Dairy Development Programme

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13-Dec-2022: Development of Dairy Farming

In order to provide assistance to farmers for dairy farming and its development, Department of Animal Husbandry and Dairying is implementing the following schemes: (i) Rashtriya Gokul Mission; (ii) National Programme for Dairy Development; (iii) Dairy Infrastructure Development Fund; (iv) Support to State Dairy Cooperative Societies and Farmers Producers Organisations; (v) Dairy Entrepreneurship Development Scheme (discontinued from 31st March 2020 onwards) and (vi) Animal Husbandry Infrastructure Development Fund. Benefits of these schemes being implemented by the Department of Animal Husbandry and Dairying accrue to more than 8 crore dairy farmers engaged in dairying in the form of enhancement in milk production and productivity, milk procurement, processing and marketing including across to modern technology. Government has also extended Kisan Credit Card (KCC) facility to Animal Husbandry farmers for their working capital requirement wherein farmers either individual or joint borrower, Joint Liability Groups or Self Help Groups including tenant farmers having owned/rented/leased sheds are eligible for getting benefits under the scheme.

Interest subvention provision available under the schemes being implemented by the Department of Animal Husbandry and Dairying is as under:

  1. Animal Husbandry Infrastructure Development Fund (AHIDF) – under the scheme 3% interest subvention is made available to the beneficiaries availing credit under the scheme.
  2. One of the components of the scheme Rashtriya Gokul Mission is to promote establishment of breed multiplication farm on hub and spoke model. Under the scheme 50% capital subsidy is available for eligible entrepreneurs (individual/ SHGs/FCO/FPO/JLGs and section 8 companies). Entrepreneurs assisted under establishment of breed multiplication farm are also eligible for interest subvention under Animal Husbandry Infrastructure Development Fund.
  3. Support to State Dairy Cooperative & Farmers Producers Organization (SDCFPO): under the scheme one time support in the form of Interest subvention on working capital loans has been introduced from the financial year 2020-21.
  4. Dairy Processing and Infrastructure Development Fund (DIDF)- This scheme is being implemented with the objective of Creation/ strengthening of Milk Processing, Value addition & chilling facilities. Under the scheme, NABARD raises the fund from market and disburse loan to dairy cooperatives with 2.5% interest subvention through National Dairy Development Board and National Cooperative Development Corporation (NCDC). Department of Animal Husbandry and Dairying provides 2.5% interest subvention to National Bank for Agriculture and Rural Development (NABARD).

1-Apr-2022: Issues associated with Dairy Farming

In order to compliment and supplement the efforts made by the States and Union Territories to make dairy farming sustainable, scientific and profitable, Government of India has been implementing following Central and Centrally sponsored schemes:-

  1. Rashtriya Gokul Mission (RGM)
  2. National Programme for Dairy Development (NPDD)
  3. Dairy Processing and Infrastructure Development Fund (DIDF)
  4. Supporting Dairy Cooperatives and Farmer Producer Organizations engaged in dairy activities (SDCFPO)
  5. Livestock Health & Disease Control Programme (LHDCP)
  6. National Livestock Mission (NLM)
  7. Animal Husbandry Infrastructure Development Fund (AHIDF)

Following steps have been undertaken by the Department of Animal Husbandry and Dairying to compensate the dairy farmers for the duress they faced during the lockdowns:

  1. A new component to provide one time support in the form of Interest subvention on working capital loans was introduced for the financial year 2020-21 under ongoing scheme Support to State Dairy Cooperative & Farmers Producers Organization scheme (SDCFPO).
  2. Department of Animal Husbandry and Dairying has been implementing a Central Sector scheme for dairy development Dairy Processing & Infrastructure Development Fund (DIDF) to modernize the milk and milk products processing plants and machinery.
  3. Department of Animal Husbandry and Dairying has been implementing National Programme for Dairy Development with the objective to create dairy infrastructure for procurement, processing and marketing of milk and milk products.
  4. Kisan Credit Card- For the first time the KCC Scheme has also been extended for all farmers involved in animal husbandry sector including dairy farming.
  5. Department of Animal Husbandry and Dairying has been implementing Rashtriya Gokul Mission (RGM) with the aim of development and conservation of indigenous bovine breeds, genetic upgradation of bovine population and enhancing milk production and productivity of bovines thereby making milk production more remunerative to the farmers.
  6. Government of India is also implementing Animal Husbandry Infrastructure Development Fund (AHIDF) worth Rs. 15000 crore to facilitate incentivisation of investments in establishment of dairy processing and value addition infrastructure.

