How to Get Government Grants for Dairy Farming and Livestock Development

Payal Gadhave March 22, 2025

Introduction

Dairy farming and livestock development play a crucial role in India’s agricultural sector, contributing significantly to the country’s economy and rural livelihood. To encourage modern and sustainable livestock management, the Indian government has launched several grant and subsidy programs to support dairy farmers. These grants aim to improve dairy infrastructure, enhance milk production, promote cattle health, and boost the overall efficiency of the livestock sector.

If you are a dairy farmer or an entrepreneur looking to start a livestock business, this guide will help you understand the various government schemes, their benefits, and how to apply for funding.

Benefits of Government Grants for Dairy Farming

✅ Financial Assistance – Helps farmers invest in cattle, farm equipment, and infrastructure. ✅ Subsidized Loans – Lower interest rates on loans for dairy setup and expansion. ✅ Training and Support – Skill development programs for modern dairy techniques. ✅ Technology Adoption – Encourages use of automated milking, fodder management, and waste recycling. ✅ Cattle Health and Insurance – Assistance in veterinary care, vaccination, and livestock insurance.

Top Government Schemes for Dairy Farming and Livestock Development

1. National Programme for Dairy Development (NPDD)

Objective: Improve dairy infrastructure, milk processing units, and quality testing facilities.
Key Benefits:
- Grants for milk cooling units, processing plants, and storage.
- Support for fodder development and animal husbandry training.
- Financial aid for bulk milk cooling systems and milk testing equipment.
How to Apply?
- Farmers can apply through their State Animal Husbandry Department or the National Dairy Development Board (NDDB) website.

2. Dairy Entrepreneurship Development Scheme (DEDS)

Objective: Promote entrepreneurship in dairy farming and improve milk production.
Key Benefits:
- Subsidy of 25%–33.33% on dairy farm setup costs.
- Loans for purchasing high-yielding cattle, milking machines, and cold storage.
- Funding for setting up vermi-composting units and waste recycling.
How to Apply?
- Apply through NABARD (National Bank for Agriculture and Rural Development).
- Submit applications at banks providing DEDS loans.

3. Rashtriya Gokul Mission (RGM)

Objective: Improve cattle breeds and genetic enhancement of indigenous livestock.
Key Benefits:
- Grants for artificial insemination and embryo transfer technology.
- Financial support for setting up gokul grams (cow shelters with scientific management).
- Assistance for breed conservation and genetic upgradation.
How to Apply?
- Farmers can apply through State Livestock Development Boards.

4. National Livestock Mission (NLM)

Objective: Encourage sustainable livestock rearing and fodder development.
Key Benefits:
- 50% subsidy for establishing fodder farms and livestock units.
- Support for small ruminants (goats, sheep), poultry, and pig farming.
- Financial assistance for animal shelters and breed improvement centers.
How to Apply?
- Applications are processed through the State Animal Husbandry Department.

5. Animal Husbandry Infrastructure Development Fund (AHIDF)

Objective: Develop modern dairy and meat processing units.
Key Benefits:
- 3% interest subvention on loans for setting up milk processing plants and cold storage.
- Funding for fodder production units and veterinary drug manufacturing.
- Special incentives for private sector investment in dairy processing.
How to Apply?
- Applications can be submitted through NABARD or SIDBI.

6. Livestock Insurance Scheme

Objective: Provide financial security to farmers against cattle loss.
Key Benefits:
- Premium subsidies of up to 50% on livestock insurance.
- Covers cows, buffaloes, sheep, goats, pigs, and poultry.
- Compensation in case of death, theft, or natural calamities.
How to Apply?
- Farmers can apply through insurance companies partnered with NABARD.

How to Apply for Government Dairy Farming Grants?

Step 1: Identify Suitable Schemes

Select a scheme based on your dairy farm’s requirements.
Read eligibility criteria and prepare necessary documents.

Step 2: Prepare Documents

Aadhaar Card
Bank Account Details
Land Ownership/Lease Agreement
Cattle Purchase Plan (for livestock purchase loans)
Business Plan (for dairy entrepreneurs)

Step 3: Apply Through the Right Channels

Visit the official government portals (NDDB, NABARD, State Animal Husbandry Dept.).
Submit applications online or at registered banks.

Step 4: Approval and Fund Disbursement

Once approved, funds are disbursed directly to the bank account.
Implement the dairy development plan as per grant guidelines.

Tips to Increase Chances of Grant Approval

✅ Submit a Detailed Business Plan: A well-structured farm development plan increases approval chances. ✅ Choose High-Yielding Breeds: Opt for indigenous and hybrid cattle breeds for better milk production. ✅ Implement Modern Technology: Using automated milking machines and IoT-based cattle tracking improves grant eligibility. ✅ Stay Updated on Policy Changes: Follow updates from NDDB, NABARD, and Agriculture Ministry websites. ✅ Get Expert Guidance: Consult Krishi Vigyan Kendras (KVKs) and NABARD consultants for application assistance.

Conclusion

Government grants for dairy farming and livestock development offer great opportunities for farmers and entrepreneurs to enhance milk production, improve cattle health, and modernize dairy infrastructure. By leveraging these schemes, you can reduce investment costs, adopt modern technology, and increase farm profitability.