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Commercial Dairy and Milk Shed Development Programme (MSDP) — herd induction (cow units)

Funded in the budget: Kerala Revised Budget Speech 2026-27 (19.06.2026) (19 Jun 2026, Para 80 — “₹36.37 crore for strengthening commercial dairy development and milk shed development activities” in the 2026-27 Dairy Development allocation)

Milk Shed Development — cow units · Department of Dairy Development, Government of Kerala · State scheme

A Kerala dairy farmer can get a fixed subsidy to buy cows: ₹30,000 for a 1-cow unit, ₹60,000 for 2 cows, ₹1,50,000 for 5 cows, ₹3,80,000 for a bank-linked 10-cow farm and ₹7,60,000 for a 20-cow farm; groups get ₹1,83,000 (5 cows) or ₹3,80,000 (10 cows).

Dairy & cattle
Lead benefit
100%of the cost, at most
Components
2each read from the document
Who can apply
Allapplicants
Closing date
Seasonalsee “When to apply”

What it pays

100%of the cost, at most

A fixed subsidy per cow unit for an individual dairy farmer: ₹30,000 (1 cow), ₹60,000 (2 cows), ₹1,50,000 (5 cows), ₹3,80,000 (10-cow farm), ₹7,60,000 (20-cow farm) or ₹4,64,000 (Ksheera Yuva 10-cow smart farm).

Read from Kerala Dairy Development Department — gist of schemes, Annual Plan 2025-26 · clause III. Commercial Dairy Milk and Milk Shed Development Programme — “Herd induction Units” table (UNIT SUBSIDY column); 1/2/5 cow unit cost break-up “MSDP 2025-26 Assistance for subsistence dairy farmers” · p. PDF p.11–12 · Our copy (PDF)
What the document says, word for word

The subsidy is a fixed amount per unit, not a percentage. The 1-cow unit cost of ₹67,200 is the animal (₹6,000 per litre of milk yield, ₹60,000), transport ₹1,500, insurance at 7% (₹4,200) and vaccination ₹1,500. These are the 2025-26 plan rates; the 2026-27 detailed project report was not yet published on the department site when read. Priority goes to farmers pouring milk to a dairy co-operative, women, SC/ST and applicants under 40.

“Herd induction Units — One Cow Unit for individuals 200 67200 30000; Two Cow Unit for individuals 300 134400 60000; Five Cow Units for individuals 500 336000 150000; Assistance for commercial Farm- 10 cow unit-Individuals 500 1152000 380000; Assistance for commercial Farm- 20 cow unit - Individuals 750 2310000 760000; Smart Dairy Farms - Special Dairy Package for young entrepreneurs (10 cow unit) - Individuals -KSHEERA YUVA 500 1160000 464000 [REG. FEES Rs | TOTAL COST Rs | UNIT SUBSIDY Rs]”
100%of the cost, at most

A joint liability group, SHG, FPO or other registered group of at least four members gets ₹1,83,000 for a 5-cow unit or ₹3,80,000 for a 10-cow unit.

Read from Kerala Dairy Development Department — gist of schemes, Annual Plan 2025-26 · clause III. Commercial Dairy Milk and Milk Shed Development Programme — “Herd Induction Programme for JLGs/SHGs/Other registered groups” rows; item 3 eligibility (minimum four members, 50 cents for fodder) · p. PDF p.11–12 · Our copy (PDF)
What the document says, word for word

Groups need a registration certificate, at least four adult members resident in Kerala, and own or leased land of at least 50 cents for fodder.

“Herd Induction Programme for JLGs/SHGs/Other registered groups - 5 cow 250 562500 183000; Herd Induction Programme for JLGs/SHGs/Other registered groups - 10 cow 500 1152000 380000”

How much can I claim?

Enter unit to see the figure.

Read from Kerala Dairy Development Department — gist of schemes, Annual Plan 2025-26 · clause III. Commercial Dairy Milk and Milk Shed Development Programme — “Herd induction Units” table (UNIT SUBSIDY column); 1/2/5 cow unit cost break-up “MSDP 2025-26 Assistance for subsistence dairy farmers” · p. PDF p.11–12 · Our copy (PDF)

The subsidy is a fixed amount per unit, not a percentage. The 1-cow unit cost of ₹67,200 is the animal (₹6,000 per litre of milk yield, ₹60,000), transport ₹1,500, insurance at 7% (₹4,200) and vaccination ₹1,500. These are the 2025-26 plan rates; the 2026-27 detailed project report was not yet published on the department site when read. Priority goes to farmers pouring milk to a dairy co-operative, women, SC/ST and applicants under 40.

Who can apply

  • All applicants

Papers you need

  • Valid Kerala state ration card (residence in Kerala)
  • Proof of age (18 years or more)
  • For 10/20-cow units: land record or lease of at least 50 cents / 100 cents, and the bank loan sanction
  • For groups: registration certificate of the group (at least four members)

How to apply

  1. Register and apply on the Ksheerasree portal of the Dairy Development Department — selection is only through the portal (MSDP, “Features of the Scheme”).
  2. Pay the registration fee shown for your unit (₹200 for 1 cow, ₹300 for 2 cows, ₹500 for 5 or 10 cows, ₹750 for 20 cows).
  3. For a 10- or 20-cow farm, arrange a bank loan (nationalised, scheduled or Kerala Bank) and keep 50 cents (10 cows) or 1 acre (20 cows) of land for fodder.
  4. Buy the animals with insurance, transport and vaccination — all parts of the unit cost are mandatory — and the Dairy Extension Officer releases the subsidy.
Apply on the official portal ↗

Applying is free. Never pay anyone to apply for you.

When to apply

Applications are invited on the Ksheerasree portal each plan year; the document sets no fixed dates.

Combining with other schemes

The documents do not say whether this can be combined with other schemes. Ask the implementing office before you count on both.

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