Madhya Pradesh's Dr. Ambedkar Kamdhenu Yojana offers up to 33% subsidy to farmers for dairy units, boosting milk production.
India's Dairy Revolution MP Offers 33% Subsidy for Farmers
As part of this initiative, 381 new dairy cooperative societies have been established. Image | Pixabay/Representational

New Scheme Fuels Milk Production, Empowering Livestock Rearers & Boosting Rural Economy.

The Indian dairy sector is set for a significant boost with the Madhya Pradesh government’s launch of the Dr. Ambedkar Kamdhenu Yojana. This ambitious welfare scheme is designed to empower farmers and livestock rearers by substantially increasing milk production across the state. Offering an attractive subsidy of up to 33%, the initiative underscores a robust commitment to enhancing farmer incomes and fortifying the region’s vital agribusiness landscape, directly impacting dairy economics at the grassroots level.

Under the framework of this transformative scheme, dairy units comprising 25 milch animals will be established, with each unit estimated to cost up to Rs 42 lakh. The program is inclusive, open to eligible livestock rearers from all communities residing in Madhya Pradesh. Key eligibility criteria include being at least 21 years old and having successfully completed mandatory dairy farming training, ensuring that beneficiaries possess the foundational knowledge required for successful farm operation.

The financial incentives are structured to provide substantial support: Scheduled Caste (SC) and Scheduled Tribe (ST) beneficiaries qualify for a generous 33% subsidy on the project cost, while other categories receive a 25% subsidy. This subsidy is provided as a lump sum after a three-year lock-in period from the initial loan disbursement, with the unique advantage of no interest being charged on the subsidy amount itself. This innovative financial model aims to maximize farmer benefit and encourage long-term commitment to dairy production.

To ensure effective implementation and sustainable growth, applicants must apply online and possess a minimum of 3.50 acres of agricultural land per dairy unit. Preference in the selection process is given to those farmers already actively supplying milk to registered milk unions and beneficiaries located on existing or newly established milk collection routes. Loans are disbursed in four installments on a “first come, first served” basis, emphasizing efficiency and equitable access.

Madhya Pradesh’s Chief Minister, Mohan Yadav, further outlined a broader strategic vision to bring 50% of the state’s villages under a structured milk collection network. This ambitious goal is already gaining momentum, with 381 new dairy cooperative societies having been established. This comprehensive approach, combining financial incentives with infrastructure development, positions Madhya Pradesh as a frontrunner in India’s dairy revolution, offering valuable insights for the international dairy community on scaling milk production through farmer empowerment.

Source: Zee Business: MP Government’s welfare scheme offers 33% subsidy to empower farmers, boost dairy sector

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