Following steps have been undertaken by the Department of Animal Husbandry & Dairying for installation of breeding infrastructure in rural areas and genetic upgradation of bovine population:-

  1. Nationwide Artificial Insemination Programme (NAIP) has been initiated for delivery of free of cost quality artificial insemination services at farmers doorstep in 604 districts with less than 50% AI coverage. Under the programme, as against a target for coverage of 6.04 crore animals, as on date 2.96 Crore animals have been inseminated and 1.94 crore farmers have been benefitted.
  2. Induction of Multi-Purpose Artificial Insemination Technicians in Rural India (MAITRI) to make available trained manpower for conducting artificial insemination services at the farmers doorstep in rural areas covering all States and Union Territories.   As on date 12196 MAITRIs have been trained and equipped to deliver breeding inputs at farmers’ doorstep.

A sum of Rs. 2316.14 crore has been released to all the States/UTs under Rashtriya Gokul Mission during the last 5 years and current financial year till date.

Following steps have been undertaken by Government of India to make institutional credit available to dairy farmers:-

  1. Kisan Credit Card (KCC) - Government has extended KCC facility to Animal Husbandry farmers including farmers for their working capital requirements wherein farmers either individual or joint borrower, Joint Liability Groups or Self Help Groups including tenant farmers having owned/rented/leased sheds are eligible for getting benefits under the scheme.
  2. Animal Husbandry Infrastructure Development Fund (AHIDF) – under the scheme 3% interest subvention is made available to the beneficiaries availing credit under AHIDF.
  3. One of the components of the sub scheme Rashtriya Gokul Mission is to promote establishment of breed multiplication farm on hub and spoke model. Under the scheme 50% capital subsidy is available for eligible entrepreneurs (Individual/SHGs/ FCO/ FPO/JLGs and section 8 companies.
  4. Support to State Dairy Cooperative & Farmers Producers Organization (SDCFPO): under the scheme one time support in the form of Interest subvention on working capital loans has been introduced from the financial year 2020-21.
  5. Dairy Processing and Infrastructure Development Fund (DIDF)- This scheme is being implemented with the objective of Creation/ strengthening of Milk Processing, Value addition & chilling facilities. Under the scheme, NABARD raises the fund   from market and disburse loan to dairy cooperatives with 2.5% interest subvention through National Dairy Development Board and National Cooperative Development Corporation (NCDC). Department of Animal Husbandry and Dairying provides 2.5% interest subvention to National Bank for Agriculture and Rural Development (NABARD).

Benefits of the schemes being implemented by the Department of Animal Husbandry and dairying have been accruing to more than 8 crore dairy farmers engaged in dairying in terms of enhancement in milk production and productivity, milk procurement, processing and marketing including modern technology. There is no reported information available with the Department of Animal Husbandry and Dairying regarding unavailability of power in many rural areas resulting in dairy farmers not having access to modern technology.

21-Jun-2019: Assistance to farmers for Dairy Development Programme

Dairy Division has been supplementing efforts of the State Governments to develop dairy infrastructure across the country by providing financial support through following Dairy Development Schemes to increase the income of farmers:

  1. National Programme for Dairy Development (NPDD).
  2. Dairy Entrepreneurship Development Scheme (DEDS).
  3. National Dairy Plan-I (NDP-I).
  4. Dairy Processing and Infrastructure Development Fund (DIDF).
  5. Supporting Dairy Cooperatives and Farmer Producer Organizations engaged in dairy activities(SDCFPO).

