Centre sets up Dairy Investment Accelerator to facilitate investments in dairy sector

Centre sets up Dairy Investment Accelerator to facilitate investments in dairy sector
The accelerator to provide support across the investment cycle such as offering specific inputs for evaluation of investment opportunities, addressing queries about application to government schemes and many other supports

The Department of Animal Husbandry & Dairying (DAHD), Government of India, with a view to provide dedicated focus towards promoting and facilitating investments in the Indian dairy sector, has setup Dairy Investment Accelerator under its Investment Facilitation Cell. This investment accelerator is a cross functional team constituted to serve as the interface with investors, Ministry of Fisheries, Animal Husbandry & Dairying said in a press note on Monday.

It shall provide support across the investment cycle,

  • Offering specific inputs for evaluation of investment opportunities
  • Addressing queries about application to government schemes
  • Connecting with strategic partners
  • Providing on-ground assistance with state departments and relevant authorities

Further, the Dairy Investment Accelerator will work with DAHD to organise a series of events with global and local industry participants and one-on-one discussions with the investors to understand their perspectives, facilitate direct interactions with government officials and connects with other players in the industry, the ministry has informed.

According to the press note, Dairy Investment Accelerator is also generating awareness among investors about Animal Husbandry Infrastructure Development Fund (AHIDF). AHIDF is one of the flagship schemes by DAHD, Government of India whereby Rs. 15,000 crore fund has been setup for offering financial support to entrepreneurs, private companies, MSMEs, farmers producers organisations (FPOs), and Section 8 companies. Eligible entities can avail the benefits of the scheme to set up new units or expand existing units in areas of dairy processing and related value addition infrastructure, meat processing and related value addition infrastructure and animal feed plant. The benefits available are:

  • 3 percent interest subvention on loans
  • 2-year moratorium with 6-year repayment period
  • Rs 750 Cr credit guarantee

The DAHD encourages all the private companies, individual entrepreneurs, and start-ups, who are interested in investing in dairy sector, to reach out to the Dairy Investment Accelerator.

India is the largest milk producer contributing 23 percent of global milk production. Annual milk production in the country has grown by 6.4 percent (CAGR) in the past five years. Dairy is a high priority sector for Government of India due to its socio-economic significance. It is the single largest agricultural commodity contributing 5 percent of the national economy and employing over 80 million farmers directly. Further, the country boasts a large  domestic packaged dairy products  of market worth Rs. 2.7-3.0 lakh crore witnessing a strong double-digit growth.

The market growth in dairy requires support of significant infrastructure investment across processing, chilling, logistics, cattle feed among others. Further, lucrative untapped opportunities exist in areas such as value-added dairy products, organic and farm fresh milk and exports. The dairy sector has seen substantial foreign direct investment (FDI) constituting about 40 percent of FDIs Indian food sector. To facilitate the infrastructure growth, Central and state governments have released various incentives to attract investments in this sector.

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