Cow Farming Subsidy of 1,20,000: Unlocking Opportunities in India’s Dairy Industry – Pashu Kissan
India is the largest producer and consumer of milk in the world, and dairy farming plays a vital role in rural development and food security. In a significant push to empower rural farmers and entrepreneurs, the Government of India offers a cow farming subsidy of ₹1,20,000 under various schemes like the National Livestock Mission (NLM) and Dairy Entrepreneurship Development Scheme (DEDS).
This comprehensive guide explores how aspiring dairy farmers can benefit from the ₹1.2 lakh subsidy, eligibility criteria, application process, and how to start a profitable dairy business using this financial support.
What is the ₹1,20,000 Cow Farming Subsidy?
The cow farming subsidy in India is a financial assistance program launched to encourage modern and scientific dairy farming practices. The subsidy aims to reduce the burden of initial investment for farmers and new entrepreneurs by covering part of the cost of buying high-yield milch cows, constructing sheds, and procuring equipment.
This dairy farm loan subsidy can go up to ₹1,20,000, depending on the number of cattle, location, and applicant category (general, SC/ST, or women entrepreneurs). It covers up to 33% of the total project cost and is disbursed through partner banks after approval.
High CPC Keyword Focus: Benefits of Cow Farming in India
Starting a dairy business with government support offers multiple benefits:
Low Initial Investment due to government subsidy
Recurring Income from milk production
Employment Generation in rural areas
Tax Benefits under agricultural income
Additional Subsidies for SC/ST and women beneficiaries
With rising demand for organic milk, A2 milk, and dairy-based products, cow farming has become a high-potential sector for investors and rural youth alike.
Government Schemes Offering Cow Farming Subsidy
Several schemes support cow farming in India, including:
1. National Livestock Mission (NLM)
This centrally sponsored scheme promotes sustainable livestock development. It offers financial assistance for:
Purchase of high-yielding cows
Construction of dairy infrastructure
Training in animal husbandry practices
Subsidy Amount: Up to ₹1.2 lakh depending on project cost and category
2. Dairy Entrepreneurship Development Scheme (DEDS) (merged with AHIDF)
This scheme by NABARD (National Bank for Agriculture and Rural Development) supports small dairy units. Although DEDS is now integrated into the Animal Husbandry Infrastructure Development Fund (AHIDF), many states still offer similar benefits.
3. State-Level Subsidies
States like Maharashtra, Gujarat, Uttar Pradesh, and Tamil Nadu have additional incentives under their state dairy development departments, offering extra financial support for shed construction, fodder units, and veterinary services.
Eligibility Criteria for the ₹1,20,000 Subsidy
To qualify for this livestock development subsidy, applicants must meet certain criteria:
Must be an Indian citizen over 18 years of age
Should have a basic understanding of dairy farming
Required to submit a bankable dairy project report
Must not be a defaulter with any bank or financial institution
Priority is given to SC/ST, women, and economically weaker sections
Some banks or states may require a minimum landholding or leased land for cattle rearing.
Step-by-Step Application Process
Step 1: Prepare a Dairy Farming Project Report
The project report should include:
Number and breed of cows to be purchased
Estimated milk yield and income
Construction and operational costs
Repayment plan for the bank loan
Step 2: Choose a Lending Bank
Approach nationalized or cooperative banks such as:
SBI
NABARD-partnered banks
Gramin banks
Step 3: Submit Application with Required Documents
Aadhaar Card & PAN Card
Land ownership or lease documents
Bank passbook & recent photo
Caste certificate (if applicable)
Project report
Step 4: Loan and Subsidy Disbursement
Once approved, the bank will release the loan in phases. After project implementation, the subsidy amount (up to ₹1,20,000) is credited to the beneficiary’s loan account, reducing the repayment burden.
Starting a Profitable Dairy Business in India
With the right approach, cow farming can generate steady monthly income. Here’s a sample profitability analysis:
Initial Cost for 2 Cows:
Cost of cows: ₹1,00,000
Shed construction: ₹50,000
Fodder & equipment: ₹30,000
Total: ₹1,80,000
Subsidy (33%): ₹60,000–₹1,20,000
Monthly Revenue (20 liters/day at ₹40/liter):
₹24,000 (gross)
Monthly Expenses:
Feed, labor, maintenance: ₹10,000–₹12,000
Net Profit: ₹12,000–₹14,000 per month
Scale this up to 10–20 cows and you can build a sustainable rural enterprise.
Common Mistakes to Avoid
Not doing a proper breed selection – Choose high-yield breeds like Gir, Sahiwal, or HF crossbred
Ignoring health and vaccination schedules
Poor fodder management – Impacts milk yield
No record keeping – Leads to inefficiency in business operations
Investing in training programs offered by Krishi Vigyan Kendras (KVKs) can help avoid such pitfalls.
Conclusion: Leverage the ₹1,20,000 Subsidy to Build a Dairy Empire
The ₹1,20,000 cow farming subsidy in India is more than just financial aid—it’s a stepping stone toward financial independence, food security, and rural empowerment. By tapping into the right government scheme for farmers, preparing a robust project plan, and following best farming practices, you can turn dairy farming into a highly profitable business.
For aspiring agripreneurs, this is the perfect time to invest in livestock farming with government support, ensuring low risk and high returns.
Meta Title: Cow Farming Subsidy in India – Get ₹1,20,000 Government Aid for Dairy Farming
Meta Description: Learn how to apply for the ₹1,20,000 cow farming subsidy under government schemes in India. Start your profitable dairy farm today with our complete guide.