The Ministry of Food Processing Industries (MoFPI) signed a Memorandum of Understanding (MoU) with the Department of Animal Husbandry and Dairying (DAHD), to extend the benefits to beneficiaries of various schemes of MoFPI and DAHD.
The objective of schemes of MoFPI and DAHD are interlinked and complementary in nature. Hence, the MoU will facilitate MoFPI and DAHD to work together to achieve the goal for income generation, sustainable development of the rural poor through the extension of benefits of various schemes to the beneficiaries whenever they require financial assistance for the establishment, extension, strengthening of quality control, dairy processing and its value addition, meat processing, and value addition infrastructure, animal feed plant and technology-assisted breed improvement farms without any limitation.
The MoU will corroborate both MoFPI and DAHD to facilitate the beneficiaries to avail the benefits under the PM Kisan Sampada Yojana and PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme of the MoFPI and dairy development schemes of DAHD. This will not only empower the beneficiaries of MoFPI and DAHD but also create awareness through their respective implementation support team on the benefits of various schemes being implemented by them at both the Central and state levels.
The convergence between MoFPI and DAHD will also encourage beneficiaries to avail benefits with facilitation for various activities which include food safety and quality assurance, dairy processing and value addition, meat processing and value addition, and animal feed.
Speaking on the occasion, Union Minister for Fisheries, Animal Husbandry and Dairying, Parshottam Rupala highlighted that the dovetailing and synergising efforts of the DAHD and the MoFPI especially in the context of the common objective of helping the farmers and double their income through the livestock sector.
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The livestock sector is an important sub-sector of agriculture in the Indian economy. It grew at a CAGR of 8.2 per cent during 2014-15 to 2018-19. India is the world’s largest producer and consumer of milk and milk products. Milk production in the country has increased from 146.3 million tonnes in 2014-15 to 198.4 million tonnes in 2019-20 with an annual growth rate of 6.28 per cent. Per capita availability of milk has increased from 307 grams in 2013-14 to 406 grams in 2019-20 showing a growth of 32.2 per cent..Also, India has a large domestic market with a growing demand for livestock products including dairy and dairy products.
Challenges in front of India’s dairy sector
Despite these, the sector is facing many challenges. Almost 60 per cent of the sector is unorganised, scattered production and has inadequate processing infrastructure. There is a shortage of milk quality testing infrastructure and a shortage of village cold chain infrastructure, which are affecting the huge export possibilities. Presently, the export of dairy products by India is 0.1 per cent of the world.
In order to overcome these challenges, the Government of India is trying to develop new developmental and production-oriented schemes and programmes along with Increasing organised offtake of produce through expanding network of cooperatives and farmer producer organisations (FPOs), setting up low-cost support infrastructures like chilling units and testing centres at the village level, focus on easier availability of credit and expansion of processing, value addition, marketing infrastructure, increased demand through exports, premium niche products, inclusion in Poshan Abhiyan and a shifting focus to entrepreneurship based models.
DAHD interventions
With the above-mentioned objectives, the Department of Animal Husbandry is implementing many schemes. National Programme for Dairy Development is to provide assistance through grants for creating and strengthening of infrastructure for the production of quality milk, procurement, processing and marketing of milk and milk products through state implementing agencies (SIA) i.e state cooperative dairy federations. JICA assisted projects (UP and Bihar) will provide credit link grant assistance to dairy cooperatives.
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Dairy Processing and Infrastructure Development Fund (DPIDF) is another important programme of the department, wherein assistance at a subsidised rate of interest will be given. The project focuses on building an efficient milk procurement system by setting up processing and chilling infrastructure and installation of electronic milk adulteration testing equipment at the village level.
Supporting Dairy Cooperatives and Farmer Producer Organizations engaged in dairy activities (SDCFPO) will provide interest subvention on working capital to dairy cooperatives, milk unions and milk-producing companies (MPC). Also, the Animal Husbandry Infrastructure Development Fund wherein interest subvention and credit guarantee to help increasing of milk and meat processing capacity and product diversification thereby providing greater access for unorganised rural milk and meat producers to organised milk and meat market.
MOFPI interventions
Ministry of Food Processing Industries is also implementing various schemes with similar objectives and aims. Under the One District One Product (ODOP) scheme, credit link grant assistance will be provided for dairy, fisheries, poultry and animal feed. Under this, new units for ODOP products will be supported for capital investment. Also, implementing Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) which provides incentives on sales and investment to support and PM Kisan Sampada Yojana, a comprehensive package that will result in the creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet.
