|
|
| |
| 3.
Self employment generation in Dairy Sector by
establishing of Hi-Tech Dairy Units.
|
| |
| |
| |
| Hi-Tech
commercial Dairy as a new plan scheme is proposed
to be implemented in the State starting from
the current year . For the year 08-09, there
is a budgetary provision of Rs.750.00 lac out
of which a sum of Rs. 150 +150 =300.00 lac has
been sanctioned vide Govt. letter No. 3386-AH-4-2008
/8478 Dated 4.7.08 & 3384 - AH-4-2008 /9042
Dated 17.7.08. This provision was made in the
Annual Plan of the Department on the basis of
the allocation of Rs. 92.16 crores of which
Rs. 49.66 crores was for SCSP. But now the Planning
Department has revised this allocation and the
SCSP component of the department has been reduced
to Rs. 20.00 crores as communicated by the Govt.
vide memo No. 4213-AH-4-2008/10724 dated 25.8.2008
(Copy enclosed). The provision for this scheme
has been revised and now the revised scheme
worth of Rs. 600.00 lac is proposed. The scheme
in principle stands approved by the Govt. The
detail of the scheme is as under:- |
| It
needs no emphasis that India happens to be the
goldmine of farm livestock resources. It possesses
more than half of the buffalo population of
the world with a majority of the recognized
breeds. The Indian Dairy Industry with a large
number of Dairy Entrepreneurs in rural areas
has made a tremendous impact on the agrarian
economy of the country. With present production
level of 98 million tons milk per annum, India
ranks first in the world and 55% of the total
milk produced comes from buffaloes. (The world
trade in milk and milk products is about US$
10 billion.) India’s present export earnings
from milk and milk products are mere 0.06 percent
of global trade. The Agriculture and processed
food products have a large scope in the global
market. It is expected that through optimal
utilization of resource base and the induction
of advance technology Indian Dairy Production
can scale new heights. |
Haryana
holds a special place in the field of milk production
and it is truly known as the ‘Milk pail’
of the country. 80% of the State milk comes
from buffaloes alone. The State is proud to
be the home-tract of one of the best buffalo
breeds of the world i.e. 'Murrah'. Buffalo has
also been recognized to be the animal of the
21st century and thus, systematic improvement
of buffaloes for milk production of the country
is a foregone conclusion. There is a great demand
of this high yielding elite breed not only from
within but outside the country as well. Most
of the States procure breeding stock from Haryana
for upgradation of their low producing buffaloes.
The State is quite conscious of conserving,
improving and fast multiplying this unique genetic
stock of buffaloes by promoting breeding activities
in the State. |
Milk
production in the State is 54.70 lac M.T. out
of which 80% is contributed by buffaloes. The
per head milk availability in the state is 640
gm per day which is 2nd highest next to Punjab.
According to livestock census - 2003, the buffalo
population in the state is 60.00 lacs and is
increasing annually by 3% where as cattle population
15.00 lacs and decreasing annually by 3%. It
directly reflects the suitability and adaptability
of buffaloes to the environment of the State.
|
| The
State has a vast potential of self employment
generation in the sector of Animal Husbandry
& Dairying. Establishment of dairy units
of 3,5,10.20 milch animals can alone generate
substantial employment (Direct or Indirect)
wherein loan is provided by the banks &
subsidy by Govt. Normally, one person gains
full time employment by keeping 2-3 milch animals.
Similarly, for unit of 5,10,20 milch animals
the other members of the family also gain employment.
The State is having a well developed infrastructure
of veterinary institutions catering to the needs
of the livestock owners providing veterinary
services round-the-clock at their doorsteps.
The strategic location of the State having proximity
to the national capital further gives it an
opportunity to upgrade its already existing
well-organized milk marketing system. The State
is also self-sufficient in fodder production
and rich in human resource for providing training
to the farmers as well as the field functionaries. |
The
department holds, at every sub division in the
state, regular 11 days dairy trainings for the
persons interested in setting up of dairy units.
