Dairy Entrepreneurship Development Scheme (DEDS)

The Dairy Entrepreneurship Development Scheme (DEDS) was launched in September 2010 to boost self-employment in India’s dairy sector. It was introduced to replace the previous scheme, Venture Capital Scheme for Dairy and Poultry. Designed for both the organised and unorganised sectors, DEDS aims to promote the growth of small dairy farms and enhance milk production by offering financial support. It supports various dairy-related activities like procurement, transportation, marketing, and milk processing, catering to organised and unorganised sectors.

The primary goal of DEDS is to boost India's dairy sector by promoting modern farming practices, enhancing milk production, and creating self-employment opportunities. The scheme focuses on improving infrastructure and encouraging quality milk production at the grassroots level. Some of its objectives include: 

• Support the processing of milk and milk products to ensure quality production

• Promote the establishment of modern dairy farms to produce clean and high-quality milk

• Upgrade traditional methods with advanced technologies for commercial milk handling

• Support heifer calf rearing to conserve good breeding stock

• Bring structural changes in the unorganised sector to enable initial milk processing at the village level

• Generate self-employment opportunities and provide infrastructure, especially for the unorganised sector

• Strengthen the dairy value chain from production to marketing, improving overall efficiency

The Dairy Entrepreneurship Development Scheme (DEDS) offers dairy farm loans through NABARD (National Bank for Agriculture and Rural Development), following RBI guidelines. Banks charge an interest on the total loan amount until the subsidy is credited to the beneficiary’s account. Once the subsidy is received, interest is charged only on the remaining loan amount after deducting the subsidy.

Here are the further details:

• Loans are offered as per RBI’s interest rate guidelines

• Interest is charged on the full loan amount until the subsidy is credited

• Loan repayment tenure ranges from 3 to 7 years, based on business activity and cash flow

• Dairy farm loans come with a grace period of 3 to 6 months before repayments begin

• Calf rearing unit owners may get up to 3 years of grace period, depending on the bank’s decision

DEDS offers financial assistance and subsidies to support dairy farming and related activities. Beneficiaries can get capital subsidies for various components that help dairy production and self-employment.

The DEDS focuses on improving the dairy sector by promoting modern infrastructure. It also aims to enhance milk production and processing at the grassroots level. Here are some key features of DEDs:

• Encourages self-employment in the dairy sector

• Promotes the use of modern equipment to boost milk production and quality

• Supports rearing of quality heifer calves to conserve good breeding stock

• Aim to upgrade dairy farms with the latest technologies

• Introduces structural changes at root level for early-stage milk processing

• Helps farmers get better value for dairy products

• Provides financial support through subsidies for various dairy-related activities

The DEDS) has transformed the dairy sector by improving infrastructure in the country. It has boosted milk production and created self-employment opportunities for rural farmers. Here are some changes it has brought to the sector:

• Increased milk production and improved quality standards

• Promoted modern dairy farming practices and technologies

• Enhanced rural income by supporting small and medium dairy farmers

• Improved infrastructure for milk collection, processing, and storage

• Encouraged rearing of quality heifer calves, preserving good breeds

• Strengthened the unorganised dairy sector through structural changes

• Facilitated better market access for dairy farmers and products

Under this scheme, the following entities are eligible for the NABARD loan for dairy farming across the country. The following individuals, groups, or firms can benefit from the scheme:

• Individual entrepreneurs and farmers

• Registered companies and NGOs

• Groups from organised and unorganised sectors, like milk unions, self-help groups, milk federations, and cooperative dairy societies

Here are some conditions to claim the benefits:

• You can get assistance under all components but only once for each component

• Multiple family members can apply if they set up separate units with independent infrastructure, ensuring at least 500 meters of distance between the two farms

To apply for the dairy loan under the DEDS scheme, you may need to submit the following documents:

• Identity proof such as Voter ID or Aadhaar card

• Address proof

• Caste certificate

• Land documents

• Recent passport-size photograph

• Written proposal detailing loan requirements and repayment plan

• Active mobile number

• Proof of income

Follow these steps to apply for a NABARD dairy loan under the DEDS scheme:

1. Choose the dairy farming activity or business model you want to start

2. Register your business if it's a company, NGO, etc.

3. Prepare a detailed project report or business plan, including a loan request

4. Submit the loan application to an eligible bank like commercial, rural, or cooperative

5. You can head to a bank where you already have an account

6. After loan approval, use your contribution and the loan amount to begin the project

7. Once the first loan instalment is disbursed, the bank applies for the subsidy on your behalf

8. NABARD releases the subsidy to the bank, held in a ‘Subsidy Reserve Fund Account’ without interest

9. The subsidy is adjusted against the final loan instalments after successful repayment

In conclusion, the Dairy Entrepreneurship Development Scheme has boosted India’s dairy industry. It helped the country become a global leader in milk production. With support from NABARD, the scheme has empowered around 1.86 Lakh entrepreneurs to establish mini-dairy units. DEDS continues to strengthen rural economies and improve the overall quality of milk production in India.