NABARD Subsidy For Dairy Farming – Eligibility, Terms And Conditions

By | May 12, 2017

Dairy sector have traditionally been integral to India’s rural economy. The country is the world’s largest producer of dairy products and also their largest consumer. Almost its entire produce is consumed in the domestic market and the country is neither an importer nor an exporter, except in a marginal sense. It is the world’s largest consumer of dairy products, consuming almost 100% of its own milk production.Despite being the world’s largest producer, the dairy sector is by and large in the primitive stage of development and modernization.

For this modernization, plan to provide various subsidies have been initiated and NABARD Subsidy For Dairy Farming is one of them.

Nabard Subsidy

NABARD Subsidy For Dairy Farming

1.Objective – NABARD Subsidy  For Dairy Farming

In addition to milk, the manure from animals provides a good source of organic matter for improving soil fertility and crop yields. The gobar gas from the dung is used as fuel for domestic purposes as also for running engines for drawing water from well via gobar gas plant. Objectives of NABARD dairy farming subsidy include:

  • First of all, to generate self-employment and provide infrastructure for dairy sector
  • To set up modern dairy farms and infrastructure for production of clean milk
  • In addition, to encourage heifer calf rearing for conservation and development of good breeding stock.
  • To bring structural changes in the unorganised 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. Additionally, to provide value addition to milk through processing and production of milk products.

2.Eligibility For NABARD Subsidy  For Dairy Farming

  1. Farmers, Individual Entrepreneur, and Groups of Unorganized and Organized Sector. A group of organized sector, includes Self-Help Groups on behalf of their members, Dairy Cooperative Societies, Milk unions on behalf of their members, Milk federation, Panchayati Raj Institutions (PRls) etc are eligible under the scheme.
  2. An applicant will be eligible to avail assistance for all components under the scheme but only once for each component.
  3. More than one member of a family can get the scheme provided if they set up separate units with separate infrastructure at different locations. The distance between the boundaries of two such farms should be at least 5OO m.

3.Subsidy Schemes For NABARD Subsidy  For Dairy Farming

Establishment Of Dairy

Establishment of small dairy units with crossbred cows/ indigenous description milch cows like Sahiwal, Red Sindhi, Gir, Rathi etc / graded buffaloes up to 10 animals.
Investment: Rs 5.00 lakh 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 subject to a ceiling of Rs 1.25 lakh for a unit of 10 animals ( Rs 1.67 lakh for SC/ST farmers). The maximum permissible capital subsidy is Rs 25000 ( Rs 33,300 for SC/ST farmers )for a 2 animal unit. Subsidy shall be restricted on a pro-rata basis depending on the unit size.

Rearing Of Calves

Rearing of heifer calves – cross bred, indigenous description milch breeds of cattle and of graded buffaloes – up to 20 calves.
Investment: Rs 4.80 lakh for 20 calf unit – minimum unit size of 5 calves with an upper limit of 20 calves.
Subsidy: 25% of the outlay (33.33 % for SC / ST farmers) as back-ended capital subsidy subject to a ceiling of Rs 1.20 lakh for a unit of 20 calves ( Rs 1.60 lakh for SC/ST farmers). The maximum permissible capital subsidy is Rs 30,000 ( Rs 40,000 for SC/ST farmers) for a 5 calf unit. Subsidy shall be restricted on a pro rata basis depending on the unit size.

Check Out NABARD LOAN FOR FOOD STARTUP/FOOD BUSINESS

Organic Manure

Vermicompost (with a milch animal unit .To be considered with milch animals and not separately ).
Investment: Rs. 20,000/-
Subsidy: 25% of the outlay (33.33 % for SC / ST farmers)as back-ended capital subsidy subject to a ceiling of Rs 5,000/- ( Rs 6700/- for SC/ST farmers).

Dairy Equipment

Purchase of dairy processing equipment for the manufacture of indigenous milk products.
Investment: Rs 12 lakh.
Subsidy: 25% of the outlay (33.33 % for SC / ST farmers) as back-ended capital subsidy subject to a ceiling of Rs 3.00 lakh ( Rs 4.00 lakh for SC/ST farmers).

Milking Machine

Purchase of milking machines /milk testers/bulk milk cooling units (up to 2000 lit capacity).
Investment: Rs 18 lakh.
Subsidy: 25% of the outlay (33.33 % for SC / ST farmers) as back-ended capital subsidy subject to a ceiling of Rs 4.50 lakh ( Rs 6.00 lakh for SC/ST farmers).

Cold Storage

Cold storage facilities for milk and milk products.
Investment: Rs 30 lakh.
Subsidy: 25% of the outlay (33.33 % for SC / ST farmers) as back-ended capital subsidy subject to a ceiling of Rs 7.50 lakh ( Rs 10.00 lakh for SC/ST farmers).

Veterinary Clinic

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

Transportation & Cold Chain

Establishment of dairy product transportation facilities and cold chain.
Investment: Rs 24 lakh.
Subsidy: 25% of the outlay (33.33 % for SC / ST farmers) as back-ended capital subsidy subject to a ceiling of Rs 6.00 lakh ( Rs 8.00 lakh for SC/ST farmers).

Dairy Parlour

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

4.Procedure For NABARD Subsidy  For Dairy Farming

In obtaining NABARD subsidy for dairy farming, following steps are involved:

  • In Order to get NABARD dairy farming subsidy, you will need to select the business from the above-mentioned list.
  • Register your business with ROC. Else you can also form NGO.
  • Prepare a detailed bankable project report or business plan.
  • Submit your bank loan request to any nationalized or commercial bank or regional rural bank which are eligible for refinancing from NABARD.
  • After getting the bank loan sanctioned, you can implement and establish your dairy farm project.
  • On disbursement of the first installment of the loan, the Bank would have to apply to NABARD for sanction and release of NABARD subsidy for dairy farming.
  • After getting the subsidy amount released from NABARD bank would hold the subsidy in an account classified as “Subsidy Reserve Fund Account” with no interest.
  • On satisfactory servicing of the loan obligation by the promoter, the subsidy amount in the Subsidy Reserve Fund Account would be adjusted against the last few repayments of the bank loan.

5.Financial Institutions Eligible For NABARD Subsidy

  • Commercial Banks
  • Regional, Rural and Urban Banks
  • State Cooperative Banks
  • State Cooperative Agriculture and Rural Development Banks and such other institutions, which are eligible for refinancing from NABARD

Source / Reference

NABARD

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