In a bid to incentivise private investment in dairy and meat processing infrastructure, the Cabinet Committee on Economic Affairs has given its nod to set up a ₹15,000-crore Animal Husbandry Infrastructure Development Fund. The Fund had been proposed as part of the Aatmanirbhar Bharat package last month.
Although there are several schemes to promote investment by dairy cooperatives, the Centre now realises that private players, especially small enterprises, also need incentives to invest in dairy and meat processing, value addition infrastructure and establishment of animal feed plants, according to an official statement.
“Eligible beneficiaries include Farmer Producer Organisations, MSMEs, Section 8 companies, private companies and individual entrepreneurs with minimum 10% margin money contribution by them. The balance 90% would be the loan component to be made available by scheduled banks,” said the statement. The Centre will provide 3% interest subvention to the beneficiaries, with a two-year moratorium period for the principal loan amount and six year repayment period after that.
Animal Husbandry Minister Giriraj Singh told journalists after the Cabinet meeting that exports would also benefit pointing to the huge market for international cheeses which could be met by the dairy players if the infrastructure was available. As almost 50-60% of the final value of dairy output flows back to farmers, the Fund will have a direct impact on farmer’s income, he said, adding that it would result in direct and indirect livelihood creation for 35 lakh people.
