Introduction
Have you ever dreamed of starting your own business in rural India with low risk and steady income? If yes, dairy farming might be your perfect choice. With the growing demand for milk and dairy products, government subsidies, and increasing rural entrepreneurship, starting a dairy farm in India has become a profitable and sustainable agribusiness.
In this blog, we will guide you step-by-step on how to start a dairy farm, calculate your investment and profit, get government subsidy and loans, and avoid costly mistakes. Whether you're a beginner or looking to expand, this post will help you build a successful dairy farming business.
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Why Start a Dairy Farming Business in India?
1. High Market Demand
India is the largest milk producer in the world, with over 220 million tonnes of annual milk production (2024 data). Daily milk consumption is increasing in urban and rural areas, creating consistent demand.
2. Government Support
Central and state governments promote dairy farming through NABARD subsidies, training, and low-interest loans under schemes like Dairy Entrepreneurship Development Scheme (DEDS) and PM Kisan Sampada Yojana.
3. Low Risk, Recurring Income
Unlike seasonal crops, dairy provides daily income through milk sales, along with additional income from cow dung, calves, and by-products like ghee and paneer.
Step-by-Step Guide to Start a Dairy Farm in India
1. Planning and Research
Start with a small-scale model (e.g. 5-10 cows or buffaloes). Study the local demand, feed availability, climate, and nearby veterinary facilities. Make a detailed business plan with budget and profit estimation.
2. Choose the Right Breeds
Select high-yielding and disease-resistant breeds. Some popular options:
Cows: Gir, Sahiwal, HF (Holstein Friesian), Jersey
Buffaloes: Murrah, Mehsana, Jaffarabadi
3. Build Proper Housing (Shed)
Construct well-ventilated, clean, and cost-effective dairy sheds. Ensure proper drainage, sunlight, and enough space for each animal.
Space needed per animal: 50-60 sq ft
Flooring: Non-slippery and sloped for drainage
4. Feeding and Fodder Management
Balanced feeding is essential for milk productivity.
Green fodder: Napier, maize, berseem
Dry fodder: Wheat straw, paddy straw
Concentrates: Oil cakes, minerals
Water: 40-60 litres/day per animal
Grow your own fodder to cut down costs.
5. Animal Health and Vaccination
Regular checkups, vaccination, and hygiene are vital.
Deworming: Every 3 months
Vaccines: FMD, HS, BQ, Brucellosis
Hire a local vet or tie up with animal hospitals
6. Investment and Setup Costs
Here’s a breakdown for a 10-animal dairy unit (cows):
ComponentCost (INR)
Cost of cows (10)6,00,000
Shed construction2,00,000
Milking machine & equipment1,00,000
Fodder cultivation50,000
Insurance & medical20,000
Total₹9,70,000 approx.
7. Profitability Estimation
Assuming:
Avg milk per cow/day: 10 litres
Total daily milk: 100 litres
Selling price: ₹40/litre
Daily income: ₹4,000
Monthly income: ₹1,20,000
Monthly expenses: ₹60,000
Monthly profit = ₹60,000 (approx.)
You can recover the full investment in 12–18 months.
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8. Marketing Your Milk and Products
Sell directly to:
Local households
Sweet shops and tea stalls
Cooperative societies like Amul, Mother Dairy
Start your own milk delivery brand
Also sell by-products: ghee, paneer, curd, gobar gas.
Government Subsidies and Loans for Dairy Farming in India
1. NABARD Dairy Subsidy (DEDS Scheme)
Subsidy: 25% (General), 33.33% (SC/ST) on capital cost
Loan: 85% of project cost
Eligibility: Individual farmers, SHGs, co-ops
2. Dairy Processing and Infrastructure Development Fund (DIDF)
For medium to large dairy projects
Support for milk chilling, cold storage, milk processing
3. How to Apply
Prepare project report
Approach local bank/NABARD office
Get quotations for animals and shed
Submit documents: Aadhaar, land records, caste certificate (if applicable), bank passbook
Pro Tip: Many state governments offer extra subsidies—check with your local animal husbandry department.
Realistic Case Study – 10 Cow Dairy Farm
Farmer Name: Ramesh, Maharashtra
Setup: 10 cows (Sahiwal), 2-acre fodder land
Monthly Milk Sales: 100 litres/day × ₹42 = ₹1,26,000
Monthly Expenses: ₹58,000
Net Profit: ₹68,000/month
Break-even: 14 months
Got NABARD subsidy: ₹2,50,000 (after 6 months)
Common Mistakes to Avoid in Dairy Farming
Buying poor-quality or sick animals
No written business plan
Lack of proper animal shelter or drainage
Ignoring vaccination and deworming
Overfeeding or wrong feed
Not insuring animals
Not planning for market linkage
Conclusion
Dairy farming in India is not just a traditional business anymore—it’s a modern, high-potential agribusiness. With proper planning, government support, and smart marketing, even a small dairy farm can earn ₹50,000+ monthly income.
If you’re serious about starting a profitable dairy business, now is the best time to take action.
Have questions or want help with your business plan? Drop a comment below or contact us!
FAQs
Q1. How much profit can I earn from 10 cows in India?
A: Around ₹50,000–₹70,000/month, depending on breed, milk rate, and fodder cost.
Q2. Which is better for dairy farming – cows or buffaloes?
A: Buffaloes give thicker milk (good for ghee), cows yield more daily litres. Choose based on local demand.
Q3. Can I get a loan for dairy farming with no land?
A: Yes, many banks offer loans even if you lease land. Ownership is not always mandatory.
Q4. What is the best dairy breed for Indian climate?
A: Gir, Sahiwal (cows) and Murrah (buffalo) are best for Indian weather and productivity.
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