Dairy Entrepreneurship Development Scheme (DEDS): Eligibility, Subsidy, and Benefits

Learn about DEDS scheme objectives, eligibility, benefits, loan terms, challenges and step-by-step application process.
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3 min
10 February 2026

In the realm of agricultural entrepreneurship, the dairy entrepreneurship development scheme (DEDS) stands out as a transformative initiative aimed at fostering the growth and development of dairy enterprises. Launched by the Government of India, DEDS provides financial assistance and support to aspiring dairy entrepreneurs, empowering them to establish and expand their ventures in the dairy sector. Understanding the intricacies and benefits of DEDS is essential for individuals seeking to embark on a journey in dairy entrepreneurship.

Overview of dairy entrepreneurship development scheme (DEDS)

DEDS is a flagship scheme implemented by the Ministry of Animal Husbandry, Dairying, and Fisheries with the objective of promoting entrepreneurship and investment in the dairy sector. The scheme encompasses various components aimed at enhancing milk production, processing, and marketing, thereby contributing to rural employment generation and socio-economic development.

Objectives of dairy entrepreneurship development scheme (DEDS)

To generate self-employment opportunities and develop infrastructure for the dairy sector

To encourage the rearing of heifer calves for the development and preservation of high-quality breeding stock

To support the unorganised sector in establishing milk processing facilities at the village level

To add value to milk through the production and processing of dairy products

To establish modern dairy farms for the production of clean, high-quality milk

To modernise traditional technologies for commercial-scale milk handling and processing

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Key components and subsidy structure of DEDS

Component

Unit Cost

Capital Subsidy

Establishment of small dairy units with cross-breed or indigenous cows (Red Sindhi, Sahiwal, Rathi, Gir, etc.) or graded buffaloes, up to 10 animals

Rs.5 lakh for a 10-animal unit (minimum 2, maximum 10 animals)

25% of project cost (33.33% for ST/SC farmers). Subsidy is calculated on a pro-rata basis for up to 10 animals, subject to a ceiling of Rs.17,500 (Rs.23,300 for ST/SC farmers) or actual, whichever is lower.

Rearing of heifer calves (indigenous breeds, crossbred, or graded buffaloes, up to 20 calves)

Rs.4.80 lakh for a 20-calf unit (minimum 5, maximum 20 calves)

25% of project cost (33.33% for ST/SC farmers). Subsidy is pro-rata for up to 20 calves, with a ceiling of Rs.12,100 per calf (Rs.16,200 for ST/SC farmers) or actual, whichever is lower.

Vermicompost with a milch animal unit (must be integrated with small dairy farm/milch animals, not separate)

Rs.20,000

25% of project cost (33.33% for ST/SC farmers), with a ceiling of Rs.6,300 (Rs.8,400 for ST/SC farmers) or actual, whichever is lower.

Purchase of milking machines, milk testers, or bulk milk cooling units (up to 5,000 litres capacity)

Rs.18 lakh

25% of project cost (33.33% for ST/SC farmers), with a ceiling of Rs.5 lakh (Rs.6.67 lakh for ST/SC farmers) or actual, whichever is lower.

Purchase of dairy processing equipment for indigenous milk products

Rs.12 lakh

25% of project cost (33.33% for ST/SC farmers), with a ceiling of Rs.3.3 lakh (Rs.4.4 lakh for ST/SC farmers) or actual, whichever is lower.

Establishment of cold chain and dairy product transportation facilities

Rs.24 lakh

25% of project cost (33.33% for ST/SC farmers), with a ceiling of Rs.6.625 lakh (Rs.8.83 lakh for ST/SC farmers) or actual, whichever is lower.

Cold storage facilities for milk and milk products

Rs.30 lakh

25% of project cost (33.33% for ST/SC farmers), with a ceiling of Rs.8.25 lakh (Rs.11 lakh for ST/SC farmers) or actual, whichever is lower.

Establishment of private veterinary clinics

Rs.2.40 lakh for mobile clinics; Rs.1.80 lakh for stationary clinics

25% of project cost (33.33% for ST/SC farmers). Subsidy ceiling: Rs.65,000 for mobile and Rs.50,000 for stationary (Rs.86,600 and Rs.66,600 for ST/SC farmers), or actual, whichever is lower.

