Nabard Dairy Yojana 2021

The Indian government has always been concerned about agricultural and rural growth. Many government schemes have been implemented in the past with the aim of improving rural and agricultural standards. The National Bank for Agriculture and Rural Development, or NABARD, is one such scheme. The welfare programme provides financial assistance to agriculture and rural development.

The National Bank for Agriculture and Rural Development (NABARD) offers and manages the NABARD scheme. This institute is in charge of the country's agricultural and rural development planning and operations. NABARD is also responsible for securing funds for the operations. Via technological revolution, industrialization, and financial or non-financial resourcing, the institution and its scheme promote sustainable agriculture and rural development.

What is nabard dairy yojana?

NABARD (National Bank for Agriculture and Rural Development) is an Indian development financial institution that oversees credit-related issues such as planning, regulation, and operations for agriculture and rural enterprises. NABARD is a non-profit organisation that provides support for agricultural and rural development projects. The institution's main emphasis is on the growth and development of rural communities across the country. NABARD focuses on three key areas in the agriculture sector: finance, production, and supervision.

Features of the scheme

  • Providing assistance by refinancing or funding

  • Infrastructure development in rural areas

  • Credit plans are being prepared at the district level.

  • assisting the banking sector in meeting credit goals

  • Regional Rural Banks (RRBs) and Cooperative Banks are supervised.

  • Developing new rural development programmes

  • Putting the government's growth plans into action

  • Craftspeople are being trained.

Benefits of the scheme

  • Providing financial services to help rural India progress and grow

  • Organizing and managing agricultural and farming funding services Policymaking for rural financial institutions

  • Providing financial assistance for the construction of designated food parks and food processing units.

  • Providing financing for warehouse, cold chain, and cold storage facilities.

  • Short- and long-term refinancing services are provided to consumers, as well as direct refinancing services to cooperative banks.

  • Providing marketing federations with credit facilities

  • Long-term irrigation and rural infrastructure finance funds are its specialities.

Loans under nabard dairy yojana

1) Short-Term Loans – Refinance

Various financial institutions provide short-term loans or crop loans to farmers for the purpose of crop production. By offering this loan, one can ensure the country's food security. In the financial year 2017-18, NABARD approved a short-term credit loan of Rs. 55,000 crore to several financial institutions for seasonal agricultural operations.

2) Long term loans

Financial institutions are given long-term loans for a variety of farm and non-farm related activities. The long-term loan has a tenor ranging from 18 months to a period of 5 years. In the fiscal year 2017-18, NABARD refinanced about Rs. 65,240 crore for financial institutions, including a concessional refinance of Rs. 15,000 crore for cooperative banks and regional rural banks (RRBs).

3) Rural Infrastructure Development Fund (RIDF)

The Rural Infrastructure Development Fund was established by the RBI in response to a lack of lending to the priority sector for the purpose of funding rural infrastructure projects. The primary target of this fund is rural infrastructure growth in India, with a total of Rs. 24,993 crore disbursed in FY 2017-18.

4) Long-Term Irrigation Fund (LTIF)

This fund was established primarily to provide funding for 99 irrigation projects by launching an Rs. 20,000 crore fund. Following the funding of 99 projects, two new projects were announced: the ‘North Koel Reservoir Project' in Bihar and Jharkhand, and the ‘Polavaram National Project' in Andhra Pradesh.

5) Pradhan Mantri Awaas Yojana -Grameen (PMAY-G)

The National Rural Infrastructure Development Agency (NRIDA) earned Rs. 9000 crore for this scheme, which aims to construct pucca houses with all basic amenities for poor families by 2022.

6) NABARD Infrastructure Development Assistance (NIDA)

NABARD Infrastructure Development Assistance (NIDA) is a special credit programme designed to support financially sound state-owned institutions and businesses.

7) Warehouse Infrastructure Fund

The Warehouse Development Fund provides agricultural goods with scientific warehousing infrastructure. In the fiscal year 2013-14, NABARD issued an initial loan of Rs. 5000. As of March 31, 2018, the total sum disbursed was Rs. 4778 crore.

