Dairy Entrepreneurship Development Scheme: How Farmers Can Get Loans up to Rs 20 lakh

Animal husbandry is an important part of agriculture concerned with animals that are raised for milk, meat, eggs, fibre, etc. It basically includes care & management, selective breeding, and raising of livestock. In order to promote animal husbandry in India and help dairy farmers, the government has launched many schemes. Today in this article we will focus on one such scheme (Dairy Entrepreneurship Development Scheme).

The Department of Animal Husbandry, Dairying, and Fisheries (DAHD&F) had launched a pilot scheme named “Venture Capital Scheme for Dairy & Poultry” in 2005-06. The scheme aimed at extending support for setting up small dairy farms & other components to bring structural changes in the dairy sector. Later, DAHD&F had changed its name to the ‘Dairy Entrepreneurship Development Scheme’ (DEDS) and the revised scheme came into operation with effect from September 1, 2010.

National Bank for Agriculture & Rural Development, popularly known as NABARD is the Nodal Agency for implementation of the scheme. Co-operative Banks, Commercial Banks & Regional Rural and urban Banks, State Cooperative Agriculture & Rural Development Bank and such other institutions that are eligible for refinancing from NABARD will also implement the scheme.

Now let’s know about the objectives of the ‘Dairy Entrepreneurship Development Scheme’

  • To promote setting up of new/modern dairy farms for clean milk production
  • To encourage rearing of a heifer calf
  • To improve quality & traditional technology to handle milk on a commercial scale
  • To bring structural changes in the unorganized sector so that initial milk processing can be taken up at village level itself
  • To generate self-employment & provide infrastructure mainly for unorganized sector

Who can benefit from Dairy Entrepreneurship Development Scheme?

  • Farmers, individual entrepreneurs, companies, NGOs, groups of organized (Self-help Groups, dairy cooperative societies, milk federations, milk unions) and unorganized sectors.
  • A person will be eligible to avail assistance for all the components under the yojana but only once for each component.
  • More than 1 member of a family can be assisted under Dairy Entrepreneurship Development Scheme if they set up separate units with separate infrastructure at various locations.

Benefits and pattern of assistance

Under this scheme, farmers will get a loan worth Rs 7 lakh for 10 animal unit minimum unit size is two animals with an upper limit of ten animals. 25 percent of the project cost (33.33 percent for ST/SC farmers), as back-ended capital subsidy. Also, the subsidy will be restricted on a pro-rata basis to a maximum of ten animals subject to a ceiling of Rs.15,000/animal. Beneficiaries can buy animals of high costs, but, the subsidy will be restricted to the above ceilings.

  • For Rearing of heifer calves – Rs 9 lakh for 20 calf unit with an upper limit of 20 calves
  • For purchasing milking machines/milk testers/bulk milk cooling units (up to 5000 lit capacity) – Rs 20 lakh
  • For purchasing of dairy processing equipment for the manufacture of indigenous milk products – Rs 13.20 lakh


Read: Sex-sorting Technology for Farm Animals

The article is extracted from Krishijagaran Thursday, January 16, 2020