Dairy Farming In Maharashtra, Loans, Subsidies, Schemes

Introduction to Dairy Farming In Maharashtra:

Today, we go through the content of Dairy Farming In Maharashtra, Loans, Subsidies, Schemes promoted by NABARD and Banks.

Dairy farming is a group of agriculture for the long-term production of milk, which is processed for the eventual sale of a dairy product. The dairy industries in various tropical countries do not produce enough milk for the countries to be self-sufficient in raw milk. Many such countries have government-supported programs to raise domestic milk production. The average herd sizes of these farms are often less than ten milking cows and the poorly resourced farmers have great difficulty providing sufficient feed for their dairy stock. Other constraints to dairy farm production include adverse weather conditions, the many livestock diseases, and the farmers’ poor understanding of the high management requirements of dairy stock. The milk yield of tropical, dairy farms can be increased by improving feeding and further management practices

The dairy farming business has been an age-old business in India passed down from generation to generation. During the late 20th century, this practice saw a decline. The contribution made by Amul in the form of the ‘White Revolution’ played the main role in transforming the dairy industry in India from its stagnation level to a world leader. Dairy farming in India is an ‘all season’ big business. Efficient management of a dairy farm is the key to achievement. In India, cow and buffalo farming are the backbone of the dairy industry.

Scope and importance of Dairy farming in Maharashtra:

Importance of Dairy Farming.
Importance of Dairy Farming.

Maharashtra has a geographical area of about 3 lakh sq km which makes it the 3rd largest state in the country. It is divided into 7 regions and 35 districts. With a population of 112.4 million people, it has the 2nd largest population amongst all states and union territories in India. Maharashtra is one of the main industrialized and urbanized states in India with 45 percent population residing in urban areas.

The state of Maharashtra has the distinction of being the initial state in the field of dairy development in the country. The dairy farm business is a traditional activity in rural areas of Maharashtra, and it is one of the leading states in terms of milk production with an annual output of 6.7 million tonnes. However, there is no uniformity in different regions in Maharashtra as far as milk production is troubled. In contrast, western parts of Maharashtra could produce 3 quarters of million liters a day. Just two districts, namely Kolhapur and Sangli produce additional milk than that of the entire eastern parts of Maharashtra known as the ‘Vidarbha region’.

The main intention of dairy farming in Maharashtra was to provide an attractive, alternative means of development to the vast majority of farmers, including large and small farmers as well as the landless. The milk farming society in Maharashtra was 450 in 1960-61 which increased to 610 in 1978-79 and in 1990 increased 31294 dairying the same year 36 co-operative milk project in the state. In 2009 total of 1012 chilling centers were started. The project of milk operation, fluid was carried out in 1971 and the 2nd phase in 1978 now 85 % of the total milk supply is made through the co-operative sector in Maharashtra. The milk production in 1975 was four lakh liters. While fifty lakh liters in 1980 were in Maharashtra. The milk production about 154 lakh liters in 2003. The milk was imported in Maharashtra until 1983 but now it is exported to other states.

The revolution in milk production is however to come because the average daily milk production is 1.25 Liter while it is 2.20 Liters in India and it is 22.0 Liters. According to food Science, the regular consumption of milk should be 280 grams/day. It is vastly dissimilar in the consumption of milk in Maharashtra. In Mumbai daily 24 lakh Liter Milk will be distributed while it is 38 lakh liters in the rest of Maharashtra.

Read this: Poultry Farming Loan and Application Process.

Advantages of Dairy farming in Maharashtra:

  • The initial investment is low in comparison to further industries.
  • Dairy Farming will help in maintaining the excellent health of people.
  • Demand for milk and milk product is rising due to an increase in per capita income.
  • Animals can be insured as a part of risk organizations.
  • Animals can be shifted to a new location in case of natural disasters such as floods and cyclones.

Commercial Dairy farming in Maharashtra:

Commercial Dairy Farming.
Commercial Dairy Farming.

Commercial Dairy farming is such an activity in which an individual can initiate a business activity, maintaining a herd size of minimum of 10 dairy animals, so as to produce milk in assured quantity throughout the year and earn an income from the dairy enterprise through the sale of milk and milk products. Commercial dairying is a non-farm activity, which offers the potential for generating extra income and employment opportunities for rural households and improving their economic status. Commercial cow – herds nearer to urban centers can show an asset for achieving the above goals. Commercialized dairy farming for producing extra milk of high quality throughout the year is the only solution for the viability of the dairy industry in the present national and international dairy scenario. The Government of India has attached special importance to the development, commercial Dairy farming.

