By Dairy Dimension Policy Desk | June 2025
India’s dairy sector, the world’s largest by volume, is undergoing a quiet transformation—driven not only by cooperatives and corporate processors but also by a new generation of dairy-tech startups and value-added product manufacturers. To catalyse this momentum, the Government of India has introduced a suite of schemes tailored to support innovation, infrastructure, and entrepreneurship in agriculture and allied sectors, including dairy.
At a recent knowledge session hosted by MANAGE (National Institute of Agricultural Extension Management), experts highlighted over a dozen central schemes that are relevant for dairy entrepreneurs. These schemes not only offer financial support but also facilitate market access, incubation, and capacity building.
Here is a structured overview of the most relevant schemes for dairy-focused startups and businesses:
🧊 1. Agriculture Infrastructure Fund (AIF)
Objective: Build farm-gate and post-harvest infrastructure
Eligibility: Startups, cooperatives, FPOs, dairy processors
- Loans of up to ₹ two crore at 3% interest subvention
- Use cases: Cold chains, bulk milk cooling units, automated packaging lines
- Backed by CGTMSE (Credit Guarantee Trust for MSEs)
- Apply via: agriinfra.dac.gov.in
🏪 2. Agricultural Marketing Infrastructure (AMI)
Objective: Promote marketing infrastructure for perishables
Target: Dairy startups in logistics, export packaging, and milk chilling
- Backend subsidy of 25% to 33.3% of project cost (up to ₹ two crore)
- Eligible for processing units, storage hubs, and dairy export operations
- Subsidy routed via NABARD/NCDC through banks
🌐 3. e-NAM Integration for Dairy Market Access
Objective: Digital trade platform for agri-commodities
Relevance: Dairy-tech startups offering market linkage or traceability platforms
- Enables access to a pan-India mandi network
- Offers B2B integration opportunities with cooperatives and buyers
- Apply via: Small Farmers Agribusiness Consortium (SFAC)
🧁 4. PMFME (Prime Minister Formalisation of Micro Food Processing Enterprises)
Administered by: Ministry of Food Processing Industries (MoFPI)
Objective: Upgrade unorganised food processing units
- 35% credit-linked subsidy (up to ₹10 lakh per unit)
- Targeted at micro-enterprises, SHGs, FPOs in value-added dairy (e.g., ghee, flavoured milk, probiotic yoghurt)
- Seed capital available for SHGs (₹40,000 per member)
🛠️ 5. PMEGP (Prime Minister’s Employment Generation Programme)
Objective: Encourage first-generation entrepreneurs in rural areas
- Up to ₹50 lakh loan for manufacturing and ₹20 lakh for service businesses
- Subsidy of 15%–35,% depending on location and social category
- Ideal for setting up dairy processing, packaging or distribution units
🧵 6. SFURTI Scheme (Reviving Traditional Industries)
Relevance: Dairy cooperatives making regional products (e.g., paneer, khoya, chhena)
- Cluster-based model supporting CFCs (Common Facility Centres)
- Financial support:
- Up to five₹5 crore for Heritage Clusters
- Branding, e-commerce, and design innovation support included
- Implemented via KVIC and Coir Board
👩🏽🌾 7. Stand-Up India Scheme
Designed for: SC/ST and Women Entrepreneurs
- Loan between ₹10 lakh and ₹1 crore for greenfield dairy ventures
- Applicable to processing, distribution, or dairy farming with export orientation
- Up to 75% project financing with margin money support
🏦 8. CGTMSE: Collateral-Free Credit for Dairy Startups
Support: Credit guarantee for loans up to five5 crore
- Micro dairy startups: 85% coverage
- Women and SC/ST entrepreneurs: up to 85% coverage
- Apply via banks or NBFCs enrolled with CGTMSE
🌱 9. Startup India Seed Fund Scheme (SISFS)
Target: Early-stage dairy startups with MVPs
- Seed funding up to ₹20 lakh
- Incubation support, mentoring, and investor access
- Apply via the Startup India portal in collaboration with MoA&FW R-ABI incubators
📡 10. Digital Agriculture Mission (DAM)
Relevance to Dairy:
- Focuses on digitising land records, livestock data, and supply chains
- Enables startups to leverage AI, IoT, drone mapping, and AgriStack integration for herd management, milk traceability, and productivity analytics
- Will increasingly define the regulatory and eligibility criteria for future dairy-linked schemes
📝 Documentation & Application Process
Applicants must prepare:
- KYC, GST, bank statements
- Detailed Project Report (DPR)
- Entity proof, land documents, balance sheets (where applicable)
🎯 Conclusion: A Call to Action for Dairy Innovators
India’s dairy ecosystem is at an inflexion point. With rising demand for high-quality dairy products, protein-enriched beverages, and precision livestock management, the time is ripe for entrepreneurial disruption. These schemes provide not only funding but also the foundation for scalable, export-ready, tech-led dairy enterprises.
Dairy startups, cooperative clusters, and agritech platforms are encouraged to explore these opportunities to build future-ready supply chains and transform the sector from a volume-led to a value-led approach.
