Action Plan to Promote Dairy Industry

This Department has launched Animal Husbandry and Infrastructure Development Fund (AHIDF) in 2020 with an outlay of Rs. 15,000 Cr and Dairy Processing Infrastructure Development Fund (DIDF) in 2017 with an outlay of Rs. 11,184 Cr as a part of Atmanirbhar Bharat package stimulus.

In 2020, as a part of Hon’ble Prime Minister’s Atma Nirbhar Bharat Abhiyan Rs 8000 Cr has been earmarked for assisting milk processing and product plants under AHIDF for implementation during 2020-2021 and 2022-2023 with objective of increasing of milk processing infrastructure, to provide greater access for unorganized rural milk producers, make available protein enriched quality milk products, develop entrepreneurship and promote exports. The eligible beneficiaries of the scheme are Farmer Producer Organization (FPO), Private companies, Individual entrepreneurs, Section 8 companies, Micro Small and Medium Enterprises. Under the scheme, the Schedule bank will provide loan to the eligible beneficiaries up to 90% with the commitment of minimum 10%. The Central Government provide interest subvention @3% and also credit guarantee to those beneficiaries covered under MSME defined ceilings. The maximum repayment period is 10 years including 2 years moratorium period.

DIDF was launched in 2017-2018 with the objective of creating/ strengthening of Milk Processing, Value addition & chilling facilities for implementation up to 2022- 2023. The eligible beneficiaries of the scheme are Dairy Co-operative, Multi State Dairy Cooperative, Milk Producer Companies (MPC), National Dairy Development Board (NDDB) subsidiaries, Self Help Groups (SHGs) and Farmer Producer Organizations (FPOs) registered under Cooperative and Companies Act. Under the scheme, National Bank for Agriculture and Rural Development (NABARD)/ National Dairy Development Board (NDDB)/ National Cooperative Development Corporation (NCDC) provide loan (Rs. 8004 Cr) to the eligible beneficiaries. The Central Government provides interest subvention @ 2.5%. The maximum repayment period is 10 years including 2 years moratorium period.

This information was given by The Minister of Fisheries, Animal Husbandry and Dairying, Shri Parshottam Rupala in the Rajya Sabha  in a written reply today.