Dairy marketing outlet or dairy parlour

Rs.56,000

25% of project cost (33.33% for ST/SC farmers), back-ended capital subsidy. Ceiling: Rs.75,000 (Rs.1 lakh for ST/SC farmers) or actual, whichever is lower.


Eligibility criteria for daily entrepreneurship development scheme (DEDS)

The following entities are eligible to apply for NABARD loans for dairy farming under the DEDS scheme:

  1. Individual farmers

  2. Single entrepreneurs

  3. Non-governmental organisations (NGOs)

  4. Panchayati Raj institutions

  5. Groups from the unorganised sector

  6. Organised sector groups, including self-help groups (SHGs), dairy cooperative societies, milk unions, and milk federations

Terms and Conditions

The government has outlined the following conditions for availing benefits under the DEDS scheme:

  1. Assistance can be applied for only once per entity for each component of the scheme.

  2. Multiple family members may receive assistance, provided they establish separate units with independent infrastructure, located at least 500 metres apart.

Target applicants for daily entrepreneurship development scheme (DEDS)

The DEDS, under the Dairy Entrepreneurship Development Scheme, provides support to a wide range of applicants looking to establish or expand dairy-based ventures through the dairy loan scheme:

  • Farmers: Individuals aiming to start or grow dairy units, purchase high-yield cattle, or upgrade sheds and equipment under the DEDS scheme.

  • MSMEs: Small dairy enterprises engaged in milk production, processing, or distribution seeking MSME loans to expand their operations.

  • Self-Help Groups (SHGs): Women-led or community groups establishing collective dairy ventures using the support of the dairy entrepreneurship development scheme.

  • Cooperatives: Registered dairy cooperatives investing in milk collection, chilling, or processing infrastructure through the DEDS programme.

Overall, the dairy loan scheme promotes entrepreneurship, enhances rural income, and supports the organised development of the dairy sector.

Benefits of dairy entrepreneurship development scheme (DEDS)

  1. Empowering rural entrepreneurs:
    DEDS provides opportunities for rural youth and farmers to become self-employed and generate sustainable livelihoods through dairy entrepreneurship. By promoting dairy farming as a viable business option, the scheme contributes to rural empowerment and poverty alleviation.
  2. Enhanced milk production and quality:
    The financial assistance and technical support provided under DEDS lead to increased milk production and improved quality standards. By modernising dairy operations and adopting scientific practices, entrepreneurs can optimise productivity and profitability in the dairy sector.
  3. Value addition and diversification:
    DEDS encourages value addition and diversification in dairy products, enabling entrepreneurs to capitalise on emerging market trends and consumer preferences. Value-added products such as flavoured milk, cheese, yogurt, and ice cream offer higher profit margins and marketability.
  4. Strengthening dairy infrastructure:
    Through investments in dairy infrastructure, DEDS strengthens the dairy value chain by enhancing milk collection, storage, and processing capabilities. This infrastructure development not only benefits individual entrepreneurs but also contributes to the overall growth and competitiveness of the dairy industry.

The dairy entrepreneurship development scheme (DEDS) serves as a catalyst for the growth and modernisation of the dairy sector in India. By providing financial assistance, training, and infrastructure support to aspiring dairy entrepreneurs, DEDS facilitates the establishment of sustainable dairy enterprises and fosters rural economic development. As the dairy industry continues to evolve and expand, DEDS plays a pivotal role in nurturing a new generation of dairy entrepreneurs who are poised to drive innovation, efficiency, and prosperity in the sector.

Interest rates, tenure, and repayment rule for DEDS

Under the DEDS scheme, NABARD provides dairy farm loans in accordance with the Reserve Bank of India’s guidelines. Banks charge interest on the full loan amount until the subsidy is released to the beneficiary. Once the subsidy is received, interest is applied only to the remaining loan balance after deducting the subsidy.

The repayment period for these loans typically ranges from 3 to 7 years, depending on the nature of the business and cash flow. Beneficiaries also enjoy a grace period: 3 to 6 months for general dairy farm loans, and up to 3 years for owners of calf-rearing units.

