Schemes for Development of Dairying

i. Intensive Dairy Development Programme (IDDP)

The implementation of Operation Flood (OF) program has revealed that linking of milk shed/milk production areas to the urban markets pays rich dividends through increased availability of milk to the urban consumers and remunerative return to the rural milk producers through cooperative infrastructure. During Operation Flood implementation period, the dairy development activities in the non-operation flood,hilly and backward areas, which have comparatively lesser potential for milk production, were carried out by the State Governments under the State Plan Schemes.

However, due to limited resources of the State Governments, it has been observed that there is a strong need on the part of Government of India to support efforts of the State Governments in taking up dairy development activities in these areas.

Accordingly, the Department of Animal Husbandry and Dairying had launched a scheme entitled “Integrated Dairy Development Project (IDDP) in Non-Operation Flood, Hilly and Backward Areas” on 100% grant-in-aid basis during the 8 th Plan period and continued during IX Plan. The proposal to further continue the scheme during the remaining period of X Plan and also in the XI Plan period has been considered by Government of India.

The Government of India has now approved the implementation/continuation of the modified scheme during X Plan period. The scheme would be entitled “Intensive Dairy Development Programme” (IDDP) and is implemented in hilly and backward areas including the districts which have received less than Rs. 50.00 lakh for dairy development activities during Operation Flood Program. The total Central Outlay of the scheme during the X Plan period is Rs. 175.00 crore.

Funding: The pattern of funding in non-operation flood areas will be on 100% grant in aid basis from Central Government to the State Governments/Union Territory Administration except for the cost of land. The pattern of funding for the districts which were covered under OF program but where investment during OF Programme was less than Rs. 50.00 lakh will be 100% grant in aid for the processing capacity up to 20,000 liters/ day. Above this capacity, OF pattern will be followed namely, 70% loan and 30% grant.

Implementation

•  The State Dairy Federations/District Milk Unions in view of their expertise and professionalism will implement the project.
•  The funds will be released directly to the implementing agencies to avoid delay in release of funds and speeding up the implementation of the project.
•  The project will be prepared based on cluster approach in areas with better availability of water and fodder.
•  Provision will be made for producing better quality milk in order to create environment for production of clean and good quality milk and adopting good hygienic practices.
•  Maximum project cost will be Rs. 3.00 crore per district.
•  Major components of the project will have the following ceilings:
•  Milk processing and marketing facilities (including chilling, processing, product manufacturing and marketing – not more than 60% of the total project cost.
•  Milk procurement activities including expenditure on DCS milk transportation,procurement tankers and other vehicles etc. – not more than 30% of total project cost.
•  Technical input services including breed improvement, animal health care,feed and fodder development/provision etc. – not more than 20% in areas where the breed improvement facilities are not provided under National Project for Cattle and Buffalo Breeding (NPCBB) or any other similar program and not more than 10% in areas covered by NPCBB etc.
•  Cattle induction to be restricted to only scheduled castes/scheduled tribes and BPL families subject to an overall ceiling of 10% of the total project cost and subsidy may be restricted to 50% of the NABARD cost of cattle.
•  Manpower development including training requirements of field and dairy staff as well as Management Committee of DCS and farmers training –not more than 10% of the total project cost.
•  Working capital–not more than procurement price for 21 days of the targeted milk procurement.
•  Management grants for a period of 3 years on a tapering down basis.
•  Benchmark survey and preparation of high quality Detailed Project Reports– not more than 3% of the total project cost.
•  Concurrent evaluation and in-depth independent evaluation to be undertaken– not more than 2% of the project cost.

Monitoring: The project prepared by the State Governments/Implementing Agencies within the project guidelines given in preceding paragraphs shall be considered by the Project Sanctioning Committee .The projects will be regularly monitored on quarterly basis by a Technical Management Committee headed by Secretary, In charge of Dairy Development in the concerned State/Union Territory.

ii. Strengthening Infrastructure for Quality & Clean Milk Production

Government of India has introduced a centrally sponsored scheme “Strengthening Infrastructure for Quality & Clean Milk Production” during 10 th Plan period with following objectives:

•  Creation of infrastructure for production of quality milk and milk products at the farmers level up to the points of consumption.
•  Improvement of milking procedure at the farmers level.
•  Training and strengthening of infrastructure to create mass awareness about importance of clean milk production.

Funding: The pattern of funding under the scheme will be on 100% basis, for the following components:

•  Training for clean milk production to all members of the society.
• Detergent, antiseptic solutions, muslin clothes.
•  Utensils and accessories for clean milk production.
•  Strengthening of existing laboratory facilities.
•  Planning and monitoring.The pattern of funding under the scheme will be in the ratio of 75:25 for purchase of bulk cooler between Government of India and the respective Dairy Cooperative/Union.

