Earmarked for 2017-18, over Rs 2,000 cr for dairy development yet to be disbursed

The Centre had announced its decision to set up the fund in September last year, after which the Dairy Processing and Infrastructure Development Fund (DIDF) was given an outlay of Rs 10,881 crore. The fund was aimed at building an efficient milk procurement system that included infrastructure to keep the raw material chilled and electronic milk adulteration testing equipment. The fund was also meant to help cooperative dairies modernise their processing and manufacturing faculties for value-added products like ghee, butter and cheese.

NABARD was the disbursing agency for the fund while NDDB and the National Dairy Development Corporation were the implementing agencies. Only cooperative milk unions and milk producer companies were allowed to access the fund.

The rate of interest, for the state-level cooperative milk federations and unions, was fixed at 6.50 per cent and a timetable was drawn up for the disbursal of the funds. NABARD was to disburse Rs 2,004 crore in 2017-18, Rs 3,006 crore in 2018-19 and Rs 2,994 crore in 2019-20.

However, in response to the RTI filed by The Indian Express, both NABARD and the NDDB said there has been no disbursal to any milk union, though many such unions had sent in proposals to seek funds. The NDDB listed 23 dairies which have applied for the funds, while NABARD received applications from 10 dairies.

The RTI response didn’t have any information on why no money had been released so far by the implementing agencies.

While most dairies that applied for funds are from Gujarat and Karnataka, a few are from Maharashtra, including Pune-based milk union Katraj, which had applied for Rs 70 crore, the Sangamner union and the Godavari Khore union from Ahmednagar.

A senior official of the state Dairy Development Department said the fund was meant to ensure the survival of cooperative milk unions. “Value-added projects help dairies increase their income. Most private dairies have a well stocked portfolio… the fund was meant to help milk unions catch up with them,” he said.

Vinayakrao Patil, president of the Milk Producers’ and Processors Welfare Union in Maharashtra, said the rate of interest — 6.50 per cent — was too high for cooperative unions. “We have asked the rate to be brought down to 4 per cent to make it affordable for us,” he said.