Dairy is a high priority sector for the Indian government
Animal Husbandry Infrastructure Development Fund (AHIDF) offers financial support to entrepreneurs, private companies, MSME, FPOs
To provide dedicated focus towards promoting and facilitating investments in the Indian dairy sector, the Indian government’s Department of Animal Husbandry and Dairying (DAHD) has set up the Dairy Investment Accelerator under its investment facilitation cell. This investment accelerator is a cross-functional team constituted to serve as an interface with investors. It shall provide support across the investment cycle:
- Offering specific inputs for evaluation of investment opportunities
- Addressing queries about application to government schemes
- Connecting with strategic partners
- Providing on-ground assistance with state departments and relevant authorities
Further, the Dairy Investment Accelerator will work with DAHD to organize a series of events with global and local industry participants, and one-on-one discussions with the investors to understand their perspectives, facilitate direct interactions with government officials and connect with other players in the industry.
The accelerator is also generating awareness among investors about the Animal Husbandry Infrastructure Development fund (AHIDF). AHIDF is one of the flagship schemes by DAHD under which a fund of Rs 15,000 crore has been earmarked for offering financial support to entrepreneurs, private companies, micro, small and medium enterprises (MSMEs), farmer producer organizations (FPOs), and companies established under Section 8 of the Companies Act.
Eligible entities can avail the benefits of the scheme to set up new units or expand existing units in the areas of dairy processing and related value-addition infrastructure, meat processing and related value-addition infrastructure and animal feed plants.
The benefits available are:
- 3% interest subvention on loans
- 2-year moratorium with 6-year repayment period
- Rs 750-crore credit guarantee
India is the largest milk producer, contributing 23% of the global milk output. The annual milk production in the country has grown by 6.4% (CAGR) in the past five years. Dairy is a high priority sector for the Indian government due to its socio-economic significance. It is the single largest agricultural commodity, contributing 5% to the national economy and employing over 80 million farmers directly.
The DAHD encourages all private companies, individual entrepreneurs, and start-ups, which are interested in investing in dairy sector, to reach out to the Dairy Investment Accelerator on the email: dairy-accelerator@lsmgr.nic.in
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