Animal Husbandry is an integral part of Agriculture
and next to Agriculture, is the major sector
of employment. According to 17th Livestock Census
-2003, About 36.00 lac families (Households)
are engaged in livestock rearing alongwith agriculture
& out of these about 10.00 lacs families
are drawing household income from tersary sector
as major occupation even than are rearing milch
animals or other livestock. |
|
| Briefly
the major objectives of the scheme are under:- |
| i)
Clean Milk Production being scientifically managed
& reared. |
| ii)
Creation of data bank of quality germplasm -
step toward formation of breed Associations |
| iii)
More employments -- as a result of shift from
1-2 Milch animals to large commercial dairies. |
|
To boost up the milk production, fodder production
and generation of more & more employments
in the dairy sector, it is proposed to establish
bigger dairies with minimum of 20 or more milch
animals. |
| Commercial
banks under Agriculture Finance would finance
the commercial dairy units. The need based loan
as per proposed project- proposal would be sanctioned
by the bank. The model scheme for a 20 milch
animals unit ( Details exhibit at Annexure-I
) would require the following amount or need
based as demanded by the unit holder :- |
| (i)
Term loan Rs. 8.5 lac |
| (ii)
Working Capital Rs. 2.5 lac |
| This
amount is to be repaid in 7 years in 78 monthly
installments with a moratorium period of 6 months. |
| The
scheme is flexible and would be modified as
per suitability of the farmer. Regarding rate
of interest, the individual bank or banks would
provide loan on preferential reduce rate as
per advice issued by RBI. Chiefly, the interest
rate would be 2% less then the prevailing P.L.R.,
further 1% less for regular payees and further
by 0.5% for women loanees. Further clarified
that the financing banks would not charge any
processing & other fees from farmers while
sanctioning the loan. |
| The
department would assist these dairy units in
the following ways:- |
|
i) Providing free trainings to the suitable
dairy entrepreneurs. |
|
ii) Sponsoring of loan applications to banks. |
|
iii) 50% Sharing of cost of insurance of dairy
animals. |
|
iv) The subsidy @ 15% of the term loan to a
maximum of Rs. 1.50 lac to a commercial dairy
unit would be provided. |
|
v) Veterinary services at door step of farmers
. |
|
vi) Arrangement of marketing of milk through
HDDCF etc. |
| The
subsidy on sanction of loan will be released
in advance to the financing bank. The farmer
will be asked to set up the unit in a period
of three months and the health certificate of
the milch animals would be produced by the concerned
Vety. Surgeon. 50% cost of insurance premium
will be born by the Govt. under the scheme for
an initial period of 3 yrs. In case the loanee
does not set up the commercial unit, the bank
will refund the advance subsidy to the department.
The department proposes to set up 400 such dairy
units during the year 2008-09 in the State for
which a sum of Rs. 600 lac will be required
under plan budget. |
| The
expenditure involved shall be debited to the
budget grant under head: - |
2404 - Dairy Development (Plan)
102– Cattle & Buffalo Development
(70) Scheme for Establishment of Hi-Tech Dairy
Units. |
| Director
General, Animal Husbandry & Dairying Haryana,
Panchkula will be the over all controlling and
Drawing & Disbursing Officer for the scheme.
Besides this, the Dy. Director, Intensive Cattle
Development Project, Ambala, Karnal, Kurukshetra,
Bhiwani, Sirsa, Jind, Gurgaon and Deputy Director,
Animal Husbandry & Dairying, Fatehabad,
Faridabad, Hisar, Jhajjar, Kaithal, Narnaul,
Panchkula, Panipat, Rewari, Yamunanagar, Rohtak,
Sonepat, Mewat at Nuh will be the Drawing &
Disbursing officers of the scheme. The administrative
& financial sanction of the scheme for the
year 2008-09 is required for implementation
, please. |
| Statement
of Cost |
|
Scheme for establishment of Hi-Tech Dairy Units
for the year 2008-09. |
|
|
( Amount in lac) |
Subsidies |
Rs.
