Rs 8,000-crore dairy processing fund to be set up: FM Jaitley

Gujarat Co-operative Milk Marketing Federation head says it will mean Rs 50K cr cash flow to farmers

In a major boost for the dairy sector, Finance Minister Arun Jaitley announced the setting up of a dairy processing fund with a corpus of Rs 8,000 crore for three years. For the first year, however, Rs 2,000 crore has been allocated to the corpus.

R S Sodhi, chairman of Gujarat Co-operative Milk Marketing Federation which produces and markets Amul brand milk and its derivatives, said, "While the details are yet to be seen, whether the proposed fund would be in the form of capital subsidy, interest subsidy or a fresh capital infusion, but irrespective of its form, the finance minister's decision is a bold step."

This is the first time since the White Revolution that the government has brought in such a reform for the sector. 

"The decision would enable India to produce 500,000 litres per day of additional milk with an estimated Rs 50,000 crore cash flow to the farmers' hand," said Sodhi.