Government Subsidy for Dairy Farming India is one of the largest milk-producing countries in the world, and the dairy sector plays a vital role in the rural economy. With increasing demand for milk and dairy products, starting a dairy business can be a profitable venture for farmers and entrepreneurs alike. To encourage dairy entrepreneurship and boost rural income, the Central and State Governments are offering heavy subsidies and financial support through various dairy development schemes.
In this article, we’ll explore how you can start a dairy business, the government subsidy schemes available, eligibility criteria, and the step-by-step process to avail the benefits.
Why Start a Dairy Business in India?
The dairy industry in India offers excellent opportunities for both small and large-scale entrepreneurs. Here’s why the dairy business is a smart choice:
- High Demand: Milk and milk products are consumed daily in every household.
- Low Risk & Stable Returns: Demand remains consistent year-round, ensuring regular income.
- Employment Generation: Provides livelihood to millions in rural areas.
- Government Support: Subsidies, loans, and training are provided to promote dairy farming.
Thus, with proper planning and government assistance, dairy farming can become a sustainable and profitable business model.
Government Schemes Offering Subsidy for Dairy Farming
The government, through the Department of Animal Husbandry & Dairying and NABARD (National Bank for Agriculture and Rural Development), runs several schemes to promote the dairy sector. The most popular one is the Dairy Entrepreneurship Development Scheme (DEDS).
1. Dairy Entrepreneurship Development Scheme (DEDS)
This is a flagship scheme launched by the Government of India to promote dairy farming and create employment in rural areas. Government Subsidy for Dairy Farming
Key Features:
- Implemented by: NABARD
- Objective: To establish modern dairy units for milk production, preservation, and marketing.
- Beneficiaries: Farmers, individuals, SHGs, NGOs, and cooperatives.
Subsidy Details:
- General Category: 25% of the total project cost as a subsidy.
- SC/ST/Women Category: 33.33% subsidy.
Loan Details:
- The remaining amount (after subsidy) can be financed through bank loans.
- The beneficiary has to contribute 10% margin money, while the rest is funded by the bank.
2. Rashtriya Gokul Mission
This scheme focuses on improving the breed quality of indigenous cattle and increasing milk productivity.
Benefits:
- Financial support for establishing cattle breeding centers.
- Subsidy for maintaining high-yield indigenous breeds like Gir, Sahiwal, and Rathi.
- Assistance for embryo transfer and artificial insemination centers.
3. National Programme for Dairy Development (NPDD)
The NPDD aims to strengthen the dairy infrastructure and milk processing capabilities across India.
Key Benefits:
- Funding for milk chilling, processing, and packaging units.
- Infrastructure support for dairy cooperatives.
- Skill development and training programs for dairy farmers.
4. PM Kisan Credit Card (KCC) Scheme for Dairy Fa
The government has extended the Kisan Credit Card benefits to dairy farmers as well.
Benefits:
- Easy access to low-interest credit for purchasing cows, buffaloes, and feed.
- Repayment flexibility and insurance coverage.
How to Apply for Dairy Business Subsi
Here’s a simple step-by-step process to apply for a dairy subsidy scheme:
Step 1: Prepare a Detailed Project Report (DPR)
Prepare a comprehensive business plan that includes:
- Number of animals
- Infrastructure cost (shed, equipment, etc.)
- Feed and labor expenses
- Expected milk production and profit projection
This DPR is essential for bank loan approval.
Step 2: Choose a Suitable Scheme
Select the government scheme that best matches your business goals — for example, DEDS for small dairy units or NPDD for large-scale processing setups.
Step 3: Approach the Bank
Submit your project report to a bank approved by NABARD. Once your project is reviewed, the bank will sanction a loan as per scheme guidelines.
Step 4: Purchase Animals and Equipment
After receiving the loan amount, purchase quality dairy animals and essential machinery such as:
- Milking machines
- Chilling units
- Fodder cutters
- Storage tanks
Step 5: Avail Subsidy through NABARD
Once your project is verified by the bank and NABARD, the subsidy amount will be credited directly to your loan account.
Documents Required
To apply for the dairy business subsidy, you need the following documents:
- Aadhaar Card / PAN Card
- Proof of land ownership or lease agreement
- Bank account details
- Project report / DPR
- Passport-size photographs
- Caste certificate (for SC/ST/Women category)
Eligibility Criteria
- Applicant must be an Indian citizen.
- Age limit: 18–65 years.
- The applicant should have basic knowledge or experience in animal husbandry or dairy farming.
- A minimum number of cattle (2–10 animals) may be required depending on the scheme.
Financial Projection Exampl
Here’s a simple example for a 10-cow dairy farm project:
| Particulars | Amount (₹) |
|---|---|
| Cost of 10 Cows | 5,00,000 |
| Shed & Equipment | 2,00,000 |
| Feed & Miscellaneous | 1,00,000 |
| Total Project Cost | 8,00,000 |
| Bank Loan | 7,20,000 |
| Farmer Contribution | 80,000 |
| Subsidy @25% | 2,00,000 |
After subsidy, the effective loan burden reduces significantly, making the dairy business easier to manage.
Tips for Running a Profitable Dairy Business
- Select High-Yield Breeds: Choose cows or buffaloes with good milk production and adaptability to your region.
- Maintain Cleanliness: Regular cleaning of sheds and utensils prevents diseases.
- Proper Feeding: Provide balanced nutrition to improve milk quality and quantity.
- Regular Veterinary Care: Ensure timely vaccination and health check-ups.
- Use Technology: Adopt modern milking and storage equipment to reduce wastage.
- Marketing Strategy: Sell milk directly to customers or tie up with local dairies for better pricing.
Conclusion
The dairy farming business is one of the most promising and stable ventures in India, especially for rural entrepreneurs. With government-backed subsidy schemes like DEDS and NPDD, even small farmers can start their own dairy business with minimal investment. By following proper planning, selecting the right breeds, and maintaining quality, you can not only earn a steady income but also contribute to India’s growing dairy economy. Government Subsidy for Dairy Farming
If you’ve been thinking about starting your own business — now is the best time to invest in dairy farming and make use of the government’s generous subsidies.
