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NABARD Subsidy for Dairy Farming

NABARD Subsidy for Dairy Farming.png

Introduction: National Bank for Agriculture and Rural Development

Dairy is a largely unorganised sector in India but also a major source of livelihood for people in rural and urban areas. In an effort to bring structure to the same the government has decided to set up a platform that will provide interest-free loans to the people who wants to set up dairy and for that government has launched a scheme NABARD Subsidy.

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National Bank for Agriculture and Rural Development (NABARD) is a bank which promotes sustainable agriculture and rural development through participative financial and non-financial interventions.

To strengthen dairy farming in India, the government has launched NABARD Subsidy for Dairy farming and the objective of these schemes are

  • To promote the setting up of modern dairy farms to produce healthy and fresh milk.
  • To encourage heifer calf rearing for the purpose 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 itself.
  • To bring quality and up-gradation in traditional technology to handle milk on a commercial scale.

NABARD Dairy Farming Subsidy Eligibility

  • Farmers
  • Individual Entrepreneurs
  • NGOs
  • Organised and Unorganised sectors

Procedure for obtaining NABARD subsidy

  • Register your entity without which you are not eligible for the subsidy.
  • Get FSSAI Licence for manufacturing and selling of dairy products.
  • Then you can apply for the loan in any commercial or rural bank, which are eligible for refinancing from NABARD.
  • Once you get the loan, start your business
  • Your Subsidy will be released after the disbursement the first instalment.
  • NABARD will release a subsidy to the bank.

NABARD Scheme for setting up a dairy farm



Type of Subsidy

Establishing a dairy (procuring graded, good milk producing cattle like Sahiwal, Gir, Rathi or Buffaloes)

for 10 dairy animals- Rs. 5 Lakhs.

25% Outlay for general people and 33.33% outlay for SC/ST

The max subsidy limit for a unit of 10 animals is 1.25 lakhs for general people and 1.67 lakhs for SC/ST.

Rearing of high-quality calves of cows and buffaloes

Range in between 5-20 calves

Max cost of 20 calves around Rs. 4.80 lakhs

Maximum subsidy for 20 calf unit 1.20 lakhs for general and 1.60 lakhs for SC/ST.

Procurement of vermicompost

Max investment Rs. 20,000

Maximum subsidy for general category Rs. 5000 and for SC/ST Rs. 6700

Purpose of milking machines and other required units of maximum 2000 litre capacity

Rs.18 lakh (maximum)

Maximum subsidy for general category Rs. 4.5 lakhs and for SC/ST Rs. 6 lakhs

Purchase of dairy processing equipment’s

Rs.12 lakh (maximum)

Maximum subsidy for general category Rs. 3 lakhs and for SC/ST Rs. 4 lakhs

Transportation facility and cold chain management

Rs.24 lakh (maximum)

Maximum subsidy for general category Rs. 6 lakhs and for SC/ST Rs. 8 lakhs

Cold Storage Facilities

Rs.30 lakh (maximum)

Maximum subsidy for general category Rs. 7.50 lakhs and for SC/ST Rs. 10 lakhs

Establishing private veterinary clinics

Mobile Clinic: - Rs. 2.40 lakhs

Stationary Clinic: - Rs. 1.80 lakhs

Mobile Unit: - Rs. 60,000 for general & Rs. 80,000 for SC/ST

Stationary Unit: - Rs. 45,000 for general and Rs. 60,000 for SC/ST

Setting up a dairy parlour and outlet

Rs.56,000 (maximum)

Maximum subsidy for general category Rs. 14,000 and for SC/ST Rs. 18,600

How to get NABARD Subsidy

If we follow all the above criteria and decide for which category we fall into or which business, we want to start we can easily apply for NABARD subsidy


Connect with Corpseed and all you have to do is wait for your subsidy and we will get it for you.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.


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