Government Committed for the growth of Poultry & Livestock Sector through Special Funds and Financial Assistance

Ricky Thaper, Treasurer, Poultry Federation of India

The government gives thrust on infrastructure development for poultry and livestock sector in the union budget (2022-23) and specialised schemes and funds to boost  the poultry industry which plays a critical role in the Indian economy.

Livestock sector is a critical sub-sector of agriculture in the Indian economy. According to the Economic Survey (2021-22) tabled in the parliament recently, the livestock sector consisting of dairy, eggs and meat, grew at a Compound Annual Growth Rate of (CAGR) of 8.15 per cent. As per the estimates of National Accounts Statistics, 2020, the contribution of the livestock sector in the total Gross Value Added (at constant prices) of agriculture and allied sectors grew from 24.32 per cent in 2014-15 to 29.35 per cent (2019-20). The livestock sector contributed 4.35 per cent of total GVA in 2019-20.

According to FAOSTAT data of 2020, India ranks third in egg production and sixth in meat production in the world. India’s egg production has increased from 78.48 billion in 2014-15 to 122.11 billion in 2020-21. The per capita availability of eggs is at 91 eggs per annum in 2020-21 (Provisional). Meat production in the country has increased from 6.69 million MT in 2014-15 to 8.80 million MT in 2020-21. According to Basic Animal Husbandry Statistics, 2020 states that India’s poultry meat production was 4.34 million MT, contributing almost 50% of the total meat production in 2019-20.

Allocation for Livestock sector in union budget (2022-23):

Keeping in mind the importance of livestock, Union Finance Minister Smt. Nirmala Sitaraman in the Union Budget (2022-23) has allocated Rs 6,407 crore for the Ministry of Fisheries, Animal Husbandry, and Dairying, which is an increase of 44 per cent from the 2021-22 allocation.

Commenting on the union budget (2022-23), Union Minister of Fisheries, Animal Husbandry, and Dairying, Shri Parshottam Rupala said that 95% of livestock farmers are concentrated in rural India, infrastructure development under the ‘Vibrant Villages Program” will play a significant role in enhancing market access for these poultry and livestock farmers. He stated that the reduction in alternate minimum tax for cooperatives from 18.5% to 15% as announced in the union budget (2022-23) is indeed asignificant announcement that would provide a level playing field between cooperative societies and companies.The incentivizing digital banking, digital payments & fintech innovations as announced in the union budget will have a ripple effect in the poultry and livestock sector.

According to Shri Atul Chaturvedi, Secretary, Department of Animal Husbandry & Dairy (DAHD), said, “in the budget (2022-23), allocation for livestock has been increased by 40%, and central sector schemes have been increased by 48%, indicating the government’s commitment to the growth of poultry and dairy farmers.

Schemes which Poultry sector could take advantage:

To support the poultry and livestock sector, DAHD was implementing the Entrepreneurship Development and Employment Generation (EDEG), as a component of the National Livestock Mission (NLM). Poultry Venture Capital Fund was implemented as an activity under the EDEG. The salient features of realigned NLM scheme include employment generation, entrepreneurship development, increase in per animal productivity and thus targeting increased production of meat, eggs, milk and wool. The scheme also envisages increase in productivity development through breed improvement. The scheme also focuses on increasing availability of fodder and feed.

After union cabinet approval in June 2020, Animal Husbandry Infrastructure Development Fund (AHIDF) worth Rs 15,000 crore was established and implemented from 2020-21. AHIDF aims at incentivizing investments by individual entrepreneurs, private companies, Farmers Producers Organizations (FPOs) and companies for establishing meat processing and product diversification, infrastructure and Animal Feed Plant, Breed multiplication farms and Breed improvement technology and the dairy processing and product diversification infrastructure,.

Under AHIDF Rs. 13,500 crore would be the loan to be disbursed by the scheduled bank and Rs.1500 crore will be the end borrowers contribution. Out of these Rs.1623 crore will be provided as interest subvention of 3 per cent over a period of 10 years for repayment of loan during 2020-21 to 2030-31. Rs 750 crore will be credit guarantee to be managed by NABARD for which Rs.75 crore will be provided by the DAHD to NABARD for 10 years. 

So far 206 projects with an estimated cost of Rs.2813 crore have been approved under AHIDF with a loan of Rs.2014 crore. Projects worth Rs.911 crore for setting up animal feed plants, Rs.227 crore for meat processing and Rs 874 crore for setting up of dairy processing plants have been approved. Establishment of animal feed plants also include activities such as bypass protein unit, total mixed ration block making unit, mineral mixture plant, animal feed testing laboratory and integrated poultry meat processing units.

The leading poultry industry players have welcomed the “pro-farmer friendly” announcements by Unoin Finance minister Smt. Nirmala Setharaman and several schemes being implemented for the livestock sector as this will boost our agricultural economy and will accelerate benefits with other sectors connected to agriculture, poultry, farming, animal husbandry, food processing etc. Capital and technological infusion into these sectors will definitely help build a long-term vision to yield greater results in the coming years,”.

DAHD is implementing a scheme  – Assistance to States for control of Animal Diseases (ASCAD) under the Livestock Health and Disease Control  (LH&DC) scheme which covers the vaccination of economically important poultry diseases, including control and containment of emergent and exotic diseases. Under the LH&DC Scheme financial assistance is provided to the States for up gradation of Diagnostic Laboratories at the district level. In addition, there are six Regional Disease Diagnostic Laboratories for prompt and effective diagnosis of different Livestock and poultry Diseases.

According DAHD data, Rs.13.87 crore had been released to states and UTs under ASCAD for the FY 2020-21 and 2021-22 for control and containment of Avian Influenza including compensation to farmers whose birds have been culled, poultry eggs and Poultry feed has been destroyed

The Central Poultry Development Organizations are carrying out Training programs to increase skill of entrepreneurs in the field of Poultry and Livestock. The Department is also assisting the State Government to impart training on Poultry, Sheep, Goat, Pig farming to enhance technical knowledge and entrepreneurship development.

Under this component, the establishment of a composite Poultry unit having parent farm, mother unit and Hatchery unit can be established. Further, to increase the Poultry production under NLM financial assistance is provided to States and Union Territories Governments for implementation of Rural Backyard Poultry Development and Innovative Poultry Productivity Project. These programs envisage the components which take care of the shelter, feed, medicine, equipments, litter etc. to improve the living conditions of the Poultry and Livestock.

 Overall the government has ensured that the livestock sector gets necessary financial help for ensuring sustainable growth of the sector.