Did you know that India is the largest producer of milk in the world, contributing to 23% of global milk production? Despite this achievement, the animal husbandry sector has immense untapped potential in infrastructure and modernization.
Recognizing this, the Government of India launched the Animal Husbandry Infrastructure Development Fund (AHIDF) to boost this sector and make it globally competitive.
In this blog, we'll explore how the AHIDF scheme works, its key benefits, eligibility criteria, and how entrepreneurs in the livestock, dairy, and poultry industries can access this game-changing opportunity.
What is the AHIDF Scheme?
The AHIDF Scheme, introduced under the Atmanirbhar Bharat Abhiyan, is a ₹15,000 crore initiative aimed at improving the infrastructure of animal husbandry and related industries. This fund provides subsidized loans to eligible entities, helping them set up or expand facilities for:
- Dairy processing and value addition.
- Meat processing and export facilities.
- Animal feed manufacturing units.
- Other innovative projects in the animal husbandry ecosystem.
Objective: To make the animal husbandry sector more organized, profitable, and sustainable by improving infrastructure and promoting entrepreneurship.
Why the AHIDF Scheme is Crucial
Animal husbandry contributes nearly 4.2% to India's GDP and is a key source of livelihood for rural populations. However, many businesses in this sector struggle with:
- Lack of modern facilities.
- Inadequate cold chains and processing units.
- Limited access to affordable financing.
The AHIDF Scheme bridges this gap by offering financial assistance to entrepreneurs, cooperatives, and startups.
🚨 Did You Know?
Upgrading processing infrastructure under the AHIDF can reduce wastage by 20-30%, ensuring better returns for farmers and businesses alike.
Key Features of the AHIDF Scheme
Upgrading processing infrastructure under the AHIDF can reduce wastage by 20-30%, ensuring better returns for farmers and businesses alike.
- 1. Affordable Financing: The scheme provides loans with 3% interest subvention, making it easier for businesses to invest in infrastructure.
- 2. Long Repayment Period: Loans under the AHIDF can be repaid over a period of up to 8 years, including a moratorium of 2 years.
- 3. No Upper Limit on Loan Size: The fund allows flexibility in project sizes, ensuring businesses of all scales can benefit.
- 4. Eligibility for All: From MSMEs and cooperatives to private companies and startups, a wide range of entities can apply.
- 5. Employment Generation: The scheme aims to create 35 lakh jobs, boosting rural livelihoods and entrepreneurship.
Explore More: Looking for loans for your next big project? Check out NBFC Loans for more options.
Eligible Activities Under AHIDF
Wondering if your project qualifies? Here's a list of activities supported under the scheme:
- Dairy Infrastructure
- Milk processing plants.
- Manufacturing of milk products like cheese, butter, and ice cream.
- Meat Processing Facilities
- Slaughterhouses with modern technology.
- Export units for meat products.
- Animal Feed Manufacturing
- High-quality cattle feed plants.
- Nutritional supplements for livestock.
- Other Innovations
- Biogas plants.
- Projects promoting animal health and productivity.
Pro Tip: Want to prepare a strong application? Visit our Pitch Deck Services for expert assistance.
Who Can Apply for the AHIDF Scheme?
The scheme is open to a broad range of entities, including:
- MSMEs.
- Farmers Producers Organizations (FPOs).
- Dairy cooperatives.
- Startups and private companies.
Requirement: Applicants must contribute 10% of the total project cost, while the remaining 90% is covered by loans under AHIDF.
Related Resource: Check out our MSME Certification guide to ensure your business is eligible for government schemes.
How to Apply for the AHIDF Scheme
Follow these steps to take advantage of the AHIDF scheme:
- Step 1: Prepare Your Business Plan
Develop a detailed project report (DPR) outlining your objectives, infrastructure needs, and financial projections. - Step 2: Register Your Business
Ensure your business is registered as an MSME, cooperative, or private entity. For guidance, visit our page on GeM Registration. - Step 3: Submit Your Application
Apply through the AHIDF portal on the Department of Animal Husbandry & Dairying website. - Step 4: Approval and Loan Disbursement
Once approved, loans are disbursed by participating banks with interest subvention provided by the government.
Benefits of the AHIDF Scheme
Here's why the AHIDF scheme is a game-changer for businesses in the animal husbandry sector:
- Access to Modern Technology: Helps businesses invest in advanced equipment and processes.
- Boosts Export Potential: Supports facilities that meet global quality standards, increasing export revenues.
- Encourages Sustainability: Promotes eco-friendly practices like biogas production and waste management.
- Enhances Farmer Income: By reducing wastage and improving processing, farmers get better returns.
Explore More: Want to learn about government grants? Visit Government Grants for detailed insights.
Success Stories: AHIDF in Action
A rural cooperative used AHIDF funding to set up a milk processing unit. They now produce value-added products like yogurt and butter, increasing profits by 40%.
This startup leveraged the scheme to establish an export-ready meat processing facility, creating 250 new jobs in their region.
Why the AHIDF Scheme is a Must-Use Opportunity
The AHIDF Scheme isn't just about infrastructure—it's about transforming the animal husbandry sector into a modern, efficient, and sustainable industry. Whether you're a small-scale dairy farmer or a growing agribusiness, this scheme can help you scale your operations, increase profitability, and make a meaningful impact.
Ready to take your animal husbandry business to the next level? Explore our resources on Government Loans,, MSME Certification, and Pitch Deck Preparation to simplify your application process and maximize your chances of success.