Dairy Farming In Gujarat, Loans, Subsidies, Schemes

Introduction to Dairy Farming in Gujarat:

Today, let us discuss Dairy Farming in Gujarat, Loans, Subsidies, and Schemes promoted by Banks and NABARD.

A profitable dairy farming needs a complete study about Dairy farming Information and in-depth knowledge. Dairy farming can be an excellent opportunity for the self-employment of unemployed youth. It is a good source of income generation for small/marginal farmers and agricultural laborers. As we know India is one of the largest milk producers in the world, and the demand for milk and milk products is increasing rapidly. So, there is an immense scope of dairy farming in India. The increasing cost of feed ingredients and its seasonal variability can balance by undertaking fodder cultivation.

The dairy farming Business in Gujarat is one of the safe business for the following reasons:

  • The dairy farm is an eco-friendly project and does not cause environmental pollution when compared to other industries.
  • And a dairy farm doesn’t require skilled labor.
  • There will a good market for the Dairy product around the year.
  • A dairy farm doesn’t need a huge investment in inventory.
  • The dairy farms can be shifted from one place to another, if the need arises e.g. Fire, Floods, etc.
  • There is insurance coverage for dairy animals.
  • A dairy farm doesn’t need more energy. We can build a Biogas plant, which can be fed with cow dung can supply maximum energy to meet farms day to day requirements.

Limitations and Constraints of Dairy Farming in Gujarat:

  • Breeding of animals and getting expected milk yield is a biological phenomenon, which is influenced by many factors.
  • Dairy farming along with planning requires a hardworking, reliable, and alert manager. In many farms, usually, persons from the family take the responsibility.
  • Improper management of feeding heard health and poor-quality control in various stages of production can cause major loss affecting the profitability of the entire venture.

Commercial Dairy Farming in Gujarat:

Dairy Farm Business In Gujarat.
Dairy Farm Business In Gujarat.

In Gujarat, the Dairy industry is well-established at present and is taken as a model for other states of the country. The dairy sector in the state is given key importance as it is a business that helps generate the best alternative source of income and employment for poor, rural farmers. Milch animal-holders feed and nourish dairy animals with crop residuals and agriculture by-products that are available with them. And many districts of Gujarat are experiencing a shortage of fodder and feed due to negligible and inadequate irrigation facilities in those regions even today. The growth of dairy development in Gujarat was very fast due to assured market, and there are reasonably good prices for milk supplied to the dairy and easy access for all to health care services offered by the co-operative dairy sector. The State Government policy is supporting dairy industry development through the cooperative sector.

Read this: Gir Cow Milk Per Day, Gir Cow Cost, Gir Cow Facts.

Types of Cattle in Gujarat:

Gir Cattle: It is a native tract of the breed in the area around the forests of Gir including Junagadh, Bhavnagar, Rajkot, and Amreli districts of Gujarat. These cows are good milk producers. Bullocks can carry heavy loads on all kinds of soils, be it sandy, black or rocky. And it is one of the three BEST milch breeds of India.

Kankrej Cattle: A famous dual-purpose breed in Gujarat. Their name originates from the name of Kankrej Taluka in North Gujarat. This breed is mainly found in s southern part of the Rann of Kachchh, from the Southwest corner of Banaskantha District, Kankrej Taluka, Ahmedabad, and from Disa to Radhanpur. This breed is used for agricultural operations and road transport in village area are mainly carried out by bullocks of this breed. It is one of the BEST dual-purpose breeds of India.

Dangi Cattle: it is well-known for its excellent working qualities in heavy rain and in rice fields and also on the hilly tracks.

Factors that influence Dairy Farming in Gujarat:

It is very difficult for any industry to achieve the peak of development and production because they have to encounter many problems before reaching there. These problems depend on two factors: (1) Natural factors and (2) Psychological factors. The problems created by psychological factors could be as under:

  • Shortage of Milch Animals of Better Breed:

Every farmer of Gujarat keeps milch animals for milk production for their own use. But both, male and female animals are of inferior breed quality. However, at present in the research laboratory of dairy industries, artificially cultured cells are produced from high-quality males, but, most of the farmers of orthodox ideology are not ready to accept these new-cultured seeds.

  • Lack of Protein and Fat Reach Food:

The Majority of the farmers of Gujarat live below the poverty line. Because of this, farmers are not getting enough quantity of protein-reach food for their own family consumption, the female animals before and after delivery do not get ample protein and fat reach food which results in to decrease in the production of milk and fat in the milk. Ultimately, farmers are at a loss.

  • Scarcity of Green Fodder:

Green fodder is the main food of animals. But, due to the scarcity of water, shortage of irrigation resources, high prices of good quality seeds in Gujarat, the green fodder is not being grown in ample quantity for the animals. As a result, during the summer and winter animals have to depend only on dry fodder. Consequently, a decrease in per-animal milk productivity leads to a decrease in total milk production of entire Gujarat. Hence, people have to face an increase in milk and milk product prices.

