Dairy Entrepreneurship Development Scheme

Unengaged farmers, outdated processing and collection systems, low milk productivity and declining profitability - these are the realities of the dairy sector in India, which plays a vital role in the country's rural economy.

To tackle these challenges head-on and ensure sustainable growth and prosperity for farmers and stakeholders, the government has introduced the Dairy Entrepreneurship Development Scheme (DEDS).

Background and History of DEDS

The Ministry of Agriculture and Farmers Welfare inaugurated DEDS as a part of the National Livestock Mission. It was launched in collaboration with the National Bank for Agriculture and Rural Development (NABARD) to revitalise the dairy industry.

Since its initiation, it has witnessed significant milestones, evolving to meet the changing needs of the dairy sector.

Objectives of DEDS

The Dairy Entrepreneurship Development Scheme (DEDS) aims to achieve several key objectives that will transform the dairy landscape in India:

Promoting dairy entrepreneurship

• DEDS encourages aspiring individuals to venture into dairy farming and establish modern farms. 
• Under the scheme, you can receive financial support to set up automated milking parlours, implement advanced feeding techniques, and adopt innovative technologies like IoT-enabled monitoring systems for your dairy farms.
• By supporting entrepreneurship in the dairy sector, the programme aims to boost employment opportunities and create a culture of innovation.

Enhancing milk production and processing

• DEDS helps farmers improve milk productivity by providing access to high-quality cattle breeds and promoting modern feeding practices.
• It helps farmers select cattle breeds that are adapted to the local climate and have a high milk yield potential.
• The programme provides training on feeding practices that are based on scientific research and can help you improve the quality and quantity of milk your cows produce.
• It promotes the adoption of modern techniques for fodder cultivation, silage production and preservation. This helps ensure that dairy animals have a consistent and nutritious feed supply, which can further improve milk productivity.

Maximising employment opportunities for rural areas

• The scheme recognises the importance of the dairy sector in rural economies and aims to generate employment opportunities beyond dairy farming.
• It supports the establishment of milk collection centres, processing units, and value-added product manufacturing facilities. This helps create jobs in the dairy value chain, such as in transportation, processing, and marketing.

Ensuring financial support

• The scheme provides financial assistance to eligible individuals and organisations to help them invest in dairy-related activities and infrastructure development.
• It offers grants, subsidies, and loans to help you install modern equipment in your units and improve milking and chilling infrastructure.
• It facilitates access to the Dairy Venture Capital Fund and Poultry Venture Capital Fund, which can provide additional funding for dairy businesses.

DEDS is a bold initiative that addresses the challenges faced by the dairy industry and promotes sustainable growth. The programme brings new opportunities for farmers, entrepreneurs, and stakeholders by providing financial assistance, training, and access to markets.

Key features of DEDS

Employment generation and infrastructure upgradation

The dairy industry in India faces a number of challenges, including -

• unengaged farmers
• outdated processing systems
• a lack of infrastructure

These challenges have hindered the growth and profitability of the industry.

DEDS addresses these challenges by focusing on generating employment opportunities and upgrading infrastructure. The programme provides financial assistance to individuals and organisations that want to establish modern dairy farms, milk collection centres and chilling units. This assistance improves efficiency in the dairy industry and creates new jobs.

For example, as a dairy cooperative owner in a rural village, you can use the funds to upgrade the infrastructure of your business by setting up a centralised milk collection centre with modern storage facilities and chilling units.

This allows you to efficiently collect and store milk from local farmers, reducing spoilage and ensuring freshness.

The upgraded infrastructure benefits your business and encourages farmers to participate more actively in dairy farming. This leads to increased milk production and overall development of the dairy industry.

Modern techniques and equipment for milk production

DEDS promotes the use of modern techniques and equipment to improve milk production, collection, and processing.

Improving milk production - DEDS encourages farmers to adopt modern techniques and practices to increase milk production. These include:

• Scientific feeding: Feeding animals a balanced diet that includes high-quality forage and concentrates.
• Proper healthcare: Providing animals with regular vaccinations and deworming treatments.
• Efficient breeding: Selecting animals with the potential to produce high yields of milk.

Enhancing the quality of milk and milk products -

• Hygienic practices: Ensure that all equipment is adequately cleaned and sanitised. Train all personnel who handle milk in proper hygiene procedures.
• Proper storage: Store milk at cool temperatures and avoid prolonged exposure to light.
• Modern processing methods: Use pasteurisation to kill harmful bacteria, and homogenisation to improve the uniformity of the product.

