For working capital loan, dairy farmers bank on ‘cash cows’

Vijay C Roy

Tribune News Service

Chandigarh, May 22

To complement the facility of Kisan Credit Cards (KCCs) for dairy farmers, the Haryana Government is planning to insure 10 lakh milch animals and generate animal IDs containing photographs of the animal and its owner. The move is to build the bankers’ confidence which would help the dairy farmers secure working capital loans.

According to bankers, the government’s move will not only streamline the credit line system but also boost the milk production in the state.  

“We are planning to insure 10 lakh milch animals in a phased manner. The insured animals will be issued a registration certificate with their details and photographs, including that of the owner,” said Sunil Gulati, Additional Chief Secretary, Animal Husbandry and Dairying Department, Haryana, while addressing a bankers’ meeting.  

According to officials, the process of insuring animals is likely to start from June and the premium will be borne by the Centre, state government, state agency and the farmer.

In Haryana, there are around 60 lakh buffaloes and 18 lakh cows across all age groups. The per capita availability of the milk in the state is 1,015 gram which is the second highest in the country after Punjab.

It is an uphill task for the dairy farmers to secure working capital loans from the banks. To help them meet their capital requirements, the Union Government had extended the facility of Kisan Credit Card to Animal Husbandry & Fisheries in the interim Budget 2019-20.  

Following the Budget provision, the RBI too framed guidelines for extending the KCC facility to the animal husbandry & fisheries department. According to RBI guidelines, the scale of finance shall be fixed by the district-level technical committee based on local cost worked out on the basis of per acre/per unit/per animal etc. 

In Haryana, such committee meetings in all districts have been held in coordination with the State Level Bankers Committee and HARCO Bank.  Now, the scale of finance for all districts will be prepared and tabled for approval at the upcoming state-level technical committee.

Dr Rajesh Yaduvanshi, Executive Director, Punjab National Bank, said the extension of the KCC facility to dairy farmers could be a gamechanger, especially in a Haryana where milk production is the key avenue. He urged the bankers to issue KCCs cards to the dairy farmers at the earliest.