  • Absence of Sheds for Milch Animals:

Clean and convenient sheds give mental peace to the animals. Also, sheds protect against heat, cold, and rain. This has a direct effect on the productivity and quality of the milk. This profession has developed in rural areas where people don’t have enough capital to construct permanent sheds because of which milch and pregnant animals are badly affected during summer. Due to excess heat, the fat in the milk decreases hence farmers get low prices of the milk. Also, because of these milch animals being kept in open, during monsoon, they become victims of different diseases from poisonous insects and mosquito bites.

  • Shortage of Veterinary Facilities in Rural Area:

There is a shortage of veterinary doctors in Gujarat from the beginning. Hence, the veterinary services could not be made available to every smallest village possible. As a result, instances like non-availability of artificial insemination treatment after reproduction period, not getting timely protection against diseases, absence of service of the doctor at the time of delivery resulting in the death of females or kid have increased.

  • Poor Animal Keepers:

It is everybody’s dream to set up and develops a business. But, capital, the driving force for it disappoints farmers. In the absence of necessary capital, animal keepers could not develop in the areas like enough nutritious food, veterinary treatment, shed facilities for animals, and milk preservation. The direct effect of this is seen on the dairy industry.

  • Absence of Scientific Point of View:

Even though Gujarat has become a powerful state of India, the illiterate people of Gujarat are not free from traditional ideology. Those engaged in the animal husbandry profession have the following beliefs: (1) White items should not be sold (2) Animals should not be given cattle feed (3) Fat reach ghee and oil could not be given to animals (4) Animals should not be given drinking water frequently. Because of these kinds of beliefs, proper care of animals could not be taken so its milk production capability reduces.

Read this: Dairy Farming Courses, Fees In India.

Steps to Promote Dairy Business in Gujarat:

Promoting Dairy Business In Gujarat.
Promoting Dairy Business In Gujarat.
  • Develop Animal Breeding Centers:

There are big numbers of milch animals in Gujarat, but some are of inferior quality. Therefore, cells should be developed that could increase milk production and productivity from new cultured and well-developed elite bulls/male buffaloes. However, it is possible that because of rural people having a traditional mindset they do not readily use artificially cultured cells for females. For that, respective rural milk producer societies should develop and maintain better quality bulls and male buffaloes in their society itself. Additionally, the district union should make provision of a particular amount for primary societies and arrange camps at regular intervals.

  • Develop Loan Schemes for Animal Husbandry Profession:

Though, animal husbandry being a major and important profession in Gujarat, the absence of better loan facilities has been noticed. The specific type of capital is required for increasing numbers of educated unemployed adopt and expand this profession. Because, additional capital is required for permanent sheds with fans, managers, a peaceful music system, low light, lighting facilities, and stock of fodder supply before residing animals. These are the type of tools by which milk productivity could be significantly increased. But the shortage of capital calls for the destruction of the business. If district industry centers expand such loans and government provides certain subsidies, then the shortage of capital could be obviated. In addition, district milk producer unions or primary milk societies should provide loans to their members from their accumulated profits.

  • Arrangement of Nutritious Food:

Nutritious food is the most important issue of animals for milk productivity and quality, but as observed earlier poor farmers could not buy nutritious food. Therefore, milk producer societies should develop the facilities of wholesale purchase of nutritious food vital for animals and provide it to needy customers at a reasonable price. For this, cottonseed oil, soya bean oil, vegetable ghee, jaggery, cotton cake, groundnut oil, a mixture of other grains, mineral powder, calcium, etc. could be provided to farmers, according to their need and then not to accept payment in cash but should be deducted from the bill of the milk. Thus, farmers will not feel the direct burden and the animals will get supplementary food also.

  • Training for Animal Care to Animal Keepers:

Even all arrangements for animals are available, but the absence of due care and maintenance also affects the production of milk. Training to farmers on an annual or semi-annual basis at the village, Taluka, or district levels should be arranged regularly. Intensive training on when to give water to animals, when and how much food to be given, what kind of sheds to be developed, what care to give young animals for rapid growth, what qualification to keep so that the reproductive period of the animals do not extend, how to know the exact reproduction period of animals, etc. could provide a major boost to the development of the dairy industry.

  • Arrange Infertility Prevention Camps:

A reason for some fears is also that sometimes milch cow/buffalo purchased at a very high price is not capable of reimpregnation for a long time after the first delivery. Hence, animal keepers become very disappointed and are not prepared to buy more animals. Therefore, to resolve this problem, these animals should be made capable of impregnation by arranging infertility prevention camps.

(6) Create Competitive Atmosphere Amongst Milk Producers:

For the development of any industry or profession, competition serves the need for a tonic. For animal keepers increasingly educate and take interest in this profession, at district and village levels higher milk producers should be honored and awarded a prize in public so that it could be a goal for other milk producers. Because of this arrangement, farmers would become aware and for more progress would be prepared for the competition.

Read this: Organic Dairy Farming.

Loans for Dairy Farming in Gujarat:                                

SBI is offering two bank loan schemes for Dairy related agricultural projects. The first one is -SBI Scheme For Dairy Societies- which provides finance for creating infrastructure like Construction of Milkhouse or Society office, Purchase of Automatic milk collection system, transport vehicles, Bulk chilling unit; and the second one is SBI Dairy Plus Agriculture loan scheme that provides finance for milk-producing societies recognized private milk dairies posting profits in the past two years.

