Page 615 - ES 2020-21_Volume-1-2 [28-01-21]

242 Economic Survey 2020-21 Volume 2

7.21 According to FAOSTAT production data (2019), India ranks 5th in meat production in the
world. Meat production in the country has increased from 6.7 million tonnes in 2014-15 to 8.6
million tonnes in 2019-20*. The annual growth rate of meat production was 5.98 per cent in
2019-20*.

RECENT INITIATIVES IN THE LIVESTOCK SECTOR

7.22 Covid-19 lockdown caused a drop in the market demand due to closure of the outlets
selling livestock products. With closure of sweet shops and tea stalls, a large number of private
dairies were impacted and they stopped milk procurement from the farmers. This resulted in the
farmers diverting their milk to the cooperatives. As a result, milk procurement in the cooperative
sector increased because, as per their mandate, they could not reject milk supplied by the farmers.
The cooperatives are faced with liquidity problems due to higher conversion into milk powder
and white butter caused by higher milk procurement.

7.23 Steps were taken to keep a close surveillance on the milk situation and facilitate resolution
of the issues relating to the forward and backward linkages for smooth supply of milk and
milk products during lockdown. As one-time support, a sub-scheme for providing interest
subvention on working capital loans was designed for the financial year 2020-21 under the
ongoing scheme State Dairy Cooperative & Farmers Producers Organization (SDCFPO) to
provide interest subvention of 2 per cent per annum, with an additional incentive of 2 per cent
interest subvention for prompt and timely repayment to the financially stressed milk unions.
Consequent upon budget announcement on inclusion of livestock sector in Kisan Credit Card
in February 2020, 1.5 crores dairy farmers of milk cooperatives and milk producer companies’
were targeted to provide Kisan Credit Cards (KCC) as part of Prime Minister’s Atma Nirbhar
Bharat Package.
Animal Husbandry Infrastructure Development Fund (AHIDF)

7.24 As a part of the Atma Nirbhar Bharat Abhiyan stimulus package, a ` 15000 crores
Animal Husbandry Infrastructure Development Fund (AHIDF) has been set up. The AHIDF
will incentivize investments by individual entrepreneurs, private companies including MSME,
farmers producers organizations (FPOs) and Section 8 companies to establish (i) dairy processing
and value addition infrastructure (ii) meat processing and value addition infrastructure, and
(iii) animal feed plant.

7.25 The Government of India will provide 3 per cent interest subvention to eligible
beneficiaries. There will be a 2 year moratorium period for the principal loan amount and 6 years
repayment period thereafter. The interest subvention would be released to banks every year by
the Government based on entitlement claimed. The Government of India would also set up a
Credit Guarantee fund of ` 750 crores to be managed by NABARD. Credit guarantee would
be provided to those sanctioned projects which are covered under MSME defined ceilings.
Guarantee coverage would be upto 25 per cent of the credit facility of borrowers. To ease out
the application process, an online portal 'ahidf.udyamimitra.in' has been developed by SIDBI
through which applicants can apply online to avail loans under this scheme.

*Data is provisional.