A Scheme named “Supporting Dairy Cooperatives and Farmer Producer Organizations engaged in dairy activities” was launched during 2017-18. The scheme is being implemented by National Dairy Development Board. A corpus of Rs. 300 crore is kept in perpetuity with National Dairy Development Board to be used for providing soft loans for working capital to enable Cooperative Societies and farmer producer organizations engaged in dairy activities to provide a stable market access to farmers.
The objectives of the scheme are as follows:-
- (i) To assist the Cooperative Societies and farmer producer organizations engaged in dairy activities 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 Cooperative Societies and farmer producer organizations engaged in dairy activities to continue to make timely payments of dues to the farmers.
- (iv) To enable the cooperatives & farmer producer organizations engaged in dairy activities to procure milk at a remunerative price from the farmers, even during the flush season.
Due to Economic Impact of Covid-19 on Dairy Sector, Ministry of Fisheries, Animal Husbandry and Dairying has introduced a new component “interest subvention on Working capital loans for Dairy sector” as one of the components under its scheme “Supporting Dairy Cooperatives and Farmer Producer organizations engaged in dairy activities” (SDC&FPO). Temporarily, the other component namely “working Capital loan” under which fund was to be given out of the Corpus was kept in suspension during 2020-21.