Poultry Farm Subsidy, NABARD, PVCF Schemes in India | Agri Farming (2024)
Introduction: Well, with proper poultry farm business plan, you can reach your targets in commercial poultry farming business. You must also know about the poultry farm subsidy and scheme information before enetering to poultry business. We would like to present some basics about pultry farming subsides and vaailable schemes in Inda.
Poultry farm subsidy schemes in India
To encourage the farmers and entrepreneurs, Government of India has introduced many schemes and subsidies in poultry farm business. These are described below-
The poultry venture capital fund scheme is a primary scheme given by NABARD and Ministry of micro, small and medium scale enterprises for supporting farmers and helping to promote poultry farming activity. The scheme helps in strengthening and supporting the poultry industry by providing employment or entrepreneurship opportunities in backward areas in India which in turn helps in the economic growth of the country. In this article, the poultry venture capital fund scheme is explained in detailed with all the information.
The poultry venture capital fund scheme is described below:
PVCF encourages poultry farming scheme encourages especially farmers in non-traditional states and therefore supports the people in providing number of employment opportunities in backward areas;
Improves production of poultry products which have the high demand in the national market;
Improves productivity of units by providing proper training to the units through technology up-gradation;
Provides quality meat to consumers as per FAO standards and maintains all the hygienic conditions, and improves hygienic sale of poultry meat and products in urban areas and specially in neighbourhood societies through poultry dressing and marketing outputs;
Improves productivity by providing various facilitates for rearing of poultry species like quails, ducks, turkeys, which have good potential in market.
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Assistance provided under Poultry Venture Capital Fund scheme
The following support is provided by the government under the Poultry Venture Capital Fund Scheme:
According to PVCF scheme entrepreneur’s contribution (margin) sanctions loans for up to Rs.1 lakh, banks may not hold on margin as per RBI rules and guidelines. For loans above Rs.1 lakh: 10% (minimum). For example if you want to set up a poultry business with a total investment of Rs.10 lakhs, then the entrepreneurs or farmers contribution or investment towards it must be at least Rs. 1 lakh to start.
For back ended capital subsidy it provides 25% of the outlay for people belonging to general category but 33.33 % is provided for SC/ST farmers and NE states including Sikkim. For example in the back-ended capital subsidy scheme, the entrepreneur needs to avail the bank loan and pay the instalments within due time. The final loan instalmentwhich is equal to 25% of the total investment amount for poultry farm would be adjusted as the back-ended capital subsidy.
Effective bank loan for the poultry farm subsidy is minimum 40% of the outlay. Bank loan must be obtained for at least of minimum 40% from the total project cost to avail subsidy. For example consider the total project amount is Rs.10 lakhs, and then the bank loan component should be at least Rs.4 lakhs.
Candidates eligible to apply for Poultry Venture Capital Fund scheme
The following entities are eligible to apply which helps to obtain assistance under the poultry venture capital fund scheme includes – farmers, individual entrepreneurs, NGOs, private limited company, cooperatives, groups of the unorganised and organised sector etc.
Procedure to apply for PVCF scheme
The NABARD which is known as National Bank for Agriculture and Rural Developmentpromotes the Poultry Venture Capital Fund scheme. It is an agriculture development bank in India having headquarters in Mumbai aimed to help and support farmers and encourage entrepreneurs. The aim and mission of NABARD is to promote sustainable and equitable agriculture in India and especially in rural prosperity through effective credit support, up graded techniques, agriculture related services, institutional development and other major innovative initiatives.
Promoter’s request letter from New Delhi addresses to the Managing Director SFAC, need to be written on original letterhead of firm/company.
Sanction letter from thesanctioning authority which need to be addressed to the recommending branch.
Bank’s approved appraisal or process note bearing signature for sanctioning authority with terms of sanction based on term loan,up-to-date statement of account of Term loan, and Cash Credit if sanctioned already before.
