Cow Dairy Farming Loan and Subsidy Scheme: A Golden Opportunity for Rural Entrepreneurs

In recent years, India has witnessed a significant shift in the mindset of its rural population. Instead of relying solely on jobs in companies or offices, more and more youngsters in villages are eager to start their own ventures. Among the various self-employment opportunities available, dairy farming has emerged as one of the most promising and sustainable options.

Recognizing this potential, both the Central and State Governments have been rolling out schemes that encourage rural youth to take up animal husbandry, poultry farming, fishery, and small-scale industries. One of the most impactful among these is the Dairy Entrepreneurship Development Scheme (DEDS), supported by NABARD (National Bank for Agriculture and Rural Development).

This initiative not only strengthens the agricultural economy but also provides a stable source of income for farmers. Let us explore in detail how this scheme works, the benefits it offers, and why it is considered a turning point for India’s dairy sector.

Why Dairy Farming Matters in Rural India

Dairy farming has always been closely linked to Indian agriculture. Milk is not only a daily dietary essential but also a livelihood source for millions of families. According to recent estimates, India is the largest milk producer in the world, and yet the demand for milk and milk-based products continues to rise rapidly.

Key reasons why dairy farming is crucial for rural India include:

• Daily income assurance – Unlike crops, which take months to generate revenue, milk provides farmers with a daily cash flow.
• High market demand – Milk, curd, butter, paneer, and ghee are always in demand, making dairy farming a low-risk business.
• Women empowerment – Traditionally, women in villages are actively involved in cattle rearing, thus dairy farming provides them financial independence.
• Employment generation – Dairy farms require manpower for feeding, cleaning, processing, and distribution, thereby creating multiple job opportunities.

Dairy Entrepreneurship Development Scheme (DEDS) – An Overview

The DEDS scheme was introduced by the Government of India with a clear objective: to increase milk production, strengthen rural entrepreneurship, and create employment opportunities.

Under this scheme, farmers who are interested in setting up a dairy farm can avail:

• Bank loans up to ₹7 lakh for purchasing cattle and building dairy infrastructure.
• Subsidy support of 25% for general category farmers.
• Subsidy support of 33% for SC/ST beneficiaries.

This means a large portion of the loan amount is directly waived off, reducing the financial burden on farmers.

Loan and Subsidy Details

Here’s how the financial assistance works under this scheme:

• Minimum requirement: A farmer must purchase at least 2 cows or buffaloes.
• Maximum limit: A farmer can start with up to 10 animals.
• Loan disbursement: Once the necessary documents are submitted, the loan is processed and credited to the farmer’s bank account within just two working days.
• Subsidy percentage:
  • General category farmers – 25% subsidy
  • SC/ST category farmers – 33% subsidy

This structure ensures that the scheme is inclusive and encourages farmers from marginalized communities to participate actively.

Benefits of the Dairy Farming Scheme

1. Financial security for farmers – Farmers get easy access to credit and subsidy, ensuring that they can start their dairy venture without huge risks.
2. Boost to milk production – With more farmers entering dairy farming, milk availability in India increases, leading to the production of more dairy products.
3. Job creation – Rural youth who were previously unemployed now have a reliable source of self-employment.
4. Support for women farmers – Since women are traditionally involved in cattle care, the scheme directly benefits them, strengthening rural households financially.
5. Nationwide impact – With subsidies and NABARD’s backing, dairy farming is expanding not just in one state but across the country.

Role of NABARD in the Dairy Sector

The National Bank for Agriculture and Rural Development (NABARD) plays a crucial role in implementing this scheme. NABARD provides refinancing support to banks that disburse loans under the dairy scheme.

In 2024, Finance Minister Nirmala Sitharaman announced that NABARD would allocate ₹30,000 crore to strengthen dairy farming across India. This financial push ensures that farmers from even the remotest villages can access resources to build sustainable dairy farms.

How Farmers Can Apply for the Dairy Loan Scheme

The application process is designed to be farmer-friendly:

1. Approach your nearest bank – Farmers can visit any NABARD-supported bank, cooperative bank, or regional rural bank.
2. Submit required documents – Aadhaar card, ration card, land details, caste certificate (if applicable), and project report of the dairy farm.
3. Loan approval – The bank verifies the documents and approves the loan based on the project feasibility.
4. Subsidy allocation – Once the loan is sanctioned, NABARD directly provides the subsidy portion to the bank, reducing the farmer’s repayment burden.
5. Implementation – Farmers can then purchase cattle, build sheds, and start their dairy farm operations.

Why Young Farmers Should Embrace Dairy Entrepreneurship

• Low entry barrier – Starting with just 2 cows, even small farmers can enter the business.
• Steady income – Daily sale of milk ensures constant cash flow.
• Government support – Subsidies, training programs, and veterinary care add to the security of this venture.
• Scalability – Once established, farmers can expand from 2 cows to 10 or even more, scaling their income.

Application Link

Conclusion

The Dairy Entrepreneurship Development Scheme is more than just a financial assistance program. It is a gateway to self-reliance, rural development, and women empowerment. With NABARD’s massive funding support and the government’s subsidies, dairy farming is fast becoming one of the most profitable and sustainable occupations for rural India.

If you are a farmer or know someone in your family or community who dreams of starting a dairy farm, this is the right time to take advantage of the scheme. By spreading awareness, we can ensure that more farmers benefit and rural India continues to progress towards economic stability.