Dairy businesses in India are one of the
most successful businesses operating in the country. These businesses are
profitable and successful because of several reasons and excessive product demand
is one of them. The variety of products sold has contributed to the rise of
product demand which has eventually resulted in more profits. If an individual
wants to start a dairy business or farm, he must understand all the
requirements and fulfill them in order to successfully launch a dairy business
in any part of the country.
Understanding the Dairy Market, India
Undertaking an adequate amount of
research and developing an understanding of the dairy market is important before
diving into other steps involved in the establishment of the dairy business. The
dairy market in India is estimated to cross INR 21,791 billion by 2024. It is
estimated to grow by 15 percent every year and is likely to reach INR 9.4
trillion by 2020. Value creation and addition have been two aspects that have
helped this industry flourish over a few years.
Basics about Dairy Business Loans
Individuals can avail of different
loans in order to start a dairy business/farm. Banks and financial
establishments have introduced several loans for this purpose. In this section, we will talk about important factors relating to availing loans for dairy
businesses.
Eligibility
requirements for dairy business loans
Below mentioned are certain
individuals who are considered eligible to avail business loans:
- Farmers
- Individuals
- Limited companies and partnership firms
- Business owners
Purpose
of taking up loans
- Purchase of animals
- Farm construction
- Purchase of milk machines
- Shed construction
- Dairy items
- Farm equipment
Documents
required at the time of availing loans
Below are certain documents which
must be submitted by the loan applicant:
- Proof of identity such as Voter ID, Aadhar Card, and PAN card, etc.
- Proof of registration of the dairy business
- Passport size photographs
- Copies of property deeds
NABARD
subsidy scheme for the Farming Sector
National Bank for Agriculture and
Rural Development (NABARD) is a development financial institution which is set
up with an objective of rural growth and development.
Dairy Entrepreneurship
Development Scheme (DEDS) is a scheme designed especially for the farming
sector.
Below mentioned are the objectives of DEDS
scheme:
- Set up farms for milk production
- Utilize the latest technology for an effective milk processing and distribution
- Generate employment opportunities and introduce improvements in the infrastructure of the unorganized sector
Minimum requirements to consider before starting a
Dairy Business / Farm
Considering
elements regarding dairy businesses are important. These aspects play an
integral role in the success of a dairy business. Below mentioned are certain
elements that must be taken into consideration before moving forward with
dairy business registration.
Selection
of Breed
The first step in the business
establishment process is to acquire a breed.
It is important to select the breed which will fulfill customer’s
requirements. Depending on the city in which the individual is planning to set
up the business, extensive research must be conducted which would help in
the selection of the most suitable breed.
Arrangement
of Shelters
It is important to ensure that
the animals are kept in clean sheds that have proper ventilation so that they
remain healthy and disease-free. For small scale production, which generally
consists of 20 animals, they must be kept in 3000 square feet land area and if
the production is the medium scale and it comprises of 100 animals, they must be
kept in 13000 to 15000 square feet land area.
Feedingthe
Animals
Animals must be fed quality food
which includes green food. The food they have must be nutrition-rich. This will
ensure that they are healthy. They must also be given fresh water at all times.
A water tank must be arranged that has the capacity to hold 2000 liters of
water.
What machines are used in dairy businesses?
Below mentioned are several milk
machines which are required for efficient production and distribution of
milk and milk products:
- Milk Testing Equipment
- Milk Storage Equipment
- Milk Chilling Equipment
- Milk Processing Plant
Creation of a Dairy Business plan
Developing a business plan for
the business is important for all the members who are involved in the business
as it serves as a guideline for the business.
Individuals must prepare a business plan that consists of details regarding the business. Some details
that must be included are as follows:
- Marketing strategy
- SWOT and PEST Analysis
- Company mission and vision
- Operational requirements
- Operational strategy
Dairy Business Registration Process
Once the loan application has
been accepted and all the requirements are fulfilled, the next step is to
register the dairy business and obtain a registration license. Individuals or
firms are required to obtain APEDA Registration before starting business
activities. Agricultural and Processed Food Products Export Development
Authority (APEDA) was established by the Indian Government under
the Act of Agricultural and Processed Food Products Export Development
Authority.
Follow
the APEDA registration steps for dairy businesses:
- Sign up through APEDA website by selecting the option “Register as a member”
- The applicant must enter details
such as Import Export Code, Email
ID and mobile number.
- An OTP will be sent on the registered mobile number or email id which must be entered to verify all the details mentioned by the applicant.
- The applicant must fill in the online application form and submit all the required documents along with it.
- He must pay the registration fees of INR 5000 excluding taxes at this step.
- Login details will be sent to the application after which he can login into his account.
- The application status can be tracked by the applicant.
Documents required for APEDA Registration
Below are documents which are required
for registering APEDA:
- APEDA registration form
- Bank certificate duly signed by authorities
- Bank account statement of the last two months
- Canceled cheque
- Self - certified copy of Export Import Code
Licenses required for Dairy Businesses in India
Individuals require several
licenses and permits to start a dairy business. In this section, we will talk
about certain licenses which is required by the business owner of a dairy
business:
FSSAI
License
Provided by Food Safety and
Standard Authority in India (FSSAI), FSSAI
license is an important license which must be acquired by
the dairy business owner. FSSAI license is categorized into three licenses
namely State FSSAI License, Central FSSAI License, and Basic License. The business
owner must select the type of FSSAI registration on the basis of the type and
scale of the dairy manufacturing business. All the requirements must be
considered before applying for a particular license type.
Basic
food safety registration
Small businesses that have an
annual turnover of below INR 12 lakhs can apply for Basic food safety
registration.
State
food safety registration
Businesses that have an annual
turnover between INR 12 lakhs to 20 crores can apply for state food safety
license.
Centralfood
safety registration
Businesses with an annual
turnover of more than INR 20 crores are eligible to apply to central FSSAI
license.
GST
Registration
It is mandatory to acquire GST
Registration before starting a dairy farm/business.
Conclusion
Several factors must be taken into
consideration before setting up a dairy business in India. Fulfilling all the
essential steps is crucial in dairy farm/business incorporation. After the
business's formation, the business owner can undertake different business
activities to provide quality products to consumers.
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