Government Schemes for Dairy Farming in India 2025

India is the leading milk producer in the world, and over one-fourth of the total global supply. When it comes to national contribution, milk is the largest agricultural product in India. It contributes over 5 percent to the national economy. To keep this industry flourishing government has continuously churned out new policies and schemes to help offer new incentives for the taxpayers and businesses. From promoting new businesses and entrepreneurs to offering subsidies, there are several state and central policies available in India. 

This guide will help you learn about some crucial central and state schemes and their benefits. Plus, we will look at eligibility criteria and key objectives that can help you boost your business.

Key National Government Schemes for the Dairy Farming Industry

The central government has been the backbone of several national-level schemes for the agricultural and dairy industries. Here are some popular ones you can look out for: 

Rashtriya Gokul Mission

Since 2014, the Department of Animal Husbandry and Dairying has implemented the revolutionary Rashtriya Gokul Mission (RGM). The new and improved RGS was introduced in 2025 to promote further the betterment of bovine breeds and dairy industry operations:

• It focuses on enhancing the milk production and productivity of the livestock.
• It also promotes the conservation of indigenous cattle and buffalo breeds. 
• With new changes and budget, the total allocation for this scheme has grossed over Rs. 3400 crore.
• Under this dairy farm government scheme, Gokul Grams or cattle care centers are set up to offer financial aid to local farmers and promote modern breeding practices. 

 Animal Husbandry Infrastructure Development (AHID)

This is a central scheme introduced under the Pradhan Mantri’s Atma Nirbhar Bharat Abhiyan to incentivise investments in the:

• Dairy processing and value addition infrastructure
• Meat Processing and value addition infrastructure 
• Animal Feed Plant

The budget allocated for this scheme is around Rs. 15000 crores. 

Eligibilty

• Farmer Producer Organisation
• Private Firms
• Up and Coming Entrepreneurs 
• MSMEs

Under this scheme, eligible candidates can access low-interest loans for the establishment of new units or the renovation of old structures.  

Dairy Processing and Infrastructure Development Fund (DIDF)

Under NABARD, the central government has set up this scheme with a corpus of Rs. 8,004 crore. The focus in this scheme is to modernise the milk processing plants and machinery, along with creating additional infrastructure for milk processing. 

• It provides low-interest loans to dairy farmers and cooperatives. 
• Build solid marketing networks and milk processing units. 

Components of DIDF:

• Milk processing, Chilling and Value added Products plants
• Milk Chilling infrastructure
• Electronic milk testing kit
• Cattle feed/ feed supplement plants
• Milk transportation system 
• Marketing infrastructure 
• Commodity and Cattle feed go-downs
• ICT infrastructure 
• R&D (lab & equipment, new technology, innovations, product development, etc.)
• Pet bottle/packaging material manufacturing units for dairy purposes
• Training centre

National Programme For Dairy Development

With a focus on enhancing the quality of milk and milk products, the National Programme for Dairy Development (NPDD) was launched in February 2014. It features two major components:

• Strengthening the infrastructure of milk testing and primary chilling facilities for State Cooperative Dairy Federations/ District Cooperative Milk Producers’ Union/SHGs/Milk Producer Companies/Farmer Producer Organisations.
• Increasing the sale of milk and its products by offering organised market access to farmers. 
• Dairy Plant Capacity of 1.82 Lakh litres per day has been enhanced under this scheme in the last three years. 

State-Wise Dair Farming Schemes in India

Here are some incentives and subsidies offered by the state government to promote dairy farming in the area:

How to Apply For Government Schemes for Dairy Farming in India?

Here is a quick step-by-step guide to help you apply for your eligible government scheme for dairy farming in India:

Visit the Official Website

Most process is done through online portals. The official NDDB website provides access to all major dairy farming schemes and details about the registration process.

Log In to the Portal

Log in to your account through the registered email ID and password. Keep the credential safe for future usage.

Fill The Application Form

Type in all your necessary information regarding the scheme and fill out the application form.

• Personal Information (Name and Address)
• Farm Details (Address, Size and Production)
• Scheme Details (Your reason for application and eligibility)
• Bank Details (IFSC code and account number)

Support the details with necessary documents, including Aadhar card and utility bills. 

Wait For Approval 

Once you have submitted your application, wait for the approval from the authorities. After availing the government subsidies, you can also explore dairy farm loans to cover additional expenses. 

Why Choose My Mudra For Your Dairy Farm Loans?

From purchasing the livestock to investing in new cold storage facilities, a dairy farm loan can help you do it all. My Mudra offers a variety of dairy farm loans to bring customised solutions for each business, such as NABARD Subsidised Loan and Working capital loan. Here’s why My Mudra is your go-to financing option:

• Online Application Process: My Mudra brings you a 100% online application process through our online portal. 
• Subsidised Loans: You can get access to NABARD-supported loans for reduced interest rates and added subsidies. 
• Reputed Firms: You can apply for loans from 90+ trusted banks and NBFCs while comparing loan terms for each. You can also connect with co-operative banks and rural lenders that support agricultural finances.

My Mudra makes growing easy and seamless. With trust and customer comfort at the forefront, we ensure you enjoy easy financing on your terms. 

Conclusion

Both national and state government schemes for dairy farming help build your business from the ground up. It also helps promote this powerful and essential industry to contribute further to the national economy. My Mudra Dairy Farm Loans is the key to taking your agriculture business to new heights. Apply today!