National Program for Dairy Development (NPDD): A restructured scheme titled “National Programme for Bovine Breeding and Dairy Development” (NPBB&DD) was launched in Feb-2014 with budgetary provision of 1800 Crore for implementation during 12th Plan, by merging of four ongoing schemes namely Integrated Dairy Development Programme (IDDP), Strengthening Infrastructure for Quality & Clean Milk Production (SIQ-CMP), Assistance to Cooperatives (A to C) and National Project for Cattle & Buffalo Breeding (NPCBB). NPBB&DD have two components (a) National Programme for Bovine Breeding (NPBB) and (b) National Programme for Dairy Development (NPDD). The IDDP, CMP and A to C has been discontinued from April, 2017. The NPDD focuses on creating/strengthening of infrastructure for Production of quality milk, Procurement, Processing and Marketing of Milk & Milk Products by the State Implementing Agency (SIA) i.e. State Cooperative Dairy Federations/ District Cooperative Milk Producers’ Union.

The budget estimate (BE) under National Programme for Dairy Development (NPDD) for the FY 2019-20 is Rs. 325.00 Crore.

Dairy Entrepreneurship Development Scheme (DEDS): The Department is implementing DEDS since September, 2010 through NABARD with the objective of providing self-employment opportunities and promoting entrepreneurship in dairy sector, especially in rural areas. Under the programme, back ended capital subsidy is provided to eligible end borrowers under bankable projects as per norms of the scheme. Subsidy to the tune of 25% of the project cost is provided to general category beneficiaries & 33.33% to SC/ST category beneficiaries. The budget estimate (BE) under Dairy Entrepreneurship Development Scheme (DEDS) for the FY 2019-20 is Rs. 325.00 Crore.

National Dairy Plan-I (NDP-I): The National Dairy Plan-I started in March, 2012 at the total cost of Rs.2242 Crore World Bank Assistance, is being implemented by National Dairy Development Board with the aim to increase productivity of milch animals and thereby increase milk production to meet the rapidly growing demand for milk and to help to provide rural milk producers with greater access to the organized milk processing sector. Initially, 14 major milk producing States were identified in 2012; further 4 new States namely Telangana, Jharkhand Chhattisgarh & Uttarakhand were added in 2015-16. The financial assistance is provided to State Dairy Federations/District Milk Unions as per the norms of the scheme. NDP Phase – I is going to close in November, 2019. NDP-I scheme has been discontinued w.r.t. release of fund during 2019-20.

Dairy Processing and Infrastructure Development Fund (DIDF): In order to accelerate Dairy Development in the country, in 2017, a new scheme Dairy Processing and Infrastructure Development Fund (DIDF) has been launched in December, 2017 by this Department. The scheme aims to benefit 95 lakh milk producers in 50000 villages. Further, it will create employment directly or indirectly for skilled, semi-skilled and unskilled workers. This scheme will have total corpus of Rs. 10,881 Crore under which milk cooperatives will be provided financial assistance at the interest rate of 6.5% in the form of financial assistance loan of Rs. 8004 Crore, to be returned over a period of 10 years. Government of India has also provided the provision of interest subsidy on loan. The budget estimate (BE) under DIDF for the FY 2019-20 is Rs. 60.87 Crore.

Supporting Dairy Cooperatives and Farmer Producer Organizations engaged in dairy activities: Department has approved a new Central Sector Scheme “Supporting Dairy Cooperatives and Farmer Producer Organizations engaged in dairy activities” from 2016-17 with a corpus fund of Rs. 300 Crore to be kept in perpetuity with National Dairy Development Board (NDDB) to be used for providing soft loan for working capital to enable State Dairy Cooperative Federations to provide a stable market access to farmers. The scheme is being implemented by NDDB with the objectives: i) To assist the State Dairy Cooperative Federations by providing soft working capital loan to tide over the crisis on account of severely adverse market conditions or natural calamities, ii) To provide stable market access to the dairy farmers, iii) To enable State Cooperative Dairy Federations to continue to make timely payment of dues to the farmers, iv) To enable the cooperatives to procure milk at a remunerative price from the farmers, even during the flush season. The corpus was created for implementation during 3 years i.e. 2017-18 to 2019-20. During 2017-18 no fund was allocated. An amount of Rs. 3 Crore was released during 2018-19 & a budgetary provision of Rs.100 Crore has already been made during 2019-20.