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Dairy Farming Subsidy Information Guide(http://agrifarming.in/dairy-farming-subsidy)

How to get subsidy for Dairy Farming

(http://agrifarming.in/tag/dairy-farming) in India?

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dairy farming subsidy(http://agrifarming.in/tag/dairy-farming-

subsidy)

Introduction:- In India, one of the biggest commercial business in rural areas is dairy farming(http://agrifarming.in/tag/dairy-farming). Setting up a dairy farm (http://agrifarming.in/tag/dairy-farm) even on small scale requires more initial investment. So People always look forGovernment Subsidies /Schemes and other Financial assistance from banks especially from

“NABARD” (National Bank for Agriculture (http://agrifarming.in/tag/agriculture) and RuralDevelopment). To support and encourage the farmers and to bring better qualitative production 

► Cow Dairy Farming

► Subsidy Scheme

► Agriculture Loan

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in Milk, NABARD launched a scheme. The main objectives of NABARD to introduce the schemeare :

1. To achieve best production in milk by modernizing the dairy farm.2. To achieve the best breeding by rearing good quality calf.3. To support and creating rural jobs in dairy farming.4. To establish cold storages and and improve the quality of milk.5. To market and reach the milk distribution even interiors of villages.6. To support and introduce modern technology for doing dairy business in commercial way.

Who is eligible for NABARD subsidy (http://agrifarming.in/tag/nabard-subsidy) in Dairy Farming

? Let us nd out…

Individual Entrepreneurs or Starters.

Agriculture Farmers.

Companies or Firms.

NGOs.

Companies, Firms, Milk Federations,Milk Unions and Dairy Cooperative Societies.

Below are the NABARD subsidy assistance for Dairy Farming scheme:-

Type: Small dairy establishments units with crossbred cows/indigenous descript milch cows likeSahiwal, Red Sindhi, Gir, Rathi etc/graded buffaloes upto 10 animals.

Investment: Rupees 5.00 lakhs 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 subjectto a ceiling of Rupees 1.25 lakhs for a unit of 10 animals( Rupees 1.67 lakhs for SC/STfarmers). Maximum permissible capital subsidy is Rupees 25000 ( Rupees 33,300 for SC/STfarmers ) for a 2 animal unit. Subsidy shall be restricted on a prorate basis depending on theunit size.

Type: Rearing of heifer calves – cross bred, indigenous descripts milch breeds of cattle and of graded buffaloes – up to 20 calves.

Investment: Rupees 4.80 lakhs for 20 calf unit – minimum unit size of 5 calves with an upperlimit of 20 calves.Subsidy: 25% of the outlay (33.33 % for SC/ST farmers) as back ended capital subsidy subjectto a ceiling of Rupees 1.20 lakh for a unit of 20 calves ( Rupees 1.60 lakh for SC/ST farmers).Maximum permissible capital subsidy is Rupees 30,000 ( Rupees 40,000 for SC/ST farmers)for a unit of 5 calf. Subsidy shall be restricted on a prorate basis depending on the unit size.

Type: Vericompost (with milch animal unit .To be considered with milch animals and notseparately).

Investment: Rupees. 20,000.Subsidy: 25% of the outlay (33.33 % for SC/ST farmers) as back ended capital subsidy subjectto a ceiling of Rupees 5,000/- ( Rupees 6700 for SC/ST farmers).

Type: Purchase of milking machines/bulk milk cooling units (upto 2000 liter capacity).

Investment: 18 lakh rupees.Subsidy: 25% of the outlay (33.33 % for SC/ST farmers) as back ended capital subsidy subjectto a ceiling of Rupees 4.50 lakh ( Rupees 6.00 lakh for SC/ST farmers).

Type: Dairy processing equipment purchase for manufacture of indigenous milk products.

Investment: Rupees 12 lakhs.Subsidy: 25% of the outlay (33.33 % for SC / ST farmers) as back ended capital subsidysubject to a ceiling of Rupees 3.00 lakhs ( Rupees 4.00 lakhs for SC/ST farmers).

Type: Dairy product transportation establishment facilities and cold chain.

Investment: Rupees 24 lakhs.Subsidy: 25% of the outlay (33.33 % for SC / ST farmers) as back ended capital subsidysubject to a ceiling of Rupees 6.00 lakh ( Rupees 8.00 lakh for SC/ST farmers).

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Investment: Rupees 30 lakh rupees.Subsidy: 25% of the outlay (33.33 % for SC / ST farmers) as back ended capital subsidysubject to a ceiling of Rs 7.50 lakh ( Rs 10.00 lakh for SC/ST farmers).

Type: Private veterinary clinics establishments.

Investment:Rupees 2.40 lakh for mobile clinic and Rupees 1.80 lakh for stationary clinic .Subsidy:25% of the outlay (33.33 % for SC / ST farmers) as back ended capital subsidy subjectto a ceiling of Rupees 60,000/- and Rupees 45,000/- ( Rupees 80,000/- and Rupees 60,000/-for SC/ST farmers) respectively for mobile and stationary clinics.

Type: Marketing of Dairy outlet / Dairy parlour.Investment:Rupees 56,000/-Subsidy:25% of the outlay (33.33 % for SC / ST farmers) as back ended capital subsidy subjectto a ceiling of Rupees 14,000/-( Rupees 18600/- for SC/ST farmers).

The following are the steps for getting the NABARD Subsidy assistance for Dairy Farming in India:

Step 1: First and Foremost decide which type of business activity you are going to establish thatrelates to dairy farming. The business activity to be undertaken should be one of the typesmentioned above.

Step 2: Registering a company or any other suitable business or NGO entity will be required.

Step 3: Preparing a detailed project report or business plan for establishing the dairy farmincluding a request for bank loan is mandatory.

Step 4: Submit proposal request for bank loan to any commercial bank or regional rural bank orstate cooperative bank or state cooperative agriculture and rural development bank or othernancial institutions, which are eligible for renance from NABARD.

Step 5: Once the bank loan is approved and sanctioned, the promoter should to implement theproject using his contribution along with bank loan.

Note :Authority for loan sanction, interest rate, time frame and collateral requirement is leftto the Bank or any nancial institute.

Step 6: On handing over the rst installment of the loan, the Bank should apply to NABARD for

sanctioning and release of NABARD subsidy for dairy (http://agrifarming.in/tag/nabard-subsidy-for-dairy) farming establishment.

Step 7: NABARD would release the subsidy to the bank or any approved institute. They wouldhold the subsidy in an account discribed as “Subsidy Reserve Fund Account” with no interest.

Step 8: On promoter loan obligation satisfactory, the subsidy amount in the Subsidy ReserveFund Account will be be adjusted against the last few repayments of the bank loan.

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