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NABARD dairy farming subsidy.
NABARD dairy farming subsidy.

NABARD Dairy Farming Subsidy and Loan

NABARD Dairy Farming Subsidy:

The following content is about NABARD dairy farming subsidy and loan.

NABARD dairy farming subsidy

Well, dairy farming is one of the best livestock businesses in India. It is one of the major sources of income, especially in rural areas. However, to set up a dairy farm is not that easy. Dairy farming business requires investment, hard work, and dedication. For profitable dairy farming, one should have complete knowledge of the commercial dairy farming business. As the population is increasing every year, the demand for milk is multiplying. Apart from this milk-based products have tremendous demand throughout the world. You can start a dairy farming business with few animals and expand as you go. However, the government of India encouraging dairy business by providing subsidies and loans through NABARD (National bank for agriculture and rural development). NABARD subsidy for dairy farming was launched by the Indian government in 2010. There are many components with subsidies available under this NABARD dairy farming scheme. As an individual, you can avail all the subsidies but only once for each component. In case of more than one person in the family is applying for NABARD dairy farming subsidy, they must establish separate units and required infrastructure in different sites. In such scenario, it is required to maintain at least 1/2 km between the dairy units.

What skills are required for dairy farming business before applying for NABARD dairy farming subsidy?

Dairy farm management.
Dairy farm management.
  • You must be aware of different breeds of cattle/cows/buffalos suitable for your region.
  • You must know how to select dairy breeds. This can be done with a help of a veterinary doctor.
  • You must know dairy business management from rearing to milking.
  • You should be aware of dairy feed management practices.
  • You should be aware of breeding procedure in dairy farming business.
  • You should have an idea of different diseases in dairy farming.
  • You should be aware of newborn kids management in dairy business.
  • You should know about the handling of labour at your dairy farm.
  • You can take the dairy farming training course from animal husbandry of the agriculture department.
  • You can visit nearby dairy farms to find out issues faced by dairy farmers.
  • Get an idea of dairy farm management by watching dairy farming videos on YouTube channel.

Benefits of dairy farming business

  • Milk has excellent demand hence no need to do extensive marketing.
  • Under ideal dairy management practices, you can earn decent profits.
  • Commercial dairy farming will provide the employment for rural as well as urban population
  • Farmers can easily get NABARD dairy farming subsidy and loan.
  • It is a pollution free business.
  • The cow/cattle urine and dung can be used as excellent organic fertilizer for other agriculture crops.
  • It is easy to manage intensive dairy farm compared to open grazing method of farming.

Who can go NABARD dairy farming subsidy?

  • Individuals.
  • Farmers.
  • NGO’s
  • Entrepreneurs.
  • Dairy cooperative societies, self-help groups.
  • Organizations/companies/firms.

What are the main objectives of NABARD dairy farming subsidy

Objectives of dairy farming subsidies
Objectives of dairy farming subsidies
  1. Dairy farming in India is an unorganized sector hence they want bring structural changes which provides the window for initial processing of milk at rural levels.
  2. To provide modern dairy farming methods for high yield of milk production and quality milk.
  3. To help in producing good breeding stock by heifer calf rearing.
  4. To provide employment through dairy farming sector in all levels such as villages, urban areas.
  5. To meet the demand of milk consumption.
  6. To encourage milk based business processing units.
  7. To strengthen the dairy sector of agriculture throughout India.

NABARD dairy farming subsidy schemes under RBI guidelines

 

Type of schemeInvestment requiredSubsidy %
10 animal unit establishment of small dairy units

(with crossbred cows / milch cows. Breed types such as Gir cows, Sahiwal cows, Red Sindhi cows, Rathi/Rath cows etc..).

Rs. 5,00,000 for 10 dairy animals.

Limits:

·          Minimum unit size = 2 calves

·          Maximum unit size = 20 calves.

 

For the unit size of 10 animals:

25% for general category farmers (Subsidy amount of Rs.1,25,000).

33 .33% for SC / ST farmers (Subsidy amount of Rs. 1,67,000).

