{"id":42345,"date":"2024-05-29T09:54:37","date_gmt":"2024-05-29T09:54:37","guid":{"rendered":"https:\/\/www.tatacapital.com\/blog\/?p=42345"},"modified":"2026-01-05T18:09:57","modified_gmt":"2026-01-05T12:39:57","slug":"dairy-entrepreneurship-development-scheme","status":"publish","type":"post","link":"https:\/\/www.tatacapital.com\/blog\/loan-for-business\/dairy-entrepreneurship-development-scheme\/","title":{"rendered":"What is the Dairy Entrepreneurship Development Scheme?"},"content":{"rendered":"\n

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India has emerged as the largest milk producer in the world, contributing a staggering 24.64% of global milk production in the year 2021-22. This remarkable feat was only possible with the government\u2019s unwavering support and the successful implementation of initiatives like the Dairy Entrepreneurship Development Scheme (DEDS).<\/p>\n\n\n\n

The Government of India introduced the DEDS dairy loan scheme in September 2010. Its aim was to generate self-employment opportunities in the country\u2019s dairy sector and improve milk production by providing financial support to dairy entrepreneurs.<\/p>\n\n\n\n

If you\u2019re interested, you can apply for a dairy loan under this scheme. Read on to learn in detail about the DEDS scheme\u2019s key objectives, components, and eligibility criteria.<\/p>\n\n\n\n

Overview of the Dairy Entrepreneurship Development Scheme<\/h2>\n\n\n\n

The Dairy Entrepreneurship Development Scheme was implemented by the Department of Animal Husbandry, Dairying and Fisheries in September 2010. Under this scheme, the National Bank for Agriculture and Rural Development (NABARD) provides business loans<\/a> to aspiring entrepreneurs looking to start milk production and processing ventures.<\/p>\n\n\n\n

The primary objective of the DEDS scheme was to encourage investment and entrepreneurship in the country\u2019s dairy sector. Due to its special focus on bringing milk processing to the village level, the scheme has been a key contributor to socio-economic development in rural areas.<\/p>\n\n\n\n

Also, read – SBA Loan in India: Document & Eligibility<\/a><\/p>\n\n\n\n

DEDS scheme objectives & focus areas<\/h2>\n\n\n\n

DEDS dairy loan scheme aims to achieve these five goals:<\/p>\n\n\n\n

1. Promote the establishment of modern dairy farms to produce clean milk.<\/p>\n\n\n\n

2. Encourage the rearing of heifer calves to conserve good breeding stock.<\/p>\n\n\n\n

3. Bring structural changes in the unorganised sector so that initial milk processing can be done at the village level. <\/p>\n\n\n\n

4. Replace the traditional technology with the latest innovations to handle milk on a commercial scale.<\/p>\n\n\n\n

5. Generate self-employment and provide infrastructure mainly for the unorganised sector.<\/p>\n\n\n\n

DEDS scheme: Key components & subsidy structure<\/h2>\n\n\n\n

Here\u2019s the detailed breakdown of components of the DEDS scheme and capital subsidies:<\/p>\n\n\n\n

