Dairy Processing and Infrastructure Development Fund

Dairy Processing and Infrastructure Development Fund

Dairy Processing and Infrastructure Development Fund

The Dairy Cooperatives of India commissioned a large number of dairy processing plants during the Operation Flood that lasted till 1996. Up until now, most of these plants have never been re-developed or expanded after that. With operations continuing with old and obsolete technologies in these plants, the scope to improve efficiencies and increase production is hard to achieve. Therefore, the Government of India announced the Dairy Processing and Infrastructure Development Fund (DIDF) under the NABARD with an estimated budget of INR 8,00 through the Union Budget 2017-18. This article talks about the important aspects and essentials of the DIDF.


The following are the objectives of the Dairy Processing and Infrastructure Development Fund (DIDF).

  • To modernise the milk processing plants and their machinery.
  • To create additional infrastructures that specifically cater to the goal of processing more milk.
  • To increase the overall milk processing capacity, that in turn, will increase the value addition, and by increasing the production of dairy products.
  • To increase efficiency in dairy processing plants and producers that are owned and controlled by dairy institutions. Hence, enabling the optimum value of milk to milk producing farmers and increasing the supply of quality milk to consumers.
  • To help the producer-owned-and-controlled institutions increase their share of milk production, thereby offering more significant opportunities of ownership, management and access to markets, to rural milk producers in the organised milk market.
  • To assist the producer-owned-and-controlled institutions to have a stronghold in the organised milk market, strive as a dominant player, and to make increased Price Realisation to milk producers.


The following are the objectives of the Dairy Processing and Infrastructure Development Fund (DIDF).

  • Modernisation and creation of new milk processing facilities.
  • Re-development and establishment of new manufacturing facilities for Value-Added Products.
  • Infrastructure to maintain milk and other products at various optimum temperatures.
  • Setting up of an electronic milk testing equipment.
  • Learning and Management of Projects
  • Any other activities, decided by the Government of India in consultation with the relevant stakeholders, concerning the dairy sector and aims to contribute to the current objectives of the DIDF.


The following are the criteria in various aspects that are to be fulfilled to avail the Dairy Processing and Infrastructure Development Fund (DIDF).

Financial Criteria

  • The audit of accounts must be up-to-date. Moreover, the observations of the auditor must not comprise of any adverse opinions or disclaimers.
  • The end-borrower must not have defaulted any bank or financial institution on the date of the loan application procedure.
  • Every outstanding due to the producer members must not cross the threshold of 4 payment periods.
  • It is essential for the borrower to have a positive net worth.
  • The borrower must offer their consent for assignment concerning the steps taken by the National Dairy Development Board (NBBD) to secure its loan. In the case of reassignment, the costs involved shall be recovered from the eligible end-borrower.
  • As set up by the NBBD, the financial returns of the project must meet the requirements regularly.
  • The end-borrower must not have any receivables from the State Government for over a year.

Technical Criteria

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