Dairy Processing And Infrastructure Development Fund (DIDF)

It is launched in 2017-18 with an allocation of ₹11,184 Crores, a Central Sector Scheme under Ministry of Fisheries, Animal Husbandry and Dairying, focuses on bolstering dairy processing and infrastructure.

Scheme Overview

Aim: To boost dairy sector


Implementing Agency: NDDB and NCDC, as implementing agencies, drive the Dairy Processing and Infrastructure Development Fund (DIDF) to bolster the dairy sector.

End borrowers: Milk Unions, State Dairy Federations, Multi State Milk Cooperatives, Producer Companies, NDDB.

Financial Outlay: Interest subvention: ₹1167 cr, NABARD: ₹8004 cr, Eligible borrowers: ₹2001 cr, NDDB & NCDC: ₹12 cr.

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: Modernize processing, manufacture value-added products, install milk testing equipment, manage projects, and more under DIDF.


DIDF aids dairy cooperatives & processors, enhancing processing facilities.

Increases milk processing, boosts production & farmer income.

Creates jobs by fostering new processing facilities in dairy sector.

Modernization elevates dairy industry, improving productivity & product quality.

Step 1: Understand the eligibility criteria before applying

Step 2: End borrower meeting the eligibility criteria must prepare a Detailed Project Report (DPR)

Application Process

Step 3: Submit the DPR to Regional office of National Dairy Development Board

Step 4: Once you submit your application, it will be reviewed by the DIDF board.

Step 5: If your application is approved, you will receive the funding as per the terms and conditions of the DIDF scheme


Challenges in rural dairy processing infrastructure include limited access to electricity and basic amenities, hindering setup and operation of modern facilities.

The Dairy Processing and Infrastructure Development Fund plays a vital role in advancing India's dairy sector, a key contributor to the agricultural economy.


To learn more about Dairy Entrepreneurship Development Scheme, click the link below .