Govt. Scheme for Livestock Development & Feed Fodder Subsidy

The National Livestock Mission (NLM) is a Government of India initiative promoting sustainable livestock growth and entrepreneurship. It offers up to ₹50 Lakhs subsidy for projects related to feed and fodder production, processing, and storage, encouraging private participation and innovation in the sector. The scheme aims to enhance animal productivity, ensure nutritious feed availability, and create rural employment opportunities across India.

Introduction to the National Livestock Mission (NLM)

The National Livestock Mission (NLM) is a flagship initiative by the Government of India, launched to promote the sustainable and inclusive growth of the livestock sector. Implemented by the Ministry of Fisheries, Animal Husbandry and Dairying, the mission focuses on improving animal productivity, supporting entrepreneurs, and ensuring the availability of quality feed and fodder across the country.

NLM aims to transform traditional livestock farming into a profitable and modern enterprise by providing financial assistance, capital subsidies, and technical support. The mission also encourages private sector participation, empowering farmers, start-ups, and agripreneurs to invest in innovative livestock and feed-related ventures that contribute to India’s food and income security.

Key Features of the Feed and Fodder Development Scheme

The Feed and Fodder Development Scheme under the National Livestock Mission (NLM) focuses on bridging the gap between feed demand and supply while promoting commercial fodder production. It encourages entrepreneurs, cooperatives, and farmer groups to invest in fodder cultivation, preservation, and processing through modern techniques.

Main Highlights:

Promotes sustainable fodder production for round-the-year availability.
Supports private sector investment in feed and fodder enterprises.
Encourages the use of scientific methods for silage, hay, and TMR production.
Aims to reduce feed shortages and enhance livestock productivity.
Provides financial assistance, capital subsidy, and interest support for eligible projects.

Financial Assistance and Subsidy Benefits (Up to ₹50 Lakhs)

Under NLM’s Feed and Fodder Development component, the Government provides a capital subsidy of 50% on eligible project costs, up to ₹50 Lakhs per unit. This support is designed to lower the initial investment burden and motivate agripreneurs to adopt modern feed technologies.

Key highlights include:

Front-End Subsidy: Approval required before construction or machinery purchase.
Disbursement: Released in two equal installments (50% each).
Additional Support: Eligible projects may also receive 3% interest subsidy under AHIDF and guarantee-free loans up to ₹5 Crores under CGTMSE.

Eligible Businesses and Beneficiaries under NLM

The scheme supports a wide range of feed-related agribusinesses, including:

Hay and Silage Units for preserved green fodder.
TMR and Fodder Block Units for balanced animal nutrition.
Seed Processing & Grading Units for quality fodder seeds.
Fodder Storage Facilities to maintain year-round supply.

Eligible Beneficiaries Include:

Private Entrepreneurs / Companies / Start-ups
Farmer Producer Organizations (FPOs)
Self Help Groups (SHGs)
Joint Liability Groups (JLGs)
Dairy Cooperatives and Section 8 Companies

Each applicant must have technical expertise, valid land ownership/lease, and contribute minimum 10% of the project cost as promoter’s equity.

How KIP Can Help You

At KIP we specialize in guiding entrepreneurs, farmers, and agribusiness investors through every stage of the National Livestock Mission (NLM) Feed & Fodder Subsidy Scheme. Our expert team ensures that your project is designed, documented, and executed in compliance with all government guidelines — maximizing your subsidy benefits and reducing approval delays.

Our Services Include:

Project Feasibility & DPR Preparation – Detailed project reports tailored to NLM guidelines.
Subsidy & Loan Assistance – End-to-end support for availing capital subsidy (up to ₹50 Lakhs) and loan facilities under AHIDF or CGTMSE.
Documentation & Compliance – Complete assistance with application forms, approvals, and scheme compliance.
Business Setup Support – Guidance in selecting the right business model (Silage, TMR, Hay Unit, etc.) and location planning for maximum returns.
Post-Approval Support – Continuous coordination with financial institutions and government departments for timely disbursement.

Frequently Asked Questions (FAQs)

Q1: What is the main financial incentive under the NLM Feed and Fodder Scheme?

Beneficiaries receive a 50% capital subsidy, up to a maximum of ₹50 Lakhs, disbursed in two equal installments.

Q2: Which types of businesses are eligible for support?

Eligible projects include Hay, Silage, TMR, and Fodder Block units, fodder storage, and seed processing & grading plants, covering both machinery and infrastructure.

Q3: Who can apply for the scheme?

Eligible beneficiaries include private entrepreneurs, FPOs, SHGs, JLGs, Section 8 companies, and dairy cooperatives involved in livestock or feed-related businesses.

Q4: When should the subsidy application be submitted?

It must be submitted before starting construction or equipment purchase, as it’s a front-end subsidy requiring prior approval.

Q5: What is the project completion deadline?

Projects must be completed within one year from receiving the first subsidy installment.

Q6: How long must the unit operate?

After starting operations, the unit must run for at least three consecutive years; otherwise, the subsidy may be recovered.