Dairy farming

How to Apply Dairy farming Subsidy Scheme

In India, Dairy farming is a major source of large unorganized and livelihood. Venture Capital Scheme for Dairy and Poultry was started in 2005 to provide the dairy farming industry in structure and to provide assistance to the dairy farms, animal husbandry, dairy, and fisheries department. Under the plan, the loan will be given interest-free.

Objective of Dairy farming Scheme

  • To provide self-employment and to provide basic facilities for dairy sector
  • Produce Good source of organic matter for improving soil fertility and crop yield
  • To bring structural changes in the unorganized sector
  • Gobar gas from cow dung used as fuel for household purposes
  • Promotion of establishment of dairy farm for the production of milk

Eligibility for Dairy farming Scheme

  • Farmer, individual entrepreneurs and unorganized and organized sector
  • An individual can get one time benefits of the scheme
  • The distance between the boundaries of such two farms should be at least 5oo meters.
  • Applicant age should be less than 65 years.
  • Dairy units having less than 10 animals have 0.25 acre of land for every 5 animals for growing fodder and others uses.
  • Dairy units having 10 animals and above have one acre of land for growing fodder

Know: Central Government Schemes

Schemes under Dairy farming

1. Established of small dairy units for 10 cattle / graded buffaloes or local hybrid cows / Sahiwal, Lal Sindhi, Gir and Rathi 

Investment: Rs 5.00 lakhs for the unit of 10 animals – the minimum unit size is 2 and with a limit of 10 animals.

Subsidy: 25% (Subsidy for Scheduled Castes / Scheduled Tribes for 33.33%) to 10 animals for a unit up to 1.25 lakh rupees (1.67 lakhs for Scheduled Castes, as per the limit of capital subsidy subject). The maximum permissible capital subsidy is 25000 rupees for 2 animal units (Rs 33,300 / for Scheduled Tribe/Scheduled Castes). Subsidy unit will be restricted on a pro-rata basis depending on the size.

2. Adopting of calf calves – Details of crossbreed, indigenous cattle and classified buffaloes and up to 20 calves.

Investment: 4.80 lakh for 20 calf units – 5 with the minimum unit size of calves and the maximum limit of 20 calves.

Subsidy: 25% (33.33% for scheduled caste / scheduled tribes farmers) for one unit of 20 calves maximum limit of 1.20 lakh rupees (Rs 1.60 lakh for scheduled caste / scheduled tribes). The maximum permissible capital subsidy is 30,000 rupees for 5 bulls units (Rs 40,000 / for Scheduled Tribe/Scheduled Castes). Subsidy unit will be restricted on a pro-rata basis depending on the size.

3. Vermicompost unit (not to be treated separately with milch animals)

Investment: 20,000/ –

Subsidy: 25% or 5,000 rupees which will be lower (33.33 percent or maximum Rs. 6700 / – for Scheduled Caste / Scheduled Tribes)

4. Milking machines/milk testers/bulk milk cooling units (2000 lit. capacity).

Investment: Rs 18 lakhs

Subsidy: 25% or 4.50 lakhs which is minimum (6.00 lakhs or 33.33 percent which is minimum for SC / ST farmers)

5. Purchase of dairy processing equipment to produce indigenous milk products.

Investment: 12 lakhs

Subsidy: Under the capital subsidy refunded as the limit of 25%  or Rs 3 lakh which is minimum (33.33% or 4 lakh rupees for SC / ST farmers)

6. Dairy product transportation facilities and cold chain installation

Investment: Rs 24 lakhs

Subsidy: 25% or up to Rs 6.00 lakhs (Rs. 8.00 lakhs or 33.33 % which is minimum for SC / ST farmers).

7. Cold storage facility for milk and milk products.

Investment: 30 lakhs

Subsidy: 25% or 7.50 lakh which is minimum (33.33% or Rs 10 lakh which is minimum for Scheduled Castes / Scheduled Tribes farmers)

8. Establishment of Private Veterinary Clinic

Investment: Rs 2.40 lakh for the mobile clinic and Rs 1.80 lakh for the stable clinic.

Subsidy: – 25% or Rs 45,000/ which is minimum (33.33% or RS60,000 which is minimum for Scheduled Castes / Scheduled Tribes farmers)

9. Dairy Marketing Outlet / Dairy Parlor

Investment: Rs 56,000 / –

Subsidy: Capital subsidy subject ending as the limit of 25% or 14,000 rupees ( 33.33 percent or Rs 18,600 for Scheduled Castes / Scheduled Tribes).

How to Avail the Benefits of  Dairy farming

  • Decide on your business activity from the above list.
  • Register your company
  • Business plan for dairy farm with request for bank loan
  • Submit your bank loan request for any nationalized or commercial bank or regional rural bank who is eligible for refinance from NABARD.
  • After getting approved bank loan, you can set up your dairy farm project.
  • On the payment of the first installment of loan, request with bank’s approval and release of NABARD subsidy for dairy farming
  • On the satisfactory servicing of the debt obligation by the promoter, the amount of subsidy in the subsidy reserved funds account will be adjusted in the last few payments of the bank loan.


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