The latest policy announcement on Foreign Direct Investment (FDI) in Animal Husbandry that relaxes norms by doing away with the requirement of ‘controlled conditions’ has been received well by industry players.
According to industry experts, the clause of ‘controlled conditions’ for FDI in animal husbandry had restricted multi-national research and development agencies from entering Indian shores.
“Now that the clause has been removed, we can see leading companies in bio-genetics bring their technology to improve animal breeds and thus increase yield. In the case of milch animals, we could have technology where only a female calf can be produced, thereby increasing milk production,” said BM Vyas, a dairy sector expert.
In a statement, the Centre has stated: “As per FDI Policy 2016, FDI in Animal Husbandry (including breeding of dogs), Pisciculture, Aquaculture and Apiculture is allowed 100 per cent under Automatic Route under controlled conditions. It has now been decided to do away with this requirement of ‘controlled conditions’ for FDI in these activities.”
RS Sodhi, Managing Director of Gujarat Cooperative Milk Marketing Federation (GCMMF), maintained that the move would benefit the overall animal husbandry sector, and improve the milk scenario in the country.
“With the improved technology there will be better breed of milch animals. The ultimate benefit will be for farmers and milk producers,” he said.
Under the Automatic Route of FDI without ‘controlled conditions’, there will be increased investment by foreign laboratories and R&D agencies. Bio-sciences player Hester Biosciences Limited welcomed the move and termed it a decision in the interest of the overall encouragement for R&D in India.
Improved technologyRajiv Gandhi, Managing Director of Hester Bio-sciences, said: “Earlier, multi-national companies were unable to bring superior technology and R&D because they were not investors. Now, allowing them to invest will bring in new and improved technology. Companies with rich experience of R&D in genetics will change the face of the sector in India.”
Under the National Livestock Policy announced in 2013 – during the UPA regime – weak health and poor productivity of the livestock were highlighted as key challenges and it was aimed at bringing genetic improvement of important indigenous breeds.