Dairy farming has become one of the fastest-growing agribusinesses in India, and farmers are actively searching for government subsidy options to reduce project costs. The most popular scheme is the NABARD Dairy Entrepreneurship Development Scheme (DEDS), designed to support small farmers, SHGs, and rural entrepreneurs.

For anyone planning to start a dairy unit, the biggest questions are

  • How do I apply for NABARD subsidy?
  • What documents are needed?
  • How much subsidy will I get?
  • Do I need a project report for approval?

This guide explains the process in simple language with clear steps.

What is the NABARD Dairy Farming Subsidy?

NABARD provides back-end subsidies to dairy farmers under the Dairy Entrepreneurship Development Scheme. The subsidy directly reduces the overall cost of setting up a dairy unit, making the business affordable.

The subsidy percentage varies by category:

  • 33% subsidy for SC/ST applicants
  • 25% subsidy for General & OBC category
  • Applicable for dairy units with 2–10 cows/buffaloes, chilling units, milk processing units, shed construction, etc.

Benefits of NABARD Dairy Farming Subsidy

  • Lowers the initial investment cost
  • Helps farmers start a dairy with better equipment
  • Supports mechanized farming and milk production
  • Increases bank loan eligibility
  • Encourages entrepreneurship in rural areas
  • Creates stable income and employment opportunities

Eligibility Criteria for NABARD Dairy Farming Subsidy

You can apply if you are:

  • A farmer, rural youth, or entrepreneur
  • A self-help group (SHG) or FPO
  • A dairy cooperative member
  • The business must be new (not already subsidized)
  • Applicant must have a savings account

Step-by-Step Process to Get NABARD Subsidy for Dairy Farming

1. Prepare a Dairy Farm Project Report

The first step is preparing a professional Dairy Farming Project Report with:

  • Cost of animals
  • Shed construction expenses
  • Feed & fodder plan
  • Expected milk production
  • Financial projections
  • Loan requirement and repayment plan

Banks will only approve loans, and NABARD will release subsidies based on this report.

2. Apply for a Bank Loan

Submit your project report to any bank:

  • SBI
  • PNB
  • Bank of Baroda
  • Cooperative banks
  • Regional rural banks (RRBs)

The bank will verify your documents and approve the loan.

3. Purchase Animals & Set Up Your Dairy Unit

After loan approval, you can purchase cows/buffaloes, build sheds, and complete all required setup. The bank may visit your farm to verify expenses.

4. Bank Sends Subsidy Claim to NABARD

Once the dairy is ready, the bank will send your subsidy claim to the NABARD regional office. NABARD reviews:

  • Your project
  • Photos
  • Bills and invoices
  • Site verification reports

If everything matches, NABARD approves the subsidy.

5. Subsidy is Credited to Your Loan Account

After approval, NABARD directly releases the subsidy to your loan account, reducing your outstanding loan amount.

Documents Required for NABARD Dairy Subsidy

  • Aadhaar card
  • PAN card
  • Bank passbook
  • Dairy farm project report
  • Land ownership or rental proof
  • Quotations for animals and equipment
  • Photographs of dairy farm
  • Caste certificate (for SC/ST subsidy)

Subsidy Amount for Dairy Farming (2026 Updated)

Dairy Unit Type Loan Limit Subsidy (General) Subsidy (SC/ST)
2 Animals Unit ₹1.5–2 lakh 25% 33%
10 Animals Unit ₹6–8 lakh 25% 33%
Dairy Shed ₹1.5 lakh 25% 33%
Chilling Unit ₹5–10 lakh 25% 33%
Milking Machine ₹50,000–1 lakh 25% 33%

Do You Need a Project Report for the NABARD Dairy Subsidy?

Yes, a detailed project report is mandatory.
 Banks will not process your loan, and NABARD will not release the subsidy without financial projections.

A professional report includes:

  • Cost of dairy animals
  • Shed construction cost
  • Feed & veterinary plan
  • Profitability analysis
  • Loan repayment schedule
    This increases loan approval chances and ensures fast subsidy release.

Conclusion

Getting a NABARD dairy farming subsidy is one of the best ways to reduce investment and start a profitable dairy business in India. By preparing a proper project report, applying through a bank, completing unit setup, and submitting verification documents, farmers can easily secure a subsidy of 25–33%. Dairy farming remains a stable, long-term business opportunity for rural entrepreneurs, and government support makes it even more beneficial.

You can contact us at +91 8989977769 for any query or if you require our services to prepare a project report or a bank loan.

FAQ

1. How can I apply for the NABARD dairy farming subsidy?

To apply, prepare a detailed dairy farming project report and submit it to a bank. After loan approval, set up your dairy unit. The bank will then send your subsidy claim to NABARD. Once verified, the subsidy amount is credited to your loan account.

2. How much subsidy does NABARD provide for dairy farming?

NABARD provides a 25% subsidy for General/OBC applicants and 33% subsidy for SC/ST applicants. The subsidy applies to dairy units, sheds, milking machines, chilling units, and other components. The amount is released after your dairy project is completed and verified by the bank and NABARD.

3. Do I need a project report to get the NABARD dairy subsidy?

Yes, a project report is mandatory. Banks require it to approve your dairy loan and process the subsidy claim. A detailed project report includes cost estimates, an animal purchase plan, shed details, financial projections, milk production, and repayment capacity—ensuring faster approval and smooth subsidy release.

4. Can I get an NABARD subsidy without taking a bank loan?

No, NABARD subsidy is available only through bank-linked loans. You cannot receive the subsidy directly. First, you must take a loan, set up your dairy unit, and complete verification. After this, the bank submits your subsidy claim to NABARD for approval and release.

5. How long does it take to receive the NABARD dairy subsidy?

The entire process usually takes 2–4 months, depending on bank processing, dairy setup, verification, and NABARD approval. Faster approvals happen when documents are complete and the project report is well-prepared. Delays occur mainly due to missing bills, unclear photos, or improper project documentation.