Launched by the Central Government, NABARD Dairy Farming Yojana is a scheme introduced to provide financial assistance to small-scale businesses. The idea behind launching the NABARD Dairy Farming Yojana was to grant aid to people for setting up a small-scale business like dairy farming and also other related businesses in the dairy sector.
Under this scheme, the government provides the loan to the people falling under the BPL and EWS category. People belonging to the economically weaker sections of the country are being given loans at no interest rates.
Introduction
- The business of dairy farming falls under a largely unorganized sector in India. Also, the dairy farming business is considered a major source of earning in rural areas.
- To give a new shape to the blurred picture of the dairy farming industry and provide financial support for the setting up of the dairy farms, the NABARD Dairy Farming Yojana scheme was launched.
- It is a venture scheme that has been launched by the Department of Animal Husbandry, Dairying, and Fisheries.
- This scheme has been providing interest-free loans for setting up dairy farm units.
Objective of the Scheme
Here are a few points describing the objective of NABARD concerning Dairy Farming Yojana:-
- Establishing modern-day farms for milk production.
- To deal with the commercial sale of milk production, the technology has been upgraded.
- This scheme revolves around creating self-employment opportunities for small-scale entrepreneurs.
Highlights of NABARD Dairy Farming Yojana
Mentioned below are the highlights of the NABARD Dairy Farming Yojana:-
- Intending to grant relief and aid to the dairy farming sector, Union Finance Minister Nirmala Sitharaman has allocated a budget of ₹15,000 crores for the development of the animal husbandry infrastructure.
- For the export of milk products like processed milk powder, cheese, cream, etc., incentives will be given to the establishing plants.
- Creating a credit plan on the district level.
- Promoting and training manufacturers and skilled workers.
- Executing the schemes formed by the government for the benefit of the small sectors.
- Formation of new designs for the development of rural areas.
Functions of the Scheme
Established as a development bank, NABARD serves the following functions:-
The Idea Behind the launch
- The idea with which the NABARD Dairy Farming Yojana has been launched is to create and promote self-employment opportunities amongst less-privileged people.
- In rural areas, people living with limited resources and reduced circumstances maintain their livelihood by doing small-scale business like dairy farming. But, due to the limited resources, the needy people are not able to make much profit out of the dairy farming business.
- It is the major reason behind the launch of the NABARD Dairy Farming Scheme[1]. Under this scheme, the dairy farming industry is intended to function and run in a smooth and organized manner.
- Interest rate free loans are being given to farmers so that they can earn a living out of farming.
Role of Promoting Dairy Farming
- The only aim behind the promotion of the dairy farming business is the idea of increasing the importance and value of self-employment.
- Promoting a small-scale business in rural areas is a major tool to eradicate poverty and increase the chances of employment.
- The basic idea behind the introduction of this scheme is to promote the production of milk and dairy products.
Key Features of NABARD Dairy Farming Yojana
Following are the features of the NABARD Dairy Farming Scheme:-
- Formulating self-employment opportunities for the needy people.
- This scheme is also good for crop yield and spoils fertility.
Subsidy Eligibility
Following are the eligible applicants who can avail of the subsidy provided under the NABARD Dairy Farming Yojana:-
Subsidy under NABARD Dairy Farming Yojana
As we have understood the role, functions and features of NABARD Dairy Farming Yojana in the afore-mentioned paragraphs, let us now understand the assistance provided under the NABARD Dairy Farming Yojana:-
1- Foundation of Small Dairy Units with Crossbred Cows– Cows like: – Red Sindhi, Sahiwal, Rathi, Giri, etc. Also, highly maintained buffaloes up to 10 animals.
- Investment– An investment of ₹5 lakh is being made for the unit of 10 animals.
- Unit Size– The size of this animal unit is of 2 animals with an extended limit of 10 animals.
- Subsidy– Expenditure of 25% (33 .33 % for the SC / ST farmers) has been covered for a unit of 10 animals (₹ 1.67 lakh for SC/ST farmers).
- The highest permitted capital subsidy for the unit of 2 animals is 25,000 (₹ 33,300 for SC/ST farmers).
- The subsidy remains restricted on a pro-rata basis which is dependent on the size of the animal unit.
2- Rearing of the Heifer Calves – Indigenous descript milch breeds of graded buffaloes and cattle. The limit is up to 20 calves.
- Investment– An investment of ₹4.80 lakh is being made for the unit of 20 calves.
- Unit Size-The minimum unit size of this is five calves, and the limit is extended up to 20 calves.
- Subsidy– Expenditure of 25% (33 .33 % for the SC / ST farmers) has been covered (₹1.20 lakh for a unit of 20 calves) and ₹1.60 lakh for SC/ST farmers.
- The maximum permitted capital subsidy for this unit is ₹30,000 (₹40,000 for the SC/ST farmers) for a unit of 5 calves.
- The subsidy remains restricted on a pro-rata basis which is dependent on the size of the animal unit.
Steps to Get the NABARD Subsidy for Dairy Farming
Following are the steps to be followed to get the NABARD subsidy:-
- To apply for the NABARD subsidy, the farmer or the beneficiary is required to decide and choose the kind of business the person wants to get into. That business must pertain to dairy farming. This business activity should be undertaken from the types explained above in the subsidy paragraph.
- Once, the type of business is decided, the applicant is required to register the company, NGO or business.
- A detailed report of the project or the business plan for the dairy farming business is required to be prepared by the applicant. This report should also carry the loan request from the bank.
- Now, you need to submit this loan request report to any commercial bank, regional rural bank or to the banks which are eligible for the refinancing from NABARD.
- As soon as your loan is sanctioned from the bank, the promoter will have to implement the project using his contribution.
Beneficiaries of the Scheme
To avail of the benefits rendered under this scheme, let us understand the criteria to apply for this scheme:-
- Small-scale entrepreneurs, new businessman, farmers, NGOs, unorganized and organized sectors, milk unions, milk federations, dairy cooperative societies, etc., can apply for this scheme.
- An individual who will be eligible to avail of the benefits and assistance provided under this scheme would be granted the assistance only once for each of the components.
- More than one family member can be benefited and provided assistance under this scheme, but that particular individual is required to build up separate units with two different infrastructures and set up at a different location.
- The distance between these two locations must be 500 meters.
Role of Aatmnirbhar Sena
Being an independent organization, Aatmnirbhar Sena never fails to support the government with the schemes introduced to benefit the EWS and BPL category of our country. We at Aatmnirbhar Sena leave no effort in providing financial assistance in generating out the results in favor of the underprivileged people.
Conclusion
NABARD Dairy Farming Yojana is a well-structured and thoughtful initiative taken by the Central government. The motive behind the introduction of this yojana is to create self-employment opportunities for small-scale farmers and business people. NABARD Dairy Farming Yojana has been initiated to encourage the low-class people to be able to become self-reliant and earn by the process of milk production and other dairy farming products. The government is also giving NABARD subsidy to promote small-scale entrepreneurs.
