Government Offers 50% Subsidy Up to Rs 50 Lakh to Start a Donkey Breeding Farm — Here’s How to Apply

Soumya Verma
By
Soumya Verma
Correspondent
Soumya Verma is Senior Correspondent at StartupFeed, covering startup policy, government schemes and early-stage funding in India. She writes from inside the ecosystem she reports on...
- Correspondent
NLM Donkey Breeding Farm Scheme 2026 - Rs 50 Lakh Subsidy
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Quick Take:

  • Scheme: National Livestock Mission — Entrepreneurship Development Programme (NLM-EDP)
  • Subsidy: 50% capital subsidy, up to Rs 50 lakh per unit
  • Activity: Entrepreneurship Development through Indigenous Donkey Breeding
  • Min. Unit Size: 50 female donkeys + 5 male donkeys (indigenous breeds only)
  • Who Can Apply: Individuals, FPOs, SHGs, JLGs, FCOs, Section 8 companies
  • Apply At: nlm.udyamimitra.in (fully online — no physical document submission)
  • Subsidy Route: Released in 2 instalments via SIDBI to lending bank
  • Important: Indigenous breed only; no subsidy for land, vehicles, or working capital

India’s donkey population has crashed by over 90% since 1992 — from 97 lakh to barely 1.12 lakh animals by 2019. Now the Department of Animal Husbandry & Dairying (DAHD) is putting serious money behind reversing that decline: a 50% capital subsidy of up to Rs 50 lakh for anyone willing to establish an indigenous donkey breeding farm under the National Livestock Mission’s Entrepreneurship Development Programme (NLM-EDP).

The scheme is not just about conservation. It is a business opportunity being opened up by the government at exactly the moment when donkey milk — priced at Rs 2,000 to Rs 7,000 per litre in domestic markets and used by global cosmetic, pharmaceutical, and nutraceutical companies — is gaining serious commercial traction. The global donkey milk market, valued at $460 Mn in 2025, is projected to reach $1.24 Bn by 2033 at an 11.25% CAGR. India, home to three recognised indigenous donkey breeds, is positioned to be a key exporter — if only someone breeds enough of them.

 StartupFeed Insight

The real opportunity: This is not a charity scheme — it is the government identifying a Rs 500 Cr+ domestic opportunity that is currently unorganised and underleveraged. A 55-animal donkey farm, properly run and supplying to cosmetic/pharmaceutical buyers, can generate Rs 25–40 lakh annually in milk revenue alone — with the government effectively subsidising 50% of your capital cost upfront.

Who should act fast: FPOs and SHGs in Rajasthan, Gujarat, and Tamil Nadu — states with existing donkey populations and emerging buyer interest from export markets. The combination of subsidy + existing livestock knowledge + proximity to buyers is strongest in these states.

The hidden risk: Donkey milk production is low-volume (200–300 ml/day per animal, 4–5 months/year). A 50-animal farm produces approximately 10,000–15,000 litres/year maximum. At Rs 3,500/litre, that’s Rs 3.5–5.25 Cr gross revenue — but you need cold chain, FSSAI certification, and a buyer pipeline established before the animals start lactating.

Our take: First-mover advantage is very real here. India has fewer than 10 organised donkey milk businesses today. The entrepreneur who builds the supply chain — from farm to buyer — in the next 12–18 months will capture a disproportionate share of this emerging market before competition arrives.

Scheme At a Glance

ParameterDetails
Scheme NameNational Livestock Mission — Entrepreneurship Development Programme (NLM-EDP)
Activity NameEntrepreneurship Development through Indigenous Donkey Breeding
Implementing MinistryMinistry of Fisheries, Animal Husbandry & Dairying (MoFAHD), Govt. of India
DepartmentDepartment of Animal Husbandry & Dairying (DAHD)
Scheme in Force Since2014-15; revised and realigned from FY 2021-22
Subsidy Type50% capital subsidy — one-time grant
Maximum Subsidy CapRs 50 lakh per unit
Minimum Unit Size50 female donkeys + 5 male donkeys
Breed RestrictionIndigenous breeds only — no exotic/crossbred animals eligible
Application Portalnlm.udyamimitra.in (fully online)
Subsidy Disbursed ThroughSIDBI (Small Industries Development Bank of India) to lending bank
Subsidy Instalments2 equal instalments — 1st at project start; 2nd after completion & SIA verification
What is NOT CoveredLand cost, personal vehicles, working capital
Scheme Total OutlayRs 2,300 Cr (overall NLM scheme; donkey breeding is one component)

