Dairy Entrepreneurship Development Scheme (DEDS)

About

The Dairy Entrepreneurship Development Scheme (DEDS) is a government initiative introduced by the Department of Animal Husbandry and Dairying (DAHD) under the Ministry of Fisheries, Animal Husbandry & Dairying. It was launched to promote dairy farming, create self-employment opportunities, and improve the quality of milk production across India.

Origin

The Dairy Entrepreneurship Development Scheme (DEDS) was launched in September 2010 by the Department of Animal Husbandry, Dairying and Fisheries, with the aim to promote entrepreneurship in the dairy sector by providing financial assistance for establishing modern dairy farms and processing units; it is implemented in partnership with the National Bank for Agriculture and Rural Development (NABARD). 

Objectives of DEDS

• Promotion of Dairy Farming:
  • Encourage setting up of modern dairy farms for milk production.
• Self-Employment:
  • Generate employment opportunities in rural and semi-urban areas through dairy entrepreneurship.
• Breed Improvement:
  • Improve the quality of indigenous breeds and enhance milk yield.
• Infrastructure Development:
  • Promote the development of cold storage, chilling units, and dairy processing units for better milk preservation.
• Value-Addition:
  • Encourage the production of milk-based products like paneer, butter, and cheese.

Eligibility Criteria

1. Beneficiaries:
   • Farmers, individual entrepreneurs, NGOs, companies, and self-help groups (SHGs).
   • Dairy co-operatives and producer companies are also eligible.
2. Location:
   • Applicable to both rural and urban areas in India.
3. Credit History:
   • The applicant should not be a loan defaulter from any financial institution.

Components of DEDS

The scheme covers various components related to dairy entrepreneurship:

1. Establishment of Small Dairy Units:
   • Setting up units of 2-10 cows or buffaloes.
2. Raising Heifers (Young Female Cattle):
   • Financial assistance for rearing heifers for future dairy production.
3. Milk Processing Units:
   • Small-scale processing units for pasteurization, chilling, or packaging milk.
4. Chilling Infrastructure:
   • Support for installing cold storage and chilling facilities.
5. Vermicompost Units:
   • Assistance for producing vermicompost using dung to promote organic farming.
6. Biogas Plants:
   • Funding for setting up biogas units for energy generation from cow dung.
7. Milking Machines & Equipment:
   • Support for purchasing modern milking machines and equipment.

Pattern of Assistance

• Subsidy:
  • The scheme provides a subsidy of 25% of the project cost for general categories and 33.33% for SC/ST beneficiaries.
• Maximum Subsidy Limits:
  • For a 10-animal dairy unit: Up to ₹1.5 lakh for general categories and ₹2.0 lakh for SC/ST categories.
  • For other components like vermicompost units, milk processing units, etc., the subsidy varies based on the nature of the project.

Loan and Financing

• Beneficiaries must apply for loans through banks approved by NABARD (National Bank for Agriculture and Rural Development).
• The loan is disbursed in stages after project approval and physical verification.
• NABARD releases the subsidy amount directly to the financing bank, which adjusts it against the loan balance.

How to Apply

1. Preparation of a Detailed Project Report (DPR):
   • The applicant should prepare a DPR detailing the project, estimated costs, expected returns, and repayment plans.
2. Loan Application:
   • Submit the DPR along with a loan application form to a bank participating in the scheme.
3. Verification and Approval:
   • The bank and NABARD will verify the project and sanction the loan if the application meets all eligibility criteria.
4. Disbursement of Funds:
   • The loan amount is disbursed in stages, with the subsidy credited directly to the bank account.

Benefits of DEDS

1. Employment Generation:
   • Provides livelihood opportunities for rural communities, especially women.
2. Breed Improvement:
   • Helps in the genetic improvement of cattle through better rearing practices.
3. Increased Milk Production:
   • Contributes to higher milk yields and better quality through scientific dairy management.
4. Waste Utilization:
   • Promotes the sustainable use of waste through vermicomposting and biogas plants.
5. Dairy Infrastructure Development:
   • Strengthens the dairy value chain by improving processing, packaging, and storage facilities.

Challenges Faced by DEDS Beneficiaries

1. Awareness:
   • Lack of awareness about the scheme among rural communities.
2. Loan Delays:
   • Procedural delays in loan approval and subsidy disbursement.
3. Market Accessibility:
   • Limited access to markets for small dairy farmers to sell milk and value-added products.
4. Input Costs:
   • Rising feed and healthcare costs for dairy animals.

Measures to Improve DEDS Implementation

1. Awareness Campaigns:
   • Conduct village-level workshops and awareness campaigns.
2. Simplified Loan Processes:
   • Streamline loan approval and subsidy disbursement procedures.
3. Training Programs:
   • Provide training on scientific dairy management, breed improvement, and financial literacy.
4. Market Linkages:
   • Facilitate partnerships with dairy cooperatives and private milk companies to ensure assured markets for milk.

Impact of DEDS

• The Dairy Entrepreneurship Development Scheme has significantly contributed to enhancing milk production, reducing unemployment, and improving rural livelihoods.
• Many beneficiaries have reported an increase in income and better quality of life due to access to modern dairy infrastructure and practices.

Conclusion

The Dairy Entrepreneurship Development Scheme (DEDS) is a transformative initiative that has empowered dairy farmers, especially women and small-scale entrepreneurs, across India. By promoting modern dairy practices and providing financial support, the scheme continues to play a crucial role in strengthening the dairy sector and boosting rural development.