The Department of Animal Husbandry, Dairying and Fisheries launched the Venture Capital Scheme for Dairy and Poultry in 2004. This scheme aimed to promote the development of small dairy farms and boost self-employment and other components in the Indian dairy industry.

However, the government revamped the scheme in 2010 to the Dairy Entrepreneurship Development Scheme (DEDS). Now, it is more comprehensive for effective implementation of its objectives. Continue reading to know more information about DEDS.

The DEDS scheme aims to meet the following objectives -

• Encourages modern dairy farms’ development and produces pure milk.
• Creates self-employment opportunities and offers infrastructural growth to the Indian dairy sector.
• It aims to conserve effective breeding stock by promoting heifer calf rearing.
• Upgrade the age-old technology to process milk commercially.
• It aims to bring in changes in this unorganised sector’s structure. This ensures that the initial milk processing takes place in villages.
• Promote milk production and milk products’ processing to provide quality milk items.

Take a look at the following details related to interest rates and repayment tenure offered in DEDS under NABARD:

Interest Rates

Dairy Entrepreneurship Development Scheme offers loans at interest rates that are determined according to the RBI guidelines.

The bank can charge interest rates on the entire loan amount till the beneficiary receives a subsidy. Moreover, the interest rate will be applicable from the date of receiving the subsidy on the bank loan portion (subsidy subtracted from a bank loan).

Repayment Tenure

The repayment tenure of loans varies between 3 to 7 years. The grace period for dairy farms to repay the loan is 3 to 6 months. At the same time,  beneficiaries with the ownership of calf rearing units are eligible for up to 3 years of a grace period. However, it entirely depends on the bank’s decision.

Here is the list of the beneficiaries eligible to enjoy the benefits of the Dairy Entrepreneurship Development Scheme under NABARD:

1. Farmers, groups of organised and unorganised sectors and individual entrepreneurs are eligible for this scheme. Groups of organised sectors include the following –

• Dairy cooperative society
• Self-help groups
• Milk unions
• Panchayati Raj institutions
• Milk federation etc.

2. More than one member of the beneficiaries’ family can avail this scheme. However, they must establish separate units at different locations and with different infrastructure. The distance between the two farms of similar family members must be 500 metres.

3. Eligible beneficiaries can apply once for each component under Dairy Entrepreneurship Development Scheme (DEDS).

4. Projects implemented under cluster mode are given preference. It covers the projects under the ownership of dairy farmers, women self-help groups, producer companies, and cooperatives.

5. This scheme offers preference to weaker sections of society which includes the following-

• Women, Scheduled Caste or Scheduled Tribes
• Marginal farmers and farmers under below poverty level
• Farmers residing in drought-prone areas 
• Landless farmers

Once you meet the eligibility criteria, approach your nearest Chief Animal Husbandry Officer, Block Veterinary Officer or Veterinary Assistant Surgeon along with supporting documents.

You need to submit the following documents to apply for the DEDS scheme under NABARD:

• An affidavit as proof of being unemployed and a non-defaulter of any financial institution
• Documents related to the land to be mortgaged if the loan amount exceeds ₹1 lakh.
• A photocopy of your ration card, caste certificate
• Your three recent passport-sized photographs
• Degree certificate of BVSc&AH in case of Mobile or Stationary Veterinary Clinic.
• A photocopy of driving licence if the unit is a refrigerated vehicle

The nodal agency to implement DEDS under NABARD is National Bank for Agriculture & Rural Development (NABARD).

Also, note the list of financial institutions which qualify for refinancing from this scheme:

• Commercial banks
• Urban, rural and regional banks
• State Cooperative Agriculture and Rural Development Banks and State Cooperative Banks
• Other eligible financial institutions for refinancing from NABARD.

Approximately 70 million farmers are associated with the Indian dairy sector. It contributes one-third of rural household income. However, difficulty in processing milk products, complex supply chain etc., are among the few challenges this industry faces. Thus, DEDS aims to reduce such challenges and boost this sector for its unparalleled growth.