Animal Husbandry Infrastructure Development Fund (AHIDF)
Why in news?
In December 2025 Lok Sabha discussions, officials emphasized AHIDF's role alongside dairy expansion plans for 75,000 new cooperatives. A Rajya Sabha response confirmed ₹10,320 crore sanctions, with under-utilization noted in states like Madhya Pradesh due to low applications.
About
The Animal Husbandry Infrastructure Development Fund (AHIDF) is a ₹15,000 crore credit facility launched under the Atma Nirbhar Bharat Abhiyan to boost dairy, meat, and animal feed infrastructure in India. It provides loans with 3% interest subvention, a 2-year moratorium, and repayment over 8 years.
About AHIDF
- Launched by: Government of India, Department of Animal Husbandry & Dairying
- Corpus: ₹15,000 crore fund
- Objective: Strengthen livestock sector infrastructure, improve farmers’ income, and promote entrepreneurship
Eligible Beneficiaries
- Individual entrepreneurs
- MSMEs (Micro, Small & Medium Enterprises)
- Farmers Producers Organizations (FPOs)
- Section 8 companies (non-profit)
- Private companies and dairy cooperatives
Activities Supported
- Dairy processing & value addition infrastructure (milk chilling, processing plants, packaging units)
- Meat processing units (modern slaughterhouses, cold chain facilities)
- Animal feed plants (balanced feed, mineral mixtures, silage making units)
Financial Benefits
- Loan coverage: Up to 90% of project cost from scheduled banks/NABARD/NCDC/NDDB/SIDBI
- Interest subvention: 3% for 8 years
- Moratorium: 2 years on repayment
- Collateral-free loans: Possible under Credit Guarantee Fund
- No ceiling on loan amount: Flexibility for large projects
Impact & Progress
- Over ₹4,710 crore sanctioned project cost and ₹3,270 crore sanctioned loan amount so far
- Designed to increase price realization for producers and reduce wastage in dairy/meat supply chains
Risks & Considerations
- Implementation challenges: Timely loan disbursement and project monitoring are critical.
- Market linkage: Infrastructure must align with demand; otherwise, units risk underutilization.
- Compliance: Beneficiaries must follow strict SOPs and avoid fraudulent practices.
- Sustainability: Projects should integrate eco-friendly practices to avoid long-term environmental costs.
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