For the unit size of 2 animals:

The maximum permissible capital subsidy is  Rs.25,000 for general category farmers.

The maximum permissible capital Rs. 33,300 for SC/ST farmers.

Note: Subsidy of the project shall be restricted on a prorated basis depending on the unit size or number of animals.

Heifer calves rearing

( crossbred, indigenous descript milch breeds of cattle

and of graded buffaloes –  up to 20 calves unit).

Rs. 4,80,000 for 20 animal unit.

Limits:

·          Minimum unit size = 5 calves.

·          Maximum unit size = 20 calves.

For the unit size of 10 calves:

25% for general category farmers (Subsidy amount of 1,20,000)

33 .33% for SC / ST farmers (Subsidy amount of Rs. 1,60,000).

For the unit size of 5 calves:

The maximum permissible capital subsidy is Rs 30,000 for general category farmers.

The maximum permissible capital subsidy is Rs. 40,000 for SC/ST farmers.

Note: Subsidy of the calves project shall be restricted on a prorated basis, depending on the unit size or number of calves.

Vermicompost (with milch animal unit ).Rs. 20,00025% for general category farmers (Subsidy amount of Rs. 5,000).

33 .33% for SC / ST farmers (Subsidy amount of Rs. 6,700).

Purchase of milking machines.

It also includes milk testers, bulk milk cooling units

( max of 2000 litre capacity).

Rs.18,00,00025% for general category farmers (Subsidy amount of Rs. 3,00,000).

33 .33% for SC / ST farmers (Subsidy amount of Rs. 4,00,000).

 

Purchase of dairy processing equipment.Rs. 12,00,00025% for general category farmers (Subsidy amount of Rs. 4,50,000).

33 .33% for SC / ST farmers (Subsidy amount of 6,00,000).

Dairy product transportation and cold chain establishments.Rs. 24,00,00025% for general category farmers (Subsidy amount of Rs. 6,00,000).

33 .33% for SC / ST farmers (Subsidy amount of Rs. 8,00,000).

Cold storage facilities.Rs. 30,00,00025% for general category farmers (Subsidy amount of Rs. 7,50,000).

33 .33% for SC / ST farmers (Subsidy amount of Rs. 10,00,000).

Private veterinary clinics establishments.Rs. 1,80,000 for  stationary clinics.

Rs. 2,40,000 for mobile clinics.

25% for general category farmers (Subsidy amount of  Rs .45,000 and Rs. 60,000 for stationary and mobile clinics).

33 .33% for SC / ST farmers (Subsidy amount of  Rs.60,000 and  Rs. 80,000 for stationary and mobile clinics).

 

 

Dairy marketing outlets.Rs. 56, 00025% for general category farmers (Subsidy amount of Rs.14,000).

33 .33% for SC / ST farmers (Subsidy amount of  Rs.18,600 ).


Processes of getting NABARD dairy farming subsidy

Process for applying NABARD dairy farming subsidy.
Process for applying NABARD dairy farming subsidy.
  • It is better to register a dairy company or any other suitable business name when you are planning for the large-scale dairy farming business.
  • First and foremost, you should decide the dairy farming component intended to apply for subsidy under the NABRAD dairy scheme. The business model should be one of the above-mentioned components.
  • You should prepare a detailed project report or a dairy farming business plan will the technical feasibility of dairy farm unit with bank loan component.
  • Go to any agriculture rural bank (bank should eligible for refinance from NABARD) for submitting a request with detailed project work to get a loan for your farm.
  • Technical officer will visit the site for verification and the bank loan shall be sanctioned
  • The sanction of the loan amount, interest rate, repayment period, and collateral requirement depends on individual bank terms bank policies.
  • Once the first installment of the loan is fulfilled, the bank shall apply NABARD dairy farming subsidy.
  • Once the NABARD dairy farming subsidy is released to the bank, the bank will keep the subsidy amount in a subsidy reserve fund account with no interest.
  • However, after successful repayment of the loan, the last couple of installments will be adjusted with subsidy amount.

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