Dairy Processing & Infrastructure Development
Fund
The Cabinet Committee on Economic Affairs has approved a Dairy Processing & Infrastructure Development
Fund” (DIDF) with an outlay of Rs 10,881 crore during the period from 2017-18 to 2028-29.
Background
• Large number of dairy processing plants with India’s Dairy Cooperatives were commissioned during Operation Flood which ended in 1996.
• Majority of these plants have never been expanded or modernised thereafter. These plants are operating with old & obsolete technologies, which may not be energy efficient.
• In order to improve efficiencies as well as increase production of products with higher value addition, Government of India had announced creation of DIDF in the Union Budget of 2017-18.
About the Fund
• Objectives
Operation Flood
• A project of India's National Dairy Development Board (NDDB), it was launched in 1970 as the world’s biggest dairy development programme, also responsible for white revolution in the country.
• It transformed India from a milk-deficient nation into the world's largest milk producer, surpassing the USA in 1998, with about 17 percent of global output in
2010–11.
• In 30 years it doubled milk available per person, and made dairy farming India’s largest self-sustainable rural employment generator.
• Its major objectives included- o Increase milk production o Augment rural incomes
o Fair prices for consumers
o It will focus on building an efficient milk procurement system by setting up of chilling infrastructure &
installation of electronic milk adulteration testing equipment.
o Creation/modernization/expansion of processing infrastructure and manufacturing faculties for Value
Added Products for the Milk Unions/ Milk Producer Companies.
• Management:
o The project will be implemented by National Dairy Development Board (NDDB) and National Dairy
Development Cooperation (NCDC) directly through the End Borrowers such as Milk Unions, State Dairy
Federations, Milk Producer Companies etc.
• Funding:
o The fund will be used to provide loan for building an efficient milk procurement system and other processing infrastructure. The end borrowers will get the loan @ 6.5% per annum. The period of repayment will be 10 years with initial two years moratorium.
o Under the DIDF, Rs 8,004 crore loan will be provided by NABARD to the NDDB and the NCDC. The remaining amount will be the contribution by end-borrowers, the NDDB and the NCDC, and by the agriculture ministry towards interest subvention for the next 10 years.
Apart from benefiting the farmers the fund is expected to create employment in various regions of the country.
UN’s Human Development Index
Why in news?
India’s ranking in UN’s Human Development Index (HDI) went up by one from last year, to 130th among 189 countries, released by the United Nations Development Programme (UNDP).
Facts on Index
United Nations Development Programme (UNDP)
• The United Nations Development Programme (UNDP) is the UN's global development network, advocating for change and connecting countries to knowledge, experience and resources to help people build a better life.
• Within South Asia, India’s HDI value is above the average of 0.638 for the region, with Bangladesh and
Pakistan, countries with similar population size, being ranked 136 and 150, respectively.
• Between 1990 and 2017, India's HDI value increased from 0.427 to 0.640, an increase of nearly 50 per cent and an indicator of the country's remarkable achievement in lifting millions of people out of poverty putting the country in the medium human
development category.
• India’s life expectancy increased from
57.9(1990) to 68.8(2017).
• India’s per capita income in PPP terms saw an increase of a 267% from $1,733 to $6,353 between 1990 and 2017.
• Expected years of schooling went up from 7.6 years (1990) to 12.3 years (2017).
• Development hasn’t been spread evenly, with
India’s income inequality the highest at
18.8% – compared to 15.7% for Bangladesh and 11.6% for Pakistan. In fact, when corrected for inequality India’s HDI value falls by 26.8% to 0.468.
Outcome for India
• Most of the improvements have flowed to the top of the social pyramid while those at the base have only just been lifted out of poverty.
• Middle class hasn’t grown as much as it should have, while small and medium enterprises have failed to transfer the agrarian workforce to manufacturing.
• Inequality remains a challenge for India as it progresses economically, though the Government of India and various state governments have, through a variety of social protection measures, attempted to ensure that the gains of economic development are shared widely and reach the farthest first.
• In India, women remain significantly less politically, economically and socially empowered than men. For instance, women hold only 11.6 percent of parliamentary seats, and only 39 percent of adult women have reached at least a secondary level of education as compared to 64 percent males.
• Female participation in the labour market is 27.2 percent compared to 78.8 percent for men.
• Deteriorating air quality in major Indian cities and its impacts on human health are also worrying. India also has one of the largest number of people in the world living on degraded land.
