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 Animal Husbandry Infrastructure Development Fund (AHIDF) is a ₹15,000 crore initiative by the Government of India under the Atmanirbhar Bharat Abhiyan. It provides low-interest loans to support modern infrastructure in:
- Dairy processing
- Meat production & export units
- Animal feed manufacturing
- Biogas & sustainable agri-livestock innovations
Objective: To modernize India’s livestock sector, reduce post-harvest loss, and improve farmer incomes.
Why AHIDF is Crucial for India's Economy
- Animal husbandry contributes 4.2% to GDP
- Supports over 100 million rural livelihoods
- Upgrading infra can cut wastage by 20–30%
- Opens export opportunities with quality-certified units
Key Features of the AHIDF Scheme
| Feature | Benefit |
|---|---|
| 3% Interest Subvention | Affordable loans for infra projects |
| Up to 8 Years Repayment Period | Includes 2 years moratorium |
| No Limit on Project Size | Suited for both MSMEs and large-scale businesses |
| Broad Eligibility | MSMEs, startups, cooperatives, FPOs, Section 8 Companies |
| Job Creation | Scheme aims to create 35 lakh jobs nationwide |
Need faster capital? Check NBFC loan options .
Eligible Activities Under AHIDF
- Dairy Sector
- Milk chilling & pasteurization plants
- Cheese, yogurt, butter, ice cream manufacturing
- Meat Processing
- Hygienic slaughterhouses
- Value-added meat exports
- Feed Manufacturing
- Balanced animal feed units
- Organic/nutritional supplements
- Other Innovations
- Biogas & waste-to-energy plants
- Mobile animal health services
Who Can Apply for the AHIDF Scheme?
The scheme is open to a broad range of entities, including:
- MSMEs
- Farmer Producer Organizations (FPOs)
- Private agri-startups
- Cooperatives
- Section 8 companies
Requirement: Applicants must contribute 10% of the total project cost, while the remaining 90% is covered by loans under AHIDF.
How to Apply for the AHIDF Scheme
- Prepare Your Business Plan
Develop a detailed project report (DPR) outlining your objectives, infrastructure needs, and financial projections.
- Register Your Business
Ensure your business is registered as an MSME, cooperative, or private entity. For guidance and support get in touch with Egniol.
- Submit Your Application
Apply through your expert at Egniol, this will make the process quick and get you best results.
- Approval and Loan Disbursement
Once approved, loans are disbursed by participating banks with interest subvention provided by the government via your Egniol expert.
Benefits of AHIDF for Livestock Entrepreneurs
- Modern Tech Access: Automation, chilling systems, export units
- Global Standards: Improved product traceability = higher export value
- Eco-Friendly: Biogas, composting, feed optimization
- Farmer Prosperity: Reduced loss = more revenue
Success Stories
Used AHIDF for milk processing → added yogurt line → profits grew by 40%.
Built export-certified meat unit → created 250+ rural jobs.
FAQs on AHIDF Scheme
There is no upper limit. Projects are funded based on DPR viability.
Yes. AHIDF supports new and early-stage entities if DPR and structure are solid.
Up to 8 years, including 2-year moratorium.
Yes, Udyam/ MSME registration improves application priority.
Final Thoughts: AHIDF – A Growth Engine for Livestock Entrepreneurs
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 get started?
Let Egniol help with registration, DPRs, and bank coordination for smooth approval.
Disclaimer: The information presented in this blog is sourced from various online platforms and government portals.