Animal Husbandry

How to Start a Poultry Farming Business in India?

Updated on 29th March, 2024, By Neesha Rathod
How to Start a Poultry Farming Business in India?
Poultry farming is one of the fastest-growing agri-businesses in India because it has the huge potential to generate additional and stable income for rural communities.

Table of Contents

What is Poultry Farming?

Poultry farming encompasses hatching and rearing chickens for meat (broilers) and eggs (layers). It is a method that involves commercially nurturing a broad category of domestic birds, such as hens, turkeys, etc., to increase the production of meat and eggs.

It is generally taken up as a complimentary farming activity to earn additional income. Contract farming is one of the surest ways to start a chicken farm business in India.

Scope of Poultry Farm Business in India

The poultry farm business is the fastest-growing agri-business in India under the farming and agriculture business. Around 3 million farmers are involved in poultry farming, which accounts for 1.2% of India's GDP.

According to a report by the Asian Development Bank (ADB), between 2011 and 2020, the average growth rate of poultry meat production was 10.9%, which is double the average growth rate of other types of meat. It clearly shows the potential income from starting a poultry farming business.

How to Start a Poultry Farm Business in India?

Process to Start Poultry Farming

Starting a poultry farming business in India requires extensive initial preparation, which is usually complex and time-consuming. However, with proper preparation, the business can quickly become successful and profitable.

Before we explore how to start poultry farming in India, we need to be aware of the requirements. The inputs required for starting a poultry farm business in India are day-old chicks, feed, medicine, and technical services.

Step 1: Research and Business Plan

Any successful venture starts with thorough research and meticulous planning. Some of the initial steps involved are:

  • Study the local market demand where you want to open it.
  • Determine the list of equipment required.
  • Select the variety of birds you want to breed.
  • Decide upon the poultry farm type you want to start – broiler breeding, egg production, or both.
  • Enquire about the permissions and licenses that need to be obtained for starting a poultry farm.

Step 2: Selecting Poultry Farm Type

You need to determine the type of poultry farm you want to start. Depending upon this, the size of the farm and cost is determined. In general, there are four types of poultry farms. These are:

  • Battery cage poultry farm: This type of farm does not allow bird movement and is generally of size 6000 sq feet.
  • Semi-range poultry farm: It requires a farm size of approximately 8000 sq feet.
  • Free range poultry farm: This type of farm allows free movement of birds, generally of size ranging from 12,000 to 36,000 sq feet.
  • Completely wild poultry farm: It is the largest of all poultry farms and is of size 44,000 sq feet. It is like a natural habitat with plenty of trees around.

Step 3: Determine the Type of Breeds           

In India, poultry generally focuses on meat production (broilers), egg production (layers), or both. Each segment has its requirements and considerations. Broilers require shorter rearing periods and have higher feed conversion efficiency, while layers provide a continuous income stream through egg production.

Having decided upon the process you want to focus on, you must select the breed type. In India, there are more than 92 variations of chicken that produce meat and eggs. The 3 most common are:

  • Layer chickens: These breeds of hens commence egg laying between 18 to 19 weeks of age and can sustain this activity until they reach 72 to 78 weeks. They have the potential to produce over 250 eggs annually while consuming around 2.25 kg of feed.
  • Broiler chickens: They are characterized by their rapid growth, reaching full maturity in just 8 weeks. These chickens are notable for their substantial meat yield.
  • Rooster chickens: They represent the male members of the gallinaceous bird species and are also referred to as cocks. Roosters play a protective role for egg-laying hens due to their territorial instincts. As roosters can adapt to any environment, they can be conveniently transported.

Step 4: Getting the Required Licenses

To start any business in India, you must obtain the necessary licenses and permits. Some of them required while starting a poultry farm business are:

  • No Objection Certificate (NOC) from the village panchayat.
  • NOC from the Central Pollution Control Board (CPCB).
  • Permission from the electricity authority for the use of electricity.
  • License from the Department of Groundwater.
  • Registration of trademark for your poultry farm to prevent trademark violations.

Step 5: Apply for MUDRA Loan

Funds are the most critical aspect of any business. Today, many avenues are available in India to help small-scale businesses like poultry farming. The most important is the MUDRA Loan, a scheme of the Indian government to help small agri-businesses like poultry farming.

