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  • Writer's pictureDr. P.K. Shrivastava


Indian dairy industry emerged from the base of small and marginal farmers, keeping 1-2 milch animals for milk production for home consumption. There was a time when farmers were rearing their milch animals for getting milk for home consumption and their males used for agriculture work. This system of rearing 1-2 milch animal rearing system was led to the commercial level of dairy business institutions by Dr V Kurien through “Operation Flood program”, implemented by National Dairy Development Board from 1970 till 1996. The program started with support of donated conserve commodities by EC (European Countries) and later financially supported by world bank.

The legacy of small herds (low input low output model), still continues in India and even today the base for milk production is dependent on the small herds maintained by the lakhs and crores of Indian farmers. Though the situation currently has changed a lot due to the mechanization in agriculture process, automation in dairy industry, precision in cold chain and commercial milk marketing systems, transparency in procurement of milk, etc., however, the base of milk production remains its primitive stage, with testing of fat & SNF percent at the entry level at pooling/ procurement points.

While in developed countries the milk is graded based on the basis of its total solids, carbs, protein, presence of bacterial load, fungal toxin, hormones, etc., India is by large testing only Fat & SNF at entry level. The parameters for testing Aflatoxins M1 presence in the milk has recently been decided by FSSAI.

Having a broader producer base system, the Govt looks towards it as an opportunity as an easy reach to the masses, easy arrival of benefits of Govt schemes to the users, the Govt (both state and central) announces various schemes on the liberal terms for the benefit of the farmers. Hearing about these schemes the Agri-preneurs are slowly raising hands to opt for the large herd farming system with “high input high output model”. However, these schemes have formed a maze (Bhool Bholaiya), as they are floating in many numbers, overlapping on each other, difficult to choose which one is still continued and which one has been withdrawn? Look at the following table and list for many such schemes available for Dairy, agriculture & horticulture projects.

Other schemes:

A. Dairy Sahakar scheme: Union Minister of Home Affairs, Shri Amit Shah, launched the Dairy Sahakar Scheme on October 31, 2021, at Anand, Gujarat with the objective of doubling farmer’s income and making a Atmanirbhar Bharat.

Under this scheme financial support by NCDC will also cover supporting activities and services, such as, renewable energy, ICT, manufacturing of cattle feed / feed supplements, R&D, PET bottle/packaging material manufacturing, manufacturing of dairy equipment and machinery, dairy related maintenance services, manufacturing of veterinary drugs, delivery of veterinary healthcare services, veterinary / dairy education, capacity building etc.

B. Breed multiplication farms (BMF): This scheme is for the multiplication of indigenous breeds of cow and buffalo by individual and institutions, being implemented by department of Animal Husbandry and Dairying, Govt of India, through NDDB.

C. Rashtriya Gokul Mission:

The BMF (shown under B. above) is funded under “Rashtriya Gokul Mission” (RGM) was launched in December 2014 with an outlay of Rs 2025 crore for development and conservation of indigenous breeds is being implemented with the objectives of: (a) development and conservation of indigenous breeds (b) breed improvement program for indigenous cattle breeds to improve their genetic makeup and increase the stock; (c) enhancement of milk production and productivity; (d) up-gradation of buffalo breeds, etc.

D. AHIDF Govt of India: (Animal Husbandry Infrastructure development fund- also called “Udyamimitra”) The recently announced Prime Minister’s Atma Nirbhar Bharat Abhiyan stimulus package mentioned about setting up of Rs. 15000 crore animal husbandry infrastructure development fund (AHIDF).: Guideline_English_AHD.pdf&path=MiscFiles

The animal husbandry infrastructure development (AHIDF) has been approved for incentivizing investments by individual entrepreneurs, private companies, farmers producers’ organizations (FPOs) and Section 8 companies to establish (1) Dairy processing (2) Value added product manufacturing (3) Meat processing and value addition of the facilities 4) Establishing Animal feed plants & strengthening of existing one.

