Dairy Farming NABARD Subsidy -The Department of Animal Husbandry, Dairying farming , launched a scheme name as   “Venture Capital Scheme for Dairy and Poultry” in the year 2005-06.  The main objective of the scheme was to give assistance for set up small dairy farms and other unit  to bring structural changes in the dairy sector.  In 2010  the Government  were decided to launch the Dairy Entrepreneurship Development Scheme through NABARD.

The basic Aim of this scheme is to provide financial support to farmers in the form of Subsidy. Central Government has defined these schemes and managed also by an organisation NABARD (National Bank for Agriculture and Rural Development). State Government also provide these subsidies in the form of subsidized seeds, medicine, equipment, veterinary  services, etc but direct support is not available from state government for dairy farming Business.

In this article, we tell you how to get NABARD subsidy for dairy farming.

Dairy Farming NABARD Subsidy

As Everyone knows Dairy farming is big business in India and milk production,and this  is growing each year. In an effort to further strengthen dairy farming in India, the NABARD subsidy for dairy farming was launched. The objectives of the scheme include As :

Objectives of Dairy Farming NABARD Subsidy

• To provide self-employment and to provide basic facilities for dairy sector
• 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, to run the engine, to water well.
• Promotion of establishment of a dairy farm for the production of milk.

Eligibility Criteria for Dairy Farming NABARD Subsidy

• Farmer is a group of individual entrepreneurs and unorganized and organized sector.
• An applicant will be eligible to avail of assistance only once for all the components under this scheme.
• The distance between the boundaries of such two farms should be at least 500 meters.

Dairy Farming NABARD Subsidy Schemes

Initial details like hybrid cows / Sahiwal, Lal Sindhi, Gir, Rathi etc. established with the addition of small dairy units for 10 cattle / graded buffaloes.

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

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

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

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

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

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Chimney and Vermicompost (not to be treated with milch cattle unit separately with milch animals).

Investment: 20,000 / –

Subsidy: Capital subsidy subject ending in the form of limit of 25% or 5,000 rupees (outlay of Rs. 6700 / – for Scheduled Caste / Scheduled Tribes) for the outlay (33.33% for scheduled caste / scheduled tribes farmers).

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Milking machines/milk testers/bulk milk cooling units (2000 lit. capacity).
Investment: Rs 18 lakhs

Subsidy: Under the capital subsidy refunded as the limit of 25% 4.50 lakhs (6.00 lakhs for SC / ST farmers) for the outlay (25.33% for Scheduled Castes / Scheduled Tribes farmers).

Purchase of dairy processing equipment to produce indigenous milk products.
Investment: 12 lakhs

Subsidy: Under the capital subsidy refunded as the limit of 25% of the outlay (33.33% for SC / ST farmers) 3.00 lakh rupees (Rs. 4.00 lakhs for Scheduled Castes / Scheduled Tribes farmers).

Dairy product transportation facilities and cold chain installation

Investment: Rs 24 lakhs

Subsidy: Under the capital subsidy refunded as the limit of 25% to 6.00 lakhs (Rs. 8.00 lakhs for SC / ST farmers) for the outlay (33.33% for Scheduled Castes / Scheduled Tribes farmers).

Cold storage facility for milk and milk products.

Investment: 30 lakhs

Subsidy: 25% of the outlay (33.33% for Scheduled Castes / Scheduled Tribes farmers) subject to a capital subsidy of Rs 7.50 lakh (Rs 10.00 lakhs for Scheduled Caste / Scheduled Tribes farmers).

Establishment of Private Veterinary Clinic

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

Subsidy: – 25% of the outlay (33.33% for Scheduled Castes / Scheduled Tribes farmers). The capital subsidy of Rs. 45,000 / – and Rs. 60,000 / – (Rs. 80,000 / – and Rs. 60,000 / -) Scheduled Castes / Scheduled Tribes For farmers) respectively for mobile and stationary clinics.

Dairy Marketing Outlet / Dairy Parlor

Investment: Rs 56,000 / –

Subsidy: Capital subsidy subject ending as the limit of 25% or 14,000 rupees (outlay for SC / ST farmers 33.33%) – (Rs 18600 / – for Scheduled Castes / Scheduled Tribes).

Dairy Farming NABARD Subsidy Solution 

• Decide on your business activity from the above list.
• Register company
• Business plan for dairy farm with a request for a 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 first installment of loan, NABARD has to implement the bank’s approval and release of NABARD subsidy for dairy farming.
• After getting the subsidy amount, with the interest issued by NABARD Bank, in the form of “subsidy reserve fund account” will be arranged in an account classified subsidy.
• Satisfactory service of debt liability by promoter