Dairy Entrepreneurship Development Scheme (DDES)

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The Dairy Entrepreneurship Development Scheme is one of the many schemes that have been initiated by the government of India to boost rural development and entrepreneurship.

The Dairy Entrepreneurship Development Scheme has been initiated in association with the National Bank for Agriculture and Rural Development (NABARD) and the Department of Animal Husbandry, Dairying and Fisheries (DAHD&F), Government launched the ‘Venture Capital Scheme for Dairy and Poultry.’ The name of this scheme was changed from Venture Capital Scheme for Dairy and Poultry to Dairy Entrepreneurship Development Scheme in 2010.

The main objective of this scheme is to provide small dairy farmers and farms with financial and infrastructural support.

Objectives of the Dairy Entrepreneurship Development Scheme

Here are some of the objectives of the DEDS:

To boost the growth of the dairy sector through self-employment and infrastructural development.
To promote heifer calf rearing, which would in turn result in development and conservation of good breeding stock.
To help promote the growth of the unorganised dairy industry, which would help develop milk and dairy processing at the grassroots level.
To encourage value addition and aggregation of milk by way of production and processing of various dairy products.
To help dairy farmers adopt new technologies and infrastructure to maximise efficiency.

What is the Assistance Pattern in DEDS?

The following is the pattern of assistance offered under DEDS:

Entrepreneur contribution for loan exceeding ₹ 1.6 Lakhs	Minimum 10% of the total outlay
Bank-ended DEDS subsidy	General category - ₹25% of the total cost of the project Farmers under SC or ST category - 33.33% of the total cost of the project
Bank loan	Balance amount (at least 40% of the total project cost). *The loan amount can change with changes in RBI guidelines

What Is the Rate of Interest and Repayment Tenure Under Dairy Entrepreneurship Development Scheme

1. Rate of Interest

The interest is levied in accordance with the bank’s and RBI’s policies. Banks have the option to charge interest on the full loan amount till the subsidy is credited. This interest rate will be levied starting from the date of receipt of the subsidy.

2. Repayment Tenure

The repayment tenure under this scheme generally ranges from 3 years to 7 years. This can, however, depend upon the type of activity that the borrower is engaged in as well the cash flow. With some activities affording the borrower more flexible repayment tenures. Dairy farmers will also be offered a grace period of 3 to 6 months. Borrowers who are owners of calf rearing units are eligible for an additional grace period of up to 3 years. It is worth noting that this grace period applicability is entirely dependent on the lender’s discretion.

What are the Activities Covered under the Scheme?

Here are some activities that are covered under DEDS:

Milk production enhancement
Milk procurement
Milk preservation
Transportation of milk
Processing of milk
Marketing

What is the Eligibility Criteria for DEDS

Here the entities that are eligible under DEDS:

Farmers
Both organised and unorganised entities engaged in dairy farming

Dairy cooperatives
Panchayati Raj institutions
Self-help groups
Milk unions

Here are some eligibility parameters under DEDS:

More than one member in a family can apply for this scheme. However, they must establish two different units at different locations and with different infrastructure. These units must be at least 500 metres away from each other.
Eligible beneficiaries can apply once under each DEDS’ component.
Projects that fall under the cluster mode will be given priority. Cluster mode covers priority groups such as dairy farmers, producer groups, women SHGs and cooperatives.
DEDS also offers priority to weaker and historically disadvantaged groups such as:

Women
People belonging to historically disadvantaged communities like SCs and STs
Farmers who are below the poverty line and marginal farmers
Farmers living in drought-prone areas
Landless farmers

Important Documents Required for Dairy Entrepreneurship Development Scheme Application

Here are some documents that you’d need to submit while applying for DEDS:

An affidavit that serves as a proof that you’re

unemployed
a non-defaulter at any financial institution

3 recent passport-size photographs of the applicant
A photocopy of applicable driving licence in case the unit is a refrigerated vehicle
Documents pertaining to the land to be mortgaged in case the loan amount exceeds ₹1 Lakh
A copy of your ration card
A copy of your caste certificate
Relevant degree certificates if the applicant is a veterinarian

What Are the Components and Patterns of Assistance Under DEDS?

