Subsidy is a form of financial support from government to promote dairy farming in India. The primary capital subsidy is from central government which is managed through NABARD. State governments also provide support through subsidized fodder seeds, medicines, equipment, vetinery services, etc but state governments usually do not provide financial support.


NABARD stands for National Bank for Agriculture and Rural Development. Though NABARD is a bank, it usually does not directly deal with customers – it coordinates with other banks and co-operatives to deliver services. Central government allocates dairy subsidy amount in yearly budget to NABARD and NABARD works with other banks to distribute this amount to farmers.

Dairy Entrepreneurship Development Scheme (DEDS)

DEDS is a central government subsidy to promote dairy farms. The objectives of the scheme are as follows:

  • To promote setting up of modern dairy farms for production of clean milk
  • To encourage heifer calf rearing thereby conserve good breeding stock
  • To bring structural changes in the unorganized sector so that initial processing of milk can be taken up at the village level itself.
  • To bring about upgradation of quality and traditional technology to handle milk on a commercial scale
  • To generate self employment and provide infrastructure mainly for unorganized sector.

Who is Eligible for DEDS Subsidy?

  • Farmers,  individual entrepreneurs, NGOs, companies , groups of unorgainsed and organized sector etc. Groups of organized sector include self help groups, dairy cooperative societies, milk unions , milk federations etc.
  • An individual will be eligible to avail assistance for all the components under the scheme but only once for each component
  • More than one member of a family can be assisted under the scheme provided they set up separate units with separate infrastructure at different locations. The distance between the boundaries of two such farms should be at least 500m.


The following are the subsidies through DEDS:

S.NoComponentUnit CostPattern of Assistance
1Establishment of small dairy units with crossbred cows/ indigenous descript milch cows like Sahiwal, Red Sindhi, Gir, Rathi  etc / graded buffaloes   upto 10 animalsRs 5.00 lakh for 10 animal unit – minimum unit size is 2 animals with an upper limit of 10 animals.25% of the outlay (33 .33 % for SC / ST farmers, ) as back ended capital subsidy subject to a ceiling of Rs 1.25 lakh for a unit of 10 animals ( Rs 1.67 lakh for SC/ST farmers,). Maximum permissible capital subsidy is Rs 25000 ( Rs 33,300 for SC/ST farmers )for a 2 animal unit. Subsidy shall be restricted on a prorata basis depending on the unit size
2Rearing of heifer calves – cross bred, indigenous descript milch breeds of cattle and of graded buffaloes – upto 20 calvesRs 4.80 lakh for 20 calf unit  -minimum unit size of 5 calves with an upper limit of  20 calves25% of the outlay (33.33 % for SC / ST farmers) as back ended capital subsidy subject to a ceiling of Rs 1.20 lakh for a unit of 20 calves ( Rs 1.60 lakh for SC/ST farmers). Maximum permissible capital subsidy is Rs 30,000 ( Rs 40,000 for SC/ST farmers) for a 5 calf unit. Subsidy shall be restricted on a prorata basis depending on the unit size
3Vericompost (with milch animal unit .To be considered with milch animals and not separately )Rs 20,000/-25% of the outlay (33.33 % for SC / ST farmers)as back ended capital subsidy subject to a ceiling of Rs 5,000/- ( Rs 6700/- for SC/ST farmers,).
4Purchase of milking machines /milkotesters/bulk milk cooling units (upto 2000 lit capacity)Rs 18 lakh25% of the outlay (33.33 % for SC / ST farmers) as back ended capital subsidy subject to a ceiling of Rs 4.50 lakh ( Rs 6.00 lakh for SC/ST farmers).
5Purchase of dairy processing equipment for manufacture of indigenous milk productsRs 12 lakh25% of the outlay (33.33 % for SC / ST farmers) as back ended capital subsidy subject to a ceiling of Rs 3.00 lakh ( Rs 4.00 lakh for SC/ST farmers).
6Establishment of dairy product transportation facilities and cold chainRs 24 lakh25% of the outlay (33.33 % for SC / ST farmers) as back ended capital subsidy subject to a ceiling of Rs 6.00 lakh ( Rs 8.00 lakh for SC/ST farmers).
7Cold storage facilities for milk and milk productsRs 30 lakh25% of the outlay (33.33 % for SC / ST farmers) as back ended capital subsidy subject to a ceiling of Rs 7.50 lakh ( Rs 10.00 lakh for SC/ST farmers).
8Establishment of private veterinary clinicsRs 2.40 lakh for mobile clinic and Rs 1.80 Lakh for stationary clinic.25% of the outlay (33.33 % for SC / ST farmers) as back ended capital subsidy subject to a ceiling of Rs 60,000/- and Rs 45,000/- ( Rs 80,000/- and Rs 60,000/-  for SC/ST farmers) respectively for  mobile and stationary clinics
9Dairy marketing outlet / Dairy parlourRs 56,000/-25% of the outlay (33.33 % for SC / ST farmers) as back ended capital subsidy subject to a ceiling of Rs 14,000/-( Rs 18600/- for SC/ST farmers).