Who Can Apply — Eligible Entities

Entity TypeWhat This Means for You
IndividualAny Indian citizen who can arrange own/bank financing for 50% of project cost and owns or leases land for the farm
Farmer Producer Organisation (FPO)FPOs registered under Companies Act or Co-operative Societies Act — ideal for pooling land and animal resources from multiple members
Self-Help Group (SHG)SHGs registered with state government — particularly suitable for women-led groups in rural areas with existing livestock experience
Joint Liability Group (JLG)Groups of 4–10 individuals jointly liable for a common loan — enables members without individual credit history to access bank financing
Farmer Cooperative Organisation (FCO)Formal cooperatives with prior track record in agriculture or livestock — can leverage existing infrastructure and market linkages
Section 8 CompanyNon-profit companies (registered under Section 8 of Companies Act) with a livestock or rural development mandate — eligible for maximum subsidy scale

Note: No entity is limited to a single application per sector — an FPO can apply for multiple NLM-EDP components simultaneously (e.g., donkey breeding + feed/fodder unit) as separate projects. Each project is evaluated independently.

Eligibility Conditions — What You Must Fulfil

  1. Training / Expertise: Applicant must have obtained relevant training OR have trained experts on staff OR have sufficient hands-on experience in donkey/equine management. First-time entrepreneurs should complete a training programme from a recognised institution (e.g., ICAR-National Research Centre on Equines, Hisar, Haryana) before applying.
  2. Bank Loan / Self-Finance: The remaining 50% of project cost (i.e., cost above the subsidy cap) must be arranged by the applicant — either through a bank/financial institution loan OR self-finance. For self-financed projects, the bank where you hold your account must appraise the project viability.
  3. Land: Applicant must own land or hold a registered lease deed for the land where the farm will be established. A small donkey farm requires 0.5–1 acre minimum (200 sq ft covered shelter + 400–600 sq ft open space per animal).
  4. KYC Documents: Standard KYC documents — Aadhaar, PAN, bank account details — must be uploaded through the NLM portal at time of application.
  5. Expenditure Trigger for 1st Instalment: The first instalment is released only after the applicant has made at least 25% expenditure of own/loan contribution toward infrastructure — verified by the State Implementing Agency (SIA).

How to Apply — Step-by-Step Process

StepStageWhat to Do
1Register on PortalGo to nlm.udyamimitra.in → Register using mobile number → OTP verification
2Prepare DPRPrepare a Detailed Project Report (DPR) covering animal procurement cost, infrastructure (shed, fencing, water), feed, veterinary expenses, and projected revenue. Banks require this for loan appraisal.
3Arrange FinancingApproach a bank or NBFC for the loan component (50% of project cost). OR arrange own funds and get bank to appraise the self-financed project.
4Submit Online ApplicationUpload DPR, KYC documents, land documents, training certificate, bank loan sanction letter (if applicable) on NLM portal. No physical submission required.
5State-Level ReviewApplication routed to State Level Empowered Committee (SLEC) → reviewed by State Implementing Agency (SIA) → SIA recommends to DAHD.
6Central Approval (PAC)Project Approval Committee (PAC) at DAHD approves. Approval confirmed on NLM portal — track via TRACK STATUS tab.
71st Subsidy InstalmentAfter spending 25% of own/loan contribution on infrastructure (verified by SIA), SIDBI releases 1st instalment (50% of approved subsidy) to your bank account.
8Project CompletionComplete farm setup → get verified by SIA → 2nd and final instalment (remaining 50% of subsidy) released by SIDBI.

Indicative Project Cost for a 55-Animal Unit (50F + 5M)

Cost HeadEstimated Cost (Rs)Notes
Animal Procurement (55 donkeys @ Rs 20,000–35,000/animal)Rs 11–19 LakhIndigenous breed; price varies by state
Shed / Housing InfrastructureRs 15–25 LakhCovered + open area; fencing; water supply
Equipment (milking, storage, cold chain)Rs 8–15 LakhMilking equipment; refrigeration; containers
Feed & Fodder (Year 1)Rs 5–8 LakhGrass, dry fodder, mineral supplements
Veterinary / Healthcare SetupRs 2–3 LakhInitial vaccinations, veterinary retainer
Miscellaneous / ContingencyRs 2–4 LakhRegistration, insurance, transport
Total Project Cost (Estimated)Rs 43–74 LakhMidpoint: ~Rs 58–60 Lakh
Government Subsidy (50%, capped at Rs 50 L)Rs 29–37 LakhMax Rs 50 lakh (subsidy cap)
Your Contribution (50% balance)Rs 14–24 LakhVia bank loan + own funds

Disclaimer: Cost estimates are indicative and will vary significantly by state, land availability, local animal prices, and infrastructure approach. Applicants must prepare a site-specific DPR. Land cost is NOT covered under the subsidy.