<\/p>\n\n\n\n

Component<\/td>Unit Cost<\/td>Capital Subsidy<\/td><\/tr>
Establishment of small dairy units with cross-breed or indigenous cows like Red Sindhi, Sahiwal, Rathi, Gir, etc., or graded buffaloes up to 10 animals.<\/td>Rs. 5 lakhs for 10 animal unit \u2013 minimum unit size is 2 animals with an upper limit of 10 animals.<\/td>25% of the project cost (33.33% for ST\/SC farmers) as capital subsidy. The subsidy is restricted on a pro-rata basis to a maximum of 10 animals subject to a ceiling of Rs.17,500 (Rs.23,300  for ST\/SC farmers) or actual, whichever is lower.<\/td><\/tr>
Rearing of heifer calves (indigenous breeds of cattle, cross-bred and graded buffaloes up to 20 calves)<\/td>Rs. 4.80 lakhs for 20 calf unit \u2013 the minimum unit size of 5 calves with an upper limit of 20 calves.<\/td>25% of the project cost (33.33% for ST\/SC farmers) as capital subsidy. The subsidy is restricted on a pro-rata basis to a maximum of 20 calf units subject to a ceiling of Rs.12,100 per calf (Rs.16,200 for ST\/SC farmers) or actual, whichever is lower.<\/td><\/tr>
Vermicompost with a milch animal unit (to be considered with small dairy farm\/milch animals and not separately)<\/td>Rs. 20,000<\/td>25% of the project cost (33.33% for ST\/SC farmers) as capital subsidy. The subsidy is subject to a ceiling limit of Rs.6,300 (Rs.8,400 for ST\/SC farmers) or actual, whichever is lower.<\/td><\/tr>
Purchase of milking machines, milkotesters or bulk milk cooling units up to 5,000 litre capacity<\/td>Rs. 18 lakhs<\/td>25% of the project cost (33.33% for ST\/SC farmers) as capital subsidy. The subsidy is subject to a ceiling limit of Rs.5 lakh (Rs.6.67 lakh for ST\/SC farmers) or actual, whichever is lower.<\/td><\/tr>
Purchase of dairy processing equipment to manufacture indigenous milk products<\/td>Rs. 12 lakhs<\/td>25% of the project cost (33.33% for ST\/SC farmers) as capital subsidy. The subsidy is subject to a ceiling limit of Rs.3.3 lakh (Rs.4.4 lakh for ST\/SC farmers) or actual, whichever is lower.<\/td><\/tr>
Establishment of cold chain and dairy product transportation facilities<\/td>Rs. 24 lakhs<\/td>25% of the project cost (33.33% for ST\/SC farmers) as capital subsidy. The subsidy is subject to a ceiling limit of Rs.6.625 lakh (Rs.8.830 lakh for ST\/SC farmers) or actual, whichever is lower.<\/td><\/tr>
Cold storage facilities for milk and milk products<\/td>Rs. 30 lakhs<\/td>25% of the project cost (33.33% for ST\/SC farmers) as capital subsidy. The subsidy is subject to a ceiling limit of Rs.8.25 lakh (Rs.11 lakh for ST\/SC farmers) or actual, whichever is lower.<\/td><\/tr>
Establishment of private veterinary clinics<\/td>Rs. 2.40 lakhs for a mobile clinic and Rs 1.80 lakhs for stationary clinic.<\/td>25% of the project cost (33.33% for ST\/SC farmers) as capital subsidy. The subsidy is subject to a ceiling limit of Rs.65,000 and Rs.50,000 (Rs.86,600 and Rs 66,600 for ST\/SC farmers), respectively, for mobile clinics and stationary clinics or actual, whichever is lower.<\/td><\/tr>
Dairy marketing outlet or dairy parlour<\/td>Rs. 56,000<\/td>25% of the project cost (33.33% for ST\/SC farmers) as capital subsidy. 25% of the project cost (33.33% for ST\/SC farmers) as back ended capital subsidy. The subsidy is subject to a ceiling limit of Rs.75,000 (Rs.1 lakh for ST\/SC farmers) or actual, whichever is lower.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Also, read – Loan For Poultry Farm: Apply for Poultry Farm Loan Online<\/a><\/p>\n\n\n\n

Eligibility criteria for dairy loan under DEDS scheme<\/h2>\n\n\n\n

Under the DEDS scheme, the following entities are eligible for the NABARD loan for dairy farming:<\/p>\n\n\n\n

1. Farmers<\/p>\n\n\n\n

2. Single entrepreneurs<\/p>\n\n\n\n

3. NGOs<\/p>\n\n\n\n

4. Panchayati Raj institutions<\/p>\n\n\n\n

5. Groups from unorganised sectors<\/p>\n\n\n\n

6. Organised sector groups, such as self-help groups (SHGs), dairy cooperative societies, milk unions, and milk federations.<\/p>\n\n\n\n

Furthermore, the government has also set the following terms and conditions for availing of the benefits under the DEDS scheme:<\/p>\n\n\n\n

1. An entity can apply for assistance only once for each component of the scheme.<\/p>\n\n\n\n

2. More than one family member can receive assistance if they set up separate units with separate infrastructure at locations at least 500 meters apart.<\/p>\n\n\n\n

Who should apply: Dairy loan scheme benefits for MSME, SHGs, farmers & cooperatives<\/h2>\n\n\n\n

The DEDS under the dairy entrepreneurship development scheme supports a wide range of applicants aiming to grow or start dairy-based ventures through the dairy loan scheme:<\/p>\n\n\n\n