Continuing the example of the aforementioned cooperative -

With the assistance of the scheme, you can invest in modern milk processing equipment, such as pasteurisers and cream separators. This can ensure the freshness and safety of your products.

You can also participate in training programs on quality control and product diversification. This will enable you to expand your product range and cater to diverse consumer preferences.

By prioritising quality, you can build a strong reputation for the milk and milk products of your cooperative, attracting more customers and increasing the market share of your business.

Rearing of high-quality heifer calves

• DEDS emphasises the rearing and conserving of high-quality heifer calves to improve the overall quality of the herd.
• The scheme supports farmers like you in acquiring and rearing high-quality heifer calves - the foundation for a productive and healthy herd.
• Financial assistance helps you purchase superior breeding animals and implement effective breeding programs.
• DEDS also encourages farmers to adopt superior breeds, such as crossbreeds or indigenous high-yielding breeds, for sustainable development. These breeds offer advantages such as higher milk yields, better disease resistance, and adaptability to local conditions.
• If you wish to establish a modern dairy farm, you can avail of financial assistance through the scheme to procure high-yielding crossbred cows. By selecting breeds known for their milk production capabilities and adaptability to the local environment, you can ensure your dairy venture's long-term success and profitability.

Village-level milk processing

DEDS supports establishing village-level milk processing units, enabling value addition and reducing post-harvest losses.

• DEDS facilitates the setup of milk processing units in villages. You can process milk locally, thus adding value to the product. It also reduces the time and effort required to transport milk to distant processing facilities. Financial assistance from the programme helps establish small-scale processing units and procure equipment like pasteurisers and cream separators.
• On-site milk processing facilities at the village level play a crucial role in ensuring the freshness and quality of dairy products. Milk that is processed immediately after milking is less likely to spoil and will have a higher quality. Additionally, on-site processing allows farmers to produce value-added products that cater to consumers' preferences. For example, you can produce ghee, cheese or flavoured milk, which can command a higher price than raw milk.
• The programme supports villages to establish milk processing units with modern equipment. This reduces transportation costs, ensures freshness, and creates jobs.

Value addition to milk and milk products

DEDS emphasises the importance of value addition in enhancing the market value and profitability of milk and milk products.

• The scheme supports entrepreneurs in adding value to their products through packaging, branding, and product diversification. This increases market appeal and consumer perception, leading to higher market value.
• Value addition enhances the market value of milk and milk products. The scheme supports branding, marketing, and market linkages to help entrepreneurs reach a wider consumer base and maximise income.
• By providing financial assistance, technical guidance and infrastructural support, the scheme seeks to impact the dairy industry and uplift individuals' livelihoods positively.

Eligible farmers and entrepreneurs

Dairy Entrepreneurship Development Scheme (DEDS) offers farmers and aspiring entrepreneurs significant opportunities to establish and expand modern dairy farms. 

Eligible farmers who own land or livestock can take advantage of the scheme to enhance their operations. The Dairy Venture Capital Fund provides financial assistance to invest in advanced technologies, infrastructure, and equipment for improving milk productivity, animal health, and overall farm management.

For instance, if you are a small-scale farmer with limited resources, you can benefit from the scheme.

• You can access funds through the Dairy Venture Capital Fund to establish a modern farm. 
• You can invest in state-of-the-art milking equipment, better animal healthcare facilities, and improved feed management systems.
• These modern practices and technologies can help you increase milk production, improve animal welfare, and contribute to the growth of the dairy industry.

Documentation for applying for DEDS

You need to provide specific documents to demonstrate your eligibility and commitment to the entrepreneurship program. Here are some common documents that are required for applying for DEDS:

