Importance of animal husbandary and dairy sector

• As an allied industry of agriculture, the animal husbandry and dairy sector collectively employs more than 100 million people.
• Since the bulk of establishments in this sector is concentrated in rural India, the socio-economic relevance of this sector cannot be overstated.
• the Central government unveiled a string of measures to cushion the economy, as a part of which the Animal Husbandry Infrastructure Development Fund (AHIDF) was announced.

More about AHIDF

• The AHIDF has been set up with an outlay of ₹15,000 crore.
• As per the provisions of AHIDF, a project will be eligible for a loan amount that covers up to 90% of the estimated cost –
• There will be interest subvention of 3% for all eligible entities.
• Applicants can submit the proposal with a complete Detailed Project Report through the Udyami Mitra Portal.
• The fund includes a diverse set of stakeholders such as FPOs, private dairy players, individual entrepreneurs, and non-profits within its ambit.

Strengthening dairy value chain

• There is a pressing need to enhance chilling infrastructure at collection centres by setting up bulk milk coolers.
• If the infrastructure needs for milk processing and distribution are included, then the overall potential investment opportunity is to the tune of ₹1,40,000 crore across the dairy value chain.
• There is also considerable potential to increase the productivity of cattle, especially by enhancing the quality of animal feed.
• With this in mind, the AHIDF has been designed to support the establishment of animal feed plants of varying capacities.
• The infrastructure gap of 10-18 MMT in the production and supply of affordable compound cattle feed translates into an investment potential of around ₹5,000 crore.

Boosting the poultry industry

• There are not only economic but nutritional benefits to boosting the poultry segment’s output, efficiency and quality.
• India is the fourth largest chicken meat producer and the second largest egg producer in the world.
• India is well-positioned to help mitigate rampant malnutrition given that chicken meat provides the cheapest source of protein per unit.
• With eggs being introduced as part of the mid-day meal within several anganwadis in the country, an upgradation in poultry infrastructure would be closely intertwined with social justice outcomes too.
• Macro benefits regarding climate change and employment are linked to this sector.
• Enhanced infrastructure can make processing units more energy-efficient and help mitigate their carbon footprint.

Consider the question ” As an allied industry of agriculture, the animal husbandry and dairy sector are important for rural area and the socio-economic relevance of this sector cannot be overstated. In light of this, examine the role Animal Husbandry Infrastructure Development Fund (AHIDF) could play in transforming rural economy.”

Conclusion

The AHIDF also has the potential to create over 30 lakh jobs, even as it overhauls domestic infrastructure towards giving greater prominence to India’s dairy and livestock products in the global value chain.

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