How to start Dairy farming in Maharashtra?

The Dairy farm is dependent on the cow’s capability to live a healthy life, produce milk, and have calves that can become the next generation of the farm. Dairy farming requires thorough programs for herd health, reproduction, and calf care in addition to the nutrition and financial aspects of the farm. Functioning with your veterinarian, genetics representatives and extension agents can help you develop comprehensive farm plans to create a positive future.

The Indian central government last year launched a scheme through National Bank for Agriculture and Rural Development (NABARD) with an intention to bring structural changes in the unorganized sector of Dairy farming. It also aims to set up modern Dairy farms and provided that employment opportunities for individuals. This time government has come up with extra financial assistance.

Farmers and individuals can take benefit from this scheme. This scheme provides opportunities for entrepreneurs interested in dairy farming.

  • Decide which type of farm activity you will be established.
  • Register your company.
  • Make a detailed business plan for the dairy farm (include a bank loan demand too in the proposal and very much of your loan getting sanctioned depends upon this draft).
  • Submit your request to any bank which is suitable for refinancing from NABARD.

Read this: Government Schemes for Goat Farming.

The dairy sector in Maharashtra:

Maharashtra is one of the forerunner states, as far as dairying is disturbed. Maharashtra is the 5th largest producer of milk in the country. The establishment of the Aarey milk colony in the 1960s as well as the spread of cooperative groups in the state in the 1970s led to the establishment of dairy cooperatives in the state. Farmers have started getting a remunerative price for their milk. The milk production system, which was basically a self-contained one, is now being transformed into a commercial proposition. The crossbred technology has more augmented the viability of the dairy units by increasing the milk production per animal.

The varying scenario over the past decade also reveals the dramatic transformation in livestock production in the state, particularly in the case of milk production. During the stage between 1985 and 2000, the total milk production in the state registered a much faster growth rate as compared to that for India During 2005-06, milk production in the Maharashtra state was 67.9 lakh tonnes, (Economic Survey of Maharashtra 2005-06). The higher milk production in the state is mostly due to the increase in productivity levels of various species of animals. Further, the ready availability of modern technology to milk producers and intensive efforts of dairy cooperatives in providing that balanced cattle feed, veterinary and healthcare services, and the availability of other infrastructural facilities have also played a positive role towards this increase in milk production in the state.

Types of cattle in Maharashtra:

The Government of Maharashtra has identified Deoni, Dangi, Khullar, Gaolao, Devni, and Red Kandhari as indigenous breeds of cattle. Donor name has been resulting from Deoni Taluka of Latur district in Maharashtra.

Dairy farming requirements:

Dairy sheds construction:

The Dairy sheds must have a floor space of 10 feet by 5.5 feet per animal with a 1.5% slope towards the drain. The floor must be through of rough concrete material. The sheds must be at least ten feet high. They may be constructed by using bricks, RCC, or can be fetched. Only the western side of the shed must be walled while the other 3 sides must be left open. However, the open sides must be enclosed with a gunny cloth during winter to protect the animals from cold. There should also be a provision for sprinkling water on the animals every half an hour during the summer. This reduces heat stress to a huge extent. The eastern side of the shed is released outdoors for free-roaming space. The roaming area is enclosed with trees providing shade.

Housing management:

Good housing plays a major role in keeping the animal healthy, diseases free and productive. For proper production, you should give your animal the required space within the house. Generally, 40 square feet within the shed and 80 square foot open space is required per animal.

In small-scale production for twenty animals, you have to ensure the availability of a 3000 square feet land area. For medium-scale producers with hundred animals, 13,000 to 15,000 square foot space is required. However, ensure accessibility of all types of essential facilities in the house. Essential facilities include proper ventilation, sufficient flow of fresh and clean air, satisfactory space, etc.

Feed management:

Dairy farming provides the main source of income to farmers and dairy entrepreneurs. Traditionally Dairy farming has been an important means of generating supplemental income and service for Agriculture, farming communities, particularly those pertaining to the small and marginal categories. But in the recent past Dairy farming as a viable, profitable enterprise has become increasingly popular among the farming community, having an eye on maintaining high-yielding dairy animals and is being looked upon as a potent means of diversification in agriculture. Besides producing milk and draft power, the dairy animals are also the best source of farmyard manure, which is a good quality source of organic matter for providing soil fertile.