Here’s the components of DEDS and patterns of assistance that are available under DEDS:

Type of Components	Assistance Pattern	Unit Cost
Development of small scale dairy farms with graded buffaloes, crossbred cows or indigenous milch cows such as Sahiwal and Gir	Up to 33.33% of the total cost for SC and ST farmers; up to 25% of the total project cost for general categories as back-ended subsidy. Subsidies are subject to a restriction on a pro-rata basis for up to 10 animals, with a maximum of ₹17,500 per animal for general category farmers or ₹23,300 for SC and ST farmers, whichever is lower. Beneficiaries of DEDS can choose to purchase animals at higher prices. However, the subsidy is limited to these monetary restrictions.	₹7 Lakhs for 10 animals; units should have a minimum of 2 animals and a maximum of 10 animals.
Vermicompost with milch animals (to be considered with milch animals and not as separate units)	Up to 33.33% of the total cost for SC and ST farmers; up to 25% of the total project cost for general categories as back-ended subsidy. Subsidies are limited to an upper limit of ₹6,300 for general category farmers or ₹8400 for SC and ST farmers. The subsidy amount will be equal to the upper limit or the actual cost, whichever is lower.	₹25,200
Heifer calves rearing – breeding of indigenous descript milch breeds of cattle, graded buffaloes and crossbreeds	Up to 33.33% of the total cost for SC and ST farmers; up to 25% of the total project cost for general categories as back-ended subsidy. This subsidy will be limited to a pro-rata basis to a maximum of 20 calves. A maximum subsidy of ₹12,100 per calf for general category farmers or ₹16,200 for SC or ST farmers or the actual cost (whichever is lower).	₹9.70 Lakhs for 20 calves Maximum unit – 20 calves
To purchase milking machines or milk cooling units or milk testers	Up to 33.33% of the total cost for SC and ST farmers; up to 25% of the total project cost for general categories as back-ended subsidy. This subsidy is restricted to an upper limit of ₹5 Lakhs for general category farmers or ₹6.67 Lakhs for SC or ST farmers or the actual cost (whichever is lower).	₹20 Lakhs
Setting up of a dairy product transportation and cold chain	Up to 33.33% of the total cost for SC and ST farmers; up to 25% of the total project cost for general categories as back-ended subsidy. It is subject to an upper limit of ₹6 Lakhs for general category farmers and ₹8 Lakhs for SC or ST farmers or the actual cost (whichever is lower).	₹26.50 Lakhs
To purchase dairy processing equipment to manufacture indigenous milk products	Up to 33.33% of the total cost for SC and ST farmers; up to 25% of the total project cost for general categories as back-ended subsidy. This subsidy is restricted to an upper limit of ₹3.30 Lakhs for general category farmers and ₹4.40 Lakhs for SC or ST farmers or the actual cost (whichever is lower).	₹13.20 Lakhs
Establishment of cold storage facilities for milk items and milk	Up to 33.33% of the total cost for SC and ST farmers; up to 25% of the total project cost for general categories as back-ended subsidy. The subsidy is restricted to an upper limit of ₹8.25 Lakhs for general category farmers and ₹11 Lakhs for SC or ST farmers or the actual cost (whichever is lower).	₹33 Lakhs
Establishment of dairy outlet/dairy parlour	Up to 33.33% of the total cost for SC and ST farmers; up to 25% of the total project cost for general categories as back-ended subsidy. The subsidy is limited to an upper limit of ₹ 75,000 for general category farmers and ₹1,00,000 for SC or ST farmers or the actual cost (whichever is lower).	₹3 Lakhs
Establishment of private veterinary clinics	Up to 33.33% of the total cost for SC and ST farmers; up to 25% of the total project cost for general categories as back-ended subsidy. The subsidy is restricted to an upper limit of ₹65,000 for mobile clinics and ₹86,600 for SC or ST farmers or actual (whichever is lower). At the same time, ₹50,000 for stationary clinics and ₹66,600 for SC and ST farmers or the actual cost (whichever is lower).	₹2.60 Lakhs for mobile clinics, ₹2.0 Lakhs for stationary clinic

Who are the Implementing Agencies for DEDS

The nodal agency responsible for the implementation of DEDS is National Bank for Agriculture & Rural Development (NABARD).

Here are some of the financial institutions which qualify for refinancing:

Urban, rural and regional banks
Commercial banks
State Cooperative Agriculture
Rural Development Banks
State Cooperative Banks
Other eligible and vetted financial institutions

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The Dairy Venture Capital Fund Scheme was revamped to Dairy Entrepreneurship Development Scheme in 2010.

No, the DEDS is not discontinued in India.

The objective of DEDS is to help small and medium dairy farmers set up newer and more efficient dairy farms by employing technology and infrastructure.

The minimum unit cost for which you are eligible to receive a loan and a subsidy is ₹22,000 and the maximum unit cost for the same is ₹6 Lakhs.

The primary targeted beneficiaries for DEDS are small dairy farmers, landless farmers, women-led SHGs and other historically disadvantaged communities.