Govt Loan for Dairy Farming: The Prime Minister Animal Husbandry Scheme

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Govt Loan for Dairy Farming

Govt Loan for Dairy Farming: Dairy farming plays a crucial role in the agricultural sector of India. Recognizing its importance and potential, the Government of India has introduced several schemes and initiatives to promote and support dairy farming across the country. One such initiative is the Prime Minister Animal Husbandry Scheme, which was launched in 2020-2021. This central government scheme aims to make dairy farming a viable and sustainable livelihood option for small and marginal farmers. In this article, we will delve into the details of this scheme and understand how it benefits farmers in India.

Introduction to the Prime Minister Animal Husbandry Scheme

The Prime Minister Animal Husbandry Scheme is a central government initiative designed to promote and support dairy farming in India. It aims to improve the income and livelihood opportunities of small and marginal farmers by providing them with financial assistance and subsidies for various aspects of dairy farming. The scheme is implemented by the National Bank for Agriculture and Rural Development (NABARD) in collaboration with other agricultural agencies.

Objectives of the Scheme

The primary objectives of the Prime Minister Animal Husbandry Scheme are as follows:

Promote dairy farming as a viable and sustainable livelihood option for small and marginal farmers.
Increase milk production and meet the growing demand for dairy products in India.
Enhance the income and living standards of dairy farmers.
Provide financial assistance for the purchase of dairy cattle, construction of sheds and other infrastructure, and training.
Create employment opportunities in rural areas through dairy farming.

Financial Assistance and Subsidies

Under the Prime Minister Animal Husbandry Scheme, eligible farmers can avail themselves of various financial assistance and subsidies. The scheme provides a subsidy of up to ₹2 lakhs for the purchase of two dairy cows or buffaloes. Additionally, a subsidy of ₹1 lakh is provided for the construction of a shed and other infrastructure required for dairy farming. Farmers can also receive ₹50,000 for training purposes.

To avail these benefits, farmers need to apply through the official website or any branch of NABARD. The subsidy amount is disbursed through banks, and farmers can obtain up to 90% of the loan amount as a subsidy. The interest rate on the loan is 4% per annum.

Eligibility Criteria for the Scheme

To be eligible for the Prime Minister Animal Husbandry Scheme, farmers must fulfill certain criteria. The key eligibility requirements include:

Ownership or leasehold of a minimum land area of 1 hectare.
Access to water and electricity supply.
Membership in a registered cooperative society or milk producer company.

Farmers must also meet additional criteria for the NABARD Dairy Subsidy Scheme, which includes having a minimum herd size of 10 cows, producing a minimum of 200 liters of milk per day, and installing appropriate milking equipment. Furthermore, farmers must undergo training at an approved training center.

Application Process for the Scheme

Farmers interested in availing the benefits of the Prime Minister Animal Husbandry Scheme can apply online through the official website or visit any branch of NABARD. The application process requires farmers to provide relevant documents, such as land ownership proofs, identity proofs, and bank account details. It is essential to ensure that all required documents are submitted accurately to avoid any delays or rejections.

NABARD Dairy Subsidy Scheme Eligibility

The NABARD Dairy Subsidy Scheme is an integral part of the Prime Minister Animal Husbandry Scheme. It focuses on providing financial assistance to eligible banks for offering subsidies to dairy farmers. The eligibility criteria for this scheme include:

Being a member of a registered cooperative society or milk producer company.
Having a minimum herd size of 10 cows.
Producing a minimum of 200 liters of milk per day.
Installing appropriate milking equipment.
Undergoing training at an approved training center.

Benefits of the Scheme

The Prime Minister Animal Husbandry Scheme offers numerous benefits to dairy farmers across India. Some of the key advantages are as follows:

Access to financial assistance and subsidies for the purchase of dairy cattle and construction of infrastructure.
Improved income and livelihood opportunities for small and marginal farmers.
Enhanced milk production and supply to meet the rising demand.
Creation of employment opportunities in rural areas.
Promotion of sustainable and eco-friendly dairy farming practices.

Challenges and Future Prospects of Dairy Farming in India

While the Prime Minister Animal Husbandry Scheme has been instrumental in promoting dairy farming, there are still challenges that need to be addressed. Some of the common challenges faced by dairy farmers in India include:

Lack of access to quality cattle feed and healthcare facilities.
Inadequate infrastructure and storage facilities for milk.
Price volatility and fluctuations in the market.
Limited knowledge and awareness of modern dairy farming practices.
Water scarcity and electricity issues in rural areas.

Despite these challenges, the future prospects of dairy farming in India are promising. The growing demand for dairy products, coupled with government support through schemes like the Prime Minister Animal Husbandry Scheme, provides opportunities for farmers to improve their income and living standards through dairy farming.

FAQs (Frequently Asked Questions)

How much money do i need to start a dairy farm in India?

The amount of money needed to start a dairy farm in India can vary depending on the scale and requirements of the farm, but it typically ranges from several lakhs to a few crores of rupees.

How much does a small dairy farm cost in India?

The cost of a small dairy farm in India can vary depending on factors such as location, infrastructure requirements, and the number of cattle, but it generally ranges from several lakhs to a few crores of rupees.

Does the government subsidize the dairy industry?

Yes, the Indian government provides subsidies and financial assistance to the dairy industry through schemes like the Prime Minister Animal Husbandry Scheme, including subsidies for the purchase of cattle, infrastructure construction, and training.

How much land is required for dairy farm in India?

In India, a minimum land area of 1 hectare is generally required for a dairy farm to be eligible for government schemes and subsidies.

Is dairy farming tax free in India?

Dairy farming in India is not tax-free; it is subject to taxation based on applicable laws and regulations.

Video Credit: Kisan Dairy Farm

Conclusion

The Prime Minister Animal Husbandry Scheme has been instrumental in promoting dairy farming as a viable and sustainable livelihood option for small and marginal farmers in India. With its financial assistance and subsidies, the scheme aims to boost milk production, enhance farmers’ income, and create employment opportunities in rural areas. However, addressing the challenges faced by dairy farmers and implementing effective measures to overcome them will be crucial for the long-term success of the scheme and the dairy industry as a whole.