Dairy Processing And Infrastructure Development Fund (DIDF)

Dairy farming is a major source of livelihood for many people in rural areas. India is the largest milk producer which contributes 24 percent of global milk production in the year 2021-22 and ranks 1st position in the world. Dairy Processing and Infrastructure Development Fund (DIDF) is a government initiative aimed at supporting the dairy sector in India. The primary objective of this scheme is to increase the value of milk produced by farmers by promoting the establishment of more efficient and modern processing units that can produce high-quality dairy products. 

Scheme Overview

• Scheme Name: Dairy Processing and Infrastructure Development Fund (DIDF)
• Scheme Implemented: 2017-18
• Scheme Fund Allocated: 11,184 Crores
• Type of Government Scheme: Central Sector Scheme
• Sector / Sponsored Scheme: Ministry of Fisheries, Animal Husbandry and Dairying
• Website to apply: NA
• Helpline No: NA

Key Features of Dairy Processing and Infrastructure Development Fund

Dairy Processing and Infrastructure Development Fund (DIDF) scheme is managed by National Dairy Development Board (NDDB), a statutory body established by the Government of India to promote, finance and support dairy development across the country 

CATEGORY	REMARKS
Aim	To boost dairy sector
Implementing Agency	National Dairy Development Board (NDDB) National Cooperative Development Corporation (NCDC)
End borrowers	Milk Unions, State Dairy Federations, Multi State Milk Cooperatives, Milk Producer Companies, National Dairy Development Board Subsidiaries
Financial Outlay	Interest subvention – Rs 1167 crore NABARD – Rs. 8004 crores Eligible End Borrowers – Rs. 2001 crore National Dairy Development Board & National Cooperative Development Corporation – Rs. 12 crores
Funding pattern	Loan Component – 80% End Borrower’s Contribution – 20%
Repayment Period	10 years (Moratorium Period – 2 years)
Interest rate	Fixed 6.5% per annum
Components	Creation and Modernization of new milk processing facilities Manufacturing facilities for Value added products Setting up electronic milk testing equipment Project Management and Learning Other components which contribute to the objectives of DIDF

 

Objectives of Dairy Processing and Infrastructure Development Fund

• Modernization of milk processing plants and machinery
• Creation of additional infrastructure for processing more milk
• Bringing more efficiency in dairy processing plants and controlled dairy institutions

Benefits of DIDF

• Dairy Processing and Infrastructure Development Fund provides financial assistance to dairy cooperatives and private dairy processors to upgrade their processing facilities. This can help modernize the dairy industry in India, leading to improved productivity and quality of dairy products
• DIDF scheme increases the milk processing capacity of the country that leads to higher milk production. Therefore, the scheme can provide additional income to the farmers and boost the rural economy
• This scheme also helps to create employment opportunities in the dairy sector by supporting the development of new processing facilities

Challenges of Dairy Processing and Infrastructure Development Fund

• Developing infrastructure for dairy processing in rural areas can be challenging due to lack of access to electricity and other basic infrastructure. This can make it difficult to set up and run modern processing facilities in these areas.

Documents Required

Documents required for applying for the Dairy Processing and Infrastructure Development Fund (DIDF) may vary depending on the type of applicant (dairy cooperative or private dairy processor). Some of the common documents required for DIDF, 

• Project proposal
• Business Plan
• Project cost estimate
• Proof of ownership
• Other relevant business documents

How to apply? 

If you are really interested in applying for funding from the DIDF, follow the below mentioned steps, 

1. Understand the eligibility criteria before applying
2. End borrower meeting the eligibility criteria must prepare a Detailed Project Report (DPR)
3. Submit the DPR to Regional office of National Dairy Development Board
4. Once you submit your application, it will be reviewed by the DIDF board.
5. If your application is approved, you will receive the funding as per the terms and conditions of the DIDF scheme

Conclusion

Therefore, the Dairy Processing and Infrastructure Development Fund is an important initiative for promoting the growth and development of the dairy sector in India, which is a significant contributor to the country’s agricultural economy.