Who can apply for DEDS?

Individuals, farmers, registered companies, non-profits, and dairy groups can apply.

Who can apply for DEDS?

Individuals, farmers, registered companies, non-profits, and dairy groups can apply.

How do you apply for DEDS?

Identify your project, prepare a proposal, choose a bank, submit your proposal, and claim subsidies after project milestones are met.

How do you apply for DEDS?

Identify your project, prepare a proposal, choose a bank, submit your proposal, and claim subsidies after project milestones are met.

What is the subsidy amount for DEDS?

Subsidies range from 25% to 33.33% of the project cost, depending on the category of the applicant.

What is the subsidy amount for DEDS?

Subsidies range from 25% to 33.33% of the project cost, depending on the category of the applicant.

What projects does DEDS support?

Dairy farms, heifer rearing, vermicomposting, milking equipment, processing units, transportation, veterinary clinics, and marketing outlets.

What projects does DEDS support?

Dairy farms, heifer rearing, vermicomposting, milking equipment, processing units, transportation, veterinary clinics, and marketing outlets.

What is the subsidy amount for DEDS?

Subsidies range from 25% to 33.33% of the project cost, depending on the category of the applicant.

What is the subsidy amount for DEDS?

Subsidies range from 25% to 33.33% of the project cost, depending on the category of the applicant.

What projects does DEDS support?

Dairy farms, heifer rearing, vermicomposting, milking equipment, processing units, transportation, veterinary clinics, and marketing outlets.

What projects does DEDS support?

Dairy farms, heifer rearing, vermicomposting, milking equipment, processing units, transportation, veterinary clinics, and marketing outlets.

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The Dairy Entrepreneurship Development Scheme: Boosting the Dairy Sector Across Country

Q: What is the Dairy Entrepreneurship Development Scheme (DEDS)?

It’s a scheme by the Department of Animal Husbandry to boost employment and support dairy businesses in India.

Q: What is the Dairy Entrepreneurship Development Scheme (DEDS)?

It’s a scheme by the Department of Animal Husbandry to boost employment and support dairy businesses in India.

Samridhi

Author

Updated: 28-01-2025 at 6:32 AM

The Dairy Entrepreneurship Development Scheme: Boosting the Dairy Sector Across Country

Introduced by the Department Of Animal Husbandry, Dairy, and Fisheries in the year 2010, the Dairy Entrepreneurship Development Scheme(DEDS) aims to generate employment opportunities and promote the development of small farms and businesses in the dairy sector all across India.

Objectives Of The DEDS

A few of the key objectives that the Dairy Entrepreneurship Development Scheme aims for are:

The promotion of already established modern dairy farms for better milk production with the usage of cross-bred or indigenous/local cattle breeds.
The upgradation of traditional dairy farming techniques and technologies for better commercial handling and transportation of milk, so that reach is increased for a better income.
Make the scheme more widely known to generate self-employment, especially in the unorganised dairy sector which is at risk.
Boost milk production processing and make sure the supply of quality dairy products is properly.
To bring about structure in the unorganised dairy production by initiating milk processing at the lowest level, that is, the village level.

Eligibility For The DEDS

The eligibility for the Dairy Entrepreneurship Development Scheme are

Individual businessmen or entrepreneurs
Farmers
Companies with proper registration and other verified documents
Non-profit organisations
Formal/Informal groups in the dairy sector.

However, each applicant can only make use of subsidies for one approved project component. Multiple family members can apply provided they set up separate businesses in different locations at least 500 metres apart.

How to Apply for the Dairy Entrepreneurship Development Scheme (DEDS)

To apply for the Dairy Entrepreneurship Development Scheme, follow these steps:

Identify the Project: Determine the specific project component under the DEDS that you wish to apply for, such as establishing a small dairy unit, purchasing milking machines, or setting up cold storage facilities.
Prepare the Project Proposal: Prepare a detailed project proposal, including the business plan, cost estimates, and other necessary documentation as per the scheme guidelines. Ensure that the proposal adheres to the cost norms and requirements specified by NABARD.
Choose a Bank: Select a bank where you hold an account. The bank could be a commercial bank, cooperative bank, regional rural bank, or any other institution eligible for refinance from NABARD.
Submit the Application: Submit your project proposal to the chosen bank. The bank will appraise the project, assess the feasibility, and process the loan application.
Loan Disbursement: Upon approval, the bank will disburse the loan in stages, aligned with the completion of specific milestones in the project.
Subsidy Claim: Once the project milestones are achieved and verified, the bank will apply to NABARD for the release of the back-ended capital subsidy. The subsidy amount will be credited to the borrower’s loan account, reducing the outstanding loan amount.
Follow-up and Compliance: Ensure compliance with the scheme guidelines and maintain regular communication with the bank for any additional requirements or follow-up.

Note: Applicants should ensure that their projects meet all the eligibility criteria and that the project proposal is comprehensive and well-documented to facilitate smooth processing of the application.