• Application form: Begin by completing the official application form provided by the scheme. This form collects personal and business details necessary for the evaluation process.
• Business plan: Develop a detailed business plan outlining your proposed dairy farming activities. This plan should include information on infrastructure requirements, breed selection, animal management, fodder availability, milk processing (if applicable), marketing strategies, and financial projections.
• Identity proof: Provide copies of your valid identification documents, such as your passport, Aadhaar card, driver's license, or voter ID card, to establish your identity.
• Land ownership / lease documents: Submit documents that prove your ownership or lease agreement for the land where you wish to establish the dairy farm. This could include land registry records, title deeds, or lease contracts.
• Experience and education certificates: Include certificates or documents demonstrating your dairy farming experience and knowledge. This could be educational qualifications, training certificates, or work experience in the dairy sector.
• Bank account details: Provide your bank account details, including a cancelled cheque or bank statement, to facilitate the disbursement of funds under the scheme.
• Project cost estimation: Present a detailed cost estimation of the dairy farming project. This should include infrastructure, machinery, animal purchase, feed, and working capital requirements. This helps evaluate the financial viability and funding needs of your venture.
• Technical specifications: Provide technical specifications for the infrastructure and equipment you plan to use in your farm, such as cattle sheds, milking machines, chaff cutters, or milk processing units (if applicable).
• Veterinary care and breeding plan: Outline your veterinary care and breeding plan. This can include arrangements for veterinary services, breed selection, artificial insemination (if applicable), and animal health management.
• Other supporting documents: Depending on the specific requirements of DEDS, you might have to submit additional documents. These may include no-objection certificates from local authorities, clearances from pollution control boards, or other relevant permissions.

Unorganised and organised groups in the dairy sector

Unorganised groups, such as individual farmers or small-scale milk producers, often face challenges. These include -

• limited infrastructure
• market access
• efficient processing techniques

DEDS addresses these challenges by providing financial assistance and technical guidance to upgrade infrastructure, improve milk processing capabilities, and explore additional value opportunities.

• By utilising the resources available through the venture, unorganised groups can enhance their dairy operations and compete more effectively in the market.
• They can invest in technologies and equipment that improve milk quality, increase processing efficiency, and expand their product range.
• Through improved marketing strategies and access to better markets, these groups can secure better prices for their dairy products and improve their profitability.

Organised groups, such as dairy cooperative societies, play a crucial role in the dairy sector. They bring farmers together, pool resources, and collectively address common challenges.

The scheme recognises the significance of these organised groups and provides support to strengthen their operations.

• The scheme assists dairy cooperatives in establishing village-level milk processing units, implementing quality control measures, and adopting effective marketing strategies.
• Through the programme, organised groups can upgrade their infrastructure, improve processing techniques, and diversify their product offerings.
• This can help them increase their market share, enhance their profitability, and contribute to the growth of the dairy sector as a whole.

Self-Help Groups (SHGs) and dairy cooperative societies

DEDS supports Self-Help Groups (SHGs), women's groups, and other organisations involved in the dairy sector.

SHGs, consisting of women from rural areas, play a significant role in socio-economic development and empowerment.

• DEDS enables SHGs to actively participate in the dairy sector by providing the necessary resources, training, and financial assistance to engage in dairy entrepreneurship.
• With the support of the scheme, SHGs can set up small-scale dairy enterprises, establish milk collection centres, and engage in value-added activities.
• The scheme enables them to access credit facilities, receive training on modern dairy farming practices, and develop marketing linkages. This enhances their income, empowers women in rural areas, and promotes gender equality.

Similarly, other organisations like dairy cooperative societies, farmer-producer organisations, and milk federations can benefit from the venture.

• These organisations receive support in establishing processing units, adopting quality control measures, and implementing effective marketing strategies.
• By leveraging the resources provided by the programme, they can improve their operational efficiency, ensure the production of high-quality dairy products, and enhance market access.

Criteria for availing of loans

Dairy Entrepreneurship Development Scheme (DEDS) provides loans and financial assistance to dairy entrepreneurs. It has specific criteria and conditions to ensure that the assistance reaches the intended beneficiaries.

Application process and conditions

Submission of application for financial assistance:

• To avail of the benefits of the scheme, interested individuals or groups must submit a formal application for financial assistance. 
• The application process involves providing relevant details about the proposed dairy project. This should include the location, infrastructure requirements, investment plan, and expected outcomes. 
• You can obtain the application form from the designated authorities or download it from the scheme's official website.

Conditions for eligibility and submission timeline:

• You must meet certain eligibility criteria specified by DEDS.
• These criteria may include land ownership, livestock possession, entrepreneurial intent, and compliance with regulatory guidelines.
• It is essential to carefully review and fulfil these conditions to ensure eligibility for financial assistance.
• DEDS also sets a specific timeline for submitting applications. It is important to adhere to this timeline to ensure that the application falls within the designated period and to avoid any delays in processing.