How to apply for the Subsidy?

The entrepreneurs shall apply to their banks for sanction of the project. The bank shall appraise the project as per their norms and if found eligible, sanction the total outlay excluding the margin, as the bank loan. The loan amount is then disbursed in suitable installments depending on the progress of the unit. After the disbursement of first installment of the loan, the bank shall apply to the concerned Regional Office of NABARD for sanction and release of subsidy.

Basically, you need to approach your local bank and apply for dairy loan. Bank will process the loan application like any other loan. You might need to submit the project report and you would need to pledge property as security depending on the loan amount. Most banks are trying to avoid dairy loans as many dairy farmers are not able to repay their loans.

One more thing to remember, this subsidy is available as first-come first-serve basis. This means when you apply the loan, the subsidy amount should still be available for that year. It is better to check with your Bank manager rather than assuming that you will get subsidy. Generally, subsidy will be available in the beginning of the financial year ie from April.

What is a back-end subsidy?

Though NABARD will release the subsidy to the bank but it will not be count against your loan. If you barrowed 10 lakhs and subsidy is 2 lakhs – the subsidy amount will be added only after you repay 8 lakhs. This basically means you have to repay your portion first.

For More Information Visit:https://www.nabard.org/default.aspx


Dairy Farming in India

Commercial and small scale dairy farming in India is no doubt playing an important role in the total milk production and economy of our country. And almost all regions of India are suitable for setting up dairy farming business. Most of the dairy farmers in India are raising animals in small scale scale traditional methods. They are not aware about the modern farming methods and improved techniques for dairy farming. As a result, some farmers are loosing their investment instead of being benefited. Proper business plan, well management and care can ensure maximum production and profit from dairy farming business. I have described here the importance, setting up steps and some problems of dairy farming in India.

Why Dairy Farming in India?
There are many benefits of starting dairy farming business in India. Here I am describing the main importance and benefits of dairy farming in India.

  • Dairy farming business is a traditional business. So, you don’t have to worry about marketing your products. You can easily sell your products in almost every place of India. And dairy product market is active round the year.
  • Dairy farming is eco-friendly and it doesn’t pollute the environment.
  • Dairy farming business doesn’t required highly skilled labor. You can easily setup small scale dairy farm with your family labor.
  • Great business opportunities for unemployed educated young people. Proper plan and management can ensure maximum production.
  • Numerous highly productive native Indian and foreign breeds are suitable for farming according to the climate and environment of India.
  • You can apply for loan in your local NGO or banks.

At global level, milk has been identified as an integral part of food for centuries. The success of White Revolution in India has largely been written by millions of small holders. About 70 million dairy farmers produce more than 50 per cent of the milk in the country. Milk and milk products are one of the important components of the Indian food industry. Consumption of milk and milk products is deeply rooted in our tradition and it is an essential item during rituals, festivals and other auspicious events.

Dairy market in India is quite huge and according to an estimate the unorganized milk and milk product market is about Rs 470 billion while the market for processed organized dairy segment is only Rs 10000 crores. The market is currently growing at round 5% pa in volume terms. There is an impressive level of processing i.e. 22% in organized sector. The dairy exports in 2007–08 rose to US$ 210.5 million against US$ 113.57 last fiscal, whereas the domestic dairy sector is slated to cross US$ 108 billion in revenues by 2011. India with its population of more than 1 billion and diverse food habits, cultures, tradition and religions, offer great market for milk and milk products. Milk products with well defined quality characteristics and packaged in attractive containers can be marketed at different places. Most dairy food delicacies are value added products generating high profits. The milk products produced include curd, ghee, khoa, chhana, paneer, shrikhand , milk powder, whitener ,condensed milk, malted milk food, ice cream and a variety of milk sweets, some of which are now produce d by the organized dairy industries as well, are major value added products from the Indian dairy sector.  The market for traditional dairy products in India is estimated to be US $ 10 billion, being the largest and fastest growing segment of the Indian dairy industry.

