Animal Husbandry

How to Start Poultry Farming Business in India?

31 Aug 2023
How to Start Poultry Farming Business in India?
Poultry farming has emerged as one of the most lucrative farming businesses in India. The increasing demand for poultry products, including meat and eggs, presents a significant opportunity for entrepreneurs and individuals looking to start a profitable business in the agricultural sector.

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Poultry farming encompasses raising chickens for meat (broilers) and eggs (layers), making it a versatile and potentially profitable enterprise.

Poultry farming is a method that involves the nurturing of a wide category of domestic birds to develop food like meat and eggs.

The poultry farm business is the fastest-growing business in India under the farming and agriculture business. Around 3 million farmers are doing poultry business.

The chicken farm business was limited to backyard farming in old times, but it has now transformed and developed into a techno-commercial industry.

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


How to Start Poultry Farming in India?

Process to Start Poultry Farming

If you want to start a poultry farm business, you need to follow some steps so that your poultry farm investment can give you a profit. You should be aware of the requirements for poultry farming to make it a success. Here, we have listed the procedure to start a hen farm business.

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, viz., broiler breeding, egg production, or both.
  • Outlines your goals and budget.
  • Determine your operational strategies and marketing approaches.
  • Obtain the permissions and licenses.

Selecting Poultry Farm Type

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

Free range poultry farm: This type of farm allows free movement of birds and are generally of size ranging from 12,000 to 36,000 sq feet.

Semi-range poultry farm: It requires a farm size of approximately 8000 sq feet.

Battery cage poultry farm: This type of farm does not allow free movement of birds and are generally of size 6000 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.

Determine the Type of Breeds           

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

Having decided upon the process you want to focus on, now you need to select the type of breeds. 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.

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.

Construct a well-designed poultry house that provides adequate ventilation, lighting, and temperature control. 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.

Arranging Funds

Plan for arranging funds from a bank, NBFC or any other financial organization. You can apply for a business loan depending upon the interest rate charged by different financial companies.

Having obtained the funds, now monitor your financials closely and track expenses and revenues. Calculate the cost of production per unit and set competitive prices for your products. Regularly assess your business's profitability and adjust as needed.

Care and Management of Poultry Farm

Feeding and Nutrition: Develop a balanced feeding program that meets the nutritional requirements of your poultry. Consult with veterinarians and nutritionists to ensure optimal growth and production.

Health and Disease Management: Implement biosecurity measures to prevent the entry and spread of diseases. Regularly vaccinate your poultry stock.

Waste Management: Implement waste disposal systems that adhere to local regulations. Proper waste management also contributes to a clean and healthy environment for your poultry.

Getting the Required Licenses

To start any business in India obtaining necessary licenses and permits are required. Some of them required while starting a poultry farm business are:

  • No Objection Certificate (NOC) from the village panchayat and the Pollution Board
  • Permission from electricity authority for the use of electricity.
  • License from the Department of Groundwater.
  • Udyam/MSME registration is a must to obtain MUDRA loans, technology assistance, etc.
  • Registration of trademark for your poultry farm to prevent trademark violations.

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.      

Challenges and Considerations in Poultry Business

While poultry farming in India offers substantial opportunities, there are several challenges to be aware of:

  • Disease Outbreaks: Poultry farms are susceptible to disease outbreaks that can lead to significant losses. Implementing biosecurity measures and working closely with veterinarians can help mitigate this risk.
  • Market Fluctuations: Poultry product prices can be influenced by market fluctuations and seasonal demand. Having a diversified marketing strategy and exploring value-added products can help stabilize your income.
  • Regulatory Compliance: Poultry farming is subject to various rules and regulations with respect to animal welfare, food safety, and environmental standards. You should comply with all legal requirements to avoid penalties and disruptions.
  • Initial Investment: Starting a poultry farm requires a substantial initial investment in infrastructure, equipment, and stock. Secure adequate funding through personal savings, loans, or grants.
  • Labour Management: Managing the workforce efficiently is crucial for smooth operations. Adequate training and proper supervision can enhance productivity and animal care.


Starting a poultry farming business in India can be a rewarding endeavour, offering both financial returns and a contribution to the country's food security. By thoroughly researching the industry, planning meticulously, and implementing best practices, you can establish a successful and sustainable poultry farm. While challenges exist, the right approach and dedication can help you overcome obstacles and build a thriving poultry business in India's agricultural landscape.

So, it was all about the poultry farming in India. To learn more about poultry farming business, stay tuned with Tractorkarvan.

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