairy Federations, District Cooperative Milk Producers' Unions, Self Help Groups (SHGs), Milk Producer Companies, and Farmer Producer Organizations. This component aims to improve milk quality and safety from production to storage.
- b. Component 'B' of NPDD ("Dairying through Cooperatives") enhances the sale of milk and milk products by increasing farmers' access to organized market. It upgrades milk processing and  marketing  infrastructure,  boosting  the  capacity  of  producer-owned  institutions.  This component ensures better market linkage and processing efficiency.
- (ii) Supporting Dairy Cooperatives & Farmer Producer Organisations engaged in dairy activities (SDCFPO): This initiative aims to aid State Dairy Cooperative Federations by offering soft working capital loans to help them navigate crises caused by severely adverse market conditions or natural calamities.
- (iii) Animal Husbandry Infrastructure Development Fund (AHIDF): The primary objectives also  include  enhancing  milk  processing  capacity  and  encouraging  product  diversification. These measures aim to provide better access for unorganized rural milk producers to organized market, thereby fostering growth and inclusivity in the sector.

In addition to above, with support of Government of India the Government of Telangana has initiated several measures to revive dairy cooperatives like Vijaya Dairy, which includes:

- i. Incentive Payments to Dairy Farmers: The Telangana Government introduced Rs.4 per litre incentive to dairy farmers to offset production cost.
- ii. Increased milk procurement prices to support small and marginal farmers.
- iii. Subsidized feed concentrates programs to reduce feeding cost and improve livestock health.
- iv. Training programs for dairy farmers to enhance management skills and increase productivity.
- v. Financial  support through  loan  (e.g.,  Mudra , PMEGP  (Prime  Minister's  Employment Generation Programme) , Stree Nidhi , and Kisan Credit Cards (KCC)) for cattle purchase and working capital.
- vi. Interest subvention on working capital loan to ease financial pressure on dairy cooperatives.
- vii. Artificial Insemination (AI) services provided to farmers to improve cattle genetics and milk yields.

Further, the Government of Telangana informed that support from the Ministry of Rural Development (MoRD), Under Shyama Prasad Mukharjee RURBAN Scheme An amount of Rs.12.30 Cr was allotted under  the  RURBAN  scheme  by  the  District  Collectors  of  Sangareddy,  Rangareddy,  Warangal,

Nagrkurnool,  Mahbubnagar,  Medak,  Jangaon  and  Kamareddy  Districts  of  Telangana  towards establishment of Milk chilling and processing infrastructure.

- (d) No Sir, there is no request from Telangana for increased Central funds. However, the schemes are demand-driven, and projects submitted by the State Government are considered as per the norms  of  the  scheme  guidelines.  The  details  of  project  sanctioned  under  dairy  development schemes for Cooperatives in Telangana is as under:
- i. NPDD Scheme:
- a. Under Component A of NPDD Scheme, 8 projects have been sanctioned in Telangana with total project cost of Rs. 8916.24 lakh, out of which Central share is Rs. 6967.31 lakh and out of this, an amount of Rs. 3770.88 lakh has been released and Rs. 3120.25 lakh has been utilized so far.
- b. Under  Component  B  of  the  NPDD  Scheme,  one  project  has  been  sanctioned  in Telangana with a total project cost of Rs. 9070.94 lakh, comprising a loan of Rs. 7152.61 lakh, a grant of Rs. 1246.30 lakh, and a producer institution contribution of Rs. 672.03 lakh. So far, Rs. 4522.19 lakh has been released, which includes a loan amount of Rs. 4161.71  lakh  and  a  grant  amount  of  Rs.  360.48  lakh  to  support  the  project's implementation.
- ii. SDCFPO: As on 16.03.2025, Rs 65.15 lakh (Rs 39 lakh regular interest subsidy and Rs 26.15 lakh additional interest subsidy amount) has been released against the working capital loan amount of Rs 150 crore @ 2% per annum to 2 Milk Unions/Federations.
- iii. AHIDF: 3  proposals  have  been  approved  under  the  erstwhile  Dairy  Processing  and Infrastructure Development Fund (DIDF) Scheme with a total cost of Rs. 261 crore including loan of Rs. 156.70 crore, out of which Rs 134.22 Cr has been released under the scheme on which interest subvention has been provided.

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