Government Policies and Incentives

Implementation: Dairy Cooperative/Union/Federation will implement the scheme through State Government. The Project shall be prepared as per the guidelines of the scheme given below and shall be submitted through concerned state Government/Union Territory Administration to the Department of Animal Husbandry & Dairying.

i.The first element of the project formulation would be to undertake an analysis of the proposed village to ascertain the quality standard of milk available in the village and adjoining areas both in terms of bacteriological and chemical quality.Then the status and performance of the Dairy Cooperative Society (DCS) formed in the village; its total collection and distance covered to transport the milk to the union/nearby market will be examined.

ii. While preparing the project it must be ensured that the villages and the DCS proposed for consideration under any other similar schemes on clean milk production of NDDB/Central/State Government are not covered by this scheme.

iii. While selecting DCS all such DCSs those are located in a single charged milk collection route under a Union should be covered under the scheme. In this manner all DCS of a milk route will be covered at the first stage.

iv. It should be emphasized that all DCSs, who are currently procuring more than 500 liters of milk should be considered at first priority for providing post milking chilling facilities. At second priority, all DCSs having potential of collecting 500 liters of milk per day and having no post milking chilling facilities available within a reasonable distant area but located in the same milk collection route will be selected for assistance under the scheme. In such cases, at first a DCS shall have to be organized before the village can be considered for assistance under the scheme.

v. Farmer-members who have supplied milk for a minimum of 250 days in a year to the self associated DCS or to another nearer DCS (from farmer’s cattle shed/procurement spot) will be considered for assistance under the scheme.However, all farmer-members associated with the concerned DCSs shall be considered for training.

vi. Selection of DCS and selection of Farmer-members as per above shall be done by the technical/management officers involved in milk procurement and in field level extension services of Dairy Cooperative Union/Federation or Department of Dairy Development of State Government.

vii. Training program will be undertaken by ‘Technical Expert Group for Training’constituted by Dairy Cooperative Union/Federation or Department of Dairy Development of the State Government or at existing training institute nearby.

viii. The training shall cover theoretical explanation as well as practical demonstration.

ix. As for the referral text material required for the theoretical training, Dairy Cooperative Union/Federation shall get this material printed and shall distribute the same to each farmer-member in local language at the time of training.

x. There will be one theoretical session and a practical demo-session in a day.Thereafter, regular field technical staff shall examine the impact of the training for seven to ten days and if needed, they shall supervise day to day activities in the field. The second theoretical session shall thereafter be taken up followed by a practical demo session.

xi. Expenditure on each farmer-member shall be @ Rs. 125/- for one day of training including referral text material contingency expenditure during the training program.

xii. The expenditure involved against the traveling expenses of the trainer experts may be met by the concerned department/Dairy Cooperative Union/Federation.

xiii. As a part of the project formulation exercise, Dairy Cooperative Union/Federation will have to ensure that inputs relating to 25% of the financial assistance for chilling facilities will be borne by the respective society/Union.

xiv. The Project will be examined and scrutinized by Dairy Division and approval by the Department in the normal course up to cost of Rs. 5.00 crore and by a Project Sanctioning Committee (PSC) for the Project costing more than Rs. 5.00 crore.

xv. The total outlay for the scheme for 10 th Plan is Rs. 30.00 crore and the budget provision of Rs. 1.00 crore for implementation of this scheme during 2003-04 as grant in aid to State Government/Union Territory.

iii. Assistance to Cooperatives
Many district level milk cooperative unions established under Operation Flood programme are running in loss and the effort to rehabilitate them through the Central Sector scheme ‘Assistance to Cooperative’ is also not effective in most cases. During Operation Flood Programme, about 265 districts out of over 500(presently 600) districts in the country were covered; the remaining 250 districts will be covered by the ongoing scheme ‘Integrated Dairy Development Project (IDDP)’. Due to various problems a significant number of Milk Unions created under both the Operation Flood and Integrated Dairy Development Projects are running in loss. The Government of India’s ‘Assistance to Cooperative’ scheme supports the steps necessary to restore the financial health of some loss-making district milk unions established under Operation Flood program. The scheme provides for matching contribution of grants (50:50) from the Central and State Governments.

The scheme is implemented through National Dairy Development Board (NDDB).NDDB on its part would reschedule loans, waive penal interest and freeze interest on outstanding loan.

iv. National Project for Cattle and Buffalo Breeding (NPCBB)

The NPCBB scheme is implemented by the Department of Animal Husbandry and Dairying for restructuring and reorienting cattle and buffalo breeding operations in the country with special emphasis on maintaining quality in inputs and services. The project will, over a ten year period, bring under organized breeding coverage, all the breedable female cattle and buffalo in the State through a combination of (i) a vastly improved artificial insemination (AI) network delivering AI at the farmers door step and (ii) it will strategically position bulls for natural service. The project will be implemented in two phases: I phase between 2001-2005 and II phase between 2006-2011.

Under this project, 100% grant-in-aid will be provided to the States for taking up the following activities:

•  Survey work to generate relevant information.
•  Conduction of Seminar and Workshop
•  Computerization at state and district level.
•  Strengthening of training center, bull farm and semen bank/stations etc.
•  Strengthening of infrastructure for Liquid Nitrogen storage and distribution
•  Training of professionals.
•  Establishing of breeders association and progeny testing programme.
•  Training of A.I workers (both departmental and private worker)
•  Farmers training and extension program
•  Conversion of static to mobile AI centers.
•  Purchase of equipment for private AI workers
•  Tapering grant for private AI workers Purchase of new bulls.
•  Extension programme and farmers training.
•  Equipment for AI workers.
•  Strengthening of AI networks.
•  Managerial grant to State Implementing Agency
•  Miscellaneous