Supporting Dairy Cooperatives and Farmer Producer Organizations engaged in dairy activities:-

• 1. SDCFPO Administrative Approval (AA) for 2025-26 at Annexure-II may be uploaded and older AA & guidelines may be put in archive.
• 2. Updated Details for sub-heading under SDCFPO scheme on website: -

Brief description:

This Scheme was launched during 2017-18. The scheme is being implemented through National Dairy Development Board (NDDB).

The objective of the scheme is 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.

Temporarily, the component “A” namely “working Capital loan” has been kept in suspension since 2020-21.

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 the component “B” with an outlay of Rs 203 Cr for 2020-21. Thus, the actual implementation of scheme started during 2020-21.

Pattern of financial assistance: Under the Component “B” of the scheme, an interest subvention of 2% per annum on the working capital loan is being provided to the producer owned Institutes (POIs.). Further, for prompt and timely repayment, an additional 2% per annum interest subvention is payable at the end of the loan repayment/interest servicing period.

The Union Cabinet has approved implementation of central sector scheme Supporting Dairy Cooperatives and Farmer Producer Organizations engaged in dairy activities (SDCFPO) as a part of Umbrella Scheme “Infrastructure Development Fund” from 2021-22 to 2025-26 with an outlay of Rs 500 Cr. i.e. Rs. 100 crore each year. Further, as per decision of Cabinet dated 01.02.2024, it has been approved that the implementation of SDCFPO will be continued as a component of Infrastructure Development Fund (IDF) with-in the approved outlay (i.e. Rs 500 cr. from 2021-22 to 2025-26).

Achievements: Till 31.01.2026, NDDB has conveyed sanction of Interest Subvention amount of Rs. 937.53 crore leveraging working capital loan amount of Rs. 80,047.93 Cr. @ 2% p.a. for 64 milk unions across the country and released Rs. 693.21 cr. (Rs. 370.82 cr. as regular interest subvention and Rs. 322.39 cr. as additional interest subvention amount).