Allowing multiple family members to receive assistance:

• The scheme recognises the importance of family participation and encourages the involvement of multiple family members in dairy entrepreneurship. 
• When multiple family members are interested in establishing separate dairy units, each member can apply for financial assistance individually.
• This provision enables more family members to benefit from the programme, promoting inclusive growth and participation in the dairy sector.

Requirement for separate units and location criteria:

• To ensure fair distribution of resources and maximise the impact of the scheme, different dairy units must exist for each family member availing financial assistance.
• This criterion ensures that the scheme's benefits reach a more comprehensive range of individuals and households.
• The scheme may have specific location criteria based on the availability of resources, market demand, and regional development priorities. These criteria aim to promote establishing dairy units in areas with potential growth and sustainability.

Projects implemented under the cluster mode:

• The scheme prioritises projects implemented under the cluster mode. Clustering involves establishing a group of dairy units, enabling shared infrastructure, resources, and knowledge exchange. 
• Clustering promotes economies of scale, enhances productivity, and fosters collaboration.
• The scheme aims to create synergies and maximise the scheme's impact at the local level.

Priority for SC / ST individuals, women, small and marginal farmers, BPL farmers, and drought-hit areas:

• The scheme specialises in inclusivity and social equity.
• It prioritises specific target groups, including Scheduled Castes (SC), Scheduled Tribes (ST), women, small and marginal farmers, Below Poverty Line (BPL) farmers, and those residing in drought-hit areas. 

Assistance pattern

DEDS provides financial assistance to support various components in the dairy sector. The following table presents the specific components, their unit costs, and the pattern of assistance provided:

Capital Subsidy and bank loan details

DEDS offers a back-ended capital subsidy of 25% of the total project cost for each component mentioned above. This means that entrepreneurs can get up to 25% of the cost of their project covered by the government.

The subsidy amount is subject to certain ceilings and criteria, so it's important to check with the authorities to see if your project is eligible.

If you are an entrepreneur who receives financial assistance from the scheme, you will need to contribute the remaining portion of the project cost yourself. You can do this by securing a bank loan. The lending institution determines the interest rates, repayment tenure, and other loan details. You should consult with lending institutions to get accurate and up-to-date information about interest rates, repayment tenure, and other relevant loan details.

Implementing agencies

The role of the National Bank for Agriculture and Rural Development (NABARD)

NABARD plays a crucial role in implementing DEDS. It is a prominent financial institution that specialises in agricultural and rural development. As the apex agriculture and rural finance institution, NABARD acts as the nodal agency for implementing this strategy.

• NABARD works closely with the Ministry of Agriculture and Farmers Welfare to design and implement the scheme effectively.
• It plays a vital role in channelising financial assistance to eligible beneficiaries, including farmers, entrepreneurs, and other stakeholders in the dairy sector.
• NABARD ensures the effective disbursal and transfer of the funds allocated for the scheme to the intended beneficiaries.

Eligible financial institutions

A large network of financial institutions assists in implementing Dairy Entrepreneurship Development Scheme (DEDS). These include -

• NABARD
• nationalised banks
• cooperative banks
• regional rural banks
• state agricultural development banks
• other recognised financial institutions

These financial institutions act as intermediaries between the beneficiaries and the government. They provide financial support through bank loans and assist in disbursing capital subsidies under the programme.

These financial institutions are responsible for assessing the viability of the projects, disbursing loans, monitoring the utilisation of funds and ensuring timely repayment by the beneficiaries.

At a glance

Dairy Entrepreneurship Development Scheme (DEDS) has emerged as a significant initiative in promoting dairy entrepreneurship, enhancing milk production, and fostering rural development in India.

• DEDS has paved the way for establishing successful and sustainable dairy ventures nationwide through its focus on modern dairy farming practices, financial assistance, and skill development.
• It has provided employment opportunities, increased milk production, and improved the quality of dairy farming practices.
• It has supported entrepreneurs in accessing capital subsidies and bank loans, enabling the establishment of modern dairy farms and the adoption of advanced technologies and infrastructure.
• The programme has contributed to entrepreneurial development, skill enhancement, and strengthening of the rural economy.
• It has empowered individuals and groups to venture into the dairy sector, generate income, and contribute to the overall development of their communities.

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