Cabinet approves to set up Animal Husbandry Infrastructure Development Fund

On June 24, 2020, the union cabinet chaired by PM Modi approved stimulus package of Rs 15,000 crore to set up Animal Husbandry Infrastructure Development Fund.


The Government of India had earlier approved the Dairy Infrastructure Development Fund of Rs 10,000 crores to incentivize cooperative sector that will in turn add value to infrastructure of animal husbandry sector.

The fund set up is a part of the economic package that was allocated under the Atma Nirbhar Bharat Abhiyan.


The Animal Husbandry Infrastructure Development Fund (AHIDF) will be used to provide incentives to infrastructure investments of meat processing, dairy and animal feed plants.

The beneficiaries that are to gain under the fund are Farmer Producer Organizations, private companies, individual entrepreneurs and MSMEs.

The beneficiaries will only be contributing 10% margin. The remaining 90% is to be made available by the scheduled banks.


The GoI is to provide 4% interest subvention to the beneficiaries from Aspirational districts. A moratorium period of 2 years of repayment of loan has been included. Also, a credit guarantee fund of Rs 750 crores has been set up that is to be managed by NABARD.


The fund will to promote exports largely, especially in the processing sector. The fund is to help create livelihood for about 35 lakh persons directly or indirectly.

The fund will also motivate farmers to invest more on inputs thereby increasing in productivity. Ultimately it will help increase farmers income.


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