For More Information please visit the site: https://www.niir.org/profile-project-reports/profiles/milk-amp-dairy-products-butter-cheese-ghee-ice-creams-chocolate-curd-lassi-flavored-milk-uht-milk-fluid-milk-milk-powder-skimmed-milk-powder-non-dairy-cream-buttermilk-condensed-milk-cottage-cheese-casein-yogurt-value-added-dairy-products/z,,2a,a,a/index.html?_sort_by=default

India is the largest milk producer and the second largest milk products producer in the world. There is, therefore, plenty of opportunity in dairy farming careers in the country.

Eligibility Criteria

Undergraduate course applicants require a minimum 10+2 Science with Chemistry, Physics, Mathematics, Biology and English and with a minimum aggregate of 55 %. Selection is on the basis of an All India Entrance Examination.

The B.Sc/ B.Tech (Bachelor of Veterinary Science and Animal Husbandry) are four year program after 10+2; the Dairy Diploma course of two years duration is for lower level technical positions.

After graduating in dairying, candidates can opt for further studies and specialization through a Master program in Dairying, or related areas such as genetics and breeding, livestock production, animal biotechnology, food technology, and preservation.

For More Information Check Url: https://www.indiaeducation.net/careercenter/agriculture-science-technology/dairy-farming/




Particulars/EffectsIndian CowJersey/HF
GeneralIndian cow’s  milk contains amino acids like Proline bonded with another amino acid Isoleucine, which is potent in fighting against many diseases  like obesity, Joint pain, asthma, mental problems etcOn the other hand Jersey and HF cow’s milk contains a poisonous chemical named Casomorphine& due to this it is said to be responsible for diseases like diabetes, cancer, Heart Disease &  Asthma.
A1 & A2There is no standardization and categorization of Milk in India. Most of the people might not know that, in European countries, cow milk is categorized as A1 & A2. Indian cow milk is known as A2 Milk & Considered good for health.Jersey cow milk is categorised as A1 Milk. Most of the people would be shocked to know that in European countries, Jersey cow’s milk is never used directly as it might cause serious health issues in the long run.
SuryaketuNaadiIndian cow breeds (Zebu) have SuryaketuNaadi (Hump) on its shoulders which has been known to absorb Vitamin-D from the sun rays and release it in their milk. This is the only reason as to why only Indian cow’s milk contains vitamin-D.Jersey and HF cows do not have suryaketuNaadi
CholesterolIndian Cow’s milk contains high levels of Omega3 that cleanses the cholesterol from the blood vessels. It also helps in disposing bad cholesterol from the body & increase good cholesterol.Jersey Cow’s milk has not positive effect on cholestrol. On the contrary, it has been known to increase bacholestrol in the blood vessels.
HygieneIndian cows maintains hygienic, hardy  and clever enough not to sit at dirty places. It also adapts itself as per the climate and can withstand extreme weatherJersey/HF cows are known to be very lazy and highly prone to diseases. It has been also seen that they attract infection by not being hygienic enough.
Medicinal valueIndian cow has highly medicinal value. Cerebrosides present in their milk increases brain power, strontium enhances the body immunity and protects human body from harmful radiations. Not only milk, Indian cow’s urine, dung, ghee, curd also have invaluable medicinal properties. Cow products are used in PunchgavyaChikitsa to cure many harmful disease.Jersey cow’s milk, dung, & urine have no medicinal value.
Organic FarmingIndian cow dung can be used in organic farmingJersey cow dung cannot use in organic farming
IdentificationIndian cows have a prominent hump (suryaketunaadi) , hanging dulip, long tail which can rotate a 360 degree angle, are friendly and sensitive by nature. Their physical appearance is curvy.Jersey and HF cows do not have a hump, space between their back legs is bit high, they cannot walk on hilly surface and they are lazy
Pest controlIndian cow dung and urine can be used in pest-controlJersey cow dung and urine is foul adored and cannot be used in Pest control


For More Information You Can Check URL:http://www.gauvardan.com/indian-vs-jersey-cow/