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How to Start a Dairy Business in India: Licences and Setup

From a dairy farm to a milk processing plant.
23 September 2026 by
How to Start a Dairy Business in India: Licences and Setup
Gaurav Kumar
Other Licenses & RegistrationsComplete Guide3 min read
The short answer

Starting a dairy business in India involves choosing a model such as a dairy farm, milk collection centre or processing plant, registering the business, obtaining FSSAI registration or licence, pollution consent for processing units, local trade and building approvals, and arranging finance, often with support from schemes of the Department of Animal Husbandry and Dairying and NABARD.

Food licenceFSSAI registration or licence
Processing unitsSPCB consent
SupportCentral and state dairy schemes

Business models

  • Dairy farm selling raw milk
  • Milk collection and chilling centre
  • Processing: pasteurised milk, curd, paneer, ghee

Licences

  1. Business registration and GST
  2. FSSAI based on capacity
  3. SPCB consent for processing
  4. Trade licence and building approvals

Setup essentials

  • Healthy cattle and veterinary care
  • Clean water and fodder
  • Cold chain and hygiene

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Finance and subsidies

Explore dairy infrastructure and entrepreneurship schemes and bank loans with subsidy components.

Frequently asked questions

Does a small dairy farm need FSSAI?

Milk producers selling milk may need registration depending on scale; processors need FSSAI.

Is AGMARK needed for ghee?

AGMARK is voluntary for most products; check FSSAI requirements.

What capacity needs a Central licence?

Large milk processing capacities fall under Central licensing thresholds.

Are there subsidies?

Yes, several central and state schemes support dairy units.

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