The MUDRA Loan Scheme aims to enable youths to become first-generation entrepreneurs and allow existing small businesses to expand their activities.

You must register with the Udyam/MSME portal to obtain MUDRA loans.

Step 6: Choosing the Right Location and Infrastructure

Select a site that is well-connected to transportation networks and has access to essential resources like water and electricity. Ensure that the chosen location adheres to local zoning regulations.

For brooder management, construct a brooder house that is rain-proof, draft-free, and protected against predators. They should also have good ventilation and be free from a dusty environment.

Proper housing is essential to prevent diseases and promote the well-being of your poultry. The layout should facilitate easy cleaning, waste management, and disease control.

Step 7: Care and Management of Poultry Farm

  • Provide feed which is adequate in Vitamin A and Vitamin K to the poultry birds.
  • Clean, remove, and disinfect feeders, waterers, and hovers in the brooder house. Also, scrap and remove the litter.
  • Spray insecticide to avoid insect threats: control ticks and mites with malathion spray/blow lamping.
  • The water should be at least 1.5 - 2 times more than the feed and change the water every day.

Step 8: Marketing and Distribution

Develop a marketing strategy to promote your poultry products. Leverage both traditional methods and digital platforms to reach your target audience. Focus on product quality, as word-of-mouth recommendations can significantly impact your business's reputation.

Poultry Farming Cost in India

The cost of starting a poultry farming business in India ranges from INR 50,000 to INR 10 lakhs. The cost will depend upon the size of the poultry farm, as shown below:

Poultry Farm Size

Estimated Cost in INR

Small Scale

50,000 – 1.50 lakhs

Medium Scale

1.50 lakhs – 3.50 lakhs

Large Scale

7.00 lakhs – 10.00 lakhs


Government Programmes to Promote Poultry Farming

The Indian government has been bringing policies and programmes from time to time to boost small-scale businesses, including poultry farming. Some of the programmes related to the Poultry farming business are:

  • National Action Plan for Egg & Poultry 2022: It seeks to increase egg production to 136 billion and poultry population to 1290.45 million by 2022.
  • Prevention and Control of Infectious and Contagious Diseases in Animals Act, 2009: It aims to control the spread of diseases in poultry.
  • Comprehensive Support for Individuals/ Entrepreneurs for Poultry Farming: It supports establishing parent farms, rural hatcheries, brooder-cum-mother units to produce hatching eggs, and rearing chicks.
  • Animal Husbandry Infrastructure Development Fund (AHIDF): It provides funds for establishing infrastructure for poultry feed and setting up technologically assisted poultry farms.
  • National Livestock Mission: It offers up to 50% subsidy for establishing a parent farm, rural hatchery, brooder-cum-mother unit to produce hatching eggs with a minimum of 1000 parent layers and rearing of chicks for up to 4 weeks in the mother unit.
  • Poultry Venture Capital Fund Scheme: It is a sub-scheme of National Livestock Mission and provides subsidy of 25% on the project cost up to a maximum limit of INR 25 lakhs.


Poultry farming is an INR 80,000 crore market in India, and with active government support, the scope for establishing a profitable poultry farming business is immense. Setting up a poultry farm business requires meticulous planning, selecting the type of poultry farm type, selecting the right breed type, and effective poultry farm care and management.

Frequently Asked Questions On How to Start a Poultry Farming Business in India?

1. What is poultry farming?

Poultry farming is a method that involves commercially nurturing a wide category of domestic birds, such as hens, turkeys, etc., to increase the production of meat and eggs.

To start a poultry farm business you need to research, plan, select the right type of breeds and right poultry farm type. Besides, effective poultry farm care and management in addition to marketing and distribution is required.

Poultry farming gives high return on less investment and can quickly become successful and profitable.

Yes, with active government support, the poultry farming is highly profitable in India.

It provides an additional source of income and provides cheap animal protein.

Neesha Rathod
Published By
Neesha Rathod
Neesha holds a bachelor’s degree in agriculture and a postgraduate degree in Rural Management. With over 10 years of experience in agriculture and the rural sector, she is a quick problem solver. She is inquisitive and has a deep analytics insight into any issues related to agriculture. She loves to travel and explore new places.
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