Dairy Farming: DEDS Proves To Be Lucrative for Dairy Entrepreneurs in J&K

Dairy farming is thriving across the Union Territory, with the Jammu and Kashmir governments' focus on doubling farmers' income by 2022, as envisioned by Prime Minister Narendra Modi.

One of the pioneer initiatives altering J&K's rural landscape is the centrally sponsored Dairy Entrepreneurship Development Scheme (DEDS).

The scheme is being undertaken by NABARD with the goal of encouraging the establishment of modern dairy farms for the production of clean milk, encouraging heifer calf rearing, bringing structural improvements to the unorganized sector, and generating self-employment.

As an agricultural area, Jammu and Kashmir's agriculture sector produces 16.18 percent of its GDP, with the dairy sector contributing 35 percent. The scheme is providing a significant boost to dairy growth in UT by providing socio-economic condition of people witnessing a huge turn around.

The J&K government's special initiative to ease out departmental schemes in the dairy sector has witnessed a gradual shift, with more than 10,000 new dairy units established in the last two years, said Navin Kumar Choudhary, Principal Secretary, Animal and Sheep Husbandry, at the inauguration of Pashudhan Vyapar Mela.

The Jammu and Kashmir government is promoting DEDS in order to create self-employment and build infrastructure for the dairy sector in the UT, thereby improving the socioeconomic health of the rural population.

The J&K government's special initiative to ease out departmental schemes in the dairy sector has witnessed a gradual shift, with more than 10,000 new dairy units established in the last two years, said Navin Kumar Choudhary, Principal Secretary, Animal and Sheep Husbandry, at the inauguration of Pashudhan Vyapar Mela.

The Jammu and Kashmir government is promoting DEDS in order to create self-employment and build infrastructure for the dairy sector in the UT, thereby improving the socioeconomic health of the rural population.

According to Animal Husbandry officials, the scheme also supports heifer calf rearing for the development and conservation of good breeding stock while keeping in view the future of healthy livestock.

Under the scheme, the government is also encouraging the unorganized sector to bring milk processing to the village level for greater returns to farmers by utilizing contemporary tools and technology. The initiative also increases farmers' negotiating power in selling their products by adding value to milk through the production and processing of milk products.

According to an Animal Husbandry official, the scheme also encourages J&K youth to set up the latest dairy farms for clean milk production and upgrade conventional technology to handle milk on a commercial scale. He noted that the scheme has encouraged thousands of young people to start dairy businesses because of the government's lucrative assistance in the form of subsidies and the simplicity with which the benefits of the scheme may be sanctioned.

Farmers, individual entrepreneurs, NGOs, corporations, pensioners, unorganized and organized sectors such as Self Help Groups, dairy cooperative societies, milk unions, and milk federations are all eligible to participate in the scheme. The scheme also states that an individual will be entitled to receive help for all of the scheme's components, but only once for each component.

"The scheme can help more than one member of a family if they set up separate units with distinct infrastructure in various areas. The scheme states that the distance between the boundaries of two such farms shall be at least 500m."

According to the scheme's funding pattern, the entrepreneur contribution (margin) would be 10% of the expenditure (minimum), and the back-ended capital subsidy would be 25% for general and 33% for SC/ST. Furthermore, the effective bank loan amount component is a minimum of 40% of the expenditure, and payback time will range between 3 - 7 years depending on the nature of the activity and cash flow. In addition, the grace period for dairy farms would be 3 to 6 months, and for calf raising units, it might be up to 3 years.

Unemployed youth who are not in default with any bank or financial institution can apply for the scheme, along with a photocopy of their ration card and land papers for a mortgage if the loan amount exceeds Rs.1.00 lakh, photocopy of category certificate if any. Besides, candidates with a degree certificate of BVSC & AH can also apply for Mobile/Stationery Veterinary Clinic.

The scheme can subsidize the development of small dairy units using crossbred cows/graded buffaloes up to 10 animals (Rs.5 lakh), with a minimum unit size of 2 animals. "Rearing heifer calves crossbred/graded buffaloes up to 20 calves (Rs.4.80 lakh), with a minimum unit size of 5 calves."

The scheme provides Rs.12 lakh subsidy for the acquisition of dairy processing equipment for the manufacture of indigenous milk products.

Similarly, Rs.24 lakh can be obtained for the building of dairy product transportation and cold chain facilities. The program further states that Rs.30 lakh can be used to set up cold storage facilities for milk and milk products. Besides, Rs.2.4 lakh would be provided for the establishment of private veterinary clinics, and Rs.1.80 lakh can be availed for mobile veterinary clinics under the scheme. For setting up of stationary clinic and dairy marketing outlet/dairy parlor the scheme will provide Rs.56000.