Question : Condition of Cooperative Milk Federations

(a) The details of the schemes formulated by the Government to ameliorate the conditions of Cooperative Milk Federations;
(b) Whether the Government proposes to keep the interest on loan borrowed by the dairy farmers at par with the interest paid by agriculture farmers;
(c) If so, the details thereof;
(d) Whether the Government proposes to provide loan on interest subvention on purchase of livestock since dairy farming is a supplementary occupation to agriculture; and
(e) If so, the time by which a final decision is likely to be taken by the Government in
this regard.

ANSWER
THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
(SHRIMATI KARISHNA RAJ)

(a) Department of Animal Husbandry, Dairying and Fisheries, Government of India has been implementing following dairy development schemes to ameliorate the conditions of Cooperative Milk Federations in the country. Details are given at Annexure below:
Sl.No. Scheme Name Annexure
1 National Programme for Dairy Development
I
2 National Dairy Plan (Phase-I)
II
3 Dairy Entrepreneurship Development Scheme
III
4 Dairy Processing and Infrastructure Development Fund IV
(b)& (c) The Department is implementing DEDS in which Back Ended Capital Subsidy is given to farmer instead of interest subvention to reduce the burden on loan borrowed by dairy farmers. Under the scheme, back ended capital subsidy of 25% for general category beneficiaries (33.33% for SC/ST beneficiaries) is provided for components namely setting up of small cattle rearing unit, bulk milk cooler, testing equipment, transport facilities, indigenous product making facilities, cold storage, vermi compost unit and setting up private veterinary clinic. There is a budgetary provision of Rs.323 crore during 2018-19. Details of scheme are given at Annexure-III.
(d) & (e) In the budget announcement 2018-19, the facility of Kisan Credit Cards was extended to animal husbandry farmers, to help them meet their working capital needs of small and marginal farmers. Thus the animal husbandry and fisheries farmers would get the same benefit of interest subvention for their working capital requirement which is available to farmers. Interest subvention on loan of purchase of livestock has not been approved.