600,00,000 |
Total |
Rs.
600,00,000 |
|
|
| Annexure
– I |
| MODEL
SCHEME FOR FINANCING HI-TECH COMMERCIAL DIARY |
| ELIGIBILITY: |
| Farmers
having two or more milch animals. New farmers
trained in dairy farming by the Department of
Animal Husbandry & Dairying / Agriculture
Universities / Other Agencies. Agriculture /
Vety graduates may also avail loan. |
| PURPOSE: |
| To
set up new Hi-Tech commercial dairy units &
also for extension of the existing dairy units. |
| QUANTUM
OF LOAN: |
| For
a unit of 20 Milch Animals( preferably Murrah
buffaloes & Crossbred Cows) |
|
|
(Details Annexure -II) |
Term
Loan |
Rs.
8.50 lac per unit |
Working Capital |
Rs.
2.50 lac per unit |
|
| (However
the amount of loan shall depend on the actual
cost of the project) |
| MARGIN: |
Margin
on Term Loan |
15% |
Margin
on Working Capital |
25% |
|
| (If
an applicant already owns some assets required
for the commercial dairy unit then, upto their
value these can be considered as part of margin) |
| RATE
OF INTEREST: |
| Both
for Working Capital & Term Loan @2% below
PLR i.e 11% p.a. |
| A
further concession of 1% p.a. on regular repayments
shall be granted on yearly basis at the end
of the financial year on loans of those farmers
who’s repayment is regular during the
year. In case of any default during currency
of the loan, the concession for that period
shall not be granted. |
| SUBSIDY
BY Department of Animal Husbandry & Dairying: |
| i)
15% of the term loan to a maximum of 1.50 lac
per unit |
| ii)
50% cost of insurance premium of milch animals
for initial period of 3 yrs. |
| DISBURSEMENT
OF LOAN: |
| FOR
THE CONSTRUCTION OF SHED: |
| a)
50% of cost of shed will be disbursed at the beginning
by transferring into saving bank. |
| b)
Remaining 50% of cost of shed will be disbursed
after verifying the end use of the first 50% amount. |
| FOR
THE PURCHASE OF ANIMALS: |
| After
completion of shed, loan will be given initially
for 10 animals. As soon as the farmer completes
the purchase of first lot of 10 animals, the
loan for the remaining 10 animals will be released.
In order to help the farmers to purchase the
animals of his choice the loan amount for animals
will be released by transferring the amount
to his saving bank account. However, the purchase
of animals shall be actually verified by the
Branch Staff and the local Vety Surgeon to ensure
end use of loan. |
| REPAYMENT
PERIOD: |
|
TERM LOAN: |
| Loan
shall be repaid in 7 years in 78 monthly installments
with a moratorium period of 6 months. |
| WORKING
CAPITAL: |
| To
be sanctioned for one year & renewed thereafter |
| SECURITY: |
| PRIMARY:
|
| Hypothecation
of shed, livestock & other moveable assets
financed by the bank. |
| COLLATERAL:
|
| Registered
mortgage of agriculture land or equitable mortgage
of property having value at least 150% of total
loan amount. In case the borrower does not own
land in his name, then the land standing in
the name of his father shall be mortgaged and
he shall be made a guarantor also. |
| INSURANCE: |
| i)
As per agreement of bank with identified insurance
company or on the rate decided by the State Govt.
whichever is minimum. |
| ii)
Optional :- Personal Accidental Insurance of
farmer for Rs. 1 Lac for a premium of Rs. 30
per year. Similarly the labourers engaged in
the dairy farm and other family members of the
farmer can be covered under the scheme at the
same rate of premium. |
| PROCESSING
FEE: NIL |
| UPFRONT
FEE: NIL |
| INSPECTION
CHARGES: NIL |
| CLASSIFICATION:
Under Direct Agriculture Finance |
|
|
Annexure-II |
| COST
ESTIMATE FOR ESTABLISHING A MODEL DAIRY OF 20
MILCH ANIMALS |
| A.
