The government has set up an investment accelerator to promote and facilitate investments in the dairy sector.
India is the largest milk producer contributing 23 per cent of global milk production. Annual milk production in the country has grown by 6.4 per cent (CAGR) in the past five years, according to an official release.
The market growth in dairy requires support of significant infrastructure investment across processing, chilling, logistics, cattle feed etc. Further, lucrative untapped opportunities exist in areas such as value-added dairy products, organic and farm fresh milk and exports, the Ministry of Fisheries, Animal Husbandry and Dairying said in a release on Monday (19 July).
"The Department of Animal Husbandry & Dairying (DAHD),with a view to provide dedicated focus towards promoting & facilitating investments in the Indian Dairy sector, has setup Dairy Investment Accelerator under its Investment Facilitation Cell," the ministry said.
According to the ministry, this Investment Accelerator is a cross functional team constituted to serve as the interface with investors. It will 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 & relevant authorities
Further, 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 the investors to understand their perspectives, facilitate direct interactions with government officials and connects with other players in the industry, the ministry said.
Dairy Investment Accelerator willl also generating awareness among investors about Animal Husbandry Infrastructure Development Fund (AHIDF), which is one of the flagship schemes by the Centre whereby Rs 15,000 crore fund has been setup for offering financial support to entrepreneurs, private companies, MSME, Farmers Producers Organizations (FPOs), and Section 8 companies, it said.
Eligible entities can avail the benefits of the scheme to set up new units or expand existing units in areas of dairy processing & related value addition infrastructure, meat processing & related value addition infrastructure and Animal Feed Plant. The benefits available under the scheme are:
3 per cent interest subvention on loans
2-year moratorium with 6-year repayment period
Rs 750 crore credit guarantee
The ministry has also urgeed 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.
According to the ministry, Dairy is a high priority sector for the government due to its socio-economic significance. It is the single largest agricultural commodity contributing 5 per cent of the national economy and employing 8 crore plus 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.
To facilitate the infrastructure growth, Central and state governments have released various incentives to attract investments in this sector, the ministry said.