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How To Get NABARD Subsidy For Dairy Farming

Introduction To How To Get NABARD Subsidy For Dairy Farming:

Well, many people are asking about the process and procedure of NABARD subsidy for the dairy farm set up. We tried to explain here about How to Get NABARD Subsidy for Dairy Farming Business.

If you are planning a startup of Dairy Farming then you should register your business with FSSAI because it is mandatory for all dairy farming business who want to manufacture and sell their dairy products to the customer. FSSAI sets some standards so the quality of food products will be increased. After obtaining FSSAI license it will become easy to obtain services from NABARD. If you want the subsidy for your dairy farming then you should apply for subsidy under NABARD. NABARD is promoting Agriculture and rural development by providing them a subsidy and loan on low-interest rate or without interest rate.

What is NABARD?

National Bank for Agriculture and Rural Development (NABARD) is a bank which promotes sustainable and equitable agriculture and rural development through participative financial and non-financial interventions, innovations, technology and institutional development for securing prosperity. NABARD will give you a subsidy for your Dairy Farming. It also provides loan facilities on low-interest rates. NABARD is promoting Dairy farm business by providing them subsidies.

There are many types of schemes available under NABARD. There one scheme which helps the small dairy firm by providing them loan facilities without interest. And also schemes available for the establishment of private veterinary clinics. There is one scheme available for purchasing of manufacturing machines and raw materials. So there are many schemes launched by NABARD anyone who is eligible for the scheme can apply for this. These schemes will help your business to generate more profits.

Eligibility for NABARD subsidy

  • It is available for Farmers
  • An Individual Entrepreneur is also eligible for NABARD subsidy
  • NGO
  • Private companies also eligible for the subsidy
  • Organized and unorganized sector

Process of Getting NABARD subsidy

  • Þ First, you have to decide that in which category you want to obtain loans or subsidy from NABARD. Your category will decide your subsidy schemes so choose wisely.
  • Þ You have to register your entity because, without registration, you will not be eligible for the subsidy. You should register your entity under FSSAI also because FSSAI will give you license for manufacturing and selling of dairy products. A sole proprietor can show this as legal proof.
  • Þ After registration of your entity, you should make a good plan for your business so you will get a loan easily
  • Þ Then you can apply for a loan in any commercial or rural bank, which are eligible for refinancing from NABARD
  • Þ After getting the loan you can start your business
  • Þ The bank would have to apply to NABARD for sanction and release of subsidy after disbursement of the first installment
  • Þ NABARD will release subsidy to the bank. 

Read: Dairy Farming Courses, Fees in India.

FSSAI registration

Food Safety and Standard Authority of India (FSSAI) is an agency of the Government of India, governed by the Ministry of Health. If you want to set up your business of Dairy Farming then you should register your business under FSSAI Registration. This registration is mandatory for every dairy establishment is which dairy-based food is being handled, manufactured, stored, distributed and sold by the operator. No one can carry a business of food products in India without FSSAI registration. In the failure of registration under FSSAI you will liable to pay fines for this. FSSAI sets some standards for products which has to be matched by every food manufacturer.   You have to match with standards like the sanitary and hygienic requirement, food safety measures and other standards. Here are some standards mention below

  • Manufacture must follow hygiene standards and standard for facilities of protection of raw materials and non-packed or non-wrapped dairy products.
  • The container should be cleaned every day.
  • Standards of Personal cleanliness of workers should be followed at the facility, they should wear clean working clothes.
  • Workers should avoid certain hand habits for e.g. Rubbing mouth, ear, and eyes, scratching parts of the body, etc..
  • They should follow the sanitary standard during storage of products.
  • Water used in products should be clean and
  • Packing of products should be fresh and clean and it should be secure.
  • Should not use expiry raw materials.

There are three types of FSSAI registration

  • FSSAI Basic Registration – if your turnover is less than 12 lakh rupees in a year, then you have to register under FSSAI basic registration.
  • FSSAI state license registration – if your turnover is more than 12 lakh rupees but less than 20 crores then you have to register your business under State license registration.
  • FSSAI Central License Registration – you have to register your business under Central License Registration if you want to export your products or if you want to supply at the government various departments. And if your turnover is more than 20 crore then you have to register this under Central License Registration.

Registration Process

The process of registration is very easy, one can file an application through online or offline mode. Online mode is simple as you fill your form from home. The online process is given below

  • STEP 1 – you have to visit the official website of FSSAI then you have to check your eligibility for License, criteria for eligibility is given on the website of FSSAI. The system will calculate your eligibility after filling of eligibility option
  • STEP 2 –then you have to Sign up for registration, which creates your login id,
  • STEP 3 – then you have to fill the required information
  • STEP 4 – You have to attach the required documents
  • STEP 5 – After the filing of the form you have to pay fees for registration, the registration fee for central licensing is 7500 rupees and for State and Basic license registration fee depends on your production.

Required documents for NABARD subsidy

  • Photo id and address proof
  • Authority letter with name and address of the responsible person
  • List of directors/partners
  • The form should be signed by proprietor or partner or authorized sign
  • A list of desired food categories to be manufactured or produced
  • Water analysis report
  • Proof of possession of the premise
  • List of equipment and machinery
  • Self-declaration for a safety management plan
  • NOC certificate from local authorities


If you want to start a dairy firm, then you should apply for a subsidy from NABARD because this will help you. You may get a loan without interest rate from NABARD. And FSSAI registration is also essential for your dairy firm because it is mandatory for those who want to sell or manufacture food products. FSSAI sets some standards which have to be matched up by the manufacturer or seller. As you can see that some standards are mentioned above and also the process of registration under FSSAI is mentioned above. If you are planning to start a dairy firm, then you should register your business under FSSAI so FSSAI will give you a license. After FSSAI registration it becomes easier to obtain a loan or subsidy from NABARD.

Read: Dairy Processing Plant Project Report.


  1. Sir
    My name is venkatesh. K. I’m complete my graduation recently
    I have internet in starting a new dairypant in my area..
    How can i approach you please answer me
    Thank you


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