India, being the largest milk producer in the world, offers immense opportunities in dairy farming. This sector is not only profitable but also sustainable, especially when supported by government schemes, training programs, and financial assistance. Whether you are a beginner or someone planning to scale up your dairy business, this comprehensive guide will walk you through everything—from what is dairy farming, how to start, available government loans, training programs, and a solid business plan.
What is Dairy Farming?
Dairy farming is the practice of breeding and raising milk-producing animals like cows and buffaloes to produce milk and other dairy products. It involves several activities including feeding, milking, animal care, hygiene maintenance, milk storage, and distribution.
Dairy farming plays a vital role in rural economies by generating income and employment for millions of families. It is one of the few businesses where the product (milk) has daily demand and quick cash flow.
Why Start a Dairy Farming Business in India?
- High Demand: Milk and dairy products are consumed daily in every household.
- Government Support: Various schemes, subsidies, and loans are available.
- Sustainable Income: With proper management, daily income is possible.
- Multiple Products: Apart from milk, you can produce paneer, ghee, curd, and more.
- Employment Opportunity: Helps in rural development and job creation.
Dairy Farming Business Plan: Step-by-Step
Creating a dairy farming business plan is essential for success. It helps in understanding the capital requirements, resources needed, and operational strategy.
1. Market Research
Start with identifying the demand and supply in your area. Check local milk prices, customer preferences (cow vs. buffalo milk), and existing competition.
2. Location & Infrastructure
Choose a suitable rural or semi-urban area with access to clean water, electricity, veterinary care, and transportation.
Infrastructure Needed:
- Cow/buffalo shed
- Feed and fodder storage
- Milking area
- Water supply
- Waste disposal system
3. Choosing the Right Breeds
Popular high-yielding cow breeds in India:
- Gir
- Sahiwal
- Jersey
- HF (Holstein Friesian)
Buffalo breeds:
- Murrah
- Jaffarabadi
- Mehsana
4. Feed and Nutrition Plan
Healthy animals produce more milk. Include green fodder, dry fodder, mineral mixture, and clean drinking water in their diet.
5. Milking and Storage
Use manual or automatic milking machines. Store milk in stainless steel containers or bulk milk coolers.
6. Marketing Strategy
Supply to:
- Local households
- Dairy cooperatives (Amul, Mother Dairy)
- Hotels and restaurants
- Sweet shops
7. Financial Planning
Initial investment can vary between ₹5 lakhs to ₹30 lakhs depending on the scale. Include cost of:
- Animals
- Shed construction
- Feed for 6 months
- Equipment and tools
- Labour
Dairy Farming Loan in India
Several banks and financial institutions provide loans for dairy farming under the Dairy Entrepreneurship Development Scheme (DEDS) and other agribusiness schemes.
Key Features of Dairy Farming Loan:
- Loan Amount: Up to ₹20 lakhs or more depending on project size
- Interest Rates: Generally 9-12% annually
- Repayment Period: 3 to 7 years with 1-year moratorium
- Collateral: Required for loans above ₹1 lakh (may vary by bank)
- Subsidy: NABARD provides up to 33% subsidy for SC/ST and 25% for others
Popular Banks Providing Dairy Farming Loans:
- SBI Dairy Plus Scheme
- Bank of Baroda Dairy Loan
- Punjab National Bank Dairy Farming Scheme
- Cooperative Banks
- Regional Rural Banks (RRBs)
Government Loan for Dairy Farming
The government of India has launched several schemes for financial aid to dairy farmers.
1. Dairy Entrepreneurship Development Scheme (DEDS)
Launched by NABARD, this scheme offers subsidies and loans for:
- Purchase of dairy animals
- Construction of dairy shed
- Chilling units, milking machines, bulk milk coolers
2. PM Kusum Yojana for Solar Pumps
Helps reduce electricity costs in dairy farms.
3. Animal Husbandry Infrastructure Development Fund (AHIDF)
Targeted for medium and large dairy enterprises for infrastructure building.
Dairy Farming Training by Government
Before starting, it’s highly recommended to undergo proper training to understand the technical and business aspects.
Where Can You Get Government Dairy Farming Training?
- Krishi Vigyan Kendras (KVKs) – Free or low-cost short-term training.
- NDDB (National Dairy Development Board) – Offers specialized courses.
- State Animal Husbandry Departments
- Veterinary Colleges – Many conduct certified training programs.
- RSETIs (Rural Self Employment Training Institutes) – Supported by banks.
Training Topics Covered:
- Breed selection
- Milking techniques
- Feed management
- Disease prevention
- Business planning
- Marketing techniques
Is Dairy Farming Profitable in India?
Yes, dairy farming is profitable when done with planning and consistency. Here’s an example:
Mini Dairy Farming Profit Example (10 cows)
| Expense | Monthly Cost |
|---|---|
| Feed & Fodder | ₹40,000 |
| Labour | ₹10,000 |
| Medicine & Misc. | ₹5,000 |
| Total Expenses | ₹55,000 |
| Income | Amount |
|---|---|
| Milk (10 cows × 10L × ₹35) | ₹1,05,000 |
| Net Profit (approx.) | ₹50,000 |
These numbers may vary based on location, breed, and management.
Challenges in Dairy Farming
- Disease outbreak (Mastitis, FMD)
- Fluctuating milk prices
- Labour issues
- Feed price inflation
- Lack of cold storage
Solutions:
- Regular vaccination
- Insurance for cattle
- Use of milking machines
- Creating contract-based customer networks
How to Get Started with Dairy Farming: A Quick Checklist
✅ Do market research
✅ Get basic training from government centers
✅ Prepare a business plan
✅ Apply for loan and subsidy
✅ Set up infrastructure
✅ Buy healthy cattle from reputed farms
✅ Start small and scale gradually
✅ Maintain hygiene and regular veterinary checks
✅ Record all expenses and income for better planning
Conclusion
Dairy farming in India is a golden opportunity for rural and semi-urban entrepreneurs. With government support in the form of training and loans, starting and scaling a dairy business has never been easier. The key lies in planning well, choosing the right breed, ensuring animal health, and adopting modern farming techniques.
Whether you’re planning a small dairy farm or aiming to become a dairy entrepreneur, this guide gives you the complete roadmap to success. With the right strategy and consistency, you can turn dairy farming into a sustainable, profitable business.
Publised By : Aakashdeep Times