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National Dairy Development Board

Central and State Government
Assistance to Cooperatives Scheme

Description/Purpose:

Aims to revitalize the sick dairy cooperative unions at the district level and cooperative federations at the State level.

Particulars:

The scheme was introduced on 04/ 01/ 2000 and is valid up to 01/01/2011. The Department has approved 32 rehabilitation proposals of Milk Unions including one new proposal of Agra milk union during the year 2007-08 in 12 States namely Madhya Pradesh, Chattisgarh, Karnataka, Uttar Pradesh, Kerala, Maharashtra, Assam, Nagaland, Punjab, West Bengal, Haryana and Tamil Nadu, with a total outlay of Rs. 197.37 crore.

The funds are released on 50:50 sharing basis between Union of India and the concerned State Government. The maximum assistance of grant is limited to the minimum amount required so that the net flow becomes positive within seven years. In any case the total grant does not exceed the accumulated cash losses.

Other benefits:
Training on dairy economy, delayed and irregular payments to the poor farmer members of these cooperatives.

Annual outlays (Central Assistance)
Ninth Plan outlay Rs.150.00 crore
Ninth Plan expenditure Rs.35.00 crore

Tenth Plan approved outlay Rs.130.00 crore
Tenth Plan expenditure Rs.39.14 crore

Eleventh Plan outlay (proposed) Rs.50.00 crore

Beneficiaries:

A number of dairy cooperatives with three-tier structure viz. village level primary cooperatives, district level unions and state level federations have been set up in different parts of the country under the Operation Flood Program. For a variety of reasons, a number of these unions/federations have accumulated losses. These accumulated losses have been imposing severe hardships to the milk producers and their dairy economy, resulting in, among other things, delayed and irregular payments to the poor farmer members of these cooperatives. The Scheme seeks to assist the sick Cooperative Milk Unions/Federations to rehabilitate them and make them viable.

Eligibility criteria:

Only those Unions/ Federations are considered where the concerned State Government agrees to:

Provide matching contribution for rehabilitation assistance;
Grant autonomy to the cooperatives in the matter of pricing decision and staff matters;
Ensure regularity of statutory audit.

Contact

Contact the Department of Animal Husbandry, Dairying & Fisheries; Or National Dairy Development Board (NDDB).
Secretary
Ph: 011-23382608
Fax: 011-23388006
Email: secyahd@nic.in

AHC
Ph: 011-23384146
Fax: 011-23382192

JS (P&F)
Ph: 011-23382354
Fax: 011-23386674
Email: jslpf@nic.in

Reference URL:

http://dahd.nic.in/IDDP/assistance_to_cooperatives.htm