Ministry of Fisheries, Animal Husbandry and Dairying has introduced a new scheme “Interest subvention on Working Capital Loans for Dairy sector” for supporting Dairy Cooperatives and Farmer Producer Organizations (SDC&FPO) engaged in dairy activities. A budgetary provision of Rs 100 Crore earmarked for this and will be implemented during 2020-21.
- In order to meet the working Capital needs of the Cooperatives and Farmer owned milk producer companies, Interest subvention will be given on working capital loan taken from scheduled Commercial Banks/Regional Rural Banks (RRBs)/Cooperative Banks/Financial Institutions between 1st April 2020 and 31st March 2021 by Cooperatives/ FPOs for conversion of milk into conserved commodities and other milk products.
Interest subvention of 2% per annum provided
The scheme has made provisions for providing interest subvention of 2% per annum, with an additional incentive of 2% per annum interest subvention to be given in case of prompt and timely repayment/interest servicing. This will help to ease out the working capital crisis for handling surplus milk and enable timely payment to the farmers. The scheme will be implemented through National Dairy Development Board (NDDB), Anand, Gujarat.
Benefit of scheme
It will help Producer Owned Institutions in supplying quality milk and milk products to consumers at a reasonable price and will also help in stabilizing the domestic market price of conserved dairy commodities and other milk products.
About Ministry of Fisheries, Animal Husbandry and Dairying
Union Minister– Giriraj Singh
Ministers of State (MoS)– Sanjeev Kumar Balyan, Pratap Chandra Sarangi