8) Food Processing Fund

On March 31, 2018, the Government of India committed Rs. 541 crore to 11 mega food park projects, three food processing units, and one integrated food park project under this fund.

9) Direct Lending to Cooperative Banks

With an approved amount of Rs 4,849 crore, NABARD has given assistance to 58 Co-operative Commercial Banks (CCBs) and 4 State Cooperative Banks (StCBs) spread across 14 states.

10) Credit Facility to Marketing Federations (CFF)

This federation supports the selling of agricultural products and farm operations, as well as marketing federations and cooperatives. As of March 2018, the total amount disbursed was Rs. 25436 crore.

11) Credit to Producer Organizations & Primary Agriculture Credit Societies (PACS)

Producer Organizations Development Fund (PODF) was established by NABARD to assist and finance Producer Organizations (POs) and Primary Agriculture Credit Societies (PACS) (PACS). These businesses are set up to function as Multi-Service Centers.

Nabard dairy yojana 2021 for msme

NABARD also offers an important off-farm programme, which is described below:

Credit Linked Capital Subsidy Scheme (CLCSS) was implemented by the Government of India in 2000 for technology up-gradation of Micro, Small and Medium Enterprises (MSMEs) and Small Scale Industries (SSIs) units in the specified products or sub-sectors. By clicking here, you can get all the requisite details from the NABARD official website.

Note: NABARD will provide additional emergency working capital or refinance support to Indian farmers worth Rs. 30,000 crore under the ‘Atmanirbhar Bharat Abhiyan' or ‘Self-reliant India Scheme.' This funding will be in addition to the Rs 90,000 crore that NABARD plans to provide this fiscal year through traditional refinancing. The following are some of the most important takeaways:

  • The key source of credit would be rural cooperative banks and regional rural banks.

  • Approximately 3 crore farmers in India would profit.

  • In May/June, to fulfil post-harvest (Rabi) and existing Kharif requirements

Farmers, fish processing, dairy farming, farmers, cold storage, and other business segments and organisations may all benefit. Loans from the NABARD scheme may also be used to start a rice mill, a rural godown, or a general-purpose godown.

As a result, NABARD has made a significant contribution to agriculture and rural development by providing financial and non-financial assistance to increase the stability and growth of the agricultural and rural sectors.

Question and answers

Q. How does one apply for a NABARD loan to start a dairy farm?

Answer: Under the NABARD scheme, no loans are available. Some regional rural banks, co-operative banks, and private and public sector banks provide only concessional funding and subsidies.

Q. Who is qualified to apply for a NABARD loan?

Answer: There is no direct NABARD loan available; however, you must apply for a business loan with any commercial or cooperative bank to qualify for a subsidy under the NABARD scheme.

Q. What are NABARD dairy farm subsidies?

Ans. The NABARD scheme provides a subsidy of 25% of the outlay (33.33 percent for SC/ST farmers) up to a limit of Rs 1.20 lakh for a unit of 20 calves (Rs 1.60 lakh for SC/ST farmers). The maximum permissible capital subsidy for a 5 calf unit is Rs 30,000 (Rs 40,000 for SC/ST farmers).

What is NABARD refinance, and how does it work?

NABARD finance is a form of funding support provided to regional rural banks and co-operative banks that requires the borrowed funds to be repaid within a year. The NABARD refinance is available for activities such as manufacturing, marketing, and procurement.

Q. What does NABARD cover in terms of banks and NBFCs?

Ans. Under the NABARD programme, the following banking institutions are eligible to provide loans or subsidies:

  • Banks in Rural Areas (RRBs)

  • Banks that work together

  • Banks in both the private and public sectors

Q. How do I apply for a NABARD loan for a poultry farm?

Answer: The National Bank for Agriculture and Rural Development (NABARD) does not provide financing for poultry farms. Banks provide unique poultry farm loans based on the needs of the applicant's company.

Q. Is NABARD able to provide direct loans?

Answer: No, the National Bank for Agriculture and Rural Development (NABARD) does not provide direct loans. Financial institutions such as banks, NBFCs, Small Finance Banks, Micro Finance Institutions, and others provide direct loans.