Subsidies are the financial support provided by the government for encouraging and serving the farmers for better agricultural ecosystem. State governments don’t provide any subsidies.
SUBSIDIES FOR DAIRY FARMING:
Subsidy for Dairy farming is a way to promote dairy farming by giving financial support by the government.
As the dairy farming is one of biggest commercial business in the rural areas there are efforts being made by the government to promote milk production and dairy business all over the country. Dairy farming set up on a small scale may need high investments, that is the reason why people step back to even start a small scale dairy farm. So people always look for the help from government i.e., through subsidies /schemes and financial assistance from banks especially from NABARD (National Bank for Agriculture and Rural Development).To support farmers NABARD came up with a scheme
NABARD SUBSIDY IN DAIRY FARMING :
THE MAIN OBJETIVES OF THE SCHEME ARE:
>To achieve the best milk production by modernizing the dairy farm.
>To achieve the best breed by rearing good quality calf.
>To support and creat jobs for rural people in dairy farms.
>To establish cool storage and improve the milk quality.
>To make the milk distribution easy to the interiors of village.
>To introduce and support the modern technology of dairy farming in many commercial ways.
PEOPLE ELIGIBLE FOR NABARD SUBSIDY :
>Individual entrepreneurs or starters.
>Companies or Firms.
>Milk federations, Milk unions and Dairy cooperative societies.
NABARD SUBSIDY ASSISTANCE :
TYPE 1 : Small dairy establishment units with crossbreed cows /indigenous descript milch cows like Sahiwal, Red sindhi, Rathi, etc. /graded buffaloes up to 10.
INVESTMENT: Rupees 5.00 Lakhs for 10 animal units. Minimum unit size is 2 animals and upper limit is 10 animals.
SUBSIDY: 25% of the outlay (33.33% for SC/ST farmers) as back ended capital subsidy subject to a ceiling of Rupees 1.25 Lakhs (Rupees 1.67 Lakhs for ST/SC farmers) for 10 unit animals. The maximum permissible capital subsidy is Rupees 25,000 (Rupees 33,300 for ST/SC farmers) for 2 animal units. The subsidy may vary depending on the size of unit.
TYPE 2 : Rearing of heifer calves – cross breed, indeginous descripts milch breeds of cattle and graded buffaloes up to 20 calves.
INVESTMENT: Rupees 4.80 Lakhs for 20 animal units. The minimum unit size is 5 calves to a upper limit of 20 calves.
SUBSIDY: 25% of the outlay (33.33% for ST/SC farmers) as back ended capital subsidy subject to a ceiling of Rupees 1.20 Lakhs for 20 unit of animals (Rupees 1.60 Lakhs for ST/SC farmers). The maximum permissible capital subsidy is Rupees 30,000 (Rupees 40,000 for ST/SC farmers) for 2 animal units. The subsidy may vary depending on the size of the unit.
TYPE 3 : Vermicompost (with a milch animal unit. To be considered with milch animals and not seperately).
INVESTMENT: Rupees 20,000.
SUBSIDY: 25% of the outlay (33.33% for ST/SC farmers) as back ended capital subsidy subject to a ceiling of Rupees 5,000/- (6700 for ST/SC farmers)
TYPE 4 : purchasing of milk machines and bulk milk cooling units (up to 2000 liter capacity).
INVESTMENT: Rupees 18 Lakhs.
SUBSIDY: 25% of the outlay (33.33% for ST/SC farmers) as back ended capital subsidy subject to a ceiling of Rupees 4.50 Lakhs (Rupees 6.00 Lakhs for ST/SC farmers).
TYPE 5 : Dairy processing equipment purchase for manufacture of indigenous milk products.
INVESTMENT: Rupees 12 Lakhs.
SUBSIDY: 25% of the outlay (33.33% for ST/SC farmers) as back ended capital subsidy subject to a ceiling of Rupees 3.00 Lakhs (Rupees 4.00 Lakhs).
TYPE 6 : Dairy products transportation establishment facilities and cold chain.
INVESTMENT: Rupees 24 Lakhs.
SUBSIDY: 25% of the outlay (33.33% for ST/SC farmers) as back needed capital subsidy subject to a ceiling of Rupees 6.00 Lakhs (Rupees 8.00 Lakhs).
TYPE 7 : Facilities for milk and milk products
INVESTMENT: Rupees 30 Lakhs.
SUBSIDY: 25% of the outlay (33.33% for ST/SC farmers) as back needed capital subsidy subject to a ceiling of Rupees 7.50 Lakhs (Rupees 10.00 Lakhs for ST/SC farmers).
TYPE 8 : Private veterinary clinic establishments.
INVESTMENT: Rupees 2.40 Lakh for mobile clinic and Rupees 1.80 Lakh for stationary clinic.
SUBSIDY: 25% of the outlay (33.33% for the ST/SC farmers) as back needed capital subsidy subject to a ceiling of Rupees 60,000/- and 45,000/- (Rupees 80,000/- and Rupees 60,000/- for ST/SC farmers) for mobile and stationary clinics respectively.
TYPE 9 : Dairy outlet /Dairy parlors.
INVESTMENT: Rupees 56,000.
SUBSIDY: 25% of the outlay (33.33% for ST/SC farmers) as back needed capital subsidy subject to a ceiling of Rupees 14,000/- (Rupees 18,600/- for ST/SC farmers).
NABARD SUBSIDY ASSISTANCE FOR DAIRY FARMING IN INDIA :
STEP 1 : Type of business activity that is going to established is to be decided at first. The type should be one of the types mentioned above.
STEP 2 : Registering a company or any other suitable business or NGO entity will be required.
STEP 3 : Proper business plan or detailed project report for the establishment of dairy farm should be prepared including a request for bank loan which is mandatory.
STEP 4 : Submit proposal request for a bank loan to any commercial bank or regional rural bank or state cooperative bank or state cooperative agriculture and rural development bank or other financial institutes, that are eligible for refinancing from NABARD.
STEP 5 : Once bank loan is sanctioned, the promoter should establish dairy related business or work using his contribution and bank loan amount.
STEP 6 : After the first installment payment, the bank should apply to NABARD for sanctioning and release of NABARD subsidy for dairy farming establishment
STEP 7 : NABARD would sanction the subsidy to any bank or approved institution. They would hold the subsidy amount in an account described as “ SUBSIDY RESERVE FUND ACCOUNT” with zero interest.
STEP 8 : On promoter loan obligation satisfactory, the subsidy amount in the SUBSIDY RESERVE FUND ACCOUNT will be adjusted against the last few repayments of the bank loan.
NABARD came up with the best scheme ever to encourage and promote the dairy farming. As there are people who are waiting for some help to start such business or farms, government should focus on such schemes to help the poor so everyone in the country will be handful.