Keywords: dairy entrepreneurship development scheme, DEDS scheme NABARD, DEDS subsidy rates, dairy unit subsidy India, NABARD DEDS loan, dairy farm subsidy 2026, DEDS eligibility, DEDS apply process, back-ended subsidy dairy, DEDS milch animals subsidy, DEDS milk chilling plant, government dairy entrepreneurship scheme, alternatives to DEDS 2026, NPDD dairy development.
Introduction to Dairy Entrepreneurship Development Scheme (DEDS)
The Dairy Entrepreneurship Development Scheme (DEDS) was a key initiative launched in 2010 by the Ministry of Animal Husbandry, Dairying and Fisheries (now Ministry of Fisheries, Animal Husbandry and Dairying) and implemented through NABARD. The scheme aimed to generate self-employment opportunities in the dairy sector by providing capital subsidies for setting up small dairy units, milk chilling plants, processing units, and other infrastructure. NABARD Agriculture Loan Scheme 2026: Secure Low-Interest Crop Loans at 4% Effective Rate
DEDS promoted dairy as a profitable venture, focusing on milk production enhancement, procurement, and processing. It offered back-ended capital subsidy of 25% for general category and 33.33% for SC/ST farmers. The scheme covered components like milch animal purchase, sheds, equipment, and value-added products. NABARD refinanced banks for loans, with subsidy adjusted after loan disbursement. PMKSY 2026: Subsidies Up to 90% & Transform Your Farm with Pradhan Mantri Krishi Sinchai Yojana
However, the scheme was discontinued from the financial year 2020-21 onwards, as per Government of India directives and NABARD notifications. No new applications are accepted under DEDS in 2026. Benefits are now available through successor schemes like National Programme for Dairy Development (NPDD), Animal Husbandry Infrastructure Development Fund (AHIDF), and National Livestock Mission (NLM). These provide similar or enhanced support for dairy entrepreneurship, with higher limits and interest subvention.
Despite discontinuation, understanding DEDS is useful as legacy beneficiaries continue to benefit, and current schemes draw from its framework.
Why Choose Dairy Entrepreneurship Schemes Like DEDS?
DEDS-style schemes make dairy farming accessible with low own capital. Subsidies reduce project costs significantly. Dairy offers steady income from milk sales, with demand high in India. Loans cover animals, sheds, and equipment. In 2026, alternatives like AHIDF offer 3% interest subvention for 8 years.
The approach suits rural youth, women, and SC/ST entrepreneurs. It creates jobs and boosts rural economy. Modern units with subsidies improve productivity and quality.
Benefits of DEDS and Similar Schemes
Capital subsidy eases burden. Bank loans with refinance. Training and market linkages.
Key Advantages Table
| Advantage | Description |
|---|---|
| Capital Subsidy | 25% general, 33.33% SC/ST (back-ended). |
| Low Own Contribution | Bank finances 75-80%. |
| Multiple Components | Milch animals, chilling, processing. |
| Employment Generation | Self-employment in dairy. |
| Current Alternatives | AHIDF, NPDD offer higher support. |
Key Features of DEDS Scheme (Historical)
DEDS provided back-ended subsidy on bank loans for eligible projects.
Components and Subsidy Rates
Subsidy on project cost, capped per unit.
DEDS Subsidy Details Table
| Component | Project Cost Ceiling | Subsidy % General | Subsidy % SC/ST | Max Subsidy |
|---|---|---|---|---|
| Milch Animals (10-50) | Varies by unit | 25% | 33.33% | Up to Rs. 6,300-8,400 per unit |
| Milk Chilling Plant | Up to Rs. 25 lakh | 25% | 33.33% | Capped |
| Milk Processing Plant | Higher limits | 25% | 33.33% | As per unit |
| Dairy Farm Setup | Varies | 25% | 33.33% | Project-based |
Subsidy back-ended: Adjusted against loan after verification.
Loan and Repayment
Bank loan for remaining cost. Repayment 3-7 years. Interest bank-determined.
Eligibility for DEDS (and Similar Schemes)
Individual farmers, groups, cooperatives.
Eligibility Criteria
- Indian citizen, farmer/entrepreneur.
- Land/place for unit.
- SC/ST priority for higher subsidy.
- No prior default.
- For current schemes: MSMEs, cooperatives eligible.
Interest Rates and Charges
Bank rates 8-12%. No separate fee for subsidy.
Interest Rate Table
| Loan Type | Rate Range |
|---|---|
| Bank Loan | 8-12% |
| AHIDF Alternative | 3% subvention |
How to Apply for Similar Dairy Schemes in 2026
Since DEDS discontinued, apply under NPDD/AHIDF.
Application Process
- Prepare project report.
- Approach bank for loan.
- Bank applies to NABARD for refinance/subsidy.
- For AHIDF: Online portal, bank sanction.
- Subsidy after unit setup and verification.
Required Documents
Standard for dairy loans.
Documents Checklist Table
| Document | Purpose |
|---|---|
| Aadhaar/PAN | ID Proof |
| Land/Place Proof | Unit Location |
| Project Report | Cost and Plan |
| Caste Certificate | SC/ST Subsidy |
| Bank Details | Loan Account |
Link with Current Schemes
DEDS replaced by NPDD (infrastructure), AHIDF (3% interest cut), NLM (50% subsidy for units).
Current Alternatives
NPDD: Quality milk, chilling. AHIDF: Processing, farms.
Participating Banks
Commercial banks, RRBs, cooperatives via NABARD.
Benefits for Entrepreneurs
Self-employment, income growth.
Challenges and Tips
Subsidy delays. Tips: Strong report, timely repayment.
Risk Management
Insurance for animals.
Costs and Earnings
Small unit Rs. 5-10 lakh. Subsidy saves 25-33%. Earnings Rs. 50,000-2 lakh/month.
Cost Breakdown Table
| Item | Cost |
|---|---|
| Animals/Shed | Rs. 3-7 lakh |
| Subsidy Save | 25-33% |
Success Stories
Many set up units under DEDS, grew to processing.
Future in 2026
Focus on AHIDF/NPDD. Digital applications.
Conclusion
DEDS inspired dairy growth. Use current schemes.
FAQ Section
What is DEDS Scheme?
Subsidy for dairy units.
Subsidy Rate?
25% general, 33.33% SC/ST.
Status in 2026?
Discontinued since 2020-21.
Alternatives?
AHIDF, NPDD, NLM.
Eligibility?
Farmers with project.
How to Apply?
Through banks.
Documents?
Aadhaar, report.
Interest?
Bank rates.
Max Subsidy?
Project-based.
Benefits?
Self-employment.
FAQ Table
| Question | Answer |
|---|---|
| Subsidy | 25-33% |
| Status | Discontinued |
| Alternatives | AHIDF/NPDD |
| Eligibility | Farmers |
| Apply | Banks |
| Documents | Aadhaar |
| Rate | 8-12% |
| Max | Capped |
| Benefits | Income |
| Current | NPDD |