Revenue Potential — The Business Case for Donkey Farming

Revenue StreamVolume / YearAvg. PriceAnnual Revenue
Donkey Milk (domestic niche)~8,000–12,000 L (50 jennies, 4-5 months)Rs 2,000–3,500/litreRs 1.6–4.2 Cr
Donkey Milk (pharma/cosmetic export)~5,000–8,000 LRs 5,000–7,000/litreRs 2.5–5.6 Cr
Foal / Breeding Animal Sales5–10 foals/year (conservative)Rs 25,000–50,000/animalRs 12.5–50 Lakh
Donkey Manure (organic fertiliser)BulkSupplementaryRs 1–3 Lakh
Total Annual Revenue RangeRs 30 L – Rs 6 Cr

Revenue range is wide because it depends entirely on your buyer pipeline. A farm selling to local niche buyers will generate Rs 30–50 lakh/year. A farm with direct contracts with cosmetic/pharmaceutical companies or export buyers can achieve Rs 2–6 Cr/year. Building the buyer relationship before setting up the farm is the most critical success factor.

Real-world benchmark: Gujarat farmer Dhiren Solanki invested Rs 22 lakh, built a 42-donkey farm, and now earns Rs 3 lakh per month (Rs 36 lakh/year) — without the NLM subsidy. With the subsidy, his effective upfront investment would have been under Rs 11 lakh.

Why This Scheme Exists — India’s Donkey Population Crisis

YearDonkey PopulationChange
1992~97 Lakh (9.7 million)Peak population
2012~3.2 Lakh (320,000)-97% from 1992
2019~1.12 Lakh (112,000)-65% from 2012; -99% from 1992
2026 (estimated)<1 LakhCritical conservation threshold

The collapse has been driven by two forces: agricultural mechanisation (tractors replacing donkeys as pack animals) and the complete absence of an organised economic use case for donkeys beyond labour. The NLM subsidy is the government’s attempt to create that economic case before the species becomes commercially extinct in India. Rajasthan leads with ~23,000 donkeys (2019 census), followed by Gujarat (home to the Halari and Kachchhi indigenous breeds) and Tamil Nadu. These states are the natural geography for donkey farming enterprises.

India’s Indigenous Donkey Breeds (Eligible Under Scheme)

BreedPrimary StateCharacteristicsBest For
HalariGujarat (Saurashtra/Halari region)Larger body; white/grey coat; strong; docileMilk production; breeding stock
KachchhiGujarat (Kutch district)Adapted to arid climates; low-maintenanceBreeding farms in arid regions
Spiti (Mountain Donkey)Himachal PradeshSmall, sturdy; high-altitude adaptedPack work in mountain terrains
Ladakhi DonkeyLadakh / J&KCold-climate adapted; compact buildLocal breeding conservation

The scheme mandates indigenous breeds to preserve India’s native genetic diversity and prevent the breeds from disappearing entirely. Importation of exotic donkey breeds (e.g., Poitou, Mammoth Jack) is not eligible for NLM subsidy funding.

NLM-EDP: How Donkey Breeding Compares to Other Livestock Schemes

Scheme ActivityMin. Unit SizeMax Subsidy% SubsidyUnique Advantage
Donkey Breeding50F + 5MRs 50 Lakh50%High milk value; low competition
Horse Breeding10 mare + 2 stallionRs 50 Lakh50%Equine sports & riding demand
Camel BreedingAs per guidelinesRs 50 Lakh50%Camel milk export market
Goat/Sheep Breeding500F + 25MRs 50 Lakh50%Established domestic market
Pig Breeding100 sow + 25 boarRs 30 Lakh50%Northeast India meat demand
Rural Poultry Hatchery1,000 parent birdsRs 25 Lakh50%Fast protein cycle; egg income
Fodder / Feed UnitSilage/hay/TMR unitRs 50 Lakh50%Can be combined with any farm

Pro tip: An entrepreneur can apply for BOTH a donkey breeding unit AND a fodder/feed unit as separate projects — meaning up to Rs 1 Cr in combined NLM subsidies for an integrated donkey farm with in-house fodder production, dramatically improving economics.

