Lok Sabha Question No. 3706 (UNSTARRED), answered on 2025-08-12
Subject: Assistance to Farmers for Dairy
Ministry: FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
Asked by: Shri Kaushalendra Kumar

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

UNSTARRED QUESTION NO. 3706 TO BE ANSWERED ON 12 TH  AUGUST 2025

## ASSISTANCE TO FARMERS FOR DAIRY

## 3706. Shri Kaushalendra Kumar:

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

- (a) the assistance provided by the Government to farmers for running and promoting dairy;
- (b) the amount of funds released to farmers during the last five years and State-wise;
- (c) the number of farmers provided with assistance during the last five years, year and State-wise;
- (d) whether any interest is being charged from farmers on the loan given under the scheme;
- (e) whether the Government proposes to set-up milk processing plants in rural areas that produce more milk; and
- (f) if so, the details thereof and the rate of interest being charged from the farmer?

## ANSWER

## THE MINISTER OF STATE FOR FISHERIES, ANIMAL HUSBANDRY AND DAIRYING (PROF. S.P. SINGH BAGHEL)

- (a),  (b)  and  (c)    Department  of  Animal  Husbandry  and  Dairying  (DAHD),  Government  of  India  is implementing the following schemes across the country to complement and supplement the efforts of State Governments  for development of milk production and milk processing infrastructure:
1. Rashtriya Gokul Mission (RGM): RGM is implemented for development and conservation of indigenous breeds, genetic upgradation of bovine population and enhancement of milk production and productivity of bovines.
2. National Programme for Dairy Development (NPDD): NPDD is implemented with following 2 components:
- (i) Component ''A'' of  NPDD focuses on 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/  Self  Help  Groups  (SHGs)/  Milk Producer Companies/ Farmer Producer Organizations.
- (ii) Component ''B'' of the NPDD scheme "Dairying through Cooperatives' Japan International Cooperation  Agency  (JICA)  assisted,  aims  to  increase  sale  of  milk  and  dairy  products  by increasing  farmer's  access  to  organized  market,  upgrading  dairy  processing  facilities  and marketing infrastructure and enhancing the capacity of producer owned institutions.
3. Supporting  Dairy  Cooperatives  &  Farmer  Producer  Organisations  engaged  in  dairy activities (SDCFPO): To assist the State Dairy Cooperative Federations by providing interest subvention (regular 2% and additional 2% on prompt repayment) with respect to soft working capital  loan  to  tide  over  the  crisis  on  account  severely  adverse  market  conditions  or  natural calamities.
4. Animal Husbandry Infrastructure Development Fund (AHIDF) :  AHIDF provides interest subvention at the rate 3% per annum for creation/ strengthening of livestock product processing and  diversification  infrastructure  thereby  providing  greater  access  for  unorganized  producer members to organized market.
5. National Livestock Mission (NLM): To bring sharp focus on entrepreneurship development and breed improvement in poultry, sheep, goat, piggery and fodder by providing the incentivization
- to the individual, FPOs, SHGs, Section 8 companies ( for entrepreneurship development) and also to the State Government for breed improvement infrastructure
6. Livestock Health and Disease Control Programme (LHDCP): to  provide  for  prophylactic vaccination against animal diseases, capacity building of veterinary services, disease surveillance, and strengthening veterinary infrastructure. Also, a new component of Pashu Aushadhi is added under  the  scheme  to  ensure  availability  of  affordable  generic  veterinary  medicine  across  the country through Pradhan Mantri Kisan Samriddhi Kendras (PM-KSK) and Cooperative Societies.

This will create an ecosystem for Generic Medicine which will be affordable and of good quality.

These schemes are helping in improving milk productivity of bovines, expanding network of dairy cooperatives, strengthening of dairy infrastructure, working capital requirement, enhancing availability  of  feed  and  fodder  and  providing  animal  health  services.  These  interventions  help  to reduce the cost of milk production and also help to enhance income of milk producer from dairy farming.

However, no direct funds are provided to farmers under these schemes; support is extended through infrastructure and service-based interventions to promote dairy farming as stated above.

- (d) and (e) DAHD is implementing Animal Husbandry Infrastructure Development Fund (AHIDF) under the Prime Minister's Atma Nirbhar Bharat Abhiyan stimulus package for incentivizing investments in  dairy  and  livestock  sector  by  individual  entrepreneurs,  private  companies,  MSME,  Farmers Producers Organizations (FPOs) and Section 8 companies to establish:
- i. Dairy processing and value addition infrastructure,
- ii. Meat processing and value addition infrastructure,
- iii. Animal Feed Plant,
- iv. Breed Improvement Technology and Breed Multiplication Farm
- v. Animal Waste to Wealth Management (Agri Waste Management)
- vi. Setting up of Veterinary Vaccine and Drugs Manufacturing facilities

## Key benefits available under the scheme

- i. Loan up to 90% of the estimated /actual project cost from the Scheduled Bank based on submission of viable projects by eligible beneficiaries.
- ii. Interest subvention of 3% for all Eligible Entities on loan availed, the rate of interest on the loan varies from bank to bank.
- iii. Maximum  repayment  Period:  8  years  inclusive  of  moratorium  of  2  years  on  principal amount.

In addition to the above, under NPDD Component B, loan has been provided to Milk Unions/ Multistate  Dairy Cooperatives/ State Dairy Federations/ Milk Producer Companies and SHG Cluster Federations created by State Rural Livelihood Missions at a subsidized rate of 1.5% per annum for Strengthening  Milk  Procurement  Infrastructure,  Milk  Processing  Facilities  and  Manufacturing Facilities (milk & milk products and cattle feed), Support for Marketing Infrastructure, Support for ICT Infrastructure. This scheme is being implemented in 9 states namely Bihar, Uttar Pradesh, Madhya Pradesh, Rajasthan, Punjab, Uttarakhand, Telangana, Andhra Pradesh & West Bengal.

- (f) Does not arise in view of (d) and (e) above

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