NABARD is a development financial institution in India that manages credit-related concerns like planning, policy, and operations for agriculture and rural undertakings. National Bank for Agriculture and Rural Development (NABARD) offers funds and credit facilities for agriculture-related activities and rural development. Its prime focus area is the growth and development of rural areas nationwide. NABARD works around three main areas that include finance, development, and supervision of the agriculture sector.
Dairy Farming Scheme – The Prime Minister Animal Husbandry Scheme is a central government scheme. The main objective of the scheme is to promote dairy farming in India and to make it a viable and sustainable livelihood option for small and marginal farmers. The Prime Minister Animal Husbandry Scheme provides financial assistance to eligible farmers for the purchase of dairy cattle, construction of sheds and other infrastructure, and training.
Under the scheme, each eligible farmer will be provided with a subsidy of up to ₹2 lakhs for the purchase of two dairy cows or buffaloes. In addition, a subsidy of ₹1 lakh will be provided for the construction of a shed and other infrastructure, and ₹50,000 for training. The total outlay for the scheme is ₹500 crores.
The scheme is open to all Indian citizens who are small and marginal farmers with less than 2 hectares (5 acres) of landholding. Farmers can apply for the scheme through the online portal of the National Dairy Development Board (NDDB).
Dairy Farming Plan
Dairy farming is an important part of the agricultural sector in India. According to recent reports, the country has the world’s largest cattle population with 178 million cows and buffaloes.
In order to increase milk production and improve the livelihoods of smallholder farmers, the National Bank for Agriculture and Rural Development (NABARD) has launched a new scheme called the Dairy Farming Plan.
Under this scheme, NABARD will provide financial assistance to state governments and dairy cooperatives for the construction of new dairy plants and the upgrading of existing ones. The aim is to help India achieve self-sufficiency in milk production by.
In addition, NABARD will also set up a ₹5,000 crore Dairy Infrastructure Fund to finance projects such as the construction of milking parlors, storage facilities, and chilling units.
The scheme is expected to benefit 3 million smallholder farmers and create employment opportunities for 1.5 million people.
NABARD Subsidy for Dairy
- To promote setting up of modern dairy farms for the 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 up-gradation of quality and traditional technology to handle milk on a commercial scale
- To generate self-employment and provide infrastructure mainly for unorganized sector.
NABARD Dairy Farming Subsidy Eligibility
The following types of persons and association of persons are eligible for receiving the NABARD Dairy Farming Subsidy:
- Farmers
- Individual Entrepreneurs
- NGOs
- Companies
- Groups of unorganized and organized sector etc.
- Groups of the organized sector include Self Help Groups, Dairy Cooperative Societies, Milk Unions, Milk Federations, etc.
However, an individual will be eligible to avail the dairy subsidy for all the components under the scheme but only once for each component. Further, if more than one member of a family must avail the dairy farming subsidy, they must set up separate units with separate infrastructure at different locations. The distance between the boundaries of two such farms should be at least 500m.
Beneficiaries of Dairy Farming Scheme
Eligible beneficiaries include small and marginal farmers, landless laborers, women farmers, and members of scheduled castes/scheduled tribes. Farmers can avail up to 90% loan amount as subsidy from NABARD. The interest rate on the loan is 4% per annum.
The maximum loan amount under the scheme is ₹3 lakhs. The repayment period is 5 years with a grace period of 1 year. NABARD also provides insurance cover for livestock purchased under the scheme.
Loan Giving Institutions Under Dairy Farming Scheme
Loan giving institutions under Dairy Farming Scheme are as follows:-
- The Rural Development Banking and Finance Corporation (RBFC)
- The National Cooperative Development Corporation (NCDC)
- The Agriculture and Rural Development Bank (ARDB)
NABARD Dairy Farming Subsidy Schemes
- Type: Establishment of small dairy units with crossbred cows/ indigenous descript milch cows like Sahiwal, Red Sindhi, Gir, Rathi etc / graded buffaloes up to 10 animals.
- Investment: Rs 5.00 lakh for 10 animal unit – minimum unit size is 2 animals with an upper limit of 10 animals.
- Subsidy: 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,). A maximum permissible capital subsidy is Rs 25000 ( Rs 33,300 for SC/ST farmers )for a 2 animal unit. The subsidy shall be restricted on a pro-rata basis depending on the unit size.
- Type: Rearing of heifer calves – cross bred, indigenous descript milch breeds of cattle and of graded buffaloes – up to 20 calves.
- Investment: Rs 4.80 lakh for 20 calf unit – the minimum unit size of 5 calves with an upper limit of 20 calves.
- Subsidy: 25% 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). A maximum permissible capital subsidy is Rs 30,000 ( Rs 40,000 for SC/ST farmers) for a 5 calf unit. The subsidy shall be restricted on a pro-rata basis depending on the unit size.
- Type: Vericompost (with a milch animal unit .To be considered with milch animals and not separately ).
- Investment: Rs. 20,000/-
- Subsidy: 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,).
- Type: Purchase of milking machines /milk testers/bulk milk cooling units (up to 2000 lit capacity).
- Investment: Rs 18 lakh.
- Subsidy: 25% 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).
- Type: Purchase of dairy processing equipment for the manufacture of indigenous milk products.
- Investment: Rs 12 lakh.
- Subsidy: 25% 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).
- Type: Establishment of dairy product transportation facilities and cold chain.
- Investment: Rs 24 lakh.
- Subsidy: 25% 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).
- Type: Cold storage facilities for milk and milk products.
- Investment: Rs 30 lakh.
- Subsidy: 25% 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).
- Type: Establishment of private veterinary clinics.
- Investment: Rs 2.40 lakh for the mobile clinic and Rs 1.80 lakh for the stationary clinic.
- Subsidy: 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.
- Type: Dairy marketing outlet / Dairy parlour.
- Investment: Rs 56,000/-
- Subsidy: 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).
Scheme How to Apply Online
Individuals who are interested in applying for the NABARD Scheme can do so by visiting the official website of the National Bank for Agriculture and Rural Development. On the homepage, they will need to click on the ‘Apply Online’ link which will redirect them to the online application form.
In order to complete the online application form, individuals will need to provide personal details such as their name, contact information, and address. They will also need to upload documents such as their PAN Card, Aadhar Card, and bank account details. Once all the required information has been submitted, individuals can click on the ‘Submit’ button to submit their application.
Dairy Farming Scheme Offline Apply
The first thing that you need to do is download the application form from the official website of Nabard. Once you have downloaded the form, take a printout of it and fill it out carefully. Make sure that all the required fields are filled in correctly.
Once you have completed filling out the form, attach all the required documents with it and submit it to your nearest Nabard office. You can also submit the form by post or courier.
What are the other benefits under this scheme?
In addition to financial assistance, beneficiaries will also get free technical support from experts and access to quality breeding stock and feed at subsidised rates.
What is the subsidy amount under this scheme?
Under this scheme, small and marginal farmers will receive a subsidy of ₹6,000 per cow per year for a period of 3 years.