Dairy sector: Interest subvention increased to 2.5 pc

#dailynews60 : The government on Wednesday increased the interest subvention or subsidy on loans given to the dairy sector from 2 per cent to 2.5 per cent, a move aimed at taking the white revolution to the next level.

Giving details about the decision taken at the Cabinet Committee on Economic Affairs (CCEA), Union Minister Prakash Javadekar said upward revision in the interest subvention would benefit 95 lakh farmers spread over 50,000 villages.

The increased interest subsidy under the scheme Dairy processing and Infrastructure Development Fund (DIDF) with the revised outlay of Rs 11,184 crore will take the “the white revolution (associated with milk production) to the next level, the minister said.

Under DIDF, the central government will provide an interest subvention up to 2.5 per cent to Nabard from 2019-20 (with effect from July 30, 2019) to 2030-31 and in case there is any further increase in the cost of funds, it would be borne by the end borrowers themselves.

“The funding period (2017-18 to 2019-20) of the scheme is revised to 2018-19 to 2022-23 and the repayment period to be extended up to 2030-31 with spillover to first quarter of the FY 2031-32,” said an official release in this regard.

Altogether 37 sub-projects have been submitted with an estimated cost of Rs 4,458 crore, of which loan component would be Rs 3,207 crore for the scheme.

Out of Rs 3,207 crore, as on date, Rs 1,110 crore has been disbursed in two instalments of loan by Nabard to the National Dairy Development Board (NDDB).

The CCEA decision, Javadekar said, will benefit 95 lakh milk producers covering 50,000 villages.

Besides, 28,000 bulk milk coolers with 140 lakh litres per day as additional milk chilling capacity will be established.

There will also be creation of additional 210 tonnes per day milk drying capacity, modernisation, expansion and creation of milk processing capacity of 12.6 tonnes litres a day.