Updated: 3 October 2026

No central scheme currently gives a capital subsidy for buying dairy cows or building a dairy shed. The old NABARD dairy subsidy (DEDS) is closed, and the National Livestock Mission does not cover dairy cattle. What a dairy farmer can use today is a Kisan Credit Card for working capital, a bank loan for the unit, the breeding support under Rashtriya Gokul Mission and subsidised insurance.

Status as of 3 October 2026, from DAHD and PIB pages. Confirm with the bank or district animal husbandry office before applying.

Scheme status at a glance

SchemeStatus on 3 Oct 2026Who can use itBenefitOfficial link
DEDS (NABARD dairy subsidy)Closed. Not on the DAHD scheme list-No subsidy to claimDAHD schemes page
National Livestock MissionRunning, but no dairy cattle componentIndividuals, FPOs, SHGs, Section 8 companies50% capital subsidy for poultry, sheep, goat, pig and fodder units; insurance subsidy for milch animalsDAHD NLM page
AHIDFPeriod closed 31 Mar 2026 per DAHD; no extension confirmedEntrepreneurs, MSMEs, FPOs, Section 8 companies, dairy cooperatives3% interest subvention on loans up to 90% for processing, feed plants, breed farmsDAHD AHIDF page
Rashtriya Gokul MissionApproved for 2026-27 (order of 7 May 2026)Farmers, mainly small and marginalFree AI, up to 50% on sex-sorted semen, 3% interest subvention on loans for high-merit IVF heifersDAHD RGM page
KCC for dairy and animal husbandryRunning; interest benefit confirmed for 2025-26Dairy farmers, joint liability groups, SHGs, tenants with a shedWorking capital; rate 7%, 4% if repaid on timeDAHD KCC page
NPDDRunning (page says continuing to 2027-28)Milk unions, producer companies, FPOs, SHGsGrants and loans for procurement and processing, not for one farmerDAHD NPDD page

DEDS: closed

  • The Dairy Entrepreneurship Development Scheme, run through NABARD, is not among the schemes DAHD lists, and it does not appear in the DAHD scheme compendium for 2021-22 (a list of 14 schemes). Reports quoting Parliament replies say it ended on 1 April 2020.
  • Treat any agent offering a "DEDS subsidy" as a warning sign and ask the bank to show the scheme order.
Want help starting or getting a loan?

Kisan Credit Card for dairy

  • Who: dairy farmers, individual or joint, joint liability groups and SHGs, including tenants who own, rent or lease a shed.
  • Limit: the scale of finance is fixed per animal by the District Level Technical Committee. It covers feed, vet aid, insurance of milch animals, labour, water and power, as a revolving cash credit.
  • Interest: PIB (28 May 2025) states loans up to ₹3 lakh at 7%, with 1.5% subvention to lenders and up to 3% prompt repayment incentive, so 4% if repaid on time. For animal husbandry or fisheries-only loans the benefit applies up to ₹2 lakh. A ₹5 lakh limit mentioned in budget talk is not in any scheme document, and the benefit for 2026-27 is not confirmed, so ask the bank.
  • Collateral: the 2021 SoP says none up to ₹1.6 lakh, and up to ₹3 lakh where a milk union pays the farmer directly into the KCC account and gives an undertaking. This may have been revised, so ask the branch.
  • Documents: ID, residence proof, 2 photographs, land record if applicable, number of milch animals with an undertaking not to dispose of them, and shed details.

Rashtriya Gokul Mission

  • Period 2021-22 to 2025-26 with a total outlay of ₹3,400 crore (PIB, 19 March 2025). DAHD lists an administrative approval for 2026-27 dated 7 May 2026.
  • Farmer benefits: up to 50% of the cost of sex-sorted semen, and 3% interest subvention on loans from milk unions or banks to buy high genetic merit IVF heifers. The 35% capital assistance is for heifer rearing centres run by implementing agencies, not for individual farmers.
  • Free AI at the doorstep under the Nationwide AI Programme is given in 605 districts where AI coverage was below 50%. No application form is published for farmers; ask the district animal husbandry office or milk union.

National Livestock Mission and AHIDF

  • NLM: entrepreneurship support is 50% capital subsidy for poultry, sheep, goat, pig and fodder units, with the applicant bringing at least 10% of the cost. Apply on nlm.udyamimitra.in. The livestock insurance component covers milch cows and buffaloes: premium 4.5% for one year, farmer pays 15%, subsidy up to 10 cattle units per household.
  • Insurance example: a cow giving 10 litres a day has a minimum value of 3,000 x 10 = ₹30,000. One-year premium 4.5% = ₹1,350; the farmer share 15% = ₹202.50.
  • AHIDF: for dairy processing, feed plants and breed multiplication farms, not for buying cows. PIB (1 February 2024): 3% interest subvention for 8 years including 2 years moratorium on loans up to 90%, and credit guarantee up to 25% from a ₹750 crore fund for MSMEs and dairy cooperatives. DAHD shows the period ending 31 March 2026 and DAHD lists no later extension. Check with DAHD or your bank whether new applications are accepted; the portal is ahidf.udyamimitra.in.

NABARD refinance and state schemes

  • The KCC SoP names NABARD as the body guiding cooperative banks and RRBs, and PIB lists NABARD among AHIDF lenders. Ask the branch which NABARD dairy unit-cost norm and refinance terms it applies.
  • State schemes differ from state to state, and no state subsidy rate is quoted here. Ask the district animal husbandry office, and use the subsidy finder.

How to apply for a dairy loan

  1. Get a quotation for animals and shed, and compare it with the setup cost for your herd size in dairy farm project cost.
  2. Collect the documents above and ask your milk union for a tie-up letter.
  3. Submit the application at any bank branch in your area, in person or online; the SoP uses a simplified IBA proforma.
  4. Check instalments with the EMI calculator, and read Kisan Credit Card for crop and dairy limits together.

Sources

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