Lok Sabha Question No. 917 (UNSTARRED), answered on 2023-07-25
Subject: Cooperatives for Milk, Milk Products and Animal Feed
Ministry: FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
Asked by: Rama Devi, Ajay Kumar Mandal, Ramesh Chander Kaushik

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

UNSTARRED QUESTION NO. 917 TO BE ANSWERED ON 25 TH  JULY, 2023

## COOPERATIVES FOR MILK, MILK PRODUCTS AND ANIMAL FEED

917. SHRIMATI RAMA DEVI: SHRI AJAY KUMAR MANDAL: SHRI RAMESH CHANDER KAUSHIK:

Will the Minister of FISHERIES, ANIMAL HUSBANDRY AND DAIRYING मत्स्यपालन , पशुपालनऔरडेयरीमंत्री be pleased to state:

- (a) whether  the  Government  has  taken  any  initiative  on  the  lines  of  Gujarat  to  promote cooperatives for production of milk, other milk products and animal feed etc. to ensure additional income for the farmers in all the States including Bihar, Haryana particularly Sonipat district;
- (b) if so, the details thereof; and
- (c) if not, the reasons therefor?

## ANSWER

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

(a) to(c): Department  of Animal  Husbandry  and  Dairying,  Government  of Indiais implementing 'National Programme for Dairy Development (NPDD)' scheme across the  country  including  Bihar  and  Haryana  since  Feb-2014  with  an  objective  of creating/strengthening of infrastructure for production of quality milk, Procurement, Processing and Marketing of Milk and Milk products.

The scheme has been restructured/realigned in July  2021.  There  structured  NPDD  Scheme will  be  implemented  from  2021-22  to  2025-26  with  a  total  outlay  of  Rs.1790  crore.  The restructured scheme   has two components:

Component'A' focuses  toward  screating/  strengthening  of  infrastructure  for  quality  milk testing equipment as well as primary chilling facilities.

Component'B' (Dairying  through  Cooperatives-DTC)  provides  financial  assistance  from Japan International Cooperation Agency (JICA) for creation of necessary dairy infrastructure, providing  market  linkages  for  the  produce  in  villages  and  for  strengthening  of  capacity building of stake-holding institutions from village to State level.

## FinancialProgress:

## ComponentA:

191 projects  in  28  States  and  2  Union  Territory  have  been  approved  with  the  total  cost  of Rs.3053.03 crore (Central Share Rs. 2321.22 crore) from 2014-15 to 2022-23 (30.06.2023). A total sum of Rs.1795.60 crore hasbeen released for implementation of these projects up to 18.07.2023.Anamount of Rs. 1321.53 crore has been utilized under the approved projects.

## Component B:

In total 22 projects has been approved with a total project cost of Rs 1130.64 Cr having loan component of Rs705.54 Cr, grant component of Rs 329.70 Cr and Producer Institutions (PIs) share  of  Rs  95.37  Cr.  A  total  grant  of  Rs  9.30  Cr  has  been  released  to  National  Dairy Development Board for further disbursement to PIs for the implementation of the projects.

Government  of  India  (GoI)  has  approved  the  'Dairying  through  Cooperatives-Key  to Sustainable  livelihood'  projectas  Component  B  of  the  National  Programme  for  Dairy Development (NPDD) scheme. The project will be implemented from 2021-22 to 2025-26 and  will  continue  till  2027-28  with  the  total  outlay  of  Rs.  1568.28  Crore  comprising  Rs .924.56 Crore as an Official Development Assistance (ODA )loan from Japan International Cooperation Agency (JICA), Rs.475.54 Crore as Government of India's (GoI) contribution and Rs.168.18 Crore as State /Participating Institution's (PI) contribution.

