How to Start a Cattle Feed Business & Avail Government Subsidies ?
The animal husbandry sector plays a crucial role in India’s economy, offering various business opportunities, including cattle feed production, silage manufacturing, and fodder stock management. To support entrepreneurs in this sector, the Government of India has introduced subsidy schemes like the National Livestock Mission (NLM) and the Animal Husbandry Infrastructure Development Fund (AHIDF).
Business Opportunities in the Cattle Feed Industry
The cattle feed industry includes several sub-sectors, such as:
Silage Business – Storage of green fodder for livestock.
Fodder Stock Business – Dry fodder preservation and sale.
Total Mixed Ration (TMR) – A balanced mixture of fodder, grains, and minerals.
Mineral Mixtures Production – Essential feed supplements for livestock.
Pellet & Mash Feed Manufacturing – Processed cattle feed for better nutrition.
These businesses have a high demand due to the increasing livestock population and the need for quality nutrition.
Government Subsidies for the Cattle Feed Sector
1. National Livestock Mission (NLM) – Capital Subsidy
Under NLM, entrepreneurs can avail capital subsidy for setting up a cattle feed business:
Subsidy Amount: Up to 50% of the total project cost
Maximum Subsidy Limit: ₹50 lakh
Eligible Expenses: Infrastructure development (godown, storage units), machinery purchase (baler machines, harvesting machines, processing equipment)
Who Can Apply? Individuals, Proprietorships, Partnerships, LLPs, Companies, Cooperatives, and FPOs
This scheme benefits both self-financed projects and projects funded through bank loans.
2. Animal Husbandry Infrastructure Development Fund (AHIDF) – Interest Subsidy
The AHIDF scheme provides financial assistance in the form of interest subsidies:
Interest Subsidy: 3% on term loans for up to 8 years
No Upper Limit on Loan Amount
Eligible Projects: Setting up feed plants, silage storage units, and fodder processing infrastructure
Collateral-Free Loans Available under CGTMSE scheme
How to Apply
Project Planning & Documentation :
Prepare a business model and project report.
Ensure compliance with NLM and AHIDF guidelines.
Application Submission :
Submit your proposal on the Animal Husbandry Department’s official portal.
Obtain prior approval from the concerned authorities.
Bank Loan & Subsidy Approval :
If taking a loan, align your project with bank funding norms.
Ensure both schemes (NLM & AHIDF) are synchronized for maximum benefit.
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