Challenges and Risks Applicants Must Know

  1. Low Milk Volume: A female donkey produces only 200–300 ml/day — maximum 1.5–2 litres/day — for 4–5 months/year. A 50-animal farm will yield 8,000–15,000 litres annually at best. This is a high-value, low-volume model; your economics depend entirely on securing premium prices from cosmetic/pharma buyers — not commodity pricing.
  2. No FSSAI Standard for Donkey Milk: As of 2026, India’s FSSAI has not issued a standard for donkey milk as a food product. This means selling donkey milk for direct human consumption remains in a regulatory grey area. Pharmaceutical and cosmetic applications as raw ingredients are currently the commercially viable path.
  3. Limited Veterinary Expertise: Equine veterinary services are significantly less available than bovine/poultry vets. Plan for retaining a specialist vet from ICAR-NRC on Equines (Hisar) or a veterinary college with equine department for ongoing support.
  4. Cold Chain Requirement: Donkey milk requires 4°C storage and has a short shelf life (~30 days with High Pressure Processing). Without a cold chain from farm to buyer, the product is worthless. Factor this infrastructure into your DPR.
  5. Subsidy Processing Time: NLM subsidy approvals can take 6–12 months from application to first instalment release, depending on state-level bottlenecks. Plan your project timeline and financing accordingly — do not count on the subsidy arriving before you need liquidity.

Real-World Precedents — Indians Already Building This Business

Farmer / EntityLocationScale & InvestmentOutcome
Dhiren Solanki (TDS Donkey Farm)Gujarat42 donkeys; Rs 22 Lakh investmentRs 3 Lakh/month revenue; supplies cosmetic companies in Karnataka & Kerala
Tamil Nadu farmers (multiple)Tamil NaduSmall-scale 10–20 animalsLocal donkey milk sold at Rs 2,000/litre; traditional medicinal demand
Aadvik Foods & ProductsRajasthanCamel milk brand; expanding to donkey milk powderFirst commercial donkey milk powder in India (Lac Jennius brand)

These early movers built their businesses without the NLM subsidy. With Rs 50 lakh in government support now available, the economics improve dramatically — reducing break-even timelines from 4–5 years to potentially 2–3 years.

What’s Next — The Road Ahead for Donkey Farming in India

Two regulatory developments would transform this sector overnight. First, FSSAI certification for donkey milk as a food product — enabling direct human consumption sales in India, which would open up the domestic premium dairy market (currently closed). Second, artificial insemination programmes for donkeys — recommended by ICAR-NRC Equines — which would accelerate genetic improvement and herd expansion without the 14–15 month gestation-and-recovery cycle.

The global market context is compelling: donkey milk is already used by European luxury beauty brands such as Lush, Cleopatra Naturals, and Italian artisanal soap makers. India’s Halari breed produces milk comparable in composition to European donkeys — if India builds the supply chain, export contracts with European cosmetic companies are a realistic medium-term outcome.

Our prediction: India will have 200+ organised donkey farms by 2028, driven by NLM subsidy uptake in Gujarat, Rajasthan, and Tamil Nadu — and the first FSSAI-certified donkey milk brand listed on Nykaa or Amazon India will emerge within 18 months.

  • Apply Now: Quick Reference
  • Portal: nlm.udyamimitra.in
  • Helpline: DAHD, Ministry of Fisheries, Animal Husbandry & Dairying, Govt. of India
  • Technical Support: ICAR-National Research Centre on Equines, Hisar, Haryana
  • Documents Needed: KYC, land documents, DPR, bank loan sanction / bank guarantee (self-finance), training certificate
  • Pro Tip: Contact your State Implementing Agency (SIA) — State Animal Husbandry Department — before applying for state-specific guidance and faster application processing
Correspondent
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Soumya Verma is Senior Correspondent at StartupFeed, covering startup policy, government schemes and early-stage funding in India. She writes from inside the ecosystem she reports on — working within one of North India's largest startup incubation centres, where she evaluates early-stage ventures on technology readiness and investor preparedness, and drafts funding proposals at crore scale under national innovation schemes. She has guided more than 75 plus founders through pitch, valuation and compliance, and reports on the same programmes she works with every day
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