The major objective of the project is toincrease sales of milk and dairy products by increasing farmers'  access  to  organized  market,  upgrading  dairy  processing  facilities  and  marketing infrastructure and enhancing the capacity of producers owned institutions, thereby contributing to increase in returns to milk producers in the project tarea'. The project is being implemented in 9 states  namely  Bihar,  Uttar  Pradesh,  Punjab,  Rajasthan,  Madhya  Pradesh, Andhra  Pradesh, Telangana, Uttarakhand and WestBengal  .The scheme  supports the establishment Milk Processing Facilities and Manufacturing Facilities (milk & milk products and cattle feed).

4 projects with total outlay of Rs.58.05 Cr(Loan - Rs.19.44 Cr, Grant -Rs.34.88 Cr) has been approved   for Bihar State. An amount of Rs.3.72Cr as(Loan+grant) hasbeenreleased. Haryana State is not covered under DTC.

## Dairy Processing & Infrastructure Development Fund (DIDF) :

Dairy  Processing  &  Infrastructure  Development  Fund  (DIDF)  was  launched  in  December 2017 with the major 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 with total outlay of Rs. 11,184 Crore (loan component of Rs.8,004 Crore).  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 loan to  NDDB/NCDC  which  is  then  disbursed  by  them  to  End  Borrowers.  GoI  provide  2.5% interest subvention to NABARD apart from assisting the establishment of processing plant for milk and milk product, the scheme also assists Cattle feed/feed supplement plants.

4  projects  with  total  outlay  of  Rs.420.19Cr(Loan-Rs.317.92Cr)  has  been  approved  by Department. An  amount of Rs.71.35 Cr as a loan has been released in Projects in Haryana State.  One  project  is  being  implemented  in  Bihar  State  with  total  outlay  of  Rs.113.27  Cr (Loan 78.80 Cr) Under DIDF scheme. Loan amount of Rs.31.372 Cr has been disbursed.

Under the Entrepreneurship Development Programme of National Livestock Mission (NLM) scheme there is a provision for establishing animal feed and fodder processing units.

In  NLM-EDP,  this  department  has  approved  a  total  of  36  projects  with  a  project  cost  of Rs.31.5  Crores  and  subsidy  of  Rs.13.82  crores  under  the  category  of  feed  and  fodder development.  So  far,  there  are  no  applications  approved  in  Bihar  and  one  project  in Kurukshetra District of Haryana in feed and fodder development has been approved by the Department. The details are as under:

| State Name     |   No of DAHD approved proposals under NLM EDP (Feed &fodder development) |   Sum of Cost of Project (Rs in Cr) |   Sum of Amount of Subsidy (Rs in Cr) |
|----------------|--------------------------------------------------------------------------|-------------------------------------|---------------------------------------|
| Haryana        |                                                                        1 |                                1.13 |                                  0.5  |
| Madhya Pradesh |                                                                       29 |                               22.92 |                                 10.37 |
| Punjab         |                                                                        1 |                                0.91 |                                  0.46 |
| Telangana      |                                                                        4 |                                4    |                                  2    |
| Uttar Pradesh  |                                                                        1 |                                2.55 |                                  0.5  |
| Grand Total    |                                                                       36 |                               31.52 |                                 13.82 |

Under the scheme of Animal Husbandry Infrastructure Development Fund (AHIDF) there is a provision of setting up of/upgradation of animal feed plants.

The eligible entities are FPOs, MSMEs, Individual Entrepreneurs, Private Companies and Section 8 companies.

Under the scheme eligible entities are eligible for benefit of 3% interest subvention over a period  of  eight  years  for  setting  up/upgradation  of  projects  falling  under  any  of  the  six approved categories. MSMEs are also eligible for availing credit guarantee coverage to the tune of 25% of the total borrowings. The scheduled banks will provide credit up to 90% to the Eligible Entities for the establishment of projects in any of the eligible categories under the Scheme.

Till date, the department has approved 95 projects of animal feed plant under the scheme with cumulative project cost of INR 1602.71 cr. and cumulative term loan of INR 1098.53

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