Dairy is an important viable activity and banks can finance individual units in the entire value chain of dairy like procurement, processing and handling of milk, NABARD Deputy General Manager Nancharaiah said.
Participating in a workshop on NABARD’s Dairy Entrepreneurship Development Scheme (DEDS) held here on Tuesday, he said that the dairy industry would change the fate of farmers by providing them with a sustainable source of income that would help them withstand if the crop is affected by vagaries of nature like drought.
Rural economy
“Comprehensive dairy model for a district involves, milch animals with insurance, fodder cultivation, azolla and vermi-compost units. The milk lines have been strengthened and supply routes enhanced,” NABARD AGM G. Ramesh Kumar explained.
The dairy units have improved the rural economy, he added.
Under the scheme the banks promote joint liability (JLG) groups — an informal group of 4 to 5 farmers — and they are advanced loans up to ₹5 lakh to purchase 10 animals at two per individual.
Leading in loans
Chief exective officer of Medak DCCB M. Srinivas pointed out that cooperative banks have been in the forefront in financing under dairy activity and have disbursed up to ₹45 crore in erstwhile Medak district.
The DCCB is promoting dairy JLGs among the women self-help groups and has also taken up SHG financing in all the three districts that comprised the erstwhile Medak district.
NABARD has sanctioned and released subsidy to the tune of ₹10 crore for setting up of dairy units by more than 6,000 farmers in the district under milk grid.