How to apply for daily entrepreneurship development scheme (DEDS)

Applying for a DEDS loan under the Dairy Entrepreneurship Development Scheme is a straightforward and organised process. Follow these steps to access the dairy loan scheme online:

  1. Check eligibility for the DEDS scheme, including your applicant category and project type.

  2. Prepare a project report detailing cattle purchases, infrastructure requirements, and estimated costs.

  3. Select a participating bank that offers loans under the Dairy Entrepreneurship Development Scheme.

  4. Submit your online application, including KYC documents, land records, and bank statements.

  5. Apply for an MSME loan if registering your venture as a formal enterprise.

  6. Bank evaluation and field verification: The bank reviews your proposal and may conduct site inspections.

  7. Loan approval and subsidy linkage: Upon approval, the loan is sanctioned and the DEDS-linked subsidy is applied.

Following this step-by-step approach ensures a smooth approval process and timely disbursement under the dairy loan scheme.

Documents required for daily entrepreneurship development scheme (DEDS)

To apply for a DEDS loan under the Dairy Entrepreneurship Development Scheme, applicants are required to submit the following documents as part of the dairy loan process:

  • Identity and address proof (Aadhaar, PAN, or Voter ID)

  • Recent passport-size photographs

  • Bank account details and statements

  • Project report as per DEDS requirements, including details of cattle, infrastructure, and costs

  • Land ownership documents or a valid lease agreement for the dairy unit

  • Income proof for individual applicants

  • MSME registration and basic business documents if applying for an MSME loan for a dairy farm

Submitting all required documents ensures smoother processing and faster approval under the DEDS scheme.

Common challenges for daily entrepreneurship development scheme (DEDS)

Before applying under DEDS, it is useful to be aware of practical challenges, subsidy limits, and recent updates associated with the Dairy Entrepreneurship Development Scheme and the dairy loan scheme:

  • Common challenges: Applicants often encounter gaps in documentation, delays in subsidy disbursal, prolonged bank appraisals, and limited awareness of the scheme, particularly in rural areas.

  • Subsidy caps: Subsidies under DEDS are restricted to a percentage of the project cost, with fixed limits per animal or unit, which may not fully cover rising setup expenses.

  • Scheme updates: While the original Dairy Entrepreneurship Development Scheme has evolved over time, its objectives are continued through allied dairy-focused initiatives.

  • Alternative funding: Entrepreneurs may also consider an MSME loan for dairy farm expansion alongside other dairy finance options.

This understanding helps applicants plan better and improve the likelihood of timely approvals and disbursements.

Conclusion

In conclusion, the Dairy Entrepreneurship Development Scheme (DEDS) provides an excellent opportunity for farmers, entrepreneurs, and community groups to start or expand dairy ventures with financial and technical support. By using a business loan, checking business loan eligibility, understanding the business loan interest rate, and planning with a business loan EMI calculator, aspiring dairy entrepreneurs can strengthen rural livelihoods, improve milk production, and build sustainable, profitable businesses in India.

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Frequently asked questions

When was the Dairy Entrepreneurship Development Scheme launched?

The Dairy Entrepreneurship Development Scheme (DEDS) was launched in India in 2010 to promote entrepreneurship in the dairy sector.

What is the Dairy Entrepreneurship Development Scheme?

The Dairy Entrepreneurship Development Scheme (DEDS) is an initiative launched in India to foster entrepreneurship in the dairy sector. It provides financial assistance and support for establishing modern dairy ventures, including farms, infrastructure, and milk processing plants. The scheme aims to enhance dairy production, promote value-added dairy products, and improve farmer incomes.

Which ministry is responsible for the Dairy Entrepreneurship Development Scheme?

The Dairy Entrepreneurship Development Scheme (DEDS) is under the purview of the Ministry of Animal Husbandry, Dairying, and Fisheries in India. This ministry oversees the implementation and management of various schemes and programs aimed at promoting the growth and development of the livestock and fisheries sectors in the country.

Which industries are eligible for the Dairy Entrepreneurship Development Scheme?

The Dairy Entrepreneurship Development Scheme (DEDS) extends eligibility to various industries within the dairy sector, including dairy farming, procurement of high-yielding animals, infrastructure development, equipment acquisition, and milk processing. These industries contribute to promoting entrepreneurship and enhancing productivity and efficiency in India's dairy sector, thus supporting the scheme's objectives of boosting dairy production and farmer incomes.

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