1

2-Year Moratorium, 6-Year Repayment Period: Government Unveils Loan Facility for Livestock Farmers

AHIDF's Subsidy Scheme Provides Relief to SHGs and FPOs

Subsidy of up to 50% on Loans

The Government of India has introduced a new loan facility for livestock farmers, offering up to 50% subsidy on loans for a period of 8 years, including a 2-year moratorium on principal payments. The Animal Husbandry Infrastructure Development Fund (AHIDF) scheme, a central sector scheme, aims to support Livestock Self Help Groups (SHGs) and Farmer Producer Organizations (FPOs) in developing their infrastructure.

Project-Specific Subsidies and Loan Quantum

Subsidies will be provided on a project-by-project basis, with the amount determined by a Department of Operations (DO) letter. The loan quantum will also be determined based on project requirements.

Impact on Animal Feed Prices

The AHIDF scheme's subsidies have significantly reduced animal feed prices, resulting in lower production costs for beef. The subsidy amounts to approximately 50% of the subsidy embodied in a kilogram of beef.

Capital Subsidy in Two Installments

The subsidy will be provided as a capital subsidy in two equal installments. The first installment will be upfront, while the second installment will be released upon completion of the project.

1