Animal Husbandry Infrastructure Development Fund (AHIDF) till 2025-26

Animal Husbandry Infrastructure Development Fund (AHIDF) till 2025-26

05-02-2024

Context

The Union Cabinet has extended the Animal Husbandry Infrastructure Development Fund (AHIDF) until 2025-26.

What is AHIDF?

  1.  AHIDF was launched on June 24, 2020 under Atmanirbhar Bharat Abhiyan stimulus package.
  2. The fund of worth Rs. 15,000 crore, was allotted to boost the animal husbandry sector.

Atmanirbhar Bharat Abhiyan

  1. The Atmanirbhar Bharat Abhiyan, was introduced in May 2020.
  2. Aim: foster self-reliance and economic resilience in India, especially in the face the global pandemic.
  3. Key Points:
    • The economic stimulus relief package: Rs. 20 Lakh crores.
    • It incorporates the previously announced Rs. 1.70 lakh crore relief package, known as the PMGKY (Pradhan Mantri Garib Kalyan Yojana).
    • The PMGKY relief package was specifically designed to aid the poor in overcoming difficulties caused by the coronavirus pandemic and the subsequent lockdown imposed to curb its spread.
  1. Loan Component and Interest Subvention:
  1. Scheduled banks provided a 90% loan component, with the government offering a 3% interest subvention to eligible beneficiaries.
  2. A two-year moratorium period for the principal loan amount was followed by a six-year repayment period.

Extension of AHIDF

  1. Fund: The fund will be implemented under the Infrastructure Development Fund (IDF) with an outlay of Rs. 29,610.25 crore for an additional three years, extending up to 2025-26.
  2. Objective and Focus Areas: The AHIDF aims to incentivize investments in various sectors, including Dairy processing, Meat processing, Animal Feed Plants, etc.
  3. Financial Support and Eligible Entities:
  1. The Government of India will provide a 3% interest subvention for 8 years, including a two-year moratorium, for loans up to 90% from scheduled banks, NCDC, NABARD, and NDDB.
  2. Eligible entities include individuals, Private Companies, FPOs, MSMEs, and Section 8 companies.
  1. Credit Guarantee and Benefits for Dairy Cooperatives: The government will offer credit guarantee to MSMEs and Dairy Cooperatives, covering up to 25% of the credit borrowed from the Credit Guarantee Fund of Rs. 750 crore.

Benefits of AIDF

Benefits

Description

1. Modernization Boost for Dairy Cooperatives

Dairy cooperatives will now receive benefits for the modernization and strengthening of their dairy plants.

2. AHIDF Impact on Processing Capacity

The AHIDF has already made a significant impact by adding:

  1. 141.04 LLPD of milk processing capacity,
  2. 79.24 lakh metric tons of feed processing capacity, and
  3. 9.06 lakh metric tons of meat processing capacity to the supply chain.

3. Potential for Livestock Sector Infrastructure Upgrade

With the inclusion of new activities such as technologically assisted breed multiplication farms, the scheme showcases substantial potential for infrastructure upgrading in the Livestock sector.

4. Employment Generation

The scheme aims to generate direct and indirect employment for approximately 35 lakh people through entrepreneurship development.

5. Doubling Farmers' Income

AHIDF actively contributes to achieving the Prime Minister's goal of doubling farmers' income.

6. Private Sector Involvement and Technology Integration

Investments in AHIDF promote private sector involvement, bringing in the latest technologies to enhance processing capabilities.

7. Export Promotion and Leveraging Private Investment

AHIDF not only contributes to the nation's economy by fostering the export of Livestock products but also leverages private investment seven times through incentivization.

Challenges and Solutions in Animal Husbandry Sector in India:

 

Challenges

Solutions

1. Many existing animal husbandry infrastructures in India are outdated, hindering efficiency and productivity

Invest in upgrading existing infrastructure with modern facilities

2. Insufficient investment in research and development hampers the introduction of innovative practices and technologies in the sector.

Increase funding for research and development in animal husbandry

3. Small and marginal farmers, who constitute a significant portion of the sector, often face challenges in accessing credit for investments in animal husbandry infrastructure.

Implement schemes and policies to ensure easy access to credit for small and marginal farmers, facilitating investments in infrastructure.

4. A shortage of skilled veterinarians and limited access to veterinary services can lead to health issues among livestock, affecting overall productivity.

Increase the number of veterinary clinics and services and provide training programs to enhance the skills of veterinary professionals.

5. Inconsistent availability of quality feed and fodder poses a challenge to the nutritional requirements of livestock.

Implement initiatives to increase the production of quality feed and fodder

6. Proper disposal and management of animal waste remain a challenge, leading to environmental concerns and health hazards.

Develop and promote eco-friendly waste management practices and convert animal waste into bioenergy and organic fertilizers.

Conclusion

By unlocking private sector investment, providing credit guarantees, and promoting export-oriented infrastructure, AHIDF not only enhances the sector's economic potential but also contributes to improving farmers' income and creating livelihood opportunities for a substantial population.

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