Dairy Entrepreneurship Development Scheme (DEDS)

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November 4, 2016
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November 4, 2016

Dairy Entrepreneurship Development Scheme (DEDS)


  • Indian central government last year launched a scheme through National Bank for Agriculture and Rural Development  (NABARD) with an objective to bring structural changes in the unorganized sector of dairy farming. It also aims to setting up of modern dairy farms and providing employment opportunities for individuals.


Farmers and individuals can take advantage of this scheme. This scheme also provides an opportunities for entrepreneurs interested in dairy farming.

Objective of the scheme:

  • to generate Self-employment and provide infrastructure for dairy sector;
  • to set up modern dairy farms and infrastructure for production of clean milk;
  • to   encourage   heifer   calf   rearing   for   conservation   avid   development   of   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;
  • to upgrade traditional technology to handle milk on a commercial scale and
  • to   provide   value   addition   to   milk  through   processing   and   production   of  milk products


Farmers, individuals, self-help groups, companies etc. can apply for this scheme.

An individual entrepreneur is eligible for one time assistance on all the components.

More than one family member can be assisted under this scheme provided that they set up different dairy unit parted by at least 500 m distance.


  • Decide which farm activity you will be establishing.
  • Register your company
  • Make a detailed business/project plan for the dairy farm (include a bank loan request too in the proposal and very much of your loan getting sanctioned depends upon this draft).
  • Submit your request to any bank which are eligible for refinance from NABARD.

Nodal Agency: NABARD

Financial Assistance:

Financial assistance will depend upon the type of dairy farming which has been described below.

  1. Establishment of small dairy unit with 2-10 cattle (cows and buffaloes)

INR 5 Lakh for 10 animal units


·         INR 1.25 Lakh subsidy for General category and 1.67 Lakh for SC/ST individuals.

·         Maximum amount has been fixed at INR 25,000 in the case of 2 animal units.


  1. Rearing of Heifer Cows up to 20 calves

INR 4.80 Lakh for 20 calves


·         INR 1.20 Lakh subsidy for General category and INR 1.60 Lakh for SC/ST individuals.

·         Maximum permissible subsidy is INR 30,000 for 5 calves.


  1. Purchase of milking machines/milk testers/chilling machines

INR 18 Lakh


·         INR 4.50 Lakh subsidy for General category and INR 6 Lakh for SC/ST individuals.



  1. Purchase of dairy processing equipment producing indigenous milk products

INR 12 Lakh


·         INR 3 Lakh for General category and INR 4 Lakh for SC/ST farmers.


  1. For dairy products transportation facilities and cold chain

INR 24 Lakh


INR 6 Lakh for General category and INR 8 Lakh for SC/St farmers.



  1. For cold storage facilities

INR 30 Lakh


INR 7.50 Lakh for General category and INR 10 Lakh for SC/ST farmers.

Note: The subsidy has been calculated on the basis of 25% for General category and 33.33% for SC/ST farmers.

Documents required:

  • The individual should not be a bank defaulter.
  • Land paper for mortgage in the case of loan amount exceeding to INR 1 Lakh.
  • Category certificate.

Website: https://www.nabard.org/english/deds.aspx

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