Finance in Dairy Farming is Very Important For Diversification And Reducing Poverty And Unemployment rate

1. FINANCING DAIRY DEVELOPNMENT
MOHD BELAL KHAN
GM9808
21AEM12

2. DAIRY DEVELOPNMENT
Approximately 150 million households around the globe are engaged in Dairy
production. In most developing countries, milk is produced by smallholders, and
milk production contributes to household livelihoods, food security and nutrition.
Milk provides relatively quick returns for small-scale producers and is an
important source of cash income.
In the last three decades, world milk production has increased by more than
59 percent, from 530 million tonnes in 1988 to 843 million tonnes in 2018.
•The countries with the highest milk surpluses are New Zealand, the United States
of America, Germany, France, Australia and Ireland.
•The countries with the highest milk deficits are China, Italy, the Russian
Federation, Mexico, Algeria and Indonesia.

3. FINANCING DAIRY DEVELOPMENT PROGRAMMES
Dairy projects are financed for the following activities: -
I. Financing individuals for purchase of good quality high yielding milch
animals, viz., cows/buffaloes or cross bred cows for milk production.
II. Financing individuals for purchase and rearing of calves upto the stage of
first lactation.
III. Financing for other innovative animal husbandry activities, namely, cattle
breeding, salvaging of dry pregnant cattle, milk-processing facilities,
construction of milk houses, etc.

4. FINANCING FOR MILK PRODUCTION ACTIVITY i.e. PURCHASE
AND MAINTENANCE OF MILCH ANIMALS (LACTATING
COWS/BUFFALOES) FOR MILK PRODUCTION:
PURPOSE: Bank provides loan for following purposes: -
• Purchase & maintenance of good quality milch animals for milk production
(with average daily milk yield of 6.5 litres)
• Construction of shed(s) for keeping the animals and purchase of dairy
machinery and equipment
• Rearing of good quality female calves up to the stage of first lactation.

5. ELIGIBILITY: Individuals undertaking dairying as subsidiary activity:-
(a) The intending borrower(s) should be having experience in maintenance of
milch animals.
(b) The intending borrower(s) should have arrangement for supply of
adequate quantity of fodder.
(c) Activity should be economically viable.
(d) The borrower(s) should have shed/accommodation for keeping the animals
or should have adequate space for constructing the shed for keeping the
animals.

6. Individuals undertaking commercial dairy as main activity:-
(a) Borrower(s) should be well experienced in running a dairy farm on commercial
basis intending to undertake dairying as his main vocation/business.
(b) The borrower must have accommodation for maintenance of animals or suitable
space for construction of shed should be available with the applicant on which shed
could be constructed.
(c) Applicant should have arrangements for growing/storage of feeds, fodder and
concentrates.
(d) Project report submitted by the applicant should indicate the technoeconomic
viability, marketing arrangements, infrastructure, etc.

8. VARIOUS GOVERNMENT SCHEMES :-
1) Animal Husbandry Infrastructure Development Fund (AHIDF)
It is a flagship scheme under the department of Animal Husbandry and Dairying, whereby INR 15,000 cr.
fund has been setup to offer financial support to investors.
The benefits available are:
1. 3% interest subvention on loans
2. 2-year moratorium with 6-year repayment period
3. INR 750 Cr credit guarantee
Coverage of the scheme includes investment in -
 1. Dairy processing infrastructure
 2. Value added product manufacturing
 3. Cattle feed plant setup

9. 2) Dairy Processing and Infrastructure Development Fund (DIDF)
Dairy Processing & Infrastructure Development Fund has been set up with a corpus of Rs. 8,004 crores with
National Bank for Agriculture and Rural Development (NABARD).
The Scheme envisages providing loan assistance to State Dairy Federations, District Milk Unions, Milk
Producers Companies, Multi State Cooperatives and NDDB subsidiaries across the country who are termed
as Eligible End Borrowers (EEBs).
3)National Livestock Mission (NLM)
The focus of the scheme is on entrepreneurship development and breed improvement in poultry, sheep, goat
and piggery including feed and fodder development.
The scheme is implemented with the following three Sub-Missions:
 1. Sub-Mission on Breed Development of Livestock & Poultry
 2. Sub-Mission on Feed and Fodder development
 3. Sub-Mission on Extension and Innovation

10. 4) Rashtriya Gokul Mission
Under this scheme, breed improvement activity is supported through support to semen production facilities,
bull production programme and breed multiplication farms. 50% capital subsidy is made available to
entrepreneurs directly for breed multiplication farms for production and supply of high genetic merit heifers to
farmers.
The extension of artificial insemination coverage is undertaken primarily through incentives for AI technicians
and promoting usage of sex sorted semen. Further, the scheme focuses on making available reproductive
technologies at farmers’ doorstep at affordable price.
5) Supporting Dairy Cooperatives and Farmer Producer Organizations engaged in dairy activities
The scheme is being implemented by National Dairy Development Board. A corpus of Rs. 300 crore is kept
in perpetuity with National Dairy Development Board to be used for providing soft loans for working capital
to enable Cooperative Societies and farmer producer organizations engaged in dairy activities to provide a
stable market access to farmers.
6) Rashtriya Gokul Mission
The NPDD scheme aims to enhance quality of milk and milk products and increase share of organized milk
procurement. The scheme focuses towards 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 /SHG run private dairy/Milk Producer Companies/Farmer Producer Organizations.
The scheme will be implemented across the country for the period of five year from 2021-22 to 2025-26.

11. THANK YOU