India’s dairy sector is supported by several central and state-level programs. Knowing what government schemes for dairy farmers exist can help milkmen and small dairy businesses access subsidies, low-interest loans, and infrastructure support.
National Programme for Dairy Development (NPDD)
Run by the Ministry of Fisheries, Animal Husbandry and Dairying, NPDD focuses on strengthening village-level milk procurement infrastructure, quality testing equipment, and cooperative capacity building. It’s most relevant if you work with or want to join a dairy cooperative.
Dairy Entrepreneurship Development Scheme (DEDS) and Related Credit Support
Various schemes route subsidised loans through NABARD and public sector banks for setting up milking machines, milk collection units, chilling infrastructure, and value-added product units (like paneer or ghee production). Eligibility, subsidy percentage, and application routes vary by state, so check with your nearest NABARD district office or state dairy development board for current terms.
State-Level Schemes
Many states run their own dairy support programs — subsidies on cattle feed, insurance for milch animals, interest subvention on dairy loans, and support for setting up cooperative societies. These change frequently, so it’s worth checking your state animal husbandry department’s website or visiting a local Krishi Vigyan Kendra for the latest applicable schemes.
Working Through Cooperatives
Many subsidies and support programs are easier to access through a registered dairy cooperative society rather than as an individual milkman, since cooperatives handle much of the paperwork and aggregation. If you’re currently independent, it may be worth evaluating whether joining a cooperative unlocks support you can’t easily access alone.
Whatever support you receive, keeping clean digital records of your business — sales, expenses, and GST compliance — makes it far easier to apply for and justify eligibility for these schemes.
Track this the easy way
The free Milk Diary app handles daily entries, automatic billing and payment tracking for you. Download Milk Diary free on Google Play.