Want to Start Dairy Farm Business? Get Loan Up to 7 Lakh with 33% Subsidy from NABARD

After PM Modi’s call for ‘Atmanirbhar Bharat’ amid the corona crisis, the government has focused more on agriculture and agri-business to turn the nation into a self-reliant economy.  The centre has released huge fund and new opportunities for India’s dairy sector. Moreover, dairy farming is rapidly growing as the most demanding Agri-Business in India where the chances of loss is very less to the farmers. In addition to this, there are many new scientific methods as well as government schemes that have proved very beneficial for the farmers. In view of the growing demand for dairy and milk product, the government had launched the Dairy Entrepreneur Development Scheme (DEDS). 

Under DEDS scheme that was started by the Government on 1st September 2010, there is a provision to provide a subsidy of up to 33.33% of the total project cost to the person who wants to do animal husbandry business. Under this scheme, the Animal Husbandry Department will provide a loan worth Rs. 7 lakh for dairy farm with 10 animal unit. 

Department of Animal Husbandry, Dairying & Fisheries (DAHD&F), Ministry of Agriculture, Government of India, is the central department for operating the scheme. The sanction & release of subsidy is subject to availability of finances & adherence of the instructions issued by the DAHD&F, GoI & NABARD from time to time. 

Who can apply for Dairy Entrepreneur Development Scheme (DEDS)? 

• Farmers

• Individual entrepreneurs

• Organizations & firms

• NGOs

• Self-help groups, Dairy Co-operative Societies, Milk Unions, Milk Federations, etc.

 Benefits of Dairy Entrepreneur Development Scheme 

• Under this scheme, a person will get a loan worth Rs 7 lakh for 10 animal unit; minimum unit size is 2 animals with an upper limit of ten animals. 25% of the project cost (33.33% for the ST/SC category), as back-ended capital subsidy. Beneficiaries can purchase expensive animals but, the subsidy will be restricted to the above ceilings.

• For Rearing of heifer calves - Rs 9 lakh for twenty calf unit with an upper limit of twenty calves

• For buying milking machines or milkotestersor bulk milk cooling units (up to 5000 lit capacity) - Rs 20 lakh 

• For buying dairy processing equipment for the manufacture of indigenous milk products - Rs 13.20 lakh

The objective of Dairy Entrepreneur Development Scheme 

The Dairy Entrepreneur Development Scheme aims at providing employment to the people in the villages as well as to increase milk production in the country. In addition, as soon as the application is approved by the government, a subsidy will also be provided to the person within two days. 25 per cent subsidy will be given for General Category while 33 per cent for women and SC category. This subsidy will remain in the account of the concerned dairy operator. 

Lending Institutions under Dairy Entrepreneur Development Scheme 

• Commercial Bank

• Regional bank

• State co-operative bank

• State Cooperative Agriculture and Rural Development Bank

• Other institutions that are eligible for refinancing from NABARD

 Documents required for loan 

• If the loan is above 1 lakh, then the borrower may have to mortgage some papers related to his land.

• Caste certificate

• Identity card

• Copy of project business plan

Dairy Entrepreneur Development Scheme Beneficiary List 

DEBS Beneficiary List 2020 Feb-March 

Click Here for More Details 

Important things regarding the scheme 

 A person will have to invest at least 10 per cent of the entire project cost. Apart from this, if the project is not completed before 9 months due to any reason, then the project owner will not get the benefit of the subsidy. Also, the subsidy given under this scheme will be a back-ended subsidy.