SBI DAIRY PLUS AGRICULTURE LOAN SCHEME: gives loans from 50000 to 5 Lakhs.

SBI DAIRY SCHEME FOR Dairy Societies: LIMIT OF LOAN FOR DAIRY SOCIETIES: Milkhouse or society office Rs. 2 lakh, Automatic milk collection system Rs. 1 lakh, Milk transportation Rs. 3 lakh, Chilling Unit Rs. 4 lakhs.

Subsidies for Dairy Farming by Gujarat Government: 

Scheme for subsidy on interest for starting a Commercial Dairy Farm with 1 to 20 milch animals.

  • Dairy farming is an important source of constant subsidiary income. The small and poor farmers can purchase 1 to 20 animals as per their need and capacity to maintain. If any bank recognized by the Indian Reserve Bank sanction a loan for any dairy animal cow & buffalo, the beneficiary can get an interest subsidy @ 12 % interest on the bank loan amount (as per-unit cost of NABARD guidelines). It also provides good quality organic manure for improvement. Crop fertility & crop yields. Dung is also used as fuel for domestic purposes. The surplus fodder of agricultural by-products is utilized by animals & converted into value-add products viz. Milk, Meat, etc.

NABARD Dairy Farming Subsidy Schemes

Dairy Farming Schemes In Gujarat.
Dairy Farming Schemes In Gujarat.

The following is the details of assistance provided under the NABARD subsidy for the Dairy Farming scheme in Gujarat:

Type1:For establishment of small dairy units with crossbred cows/ indigenous descript milch cows like Sahiwal, Red Sindhi, Gir, Rathi, etc / graded buffaloes up to 10 to 15 animals.

  • Investment: the investment will be Rs 5.00 lakh for 10 animal units – the minimum unit size is 2 animals with an upper limit of 10 animals.
  • Subsidy: 25% of the investment (33 .33 % for SC / ST farmers,).The Subsidy shall be restricted depending on the unit size.

Type2: Rearing of heifer calves – cross bred, indigenous descript milch breeds of cattle and of graded buffaloes – up to 20 calves.

  • Investment: Rs 4.80 lakh for 20 calf units – the minimum unit size of 5 calves with an upper limit of 20 calves.
  • Subsidy: 25% of the investment (33.33 % for SC / ST farmers. The Subsidy shall be restricted depending on the unit size.

Type3: Vericompost (with the milch animal unit. To be considered with milch animals and not separately).

  • Investment: Rs. 20,000/-
  • Subsidy: 25% of the investment  (33.33 % for SC / ST farmers).

Type4: Purchase of milking machines /milk testers/bulk milk cooling units (up to 2000 lit capacity).

  • Investment: Rs 18 lakh.
  • Subsidy: 25% of the investment (33.33 % for SC / ST farmers).

Type5: Purchase of dairy processing equipment for the manufacture of indigenous milk products.

  • Investment: Rs 12 lakh.
  • Subsidy: 25% of the investment (33.33 % for SC / ST farmers).

Type6: Establishment of dairy product transportation facilities and cold chain.

  • Investment: Rs 24 lakh.
  • Subsidy: 25% of the investment (33.33 % for SC / ST farmers).

Type7: Cold storage facilities for milk and milk products.

  • Investment: Rs 30 lakh.
  • Subsidy: 25% of the investment (33.33 % for SC / ST farmers) .

Type8: Dairy marketing outlet / Dairy parlour.

  • Investment: Rs 56,000/-
  • Subsidy: 25% of the investment (33.33 % for SC / ST farmers) .

Conclusion of Dairy Farming In Gujarat

Despite scarcity of water in Gujarat, the development of the dairy industry as compared to other states of India is better. Moreover, the Amul dairy, renowned in Asia is from Gujarat. Animal keepers of Gujarat are illiterate, poor, and inexperienced; however, they are very deeply involved in this profession, though this occupation has some problems if intense efforts are made to eliminate these problems, the farmer of Gujarat could become prosperous and self-esteemed and could accomplish respectful position in the whole world. At present, still, the dairy industry is entirely owned by the cooperative sector. If any private sector enters into competition against this, a competitive atmosphere would be created and reduced production cost of dairy products could create a boom in the demand for these products. On the other hand, the milk producer of Gujarat could get better benefits from the competition, which is like an engine for the development of the industry.

In case if you are interested in this: Quail Farming Business Plan.


  1. Hi i am MBA & working in Largest power plant corporate office in Ahmedabad. But, I really very interested in Dairy Farming.
    This is very useful information for me.

  2. Hello Sir,

    I want to start a dairy farm with gir cow and i need consultancy services for the same , can you please suggest me the best consultancy provider who is good at this.

  3. I have 2 acres of agricultural land in Kheralu taluka of Mehsana district of Gujarat state and if I want to bring 20 cows and build stables, please inform me to get subsidy and loan for it.

  4. Sir kindly guide me that govt provide any land for setting such dairy farms in Gujarat,if so guide me regarding availibility of land or authority to whom we contact


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