Equity certificate such as CA certificate in case of partnership or proprietorship firms based on the type of the firm such asForm-2(PAS-3), FORM-5 (SH-7) and other documents included such as FORM-23 filed with ROC for farmer’s list/backward linkage duly supported by agreement, affidavit of promoters that they have not availed VCA in the past, unsecured loans raised by the promoters if you have any.
CA certificate has to be enclosed and is must.
Copy of previous Bank’s inspection report.
Bank’s confirmation letter that they will not release primary and collateral security without SFAC consent
Justification for margin of the quoted cost on working capital taken in the project cost
List of subsidies available for poultry farming
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The below are the list of subsidies available for poultry farms in India. These includes-
The subsidy for north east region, hilly areas, LWE affected districts are 33.33% for BPL/SC/ST and for the APL is 25%.
For Breeding farms for low input technology birds species the ceiling subsidy provided is 25% for Rs. 7.50 lakh.
The subsidy for central grower unitsupto 16000 layer chicks per batch is 25% for Rs. 10 lakhs.
Subsidy for hybrid layer units nearly 20000 layers is 25% for Rs. 2 lakhs.
The subsidy for rearing other species of poultry is 25% of Rs. 5 lakhs. It also varies based on the size and the species.
The subsidy provided for feed mixing units one ton per hour is 25% for Rs. 4 lakhs.
The subsidy provided for transport vehicles open cage is 25% for Rs. 2 lakhs.
The subsidy provided fortransport vehicles refrigerated is 25% for Rs. 2 lakhs.
The subsidy provided for retail outlets marketing units is 25% for Rs. 3.75 lakhs
The subsidy provided forretail outlets dressing units is 25% for Rs. 2.50 lakhs
The subsidy provided formobile marketing units is 25% for Rs. 2.50 lakhs
The subsidy provided for cold storage for poultry products is 25% for Rs. 5 lakhs
The subsidy provided for egg or broiler carts is 25%.
The subsidy provided for large processing units is 25% for Rs. 125 lakhs
The subsidy provided for Emu processing units is 25% for Rs. 250 lakhs
The subsidy provided for feather processing units or litter management is 25% for Rs. 125 lakhs. But this also varies in size of the unit.
The subsidy provided for technology up gradation or an innovation including waste disposal or incinerators, mini-hatchers, egg vending machines etc. is 25% for Rs. 125 lakhs for new and innovative projects or value added cap depending upon the scope and importance of the project.
NABARD schemes for poultry farming in India
NABARD the only bank for agriculture provides 25 % of outlay as back ended capital subsidy for general category and 33.33% for SC/ST, hilly regions, and North East states. It means the interested business person or an entrepreneur has to first avail a bank loan only then subsidy can be availed from it. In simple terms, you can understand that 25% of your total investment will be sanctioned as back ended capital subsidy.
In order to avail the subsidy of 40% of the total cost andit should be availed as bank loan to get the subsidy. For example, to get an outlay costing Rs. 10 Lakh your bank loan must be at least 4 Lakhs.
Effective bank loan for the poultry farm subsidy is minimum 40% of the outlay. Bank loan must be obtained for at least of minimum 40% from the total project cost to avail subsidy. For example consider the total project amount is Rs. 10 lakhs, and then the bank loan component should be at least Rs.
From 23rd October 2019, subsidy claims will be accepted by NABARD only through the online route. In case any Bank faces genuine difficulty in submitting the claim through the portal, it may bring the same to the notice of NABARD as well as DMI and find out a solution quickly.
Such activities include launching, establishment, or expansion of an agriculture business like a poultry farm, an apiary, a livestock farm, and a dairy farm.
(b) Any Industry/business connected with cultivation of crops/plantation like Tea, Coffee, Rubber etc sericulture (cocoon rearing), Horticulture, Floriculture. Value addition under these will be allowed under PMEGP. (c) Any industry/business