Supporting Dairy Cooperatives and Farmer Producer Organisations engaged in dairy activities (SDCFPO)
Milk federations, milk unions and milk producer companies got 2% a year off the interest on bank working-capital loans used to hold milk powder, butter and ghee, plus 2% more for prompt repayment — approved in 2026-27 only up to 30 September 2026.
- Lead benefit
- 2%interest relief a year
- Components
- 2each read from the document
- Who can apply
- 2kinds of applicant
- Closing date
- Closed on 30 Sept 2026see “When to apply”
What it pays
A milk federation, union or milk producer company gets 2% a year off the interest on its bank working-capital loan, for at most 12 months in the year.
What the document says, word for word
The approval of 24 April 2026 extended this only “till 30th September 2026 or date of approval of the scheme for the 16th Finance Commission (FC) cycle … whichever is earlier” (para 1). We have seen no order after 30 September 2026 (checked on dahd.gov.in, 7 Oct 2026), so whether it runs now is unknown. Working-capital loans themselves (Component A) are suspended in 2026-27 (para 3).
“Under this provision, 2% per annum interest subvention on secured/unsecured working capital loan shall be provided. … Eligible Organizations: Producers’ Owned Institutions such as Milk Federations, Milk unions, Farmer owned/ Milk Producer Companies will be considered for providing financial assistance under the proposed scheme.”If every instalment and interest payment is made within 30 days of its due date, the organisation gets a further 2% a year at the end of the loan.
What the document says, word for word
The approval of 24 April 2026 extended this only “till 30th September 2026 or date of approval of the scheme for the 16th Finance Commission (FC) cycle … whichever is earlier” (para 1). We have seen no order after 30 September 2026 (checked on dahd.gov.in, 7 Oct 2026), so whether it runs now is unknown. Working-capital loans themselves (Component A) are suspended in 2026-27 (para 3).
“For prompt and timely repayment additional 2% interest subvention will be payable at the end of the loan repayment period.”How much can I claim?
This clause does not fund this applicant type (Operational Guidelines, Component B, para 1 (Introduction; Eligible Organizations); para 6.2).
The approval of 24 April 2026 extended this only “till 30th September 2026 or date of approval of the scheme for the 16th Finance Commission (FC) cycle … whichever is earlier” (para 1). We have seen no order after 30 September 2026 (checked on dahd.gov.in, 7 Oct 2026), so whether it runs now is unknown. Working-capital loans themselves (Component A) are suspended in 2026-27 (para 3).
Who can apply
- Cooperative
- FPO
Papers you need
- Sanction letter of the working-capital loan with its terms, the disbursement letter and a copy of the loan agreement
How to apply
- The milk federation, union or producer company first gets a working-capital loan or cash credit sanctioned by a scheduled commercial bank, RRB, cooperative bank or financial institution (Component B para 3(a)).
- It applies to NDDB in the prescribed format (Annex 1) within 45 days of disbursement, with the sanction letter, disbursement letter and loan agreement (para 6.1).
- NDDB checks the claim every month and pays the subvention into the loan account through the bank, on a back-ended basis (para 3(d), 6.3, 8).
Applying is free. Never pay anyone to apply for you.
When to apply
Approved for 2026-27 only till 30 September 2026 (or earlier approval of the scheme for the 16th Finance Commission cycle).
Combining with other schemes
The documents do not say whether this can be combined with other schemes. Ask the implementing office before you count on both.