Component	Unit Cost	Pattern of Assistance
Establishment of small dairy units with crossbred cows/indigenous descript milch cows like Sahiwal, Red Sindhi, Gir, Rathi, etc./graded buffaloes (up to 10 animals)	₹7 lakh for 10 animal unit (minimum unit size is 2 animals, upper limit of 10 animals)	25% of the project cost (33.33% for SC/ST farmers), as back-ended capital subsidy. Subsidy shall be restricted on a pro-rata basis to a maximum of 10 animals, subject to a ceiling of ₹17,500 per animal (₹23,300 for SC/ST farmers) or actual whichever is lower. Beneficiaries may purchase animals of higher costs, but the subsidy will be restricted to the above ceilings.
Rearing of heifer calves — crossbred, indigenous descript milch breeds of cattle, and graded buffaloes (up to 20 calves)	₹9.70 lakh for 20 calf unit	25% of the project cost (33.33% for SC/ST farmers) as back-ended capital subsidy. Subsidy shall be restricted on a pro-rata basis to a maximum of 20 calf unit, subject to a ceiling of ₹12,100 per calf (₹16,200 for SC/ST farmers) or actual whichever is lower.
Vermicompost with milch animal unit (to be considered with milch animals/small dairy farm and not separately)	₹25,200	25% of the project cost (33.33% for SC/ST farmers) as back-ended capital subsidy, subject to a ceiling of ₹6,300 (₹8,400 for SC/ST farmers) or actual whichever is lower.
Purchase of milking machines/milkotesters/bulk milk cooling units (up to 5000 liter capacity)	₹20 lakh	25% of the project cost (33.33% for SC/ST farmers) as back-ended capital subsidy, subject to a ceiling of ₹5 lakh (₹6.67 lakh for SC/ST farmers) or actual whichever is lower.
Purchase of dairy processing equipment for the manufacture of indigenous milk products	₹13.20 lakh	25% of the project cost (33.33% for SC/ST farmers) as back-ended capital subsidy, subject to a ceiling of ₹3.30 lakh (₹4.40 lakh for SC/ST farmers) or actual whichever is lower.
Establishment of dairy product transportation facilities and cold chain	₹26.50 lakh	25% of the project cost (33.33% for SC/ST farmers) as back-ended capital subsidy, subject to a ceiling of ₹6.625 lakh (₹8.830 lakh for SC/ST farmers) or actual whichever is lower.
Cold storage facilities for milk and milk products	₹33 lakh	25% of the project cost (33.33% for SC/ST farmers) as back-ended capital subsidy, subject to a ceiling of ₹8.25 lakh (₹11 lakh for SC/ST farmers) or actual whichever is lower.
Establishment of private veterinary clinics	₹2.60 lakh for mobile clinic, ₹2 lakh for stationary clinic	25% of the project cost (33.33% for SC/ST farmers) as back-ended capital subsidy, subject to a ceiling of ₹65,000 for mobile clinic and ₹50,000 for stationary clinic (₹86,600 and ₹66,600 for SC/ST farmers respectively) or actual whichever is lower.
Dairy marketing outlet/Dairy parlour	₹3 lakh	25% of the project cost (33.33% for SC/ST farmers) as back-ended capital subsidy, subject to a ceiling of ₹75,000 (₹1 lakh for SC/ST farmers) or actual whichever is lower.

Financial Assistance Provided By The DEDS

The Dairy Entrepreneurship Development Scheme provides backward capital government subsidies for a variety of projects in the dairy chain. These include:

Establishing dairy farms
Rearing heifer calves
Introducing vermicomposting
Purchasing milking
Cooling equipment
Processing units
Transportation
Veterinary clinics
Marketing outlets

Subsidy amounts range from 25% to 33% of project costs for different community members. Eligible entities also receive bank loans to cover the remaining costs, with beneficial interest rates.

Pattern of Assistance

The pattern of assistance under the DEDS includes:

Entrepreneur Contribution (Margin): Minimum of 10% of the outlay for loans beyond ₹1.6 lakh.
Back-ended Capital Subsidy: 25% of the project cost for the general category and 33.33% for SC/ST farmers.
Effective Bank Loan: The balance portion is covered by bank loans, ensuring financial support for various dairy projects.

Implementation Of The DEDS

The National Bank for Agriculture and Rural Development acts as the front-most agency, controlling the implementation through commercial banks, cooperative banks, and regional rural banks.

Entrepreneurs must apply to banks where they hold accounts. Projects are appraised and loans are disbursed in stages upon completion of milestones. Banks then apply to NABARD for the release of capital subsidies.

Conclusion

The Dairy Entrepreneurship Development Scheme has significantly boosted self-employment and investment in India's dairy sector since its launch. By subsidising infrastructure and technologies, it focuses on modernising dairy production, strengthening the unorganised sector.

In case of queries call 022-26539895 or write an inquiry here.

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