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Blogs - An Encouraging Initiative: Dairy Entrepreneurship Development Scheme

An Encouraging Initiative: Dairy Entrepreneurship Development Scheme

Avatar for Aatmnirbhar Sena
Aatmnirbhar Sena
Sep 30, 2020
Startups
An Encouraging Initiative: Dairy Entrepreneurship Development Scheme

Dairy Entrepreneurship Development Scheme is a scheme launched to enhance the progressive rate of the dairy sector in India and encourage its entrepreneurs to contribute effectively to our country’s economy. The dairy industry in India has the highest value in the Indian agriculture and food sector, more than the combined cost of wheat and rice.

The dairy sector contributes close to the 1/3rd of the gross income of rural households. The livestock sector contributes to 4% of India’s GDP, and the dairy sector comprises the majority of the share. It is evident from the figures mentioned above that enhancing the mechanism for efficient growth and success of the dairy sector is the need of the hour.

The dairy sector provides for the massive employment opportunity to the large crowd of rural and urban sectors. The Government should opt for the centric approach to encourage the youth to take up entrepreneurship in the dairy sector and attract youth by popularizing the scheme in the best possible manner.

About Dairy Entrepreneurship Development Scheme

Dairy Entrepreneurship Development Scheme (DEDS) was initiated in September month 2010 with the sole objective of generating self-employment opportunities in the dairy sector in the country. This scheme is implemented through NABARD, which provides financial assistance to commercially bankable projects with a loan from prescribed banks with a back-ended capital subsidy of 25% of the project cost to the general category’s 33.33% of the project cost to SC & ST beneficiaries.

Dairy Entrepreneurship Development Scheme is implemented by the Department of Animal Husbandry, dairying, and fisheries. DEDS has contributed immensely to providing employment opportunities in the dairy sector and covering activities like enhancement of milk production, procurement, preservation, transportation, processing, marketing, etc. The scheme also provides for the back ended capital subsidy for the bankable projects. The National Bank implements the scheme for Agricultural and Rural Development (NABARD), which acts as its nodal agency.

The Dairy Entrepreneurship Development scheme aims at extending support for setting up small dairy farms & other components to bring structural change in the dairy sector and increase productivity. The dairy sector is of immense importance in the present scenario and is considered a profitable business for entrepreneurs. Other banks like Co-operative banks, commercial banks, regional rural banks, etc. are also eligible for refinance to implement the scheme. 

Objectives of Daily Entrepreneurship Development Scheme

  • To promote setting up for modern dairy farms for the production of clean milk.
  • We are conserving good breeding stock and encouraging heifer calf rearing.
  • To improve the quality as well as traditional technology to handle the commercial sale.
  • To generate self-employment & provide infrastructure mainly for the unorganized sector.

Who can apply?

  • Framers, entrepreneurs, companies, NGOs, Self-help groups, dairy co-operative societies, etc., are eligible for benefits under the Dairy Entrepreneurship Development Scheme.
  • Any person or sector shall be eligible for the benefits under the DEDS, but they can avail of its assistance for all the components but only once.
  • Under Dairy Entrepreneurship Development Scheme, more than one member of any family can help set up different units with separate infrastructure at various locations.

Benefits under Dairy Entrepreneurship Development Scheme

  • Under the Dairy Entrepreneurship Development Scheme, farmers will avail Rs 7 lakh for ten animal units. However, the minimum unit of the size is two animals with an upper limit of ten animals.
  • Twenty-five percent of the project cost as a back-ended capital subsidy (In the case of SC/ST farmers, it is 33%). 
  • To purchase machines units (up to 5000 lit capacity), Rs 20 lakh is standard. 
  • To purchase dairy processing equipment for the manufacture of indigenous milk products – Rs 13.20 lakh.

Eligible Financial institutions

The list of financial institutions which would be refinanced by NABARD are as follows:

  • Commercial Banks.
  • Regional Rural Banks.
  • State Cooperative Banks.
  • State Cooperative Agriculture and Rural Development Banks.
  • Other institutions.

The Government has been vigorously trying to improve the dairy sector by contributing in bits but consistently to stabilize the dairy sector and generate more employment through parallel schemes like these. The Government approved the dairy infrastructure development fund worth Rs 10,000 crores for incentivizing investment. This way Government of India is consistently trying to promote the dairy sector by taking initiatives in schemes and funds. As an Aatmnirbhar Sena, we have also contributed immensely by announcing the plan and making more and more people aware of its advantages in the long run. Taking the youth in the garb of benefits under the program can contribute majorly towards India’s economy. As the name suggests, Dairy Entrepreneurship Development Scheme, we are trying to produce young entrepreneurs in the sector by assisting them in taking up entrepreneurship. 

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