Transforming India’s Livestock Sector: A Golden Opportunity for Entrepreneurs under the National Livestock Mission (NLM)
India’s growing population and evolving lifestyles are driving a significant increase in demand for meat, eggs, and other animal products. This surge highlights a critical need for a consistent supply of high-quality feed and fodder for livestock. To address these vital needs and bolster the livestock sector, the Government of India launched the National Livestock Mission (NLM), a centrally sponsored scheme implemented by the Ministry of Fisheries, Animal Husbandry and Dairying.
What is the National Livestock Mission (NLM)?
The NLM, operational since the financial year 2014–15, is designed to promote sustainable growth in livestock farming by encouraging private participation, especially from entrepreneurs and start-ups. Its core objectives include:
- Increasing livestock productivity.
- Enhancing the income of livestock farmers, particularly small and marginal farmers.
- Promoting breed improvement.
- Developing the feed and fodder industry.
- Building the capacities of all stakeholders.
Focusing on Feed and Fodder Development:
A Key Pillar of NLM One of the most promising components of NLM is its Feed and Fodder Development sub-mission. India possesses one of the world’s largest and continuously growing livestock populations, yet it faces a significant shortage of quality feed, which hinders productivity. This includes a low production of green fodder, especially during dry seasons, and regional imbalances in its availability.
NLM aims to transform fodder growing from a traditional activity into a structured, commercial business. By offering financial assistance and capital subsidies, NLM supports entrepreneurs in setting up units for fodder cultivation, processing, preservation, and marketing. This shift not only creates new income opportunities in rural areas but also reduces fodder shortages, improves access to high-quality feed and seeds, and ultimately boosts livestock productivity and farmer profitability.
Lucrative Business Opportunities under NLM in Feed & Fodder:
The NLM scheme offers incentives for setting up various types of feed and fodder units. Before starting, it’s essential to conduct a feasibility study to assess local demand, raw material availability, climatic conditions, livestock population, and market linkages.
Here are the key eligible businesses:
- Hay Unit: These units process and store dried green fodder, like grasses, for use when fresh fodder is scarce. Hay retains most nutrients and can be stored for 12 to 24 months. This is especially suitable for supplying non-fodder states.
- Silage Unit: This involves fermenting green fodder (e.g., maize, sorghum) in airtight conditions. Silage is moist, nutrient-rich, and lasts for 5-6 months, making it valuable for local markets during dry seasons.
- Total Mixed Ration (TMR) Unit: TMR units create balanced feed mixtures tailored to an animal’s weight, age, and breed, combining dry fodder, silage, grains, and minerals. TMR improves milk and meat production.
- Fodder Block: These are compressed blocks made from dry fodder, grains, and supplements, ideal for compact storage and transport, especially to remote areas.
- Storage of Fodder: Proper storage facilities protect hay, silage, and other feeds from spoilage, ensuring a year-round supply and reducing waste.
- Seed Processing and Grading Infrastructure: These units clean, prepare, and sort fodder seeds based on quality standards (size, weight, purity, germination ability), ensuring adequate supply of quality seeds for high-yield fodder crops.
High Potential Regions for Fodder Supply Businesses:
The sources highlight specific areas with high business potential due to green fodder deficiency, making them ideal for setting up processing plants or marketing units for packaged silage/hydroponic fodder:
- Very High Deficiency: Western Rajasthan (e.g., Barmer, Jaisalmer), Nagaland, Manipur, Mizoram, Arunachal Pradesh.
- High Deficiency: Hilly regions of Uttarakhand, parts of Himachal Pradesh, Dry regions of Gujarat (Kutch), Rayalaseema region of Andhra Pradesh, Jharkhand, interior districts of Odisha, Chhattisgarh, Assam (hilly areas).
- Moderate to High Deficiency: North Karnataka, drought-prone districts in Madhya Pradesh, South Bihar.
Significant Financial Support and Incentives:
The NLM scheme provides substantial financial assistance to eligible beneficiaries, which include:
- Private entrepreneurs (Proprietorships, Partnerships, Companies).
- Farmer Producer Companies (FPOs), Self Help Groups (SHGs), Joint Liability Groups (JLGs)
- Section 8 Companies (non-profit organizations) and Dairy Cooperative Societies.
Here’s how the funding works:
- Capital Subsidy: Beneficiaries can receive a 50% capital subsidy on the eligible total project cost, with a maximum limit of ₹50 Lakhs. The subsidy is released in two equal installments.
- First Installment: Released upfront to the scheduled bank/financial institution and credited to the entrepreneur’s account after the bank disburses at least 25% of the sanctioned loan amount, and the entrepreneur utilizes 10% of their margin money.
- Second Installment: Released after the project is completed and certified by the State Implementing Agency, including the completion of infrastructure up to the roof level and initiation of machinery installation.
- Interest Subsidy under AHIDF: Eligible entities can also avail an interest subsidy of 3% per annum for 8 years under the Animal Husbandry Infrastructure Development Fund (AHIDF).
- Loan Flexibility: Banks are instructed to sanction loans for the full project cost as per demand, and the loan amount can be adjusted once the subsidy is received.
- Ineligible Costs: It is crucial to note that certain costs are not eligible for subsidy, including land cost, working capital, personal vehicles, and office accommodation.
Important Considerations for Project Implementation:
- Timely Completion: The entire project must be completed within one year of receiving the first subsidy installment.
- Operational Period: The unit must remain functional for at least three consecutive years after commencing commercial production.
- Non-Compliance: Failure to meet these timelines or operational requirements can lead to the recovery of the entire disbursed subsidy amount, along with applicable interest.
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