How Entrepreneurs Can Score Big with Rs 50 Lakh Subsidy for Animal Feed Ventures

The National Livestock Mission (NLM) launched by the Indian government aims to foster entrepreneurship in the livestock sector. The NLM’s Sub-Mission on Feed and Fodder Development offers a substantial capital subsidy of up to 50% of the total project cost, capped at Rs 50 lakh to people who want to start their business in animal feed and fodder production. This initiative is projected to create employment opportunities for approximately 7 lakh individuals and facilitate 20 lakh households engaged in livestock farming to access affordable, high-quality fodder locally.

Under the NLM's Sub-mission on Feed and Fodder Development, the focus is on boosting the fodder seed chain to improve the availability of certified fodder seeds essential for fodder production. Additionally, the program encourages entrepreneurs to establish fodder blocks, hay bailing, and silage-making units through incentivization.

The scheme is executed through various entities including state animal husbandry departments, state livestock agencies/boards, and the Department of Animal Husbandry and Dairying (DAHD) of the Indian government. Its objectives encompass:

Objectives of Sub-Mission on Feed and Fodder Development:

• Establishment of an effective seed production chain.

• Capacity building of state functionaries and livestock owners in forage production, conservation, and utilization.

• Promotion of convergence and synergy among ongoing plan programs and stakeholders for fodder resource development.

Salient Features of Sub-Mission on Feed and Fodder Development

• Under this activity, the fodder seed chain i.e. breeder, foundation, and certified quality fodder seed production will be incentivized.

• This component is targeted towards the multiplication of seeds of high-yielding fodder varieties which has been developed through research and innovations, significantly showing better performance, for which incentives will be provided.

Pattern of Assistance

• 100% incentivization for production of all categories of fodder seed production by ICAR, National Seed Corporation (NSC), Indian Farmers Fertilizer Cooperative (IFFCO), Krshak Bharati Cooperative Limited (KRIBHCO), National Agricultural Cooperative Marketing Federation(NAFED) and Central Agencies as well as State Agriculture Universities (SAU), Hindustan Insecticides Limited (HIL), State Government seed production corporations, public and private organizations, dairy cooperatives and milk federations and other organizations with good credibility.

• The seed production incentives will be given to central seed agencies like National Seed Corporation (NSC), ICAR, IFFC, KRIBHCO, NAFED, HIL, NDDB, etc directly and to the State Implementing Agency for the applications received from the State seed-producing agencies. However, the assistance for Dairy Cooperatives and Milk Federations will be through NDDB.

• The assistance will be disbursed in two installments based on the per kilogram cost of seed. The initial installment will be released upon approval of a viable proposal, while the second installment will follow after the production of seeds and its self-certification by the concerned beneficiary agency.

The supported costs for the production of various seed categories are as follows:

• Breeder Seed: Up to Rs. 250/kg

• Foundation Seed: Up to Rs. 150/kg

• Certified Seed: Up to Rs. 100/kg

When farmers are engaged by seed-producing agencies in fodder seed production activities, 75% of the subsidy is to be transferred to the farmers, while 25% should be retained by the seed-producing agency to cover expenses, including certification costs.

Eligible entities include ICAR institutions, NSC, NAFED, KRIBHCO, IFFCO, central multi-state cooperatives such as NCCF, HIL, NDDB, dairy cooperatives, milk federations, and other agencies approved by the National Livestock Mission as central nodal agencies at the national level. State government seed production corporations, public and private organizations, and other credible entities are also eligible.

How to Get the Subsidy:

• State implementing agencies will invite entrepreneurs and eligible entities through Expression of Interest.

• Entrepreneurs and eligible entities shall apply through the NLM Portal in response to the Expression of Interest.

• The entire subsidy amount will be routed through the Small Industries Development Bank of India (SIDBI), which will transfer the subsidy to the subsidy account of beneficiaries in lending scheduled banks or financial institutions.

• Beneficiaries opting for self-financing mode under the entrepreneurship project must provide a bank guarantee from a scheduled bank to cover the remaining project cost beyond the capital subsidy provided.

The entire process is facilitated through state agencies and the Small Industries Development Bank of India, ensuring financial support for sustainable entrepreneurship in the sector.