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DAIRY SECTOR SCHEMES
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- India’s dairy industry: India is the leading milk-producing country worldwide, accounting for one-fifth of the global milk production. Over the last decade, production has increased at 5.5% annually, with 187.7 million tonnes of milk being produced in FY 2018-19.
- Unlike the West, India’s dairy industry is highly unorganised. About 60% surplus milk is handled by the unorganised sector (milkmen), while the remaining 40% is procured by the organised sector comprising dairy co-operatives and private companies. In developed countries, about 90% surplus milk is handled through the organised sector.
- The volume of wastage, coupled with increased demand for dairy products, may hamper India’s plan to produce about 300 million tonnes of milk by 2024. In addition, average milk yield of cows in India is lower than US counterparts—1,248 kgs of milk per cow in a year compared with ~10,000 kgs of milk per year. Indian dairy farmers must increase produce and focus on reducing wastage to meet the target. Adopting technology solutions can help in increasing production efficiency and reducing wastage in the supply chain. Digitalisation will play a crucial role in making the transformation possible.
- 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 has two components viz., (a) National Programme for Bovine Breeding (NPBB) and (b) National Programme for Dairy Development (NPDD). The IDDP, CMP and A to C were 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 for NPDD for the FY 2019-20 was 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 for DEDS for FY 2019-20 was 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 of World Bank Assistance. It is being implemented by National Dairy Development Board with the aim to increase productivity of milch animals, 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 & Uttrakhand 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 ended in November, 2019, and NDP-I scheme funding was ended.
- Dairy Processing and Infrastructure Development Fund (DIDF): To accelerate Dairy Development in India, in 2017, the DIDF was launched in December. It 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. The scheme corpus will be 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.
- Supporting Dairy Cooperatives and Farmer Producer Organizations engaged in dairy activities: A new Central Sector Scheme “Supporting Dairy Cooperatives and Farmer Producer Organizations engaged in dairy activities” started 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.
- World Milk Day 2021
- The story: World is celebrating “World Milk Day” on June 1, 2021 under the theme- “sustainability in the dairy sector with messages on nutrition”.
- History: The day is celebrated since 2001. It was established by Food and Agriculture Organisation of United Nations. The day is observed to appreciate dairy farmers and dairy sector. It recognises the importance of milk as global food.
- Indian dairy sector: India is one among the largest producer of milk in world. Dairy sector supports livelihoods of millions of people in country. In the initial phases of India’s independence (in 1955) India’s butter imports were 500 tons per year. By 1975, India became self-sufficient in milk production and all imports of milk and milk products were stopped. The medal of success of milk production in India goes to Dr Verghese Kurien.
- Dr Kurien and White Revolution: The White Revolution in India was started by efforts of Dr. Verghese Kurein in 1970s. He is known as “Father of the White Revolution” in India, and is known for his efforts in turning India into largest producer from milk deficient country. He established institutions like Gujarat Cooperative Milk Marketing Federation Ltd and National Dairy Development Board. Both played a significant role in shaping Dairy Cooperative movement.
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