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Rs 10,881 Cr Dairy Development Fund to benefit 95 lakh Farmers

The Cabinet Committee on Economic Affairs today approved a Dairy Processing & Infrastructure Development Fund” (DIDF) for the period from 2017-18 to 2028-29

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The government today approved implementation of Dairy Processing & Infrastructure Development Fund (DIDF) and it is expected to benefit benefit 95,00,000 farmers in about 50,000 villages.

The Finance Minister in the Union Budget 2017-18 had announced the setting up of DIDF as a corpus of Rs 8,004 crore with National Bank for Agriculture and Rural Development (NABARD). However, the Expenditure Finance Committee has given approval for initiation and setting up of the DIDF at a total scheme outlay of Rs 10,881 crore.  

The DIDF will focus on building an efficient milk procurement system by setting up of chilling infrastructure & installation of electronic milk adulteration testing equipment, creation/modernization/expansion of processing infrastructure and manufacturing faculties for Value Added Products for the Milk Unions/ Milk Producer Companies.
 
Out of Rs 10,881 crore of financial outlay for project components of DIDF, Rs 8004 crore shall be loan from NABARD to National Dairy Development Board (NDDB) and National Dairy Development Cooperation (NCDC), Rs 2,001 crore shall be end borrowers contribution, Rs 12 crore would be NDDB/NCDC‘s share and Rs 864 crore shall be contributed by DADF towards interest subvention. NABARD shall disburse Rs 2,004 crore, Rs 3,006 crore and Rs 2,994 crore during the year 2017-18, 2018-19 and 2019-20 respectively.
 
According to official statement, allocation of Rs 864 Crore for meeting interest subvention will be released to NABARD over a period of 12 years covering the entire loan repayment period from 2017-18 to 2028-29.
 
The project will be implemented by NDDB and NCDC directly through the End Borrowers such as Milk Unions, State Dairy Federations, Multi-state Milk Cooperatives, Milk Producer Companies and NDDB subsidiaries meeting the eligibility criteria under the project. An Implementation and Monitoring Cell (IMC) located at NDDB, Anand, will manage the implementation and monitoring of day-to-day project activities.
 
 Benefits from DIDF
 
With over Rs 10,000 crore investment, the scheme will benefit 95,00,000 farmers in about 50,000 villages  
 
Additional Milk processing capacity of 126 lakh litre per day, milk drying capacity of 210 MT per day, milk chilling capacity of 140 lakh litre per day, installation of 28000 Bulk Milk Coolers (BMCs) along with electronic milk adulteration testing equipment and value added products manufacturing capacity of 59.78 lakh litre per day of milk equivalent shall be created

Initially 39 MUs the Department will start the project with 39 profit making milk unions of 12 States, other Milk Cooperatives which become eligible on the basis of their net worth and profit levels, in subsequent years, to apply for loan under DIDF

The scheme will generate direct and indirect employment opportunities for skilled, semi-skilled and unskilled manpower. Direct employment opportunities for about 40,000 people will be created 

About 2 lakh indirect employment opportunities will be created on account of expansion of milk and milk product marketing operations from existing Tier I, II & III to Tier IV, V & VI cities/towns etc. This will lead to deployment of more marketing staff by Milk Cooperatives, appointment of distributors and opening of additional milk booths/retail outlets in urban/rural locations.
 

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