Government Loans for Dairy and Animal Husbandry Sector Under Various Schemes

Dairy and Animal husbandry is unorganized sector in India and a major source of livelihood in rural areas. In order to bring structure to dairy farming industry and provide assistance for setting up dairy farms, the government provides loans with interest subvention through the following schemes for promotion and development of dairy and animal husbandry sector across the country:

Animal Husbandry Infrastructure Development Fund (AHIDF):

Under AHIDF, the Government provides 3% interest subvention to Farmer Producer Organization, Private companies, individual entrepreneurs, section 8 companies, Micro, Small and Medium Enterprises through the Bank upfront in the first year and subsequently on demand by the bank for each of the beneficiaries on each year on the outstanding amount.

Dairy Processing and Infrastructure Development Fund (DIDF):

Under DIDF, loan assistance with interest subvention @ 2.5% per annum is provided through NABARD, NDDB and NCDC to the Eligible End Borrows (EEBs). The Eligible End Borrower (EEBs) under DIDF are Co-operative Milk Unions, State Co-operative Milk Federations, Multi-state Milk Co-operatives, Milk Producer companies, NDDB Subsidiaries, FPO/SHGs registered under cooperatives/companies act.

Supporting Dairy Cooperatives and Farmer Producer Organizations engaged in dairy activities (SDC&FPO):

Under SDC&FPO, loan towards working capital to dairy Cooperatives/FPOs is provided at simple annual interest rate of 5%, calculated on a monthly basis. Further, due to Economic Impact of Covid-19 on Dairy Sector, the Government has introduced a new activity “interest subvention on Working capital loans for Dairy sector” as a component under this scheme. 2% interest subvention on secured working capital loan is provided including additional 2% interest subvention for prompt and timely repayment.

The Government’s Schemes to promote dairy and animal husbandry:

• Rashtriya Gokul Mission (RGM)

• National Programme for Dairy Development (NPDD)

• Dairy Processing and Infrastructure Development Fund(DIDF)

• Supporting Dairy Cooperatives and Farmer Producer Organizations engaged in dairy activities (SDC&FPO)

• National Livestock Mission(NLM)

• Animal Husbandry Infrastructure Development Fund(AHIDF)

• Livestock Health & Disease Control(LH&DC)

• National Animal Disease Control Programme (NADCP)

In order to ensure increased credit flow in the form of Kisan Credit Card(KCC) to animal husbandry, dairy & fisheries farmers as announced in Hon’ble Finance Minister’s Budget Speech 2021-22, a target of Rs 61,650 Crore for animal husbandry, dairy and fisheries is fixed within the overall term loan target of Rs 6,85,000 Crore for agriculture.

Source: PIB