E. DEDS (Dairy Entrepreneur development scheme (funded by NABARD through local banks): Dairy Venture Capital Fund scheme was modified and renamed as Dairy Entrepreneurship Development Scheme (DEDS) in a meeting held under the Chairmanship of Secretary (Animal Husbandry Dairy and Fisheries- ADF) on 24.06.2010. The DVCF scheme come to close on 31.08.2010, however, the DEDS still continues for establishing small dairy farms with support of NABARD. These small dairy farms may not be viable to stand alone as independent dairy entrepreneur; however, NABARD still believes that funding the individual farmer with small (2, 4, 6, 8, 10 animal unit, etc.), will improve the dairy entrepreneurship in mass.

F. UBHARTE SITARE SCHEME: Launched by Finance Minister, Govt of India Aug 21, 2021. Source:

G. National Livestock Mission: is an initiative of the Ministry of Agriculture and Farmers’ Welfare. The mission, which commenced from 2014-15, has the objective of sustainable development of the livestock sector. NABARD is the subsidy channelising agency for following schemes, under Entrepreneurship Development & Employment Generation (EDEG) component of National Livestock Mission. The following schemes are available;

· Integrated Development of Small Ruminants and Rabbit (IDSRR)

· Pig Development (PD)

· Salvaging and Rearing of Male Buffalo Calves (SRMBC)

· Effective Animal Waste Management

· Construction of Storage Facility for Feed and Fodder visit the link for details on NLM)

H. Prime Minister Krishi Sampada Yojana: Ministry of food processing, Govt of India.

In addition to above schemes from Govt of India, State governments also announce various schemes for the benefits of dairy farmers. Now the issue is “how a farmer should choose the best suited schemes matching his requirement?”. How one will know;

(a) What all the scheme covers?

(b) Eligibility criteria of the scheme?

(c) When the scheme was launched? when the name was changed?

(d) When the scheme was called off or merged with another scheme?

(e) When is its last date of the scheme?

(f) What are the documents needed for the scheme?

(g) Whom to approach for the scheme? etc.

(how many farmers would reach to various notifications posted by implementing agencies?);

That is why we call it a maze: “Bhool Bhulaiya at least for a less educated farmer. Even if with lots of difficulty, a farmer finds its way to establish a dairy farm, the support from state Animal Husbandry Department towards breeding, feeding and animal management to such farms remains at its primitive stage, may be due to the low budget of the AH department, less skill improvement in para-vet and veterinary officials, or less number of manpower available.

Seeing at the various subsidy schemes, Govts’ intention is very clear that they want to help the Dairy /Agri farmers with financial support. However, these schemes, announced from time to time, looks like “maze” (Bhol Bhulaiya), where farmers get lost, they can’t find the right type of scheme for their projects. This breeds touts in the system and frustration among the farmers. Getting a large dairy farm project “through” under most of the available scheme is a real difficult task, not an easy going.

There is need to address the following;

(1) NABARD/ NCDC/ NDDB being the prime agencies for channelling Govt funds, should post the scheme details in simple words highlighting clearly the above-mentioned queries for the benefits of the farmers at KIOSKS or sites.

(2) The ministries from where the funds are being allocated, should also see that these schemes details are posted at KIOSKS/ sites in such a way that a farmer gets its meaning easily.

(3) In our opinion the NABARD should revise the DEDS eligibility norms the small herds (2,4,6,8 & 10 unit of milch animals herds), which actually develops “pourers” who would be dependent on some of the milk collecting agent/organization. They should be ready to fund large viable dairy herd farms. The small unit forms may not develop a stand-alone entrepreneur. If successful Dairy entrepreneurs are to be developed, NABARD should come forward to fund large mechanized farms (above 100-500 dairy animals) and send such revised norms to the various banks to follow (most of the time it happens that farmer reach the bank for getting support under a particular scheme and bankers reply blank that “Bank is not aware of any such scheme”).

(4) Department of AH, Dairying and Fisheries Govt of India along with the state Govt should strengthen the State Animal Husbandry department for providing right support at right time at the door steps of such dairy farms established under the schemes, so that they remain functional and viable.

In this way the govt’s efforts of allocating huge funds for farmers would provide fruitful results; develop self-sustaining dairy entrepreneurs, create large herd dairy farms, increase availability of wholesome milk for consumers and actually develop the Dairy Business in India.

The Author of this article is Dr PK Shrivastava. Dairy Business Guru, M/s Dairy Consultancy India, Bangalore; email:

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