CAPITAL COST |
1. |
Cost
of 20 Cross Breed Cows / Murrah Buffaloes
@ Rs. 35,000/- per animal including transport
charges |
Rs.
700000.00 |
2. |
Cost
of animals shed & store cum office |
Rs.
236000.00 |
3. |
Milking
equipment with site |
Rs.
50000.00 |
4. |
Cost
of animal cooling unit |
Rs.
14000.00 |
TOTAL
FIXED EXPENDITURE |
Rs.
1000000.00 |
| |
Less
Margin @ 15% i.e. borrowers contribution |
Rs.
150000.00 |
| |
Bank’s
Finance (Term Loan) |
Rs.
850000.00 |
|
| B.
RECURRING EXPENDITURE |
1. |
COST
OF GREEN FODDER
30kg/Day/animal @100/- per quintal on
average basis
|
Rs.
1,53,300.00 |
2. |
COST
OF DRY FODDER
10 Kg/day/animal @ Rs. 250/- per quintal
|
Rs.
1,82,500.00 |
3. |
COST
OF FEED/CONCENTRATES
5 kg/day/animal @ Rs. 900/- per quintal
|
Rs.
1,34,685.00 |
4. |
LABOUR
CHARGES
@Rs. 3,000/- p.m. for 2 labourers
|
Rs.
72,000.00 |
5. |
MISCELLANEOUS
EXPENSES
@ Rs. 1,500/- / animal p.a. (as veterinary
expenses, electricity & water supply
expenses)
|
Rs.
30,000.00 |
|
TOTAL |
Rs.
5,72,485.00 |
|
COST
OF FEED FOR CALVES |
|
1. |
COST
OF GREEN FODDER
1.5 kg/ day/ calf/ @ 100/- per quintal
|
Rs.
76,650.00 |
2. |
COST
OF DRY FODDER
1 kg/ day/ calf @ Rs. 250/- per quintal
|
Rs.
18,250.00 |
| |
Total |
Rs.
94,900.00 |
| |
TOTAL
RECURRING EXPENDITURE |
Rs.
6,67,385.00 |
| |
Less
Margin @ 25% i.e. borrowers contribution |
Rs.
1,66,846.00 |
| |
Working
Capital (as cash credit limit) Maximum Rs.
250000/- (working capital provided for 6
months recurring expenditures) |
Rs.
2,50,270.00 |
| |
INCOME |
|
| |
Sale
of Milk
(Average milk in lts. Per annum X No. of
animals X Appx. Cost of milk/lts.) i.e.
3500 X 20 X 13
|
Rs.
9,10,000.00 |
| |
Value
of Manure |
Rs.
10,000.00 |
| |
Total
Income |
Rs.
9,20,000.00 |
| |
INCOME/EXPENDITURE
ANALYSIS |
|
| |
Total
Income |
Rs.
9,20,000.00 |
| |
Total
Expenditure |
Rs.
6,67,385.00 |
| |
Income
after Expenditure p.a. |
Rs.
2,52,615.00 |
| |
Monthly
Income |
Rs.
21,051.00 |
| |
Less
Loan Installment |
Rs.
15,000.00 |
| |
Net
Monthly Income |
Rs.
6,051.00 |
|
| Note:
|
| 1.
This is a model Scheme keeping in view the prevailing
market rates. However, Branch Manager is authorized
to sanction variations ± to the extent
of 15%. |
| 2.
Working Capital is calculated assuming that the
farmer will keep stock of feed etc. for 6 months.
However, the branches can consider the stock period
for a minimum period of one month to maximum period
for 6 months and accordingly working capital can
be calculated and limit fixed in consultation
with the farmer. |
|
