Govt Approves Rs. 29,610 Cr Extension for Animal Husbandry Infrastructure Development Fund Boost Livestock Sector

The Union Cabinet, under the leadership of Prime Minister Narendra Modi, has given the green light to the continuation of the Animal Husbandry Infrastructure Development Fund (AHIDF) for an additional three years until 2025-26. This initiative falls under the broader umbrella of the Infrastructure Development Fund (IDF) and boasts a substantial outlay of Rs. 29,610.25 crore. The scheme is set to stimulate investments across various segments, including Dairy processing, Meat processing, Animal Feed Plant, Breed multiplication farm, Animal Waste to Wealth Management (Agri-waste management), and Veterinary vaccine and drug production facilities.

Financial Incentives to Drive Growth

To catalyze investments, the Government of India will offer a 3% interest subvention for eight years, inclusive of a two-year moratorium period. This benefit applies to loans up to 90% obtained from scheduled banks, the National Cooperative Development Corporation (NCDC), NABARD, and NDDB.

Eligible entities encompass individuals, private companies, Farmers' Producer Organizations (FPO), Micro, Small, and Medium Enterprises (MSME), and Section 8 companies. Notably, Dairy Cooperatives will now enjoy advantages for the modernization and fortification of their dairy plants. Furthermore, the government will extend credit guarantees to MSMEs and Dairy Cooperatives, covering up to 25% of the credit borrowed from the Credit Guarantee Fund amounting to Rs. 750 crore.

Impact of AHIDF So Far

Since its inception, the AHIDF has made a significant impact on the sector. It has augmented the supply chain by adding 141.04 Lakh Liters Per Day (LLPD) of milk processing capacity, 79.24 lakh metric tons of feed processing capacity, and 9.06 lakh metric tons of meat processing capacity. This has led to a 2-4% increase in processing capacity in the dairy, meat, and animal feed sectors.

Diversifying Opportunities in Animal Husbandry

The animal husbandry sector is increasingly becoming an attractive investment avenue, offering opportunities ranging from value addition, cold chain infrastructure, and integrated units of Dairy, Meat, and Animal Feed to technologically advanced Livestock and Poultry farms. With the recent inclusion of activities such as technologically assisted breed multiplication farms, strengthening of veterinary drugs and vaccine units, and Animal Waste to Wealth Management, the AHIDF is poised to unlock immense potential for infrastructure upgradation in the Livestock sector.

Employment Generation and Wealth Creation

The scheme aims to be a catalyst for employment generation, directly and indirectly benefiting around 35 lakh people through entrepreneurship development. Approximately 15 lakh farmers have already benefited directly or indirectly from the AHIDF. Aligned with the Prime Minister's goal of doubling farmers' income, the AHIDF encourages private sector investments, integrates the latest technologies for processing and value addition, and contributes to the nation's economy by promoting the export of Livestock products.

Investments in the AHIDF are anticipated to not only leverage private investment sevenfold but also motivate farmers to increase their input investments. This, in turn, is expected to drive higher productivity, ultimately leading to an increase in farmers' income.