Dairy Entrepreneurship Development Scheme (DEDS)
Dairy Entrepreneurship Development Scheme (DEDS)
Introduction
The Dairy Entrepreneurship Development Scheme (DEDS) is a Government of India agriculture scheme launched in September 2010 by the Department of Animal Husbandry, Dairying & Fisheries together with NABARD. It was created to tackle several problems in the dairy sector: many farmers lacking access to modern farms, milk being lost due to weak infrastructure, low quality due to traditional practices, and limited opportunities for value addition. What this really means is fewer jobs, lower income, and weaker rural dairy supply chains.
DEDS aims to provide benefits (like capital subsidies and loans) to eligible persons – farmers, individual entrepreneurs, Self-Help Groups (SHGs), cooperatives, milk unions, milk federations, even NGOs. The scheme supports setting up small dairy farms, rearing heifer calves, establishing milk-processing, chilling and transportation infrastructure, and improving technology. The policy needed behind it is to strengthen rural incomes, ensure cleaner milk, reduce losses, and promote entrepreneurship in villages.
Overview of the Scheme
The Dairy Entrepreneurship Development Scheme (DEDS) was launched in 2010 by the Department of Animal Husbandry, Dairying & Fisheries, Government of India. It was implemented across states through NABARD and state animal husbandry departments. The idea was to promote modern dairy farming, reduce risks in milk production, and support entrepreneurs, farmers, Self-Help Groups, and cooperatives.
Implementing agencies
- Department of Animal Husbandry, Dairying & Fisheries (Central level)
- NABARD (as the nodal agency for release of subsidy and monitoring)
- State Animal Husbandry Departments and banks (for field-level execution)
Funding pattern
- Assistance was in the form of a capital subsidy linked to institutional credit.
- The scheme provided a back-ended subsidy of 25% of project cost (33.33% for SC/ST beneficiaries).
- Funds were shared between the Central Government and NABARD for routing to banks.
Coverage / components
- Establishing small dairy farms (crossbred cows, buffaloes).
- Rearing of heifer calves.
- Setting up milk chilling, processing, and product units.
- Purchase of dairy equipment, transport, and cold chain support.
- Training and extension services for dairy farmers.
Current status
- As per NABARD, the scheme was discontinued from 2020-21. Its objectives were later taken forward under broader livestock and dairy programmes like the National Programme for Dairy Development (NPDD) run by the Department of Animal Husbandry and Dairying.
In short, DEDS was a centrally sponsored credit-linked subsidy programme that gave farmers and small entrepreneurs a start in dairying by covering part of the investment cost. For example, a farmer setting up a two-cow unit could access a bank loan and get part of the repayment covered through subsidy.
Objectives
The Dairy Entrepreneurship Development Scheme (DEDS) was designed with practical goals to strengthen India’s dairy sector and create opportunities for farmers and entrepreneurs. Its objectives can be grouped into production, infrastructure, and livelihood support.
Key objectives
- Increase milk production by helping farmers set up modern dairy units with crossbred cows and buffaloes.
- Support rearing of heifer calves to ensure a steady supply of high-yielding animals.
- Promote setting up of milk chilling, processing, and product manufacturing units to reduce wastage and improve quality.
- Encourage the purchase of essential equipment and transport facilities for better handling of milk.
- Provide training and extension services to improve skills and knowledge among dairy farmers.
- Generate employment opportunities in rural areas, especially for small farmers, Self-Help Groups, and young entrepreneurs.
- Reduce the risks in dairy farming by diversifying income sources and improving infrastructure.
In simple terms, the purpose of DEDS was to give farmers the tools, animals, and knowledge needed to run profitable dairy businesses, while also building the infrastructure to keep milk clean, fresh, and valuable.
Key Features / Benefits
The Dairy Entrepreneurship Development Scheme (DEDS) offered practical support to farmers and entrepreneurs who wanted to grow in the dairy sector. The scheme linked bank loans with government subsidies so that people could take up dairy activities without heavy financial pressure.
Main features and benefits
- Credit-linked subsidy
Assistance was provided only when a beneficiary took a bank loan, ensuring genuine investment in dairy projects. - Subsidy on project cost
General category beneficiaries received 25% subsidy on the project cost, while SC/ST farmers got 33.33% support.
