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A new government initiative providing up to Rs 50 lakh in capital subsidies to promote donkey farming and rural entrepreneurship
The Department of Animal Husbandry & Dairying, Government of India, under the Entrepreneurship Development component of National Livestock Mission, is providing a 50% capital subsidy up to Rs. 50 lakh to individuals, Farmer-Producer Organisations (FPOs), Self-Help Groups (SHGs), Joint Liability Groups (JLGs), Farmer Cooperative Organisations (FCOs), and Section 8 Companies for the establishment of donkey breeding farms with at least 50 female donkeys and five males.
The initiative is aimed at strengthening rural entrepreneurship and conserving indigenous livestock breeds that have seen a sharp decline in recent years. According to Government of India sources, 3843 projects have been approved to date with a total project cost of Rs 2672.65 crore. and an approved subsidy of Rs 1233.69 crore.
What is the Donkey Breeding Farm Subsidy Scheme?
Under the National Livestock Mission, the subsidy is intended to support infrastructure such as animal housing, feed facilities, breeding management, and other farm-related expenses required to establish organised donkey breeding units.
Beneficiaries can apply through the NLM portal or the state animal husbandry department and are required to secure bank financing for the remaining project cost.
Officials note that donkey-based enterprises are gradually gaining attention because of emerging markets for donkey milk, breeding stock, and hides.
Donkey milk, in particular, has niche demand in the pharmaceutical and cosmetic industries due to its nutritional and medicinal properties.
The scheme is part of the government’s broader effort to promote livestock-based livelihoods and diversify income opportunities for farmers and rural entrepreneurs across the country.
Who Can Apply for the Scheme?
The scheme is open to individuals as well as organised groups involved in livestock activities. Eligible applicants include Farmer Producer Organisations (FPOs), Self Help Groups (SHGs), Joint Liability Groups (JLGs), Farmer Cooperative Organisations (FCOs), and Section 8 companies.
Applicants must submit their proposals through the National Livestock Mission portal along with a detailed project report and proof of bank loan approval.
The subsidy is linked to the successful establishment of the breeding farm and compliance with the guidelines issued by the Department of Animal Husbandry and Dairying.
The subsidy is disbursed in two installments. The first installment is released after the bank loan for the project is approved, while the second installment is paid once the farm is completed and verified by the authorities.
Eligibility
To become eligible for a donkey breeding unit under the mission, a project must include at least 50 female donkeys and 5 male donkeys. Also, the scheme supports only indigenous breeds to preserve native livestock varieties.
Officials said the scheme aims to encourage organised breeding practices, improve livestock productivity, and create additional income opportunities for farmers and rural entrepreneurs.
About Donkey Farming
According to data from the 20th Livestock Census (2019), India had around 1.23 lakh donkeys in 2019, marking a decline of nearly 60% compared with 2012.
Donkeys were once widely used for transport and construction work in rural areas. However, increasing mechanisation has reduced their demand, contributing to the sharp fall in their population.
Through financial incentives, the government aims to encourage entrepreneurs to establish breeding farms and support the conservation of indigenous animals.

