Loans and Subsidies for Buffalo Dairy Farming in India

Buffalo Dairy Farm Loans and Subsidies: These days Buffalo Dairy Farming has huge popularity. This is because of the profits that it provides to the farmers. Also, unending demand for milk and its products is another reason. Apart from this, there is a continuous rise in population in India. As there is a rise in population, there is also rise in demand for Buffalo Milk. In our previous post, we have given information on the Buffalo Dairy Farm Profits. Now, we are going to let you know about the Buffalo Dairy Farming Subsidies and Loans.

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In India, many farmers are unaware of the various subsidies for Buffalo Dairy Farm. Hence we have come up with this piece of information, which will let you know about the NABARD Subsidy for Dairy Farming in India. We will also give information on Buffalo Dairy Farm Loans from SBI. Hence all you need to do is to read the information below. We have also provided information on how to apply for Buffalo Dary Farm Loan. So without wasting much of your time, you can check the information below.

Buffalo Dairy Farm Loans and Subsidies

Here we are going to explain about the Buffalo Dairy Farm Subsidies from NABARD. Other than that, you can check the SBI Loan for Dairy Farm in India. Now let us first see about the NABARD Subsidy for Dairy Farming in India.


Under Assocham report, the production of milk in India is increasing in the recent years. Furthermore, the annual turnover of the milk industries in India is around Rs.5 lakh crores. Hence in an effort to further increase the dairy farmers income, NABARD has come up with Dairy farming subsidy scheme.

Buffalo Dairy Farm Loans

Eligible Criteria to Avail NABARD Subsidy
  • The following are the eligibility criteria for the individual or any group of individuals to avail it.
  • Farmers or Individual startup entrepreneurs.
  • NGOs.
  • Village women unions.
  • In addition, Organized or any unorganized sector groups.
  • Self Help Groups(SHGs), regional milk unions
Schemes under NABARD Dairy Farming Subsidy:
TypeDescriptionInvestment in Rupees Subsidy provided
Type 1Establishmnet of Buffalo dairy farm with 2 to 10 Buffaloes5 lakhsRs.25,000 (Rs.33,000 for SC/ST) for a minimum of two buffaloes
Type 2Establishmnet of Buffalo dairy farm with 20 Buffaloes4.8lakhs Rs 30,000 ( Rs 40,000 for SC/ST farmers) with a mimun of 15 to 20 animals
Type 3Establishmnet of Buffalo dairy farm with more than 20 Buffaloes18 lakhs25% of the outlay (33.33 % for SC / ST) to the dairy farm
Type 4Purchase of dairy farm equipment12 lakhsRs 3 lakh ( Rs 4 lakh for SC/ST) for the unit.
Type 5For establishment of dairy products with transportation chain to various regions24 lakhsRs 6 lakh ( Rs 8 lakh for SC/STs).
Type 6To establish dairy farm along with dairy parlours and marketing outlet56,000 per oulet or parlourRs 14,000/-( Rs 18600/- for SC/STs).

2. Dairy Plus Scheme by SBI

Under this scheme, State Bank of India (SBI) provides loans to construct dairy farm shed. You will also get a loan to purchase milch animals, milking machines and almost any types of equipment within the farm.

Eligible Criteria
  • Individual or Farmers should have age below 65 years.
  • The dairy unit should have the minimum capacity of 10 buffalos.
  • They should hold an acre of land for cultivation of fodder grass for the milking animals.
  • They should be a member of any regional milk or dairy society.
  • Most of all, they must have better knowledge skills regarding dairy farm maintenance.
  • In addition, Animals should be purchased in two batches.

NOTE: Especially animals in first and second lactation period only are eligible to avail the Dairy Plus Loan.

Amount of Laon Provided:
  • For loans up to Rs. 1 lakh, a farmer can get 100% of the loan.
  • For loans above Rs. 1 lakh, a farmer gets only 90 % of the loan. While the maximum of Rs.5 lakhs is the term loan.
  • Working capital of Rs. 2,500 is avail per animal per year for its feed, water, medicines and others.

Repayment: You can repay the loan in monthly instalments. You can do this up to 5 lactations of the animal.

How to apply for Buffalo Dairy Farm Loan From SBI: Visit the nearest SBI bank branch or consult with any SBI marketing officer of the nearest area. They will guide you on how to apply for this loan.

Conclusion on Buffalo Dairy Farm Loans:

This is the complete list of Buffalo Dairy Farm Loans and Subsidies. There are many more Buffalo Dairy Farm Subsidies that the Government is providing. You can visit the nearest KVKs to know more about them. Furthermore, we are going to let you know about Problems in Buffalo Dairy Farm. Check the below link to know more about the Dairy Farming in India.

Problems Faced in Buffalo Dairy Farm in India

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