(Example: If a project cost ₹4 lakh, a general farmer could get ₹1 lakh subsidy, while an SC/ST farmer could get about ₹1.33 lakh.) - Wide range of eligible activities
Benefits covered setting up small dairy units, rearing heifer calves, buying dairy equipment, and creating facilities like milk chilling and processing. - Support for value addition
Projects like manufacturing of milk products (paneer, ghee, flavored milk) were eligible, helping farmers earn more from the same milk. - Transport and cold chain assistance
Costs for milk vans and cooling facilities could also be supported, reducing losses due to spoilage. - Training and skill development
The scheme encouraged training to improve dairy management practices and animal health care. - Special support for weaker sections
Women beneficiaries, SC/ST communities, and people in North Eastern and hilly states received higher subsidy percentages, recognizing their extra challenges. - Employment generation
Every supported unit had potential to create direct and indirect jobs, especially in villages where options are limited. - Back-ended subsidy
The subsidy was released after loan repayment began, making sure the funds were used for the intended dairy purpose. - Coverage through banks
Commercial banks, cooperative banks, and regional rural banks were part of the scheme, giving beneficiaries wide access.
Eligibility Criteria
The Dairy Entrepreneurship Development Scheme (DEDS) was open to a wide range of participants in the dairy sector. The idea was to include not just individual farmers, but also organized groups and institutions.
Who could apply
- Farmers and individual entrepreneurs
Any farmer or person interested in dairy could apply. Each individual was eligible only once for each component (e.g., dairy unit, heifer rearing, milk equipment). More than one family member could apply if they set up separate units at least 500 meters apart. - Self-Help Groups (SHGs)
Registered SHGs actively linked with banks were eligible. The requirement ensured they had collective accountability and financial discipline. - Dairy cooperatives, milk unions, federations
Organized sector groups such as cooperatives and federations could access support to expand common facilities like chilling or processing units. - NGOs and companies
Registered NGOs and companies working in the dairy sector could apply, provided they met the scheme’s activity norms.
Special categories
- SC/ST beneficiaries received higher subsidy rates (33.33% instead of 25%).
- Women and weaker sections were given preference to encourage inclusive growth.
- North Eastern and hilly states were specifically supported due to their geographical challenges.
Not eligible
- The same individual or group could not claim subsidy twice for the same component.
- Units located too close together (less than 500 meters apart) under the same family were excluded.
Documents required
- Identity proof (AADHAAR, voter card, etc.).
- Land records or lease documents (to show farm location).
- Bank passbook and loan application details.
- Registration certificate (for SHGs, cooperatives, NGOs, companies).
- Project report (DPR) with cost estimates and quotations for animals/equipment.
In short, DEDS kept the eligibility broad but set clear checks like one-time benefit per component, proper distance for multiple family units, and mandatory documents to make sure the scheme reached genuine dairy farmers and groups.
Application Process
- Approach the right bank or department
Applications were routed through banks (commercial, cooperative, or regional rural banks) approved by NABARD. Beneficiaries had to visit the nearest branch where they maintained an account. No central online portal was provided for direct public application.- NABARD info page: https://www.nabard.org/content1.aspx?id=591&catid=23&mid=23
- Get the application form
The prescribed DEDS application form was available at the bank branch or through state animal husbandry departments. - Fill in beneficiary details
Information required included:- Personal details (name, address, ID proof)
- Land/farm details and location
- Selected components (dairy unit, calf rearing, processing, transport, etc.)
- Bank account information for loan and subsidy release
- Attach required documents
Commonly required papers:- AADHAAR or other ID proof
- Land/lease papers
- Bank passbook copy
- Registration certificate (for SHGs, cooperatives, NGOs, companies)
- Detailed project report (DPR) with cost estimates and equipment/animal quotations
- Submit to bank
The completed form and documents were submitted to the financing bank. - Bank appraisal and sanction
The bank appraised the project, conducted field verification if needed, and sanctioned a loan if criteria were met. - Forwarding to NABARD
After loan sanction and project setup, the bank claimed subsidy from NABARD. - Release of subsidy
Subsidy was released as a back-end component. It was adjusted against the loan after a lock-in period once the unit was verified to be running. Funds were not given upfront to the beneficiary. - Offline support
Beneficiaries could also seek help from local Animal Husbandry Department offices, Krishi Vigyan Kendras, or ATMA/block offices for form filling and DPR preparation. - Helpline
For clarifications, applicants could contact the Department of Animal Husbandry & Dairying (https://dahd.gov.in) or the nearest NABARD regional office.