Fund
The Cabinet Committee on Economic Affairs has approved a Dairy Processing & Infrastructure Development
Fund” (DIDF) with an outlay of Rs 10,881 crore during the period from 2017-18 to 2028-29.
Background
• Large number of dairy processing plants with India’s Dairy Cooperatives were commissioned during Operation Flood which ended in 1996.
• Majority of these plants have never been expanded or modernised thereafter. These plants are operating with old & obsolete technologies, which may not be energy efficient.
• In order to improve efficiencies as well as increase production of products with higher value addition, Government of India had announced creation of DIDF in the Union Budget of 2017-18.
About the Fund
• Objectives
Operation Flood
• A project of India's National Dairy Development Board (NDDB), it was launched in 1970 as the world’s biggest dairy development programme, also responsible for white revolution in the country.
• It transformed India from a milk-deficient nation into the world's largest milk producer, surpassing the USA in 1998, with about 17 percent of global output in
2010–11.
• In 30 years it doubled milk available per person, and made dairy farming India’s largest self-sustainable rural employment generator.
• Its major objectives included- o Increase milk production o Augment rural incomes
o Fair prices for consumers
o It will focus on building an efficient milk procurement system by setting up of chilling infrastructure &
installation of electronic milk adulteration testing equipment.
o Creation/modernization/expansion of processing infrastructure and manufacturing faculties for Value
Added Products for the Milk Unions/ Milk Producer Companies.
• Management:
o The project will be implemented by National Dairy Development Board (NDDB) and National Dairy
Development Cooperation (NCDC) directly through the End Borrowers such as Milk Unions, State Dairy
Federations, Milk Producer Companies etc.
• Funding:
o The fund will be used to provide loan for building an efficient milk procurement system and other processing infrastructure. The end borrowers will get the loan @ 6.5% per annum. The period of repayment will be 10 years with initial two years moratorium.
o Under the DIDF, Rs 8,004 crore loan will be provided by NABARD to the NDDB and the NCDC. The remaining amount will be the contribution by end-borrowers, the NDDB and the NCDC, and by the agriculture ministry towards interest subvention for the next 10 years.
Apart from benefiting the farmers the fund is expected to create employment in various regions of the country.
UN’s Human Development Index
Why in news?
India’s ranking in UN’s Human Development Index (HDI) went up by one from last year, to 130th among 189 countries, released by the United Nations Development Programme (UNDP).
Facts on Index
United Nations Development Programme (UNDP)
• The United Nations Development Programme (UNDP) is the UN's global development network, advocating for change and connecting countries to knowledge, experience and resources to help people build a better life.
• Within South Asia, India’s HDI value is above the average of 0.638 for the region, with Bangladesh and
Pakistan, countries with similar population size, being ranked 136 and 150, respectively.
• Between 1990 and 2017, India's HDI value increased from 0.427 to 0.640, an increase of nearly 50 per cent and an indicator of the country's remarkable achievement in lifting millions of people out of poverty putting the country in the medium human
development category.
• India’s life expectancy increased from
57.9(1990) to 68.8(2017).
• India’s per capita income in PPP terms saw an increase of a 267% from $1,733 to $6,353 between 1990 and 2017.
• Expected years of schooling went up from 7.6 years (1990) to 12.3 years (2017).
• Development hasn’t been spread evenly, with
India’s income inequality the highest at
18.8% – compared to 15.7% for Bangladesh and 11.6% for Pakistan. In fact, when corrected for inequality India’s HDI value falls by 26.8% to 0.468.
Outcome for India
• Most of the improvements have flowed to the top of the social pyramid while those at the base have only just been lifted out of poverty.
• Middle class hasn’t grown as much as it should have, while small and medium enterprises have failed to transfer the agrarian workforce to manufacturing.
• Inequality remains a challenge for India as it progresses economically, though the Government of India and various state governments have, through a variety of social protection measures, attempted to ensure that the gains of economic development are shared widely and reach the farthest first.
• In India, women remain significantly less politically, economically and socially empowered than men. For instance, women hold only 11.6 percent of parliamentary seats, and only 39 percent of adult women have reached at least a secondary level of education as compared to 64 percent males.
• Female participation in the labour market is 27.2 percent compared to 78.8 percent for men.
• Deteriorating air quality in major Indian cities and its impacts on human health are also worrying. India also has one of the largest number of people in the world living on degraded land.
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