How to Start a Poultry Farming Business in India?

Table of Contents

• What is Poultry Farming
• What is the Scope of Poultry Farm Business in India?
• What are the Benefits of Poultry Farming Business?
• How to Start a Poultry Farm Business in India
  • Research and Business Plan
  • Selecting Poultry Farm Type
  • Determining the Breed Type
  • Getting the Required Licenses
  • Obtaining MUDRA Loan
  • Choosing the Right Location and Infrastructure
  • Care and Management of Poultry Farm
  • Marketing and Distribution
• What is the Poultry Farming Cost and Profit in India?
• What are the Top Poultry Farming States in India?
• Government Programmes to Promote Poultry Farming
• Final Thoughts

What is Poultry Farming?

Poultry farming involves hatching and rearing chickens for meat (broilers) and eggs (layers). It is a process in which a broad category of domestic birds, such as hens, turkeys, etc., are commercially nurtured to increase the meat and eggs production.

It is considered as a complimentary farming activity performed for additional income. Contract farming is one of the confident ways to start a chicken farm business in India.

What is the 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 in India, which accounts for 1.2% of the total GDP of India.

As per the data of Asian Development Bank (ADB), the average growth rate of poultry meat production between 2011 and 2020 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.

Further, the production of eggs and broilers has been rising at a much greater pace compared to rise in agricultural crop production. With the net result that, today, India is 5^th largest egg producer and 18^th largest broiler producer globally.

What are the Benefits of Poultry Farming Business?

• Quick returns on investments: You can expect to reach Break-Even point in just six months because chickens mature very quickly.
• Low initial investment: The cost of establishing a poultry farm depends upon the size. You can start a small-scale poultry farm at a nominal cost of INR 50,000 only and expect to earn a decent profit.
• High demand for poultry: The demand for poultry in India is on the rise as it is a cheap source of animal protein and the dietary habits of Indian population is changing.
• Low maintenance cost: Compared to other livestock the cost of maintaining a poultry is relatively lower due to small size of birds, efficient house designs, shorter production cycles and efficient shed designs.
• Employment opportunities: Poultry farm provides direct and indirect employment to many in India. There are employment opportunities in management, sales, and business development.
• High profits: The benefit to cost ratio in poultry farming is positive, that is, generally above 1. the B-C ratio ranges from 1.4 - 1.8.
• An additional source of income: With profitability in growing crops declining, farmers can put their land to efficient use by setting up a poultry farm and earn additional income. .

How to Start a Poultry Farm Business in India?

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.

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.

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.

Determining the Breed Type           

In India, poultry farming consists of broilers (meat production), layering (egg production), or both. 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:

Getting the Required Licenses

Obtaining essential permits and licenses is paramount while starting any business in India. To start a poultry farm business, some of the essential licenses required 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.

Obtaining MUDRA Loan

Funds are the most important part 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 the growth of existing small businesses.

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

Choosing the Right Site & Infrastructure

Select a site that is well-connected to transportation modes and has availability of key resources, such as water and electricity. Please make sure that the decided site complies 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 encourage the well-being of your poultry. The layout should support easy cleaning, waste management, and disease control.

Care & 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.

Marketing and Distribution of Poultry Products

Make a marketing strategy to encourage your poultry products. Use both traditional and digital procedures to get to your target customers. Focus on product quality, as word-of-mouth advices can impact your business's reputation.

What is the Poultry Farming Cost and Profit in India?

The cost of starting a poultry farming business in India ranges from INR 50,000* to INR 10,00,000*. The cost will depend upon the size of the poultry farm, as shown below:

As per a study of the ADB, with an investment cost of INR 10 lakhs on 10,000 square feet shed, one can earn a profit of INR 4 lakhs annually and also recover the money in 2 years.

What are the Top Poultry Farming States in India?

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 prevent the expansion 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.

Final Thoughts

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 needs careful planning, selecting the type of poultry farm, get correct breed type, and effective poultry farm care and management.