Tips to avoid mistakes
- Ensure names and bank details match exactly across documents.
- Keep land or lease documents updated to avoid rejection.
- Apply for only one component per family to stay eligible.
- Submit DPR with clear cost estimates and quotations, as vague reports were often delayed.
Challenges or Limitations
Like many government programmes, the Dairy Entrepreneurship Development Scheme (DEDS) faced a few practical hurdles. These did not reduce its value but often slowed down benefits for genuine applicants.
- Challenge: Delay in subsidy release
Banks had to verify and forward claims to NABARD, which sometimes caused long waits.
What to do: Keep in regular contact with the bank manager and follow up with acknowledgment slips until the claim is processed. - Challenge: Strict documentation checks
Missing land records, incorrect Aadhaar numbers, or mismatched bank details were common mistakes.
What to do: Double-check all documents before submission. Carry originals when visiting the bank for verification. - Challenge: Limited budget availability
The scheme had an annual fund ceiling, so applications made late in the year risked rejection.
What to do: Apply early in the financial year to improve chances of approval. - Challenge: One-time benefit rule
A person or family could not claim the same component twice, which limited expansion.
What to do: Plan projects carefully and choose the most relevant component before applying. - Challenge: Distance condition for family members
If more than one family member applied, units had to be at least 500 meters apart.
What to do: Visit the site with the bank official to ensure the distance is clear and properly recorded. - Challenge: Field inspection delays
Verification teams sometimes delayed visits due to workload.
What to do: Politely remind local animal husbandry officers and keep records of communications for follow-up. - Challenge: Limited awareness in remote areas
Many farmers in rural or hilly areas were unaware of eligibility or benefits.
What to do: Seek help from Krishi Vigyan Kendras, ATMA offices, or NABARD regional offices where information is shared.
In short, most limitations of DEDS were procedural rather than policy flaws. With timely documents, early application, and patient follow-up, farmers and groups could successfully benefit from the scheme.
Government Support & Future Outlook
DEDS doesn’t operate in isolation. Over time, its goals and functions have been folded into broader dairy & livestock missions, and it interacts with complementary schemes that together help improve outcomes for farmers, FPOs, and stakeholders.
- DEDS was replaced / subsumed by the National Programme for Dairy Development (NPDD) launched by the Department of Animal Husbandry & Dairying. The objectives of DEDS now continue under NPDD’s umbrella. This is an official update.
- Through NPDD, the scheme aims for convergence with other government programmes: for example, schemes that promote animal health, breed improvement, veterinary services, cold chain infrastructure, etc. While specific mission-names (PM-KISAN, PMFBY, etc.) are not officially named in DEDS documents as being directly merged, the idea is that support from veterinary, insurance, extension and credit schemes can combine to improve dairy returns.
- Practically, this means a dairy farmer under NPDD could, for instance, get credit & subsidy for milking equipment (via what was DEDS earlier), vaccination support via animal health missions, feed/fodder assistance via state/central fodder development schemes, and insurance cover under PMFBY or animal insurance schemes. These multiple supports reduce risk and cost for the farmer.
- Future plans / updates: As per official sources, NPDD (which replaced DEDS) is active and gets budget allocation under the Ministry of Animal Husbandry & Dairying. There have been calls for expanding cold chains, processing, and value addition capacity under NPDD.
Conclusion
The Dairy Entrepreneurship Development Scheme (DEDS) has played an important role in boosting India’s dairy sector by supporting farmers, entrepreneurs, and cooperatives with financial assistance to set up viable dairy units. Its benefits are most visible among small and medium farmers, women self-help groups, and Farmer Producer Organizations (FPOs) that gain access to improved income opportunities through livestock-based activities. For anyone interested in applying, the first step is to check the latest eligibility norms and prepare the required documents through the official NABARD or Ministry of Agriculture portal, or by reaching out to the local agriculture or bank office. While the scheme has been phased out, updates on convergence with other dairy-related initiatives remain essential for farmers to maximize benefits. Always verify current guidelines and updates before making decisions.
Explore detailed resources on this scheme and the full suite of programmes at ALL ABOUT AGRICULTURE. For one-on-one assistance, call us at +91 8484002620.