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Dairy Farming Subsidy in India – A Complete Guide

Dairy Farming Subsidy in India – A Step by Step Guide

Let us find out who is eligible to avail dairy farm subsidy in India. We also explain different types of dairy schemes in India.

Introduction to Dairy in India:

In India, one of the biggest commercial business in rural areas is dairy farming. Setting up a dairy farm even on a small scale requires a more initial investment. So People always look for Government Subsidies /Schemes and other Financial assistance from banks especially from “NABARD” (National Bank for Agriculture and Rural Development). To support and encourage the farmers and to bring better qualitative production in Milk, NABARD launched a scheme. The main objectives of NABARD to introduce the scheme are :

  1. To achieve the best production in milk by modernizing the dairy farm.
  2. To achieve the best breeding by rearing good quality calf.
  3. To support and creating rural jobs in dairy farming.
  4. To establish cold storages and improve the quality of milk.
  5. To market and reach the milk distribution even interiors of villages.
  6. To support and introduce modern technology to doing dairy business in a commercial way.

Who is eligible for NABARD subsidy in Dairy Farming? Let us find out;

  1. Individual Entrepreneurs or Starters.
  2. Agriculture Farmers.
  3. Companies or Firms.
  4. NGOs.
  5. Companies, Firms, Milk Federations, Milk Unions and Dairy Cooperative Societies.

You may be interested in reading the Dairy Setup Information.

NABARD subsidy assistance:

Type1: Small dairy establishments units with crossbred cows/indigenous descript milch cows like Sahiwal, Red Sindhi, Gir, Rathi, etc/graded buffaloes up to 10 animals.

Type2: Rearing of heifer calves – crossbred, indigenous descripts milch breeds of cattle and of graded buffaloes – up to 20 calves.

Type3: Vermicompost (with a milch animal unit .To be considered with milch animals and not separately).

Type4: Purchase of milking machines/bulk milk cooling units (up to 2000 liter capacity).

Type5: Dairy processing equipment purchase for the manufacture of indigenous milk products.

Type6: Dairy product transportation establishment facilities and cold chain.

Type7: Facilities for milk and milk products cold storage.

Type8: Private veterinary clinics establishments.

Type9: Marketing of Dairy outlet/Dairy parlor.

NABARD Subsidy assistance for Dairy Farming in India:

Step 1: First and Foremost decide which type of business activity you are going to establish that relates to dairy farming. The business activity to be undertaken should be one of the types mentioned above.

Step 2: Registering a company or any other suitable business or NGO entity will be required.

Step 3: Preparing a detailed project report or business plan for establishing the dairy farm including a request for the bank loan is mandatory.

Step 4: Submit proposal request for a bank loan to any commercial bank or regional rural bank or state cooperative bank or state cooperative agriculture and rural development bank or other financial institutions, which are eligible for refinancing from NABARD.

Step 5: Once the bank loan is approved and sanctioned, the promoter should implement the project using his contribution along with a bank loan.

Step 6: On handing over the first installment of the loan, the Bank should apply to NABARD for sanctioning and release of NABARD subsidy for dairy farming establishment.

Step 7: NABARD would release the subsidy to the bank or any approved institute. They would hold the subsidy in an account described as “Subsidy Reserve Fund Account” with no interest.

Step 8: On promoter loan obligation satisfactory, the subsidy amount in the Subsidy Reserve Fund Account will be adjusted against the last few repayments of the bank loan.

You may also check the Organic Composting for Urban Gardening.


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