The Animal Husbandry Infrastructure Development Fund’s expansion is approved by the cabinet.Rs.750 crore.

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Cabinet approves extension of Animal Husbandry Infrastructure Development Fund

Animal Husbandry: The extension of the Animal Husbandry Infrastructure Development Fund (AHIDF) under the Infrastructure Development Fund (IDF) has been approved by the Union Cabinet, which is chaired by Prime Minister Shri Narendra Modi. This permission covers a significant expenditure of Rs. 29,610.25 crore for an extra three years, or till 2025–2026. This initiative’s main goal is to promote investments in a number of industries, including veterinary vaccine and drug production facilities, animal feed plants, breed multiplication farms, dairy processing and product diversification, meat processing and product diversification, and animal waste to wealth management (agri-waste management).

The Government of India has agreed to fund a 3% interest subvention for eight years, with a two-year moratorium, as part of this initiative. This pertains to loans from scheduled banks and financial institutions such as the National Cooperative Development Corporation (NCDC), NABARD, and NDDB that make up 90% of the total amount. Individuals, private businesses, Farmer Producer Organizations (FPOs), Micro, Small, and Medium-Sized Enterprises (MSMEs), and Section 8 organizations are among the eligible entities. Notably, assistance with the modernization and fortification of dairy plants will also aid dairy cooperatives.

In addition, MSMEs and dairy cooperatives would receive loan guarantees from the Indian government, which will cover up to 25% of the amount borrowed from the Rs. 750 crore loan Guarantee Fund.

Since its establishment, the AHIDF has had a major influence on the livestock industry. Its addition to the supply chain has resulted in an increase in the capacity to process 141.04 lakh liters of milk per day (LLPD), 79.24 lakh metric tons of feed, and 9.06 lakh metric tons of meat. The dairy, meat, and animal feed industries have seen a 2-4% boost in processing capacity as a result.

With a wide range of opportunities from value addition and cold chain facilities to integrated units focusing on dairy, meat, and animal feed, as well as technologically advanced livestock and poultry farms, animal waste to wealth management, and the establishment of veterinary drug/vaccine units, the animal husbandry sector presents an alluring investment opportunity.

The AHIDF is positioned to show tremendous potential for the improvement of infrastructure in the livestock industry with the addition of new activities like technologically assisted breed multiplication farms, fortifying veterinary drug and vaccine units, and animal waste to wealth management.

In addition to developing infrastructure, the program is anticipated to create jobs and help about 35 lakh people both directly and indirectly by fostering entrepreneurship. Facilitating wealth growth within the cattle sector is the main objective. Approximately 15 lakh farmers have profited directly or indirectly from the AHIDF to date.

The AHIDF is noteworthy for its alignment with the Prime Minister’s vision of doubling farmers’ income through private sector investments, adoption of cutting-edge technologies for value addition and processing, and a major contribution to the national economy through the promotion of exports of livestock products. The export of processed and value-added animal products is expected to increase as a result of the eligible beneficiaries’ investments in processing and value-added infrastructure.

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More about:

• For eight years, the Indian government will subsidize interest at a rate of three percent, with a two-year moratorium on loans up to ninety percent from scheduled banks, National Cooperative Development Corporation (NCDC), NABARD, and NDDB.

Eligible Entities (EEs):

1. Farmer Producer Organization(FPO)    
2. Private companies 
3. Individuals 
4. Individual entrepreneurs  
5. Section 8 companies   
6. Micro Small and Medium Enterprises 

In conclusion:

To sum up, it is anticipated that the AHIDF’s investment incentives will not only increase private investment sevenfold but also encourage farmers to invest more in inputs, which will raise productivity and, eventually, raise farmers’ income. The government’s dedication to job creation, economic expansion, and the general welfare of the farming community is demonstrated by this all-encompassing approach to the development of the cattle sector.

The continuation of the Animal Husbandry Infrastructure Development Fund (AHIDF), as decided by the Cabinet, will create several opportunities for the youth and enhance income of farmers. https://t.co/FYkSS4KKsk

— Narendra Modi (@narendramodi) February 1, 2024

FAQ’s –Questions Ans. GK PM Modi:

1. Question: What is the primary purpose of the Animal Husbandry Infrastructure Development Fund (AHIDF)?

• Answer: The AHIDF aims to incentivize investments in various sectors such as Dairy processing, Meat processing, Animal Feed Plant, Breed multiplication farm, Animal Waste to Wealth Management, and Veterinary vaccine and drug production facilities within the Livestock sector.

2. Question: Who chairs the Union Cabinet and approved the continuation of AHIDF?

• Answer: Prime Minister Shri Narendra Modi chairs the Union Cabinet and approved the continuation of AHIDF.

3. Question: What is the total outlay allocated for the AHIDF extension for the next three years?

• Answer: The outlay for the AHIDF extension is Rs.29,610.25 crore for another three years, up to 2025-26.

4. Question: Which entities are eligible to benefit from the 3% interest subvention for 8 years under AHIDF?

• Answer: Individuals, private companies, Farmer Producer Organizations (FPOs), Micro, Small, and Medium Enterprises (MSMEs), and Section 8 companies are eligible entities.

5. Question: What are the sectors that will benefit from the AHIDF scheme?

• Answer: Sectors benefiting from the AHIDF scheme include Dairy processing, Meat processing, Animal Feed Plant, Breed multiplication farm, Animal Waste to Wealth Management, and Veterinary vaccine and drug production facilities.

6. Question: What is the duration of the interest subvention provided by the Government of India under AHIDF?

• Answer: The interest subvention is provided for a duration of 8 years, including a two-year moratorium.

7. Question: What role does the AHIDF play in employment generation?

• Answer: The scheme is expected to contribute to employment generation directly and indirectly, benefiting approximately 35 lakh people through entrepreneurship development.

8. Question: How has the AHIDF impacted the processing capacity in the dairy, meat, and animal feed sectors?

• Answer: The AHIDF has increased processing capacity by 2-4% in the dairy, meat, and animal feed sectors since its inception.

9. Question: What is the Government of India’s contribution to MSMEs and Dairy Cooperatives under AHIDF?

• Answer: The Government of India provides credit guarantees to MSMEs and Dairy Cooperatives, covering up to 25% of the credit borrowed from the Credit Guarantee Fund of Rs.750 crore.

10. Question: How does the AHIDF align with the Prime Minister’s goal of doubling farmers’ income?

• Answer: The AHIDF aligns with the goal by bringing in private sector investments, adopting the latest technologies for processing and value addition, and promoting the export of Livestock products, ultimately contributing to farmers’ income growth.