Government Launches Dairy Startup Accelerator and Animal Raising Fund of Rs. 15,000 Crore


The Livestock Infrastructure Development Fund (AHIDF) provides financial support to entrepreneurs, private companies, MSMEs and agricultural producer organizations (OPA)

The Department of Livestock and Dairy Production (DAHD) of the Government of India, with the aim of focusing on the promotion and facilitation of investments in the Indian dairy sector, has established Dairy investment accelerator as part of its Investment Facilitation Unit. This investment accelerator is a cross-functional team formed to serve as an interface with investors. It provides support throughout the investment cycle:

  • Provide specific inputs for the evaluation of investment opportunities
  • Answer questions about government application. schematics
  • Connection with strategic partners
  • Provide field assistance with state departments and relevant authorities

In addition, the Dairy Investment Accelerator will work with DAHD to organize a series of events with global and local industry participants and one-on-one discussions with investors to understand their views, facilitate face-to-face interactions. with government officials and connect with other industry players.

Dairy Investment Accelerator also educates investors about Livestock Infrastructure Development Fund (AHIDF). AHIDF is one of the flagship programs of DAHD, the Indian government, through which Rs. 15,000 crore in funds was set up to provide financial support to entrepreneurs, private companies, MSMEs, agricultural producer organizations (OPA) and section 8 companies.

Eligible entities can take advantage of the benefits of the program to create new units or expand existing units in the areas of dairy processing and associated value-added infrastructure, meat processing and infrastructure to associated added value and animal feed plant. The advantages available are:
  • 3% interest subsidy on loans
  • 2-year moratorium with 6-year repayment period
  • Credit guarantee INR 750 Cr

DAHD encourages all private companies, individual entrepreneurs and start-ups wishing to invest in the dairy sector to contact the Dairy Investment Accelerator at [email protected]

India is the largest producer of milk, contributing 23% of global milk production. The country’s annual milk production has grown 6.4% (CAGR) over the past 5 years. Dairy products are a high priority sector for the Indian government due to its socio-economic importance. It is the largest agricultural product that contributes 5% of the national economy and directly employs over 80 million farmers. In addition, the country has a large domestic packaged dairy market worth Rs. 2.7-3.0 lakh crore witnessing strong double-digit growth.

The growth of the dairy market requires the support of large investments in infrastructure in the fields of processing, cooling, logistics, animal feed, etc. Additionally, untapped lucrative opportunities exist in areas such as value added dairy, organic / farm fresh milk and exports. The dairy sector has experienced substantial foreign direct investment (FDI) representing around 40% of FDI in the Indian food sector. To facilitate infrastructure growth, central / state governments have put in place various incentives to attract investment in this sector.


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