The crop by-products in turn are usefully utilized for feeding the animals. Though the total milk production in the country as per current estimates have crossed 102 million tones/annum mark and is 15 percent of the world milk production yet and per capita accessibility of milk is still about  232 grams per day against the minimum requirement of 284 grams per day as recommended by ICMR. The regular productivity of our animals is still close to 1050 liters per annum, which is far below the world average of above 3000 liters milk and milk production account for 9.2 and 12.4 percent of protein intake in rural and urban areas, respectively, which is higher than the protein intake by non-vegetarians through animal products. The performance of the Indian dairy sector has been relatively impressive.

Dairy equipment:

There is more equipment required for Dairy farming like milk cans, milk analyzers, dairy milking machines, portable milking machines, milk analyzer machines, cream separators, milk testing centrifuges, milk testing equipment, butter churner.

Read this: Backyard Fish Farming Guide.

Loans and Subsidies for Diary farming by Maharashtra Government:

Dairy farming is an important basis of constant subsidiary income. The small and poor farmers can purchase one to 20 animals as per their need and capacity to maintain. If any bank accepted by Indian Reserve Bank sanction loan for any dairy animal cow and buffalo, the beneficiary can get an interest subsidy @ 12 percent interest on the bank loan amount. Dairy farming is a great unorganized sector in India and a major source of livelihood in rural areas. In an effort to take in structure in the dairy farming industry and provide assistance for setting up dairy farms, the Department of Animal Husbandry, Dairying and Fisheries launched the “Venture Capital system for Dairy” in 2005. The system provided for interest-free loans for setting up dairy units and as of 31st March 2010, nearly 15,268 dairy farms enjoyed interest-free loans to the tune of Rs.146.91 crores in India. Following the success of the Venture Capital Scheme for Dairy, the Government in 2010 decided to launch the Dairy Entrepreneurship Development Scheme through NABARD.

DEDS (Dairy Entrepreneurship Development Scheme) is a central government subsidy to promote Dairy farms. The objectives of the DEDS scheme are as follows:

  • To encourage the setting up of modern dairy farms for the production of clean milk
  • To support heifer calf rearing thereby conserve good breeding stock
  • To bring structural changes in the unorganized sector so that primary processing of milk can be taken up at the village level itself.
  • To bring about up-gradation of quality and traditional technology to handle milk on a profitable scale.
  • To produce self-employment and provide infrastructure, mainly for the unorganized sector.

The establishment of small dairy units with crossbred cows/ indigenous descript milch cows, graded buffaloes up to ten animals.

  • Investment: Rs 5.00 lakh for ten animal units – minimum unit size is two animals with an upper limit of 10 animals.
  • Subsidy: 25% of the outlay (33.33 % of SC / ST farmers,) as back-ended capital subsidy subject to a ceiling of Rs 1.25 lakh for a unit of ten animals (Rs 1.67 lakh for SC/ST farmers,). The maximum acceptable capital subsidy is Rs 25000 (Rs 33,300 for SC/ST farmers) for two animal units. The subsidy shall be limited on a pro-rata basis depending on the unit size.

Disadvantages of Dairy farming:

  • Though one can earn excellent Profit Margins from Cow Dairy Farms, it also requires a huge investment. The Cost of Cow Dairy Farms is high. Small farmers may not be able to begin Cow Dairy Commercially.
  • It requires nonstop maintenance. You have to clean the Cow Sheds; you have to clean the Cows daily to keep a clean environment.
  • Cow Dairy farm requires long working hours from cow dairy labors. You should also hire skilled labor for the Cow Dairy farm who will charge you more.

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


  1. I am interested in establishing a dairy farm at my farmland in Wardha district of Maharashtra, with atleast 10 animals. If possible, please guide me for submitting proposal and obtaining loan from NABARD.

  2. I am intrested in establish a dairy farm at my farmland in Amravati Districtof Maharashtra state with 10 animals .please guide me for submitting proposal and obtaining loan from NABRD.


  4. Iam From Satara Iam Also Interested For Dairy Farming Please Guide ….iam Civil Engineer But Iam Not Satisfied With My Work…i Was Interested From My 1st Day Of Job..but No One Guide Me Properly… But Now I Wanted To Start The Dairy Farming At Any How Condition.

  5. Hi, iam form Junner Taluka district Pune. iam interested in Dairy farming and start the farm with 10 cows.
    I have my own land, so please guide me …

  6. I wish to start dairy farming in my village. Can you please guide me ? How to apply for NABARD loans and subsidies schemes?

  7. I want start dairy farm and already started with 3 cows but my dream is big so plz guide me for govt scheme and loan process .

  8. Want to start with 10 cow unit. More than money I need information about equipment sourcing, medical support and offer support for the herd.


Please enter your comment!
Please enter your name here