Dairy Sahakar Scheme
Introduction: The Vision Behind the Scheme
The Dairy Sahakar Scheme was launched as a part of the government’s larger vision of transforming the cooperative sector. The motto behind this scheme is:
🗣️ “From Cooperation to Prosperity”
This means that cooperatives, which are often small or local-level bodies, must not remain just as facilitators of services, but must evolve into engines of economic growth and prosperity for farmers, especially in the dairy sector.
📅 Timeline and Tenure
- The scheme was launched in FY 2021-22
- It will continue till FY 2025-26
💼 Implementing Agency
The National Cooperative Development Corporation (NCDC) is the nodal agency for implementing this scheme.
Let’s take a moment to understand what NCDC is:
🏢 About NCDC:
- Statutory: Established under an Act of Parliament in 1963
- Autonomous: Functions independently of government budgeting
- Exclusively for Cooperatives: Works with primary, district, state-level, and multi-state cooperatives
- Market-Driven: Operates on commercial principles (no government financial support)
🎯 Objectives of the Dairy Sahakar Scheme
This scheme aims to provide financial assistance to cooperatives for:
- Promoting ESG-linked activities
ESG = Environment, Sustainability, and Governance
(A modern framework to assess long-term impact and viability of economic projects)
- Supporting the goal of doubling farmers’ income
This is aligned with India’s broader agricultural vision of making farmers self-reliant (Aatmanirbhar).
📌 Salient Features of the Scheme
✅ Eligibility
- Any registered cooperative society
- FPO (Farmer Producer Organization) or SHG (Self Help Group) that operates as a cooperative
🔹 Condition: Their bye-laws must permit dairy-related activities
💰 Financial Support by NCDC
NCDC will provide loans and assistance for various components of the dairy value chain, such as:
- Bovine development (breeding, veterinary, etc.)
- Procurement of milk
- Processing and value addition
- Quality assurance
- Other support activities like maintenance, ICT, and even renewable energy
🕰️ Loan Duration:
- Total loan tenure: 5 to 8 years
- Includes a moratorium period (repayment holiday) of 1 to 3 years on the principal amount
🏛️ Assistance Pattern
- NCDC can route assistance either:
- Through State Governments / UT Administrations
- Directly to the Cooperatives
This dual model ensures both federal flexibility and direct empowerment.
🧑🏫 Capacity Building Provisions
The scheme is not just about money; it also focuses on institutional strengthening:
- Cooperatives will be trained and supported through:
- LINAC: Laxmanrao Inamdar National Academy for Cooperative Research and Development
- Emphasis on convergence with:
- Other Central and State schemes
- CSR (Corporate Social Responsibility) funds and projects
This integrated approach ensures sustainability and long-term impact.
🔧 Some Supporting Activities Covered
The scheme is quite broad and supports allied services as well. Here are some examples:
| Supporting Activity | Relevance |
| ✅ Renewable Energy | For sustainable dairy plant operations |
| ✅ ICT (Information & Communication Technology) | For supply chain, quality, and payment systems |
| ✅ Manufacturing of cattle feed/supplements | Core input in milk production |
| ✅ Packaging material (PET bottles, etc.) | Enhancing marketability of dairy products |
| ✅ Research & Development (R&D) | Innovation in dairy breeds, productivity, etc. |
| ✅ Maintenance Services | Smooth operation of dairy infrastructure |
🧩 Why is this Important for UPSC?
From a UPSC GS Paper III (Economy + Agriculture) and Government Schemes perspective, this scheme is important because it:
- Showcases modernization of cooperatives
- Aligns with ESG principles
- Helps achieve SDGs (like SDG 1: No Poverty, SDG 2: Zero Hunger)
- Supports Doubling Farmers’ Income, a major government promise
- Reflects convergence of various policy instruments
📝 Final Takeaway for Mains/Essay
If you are writing a Mains answer on agricultural reforms, cooperative sector, or sustainable rural development, this scheme is a good example to quote.
You can say:
“The Dairy Sahakar Scheme launched by NCDC integrates ESG principles into India’s dairy cooperative sector, promoting both institutional strength and economic prosperity through a blend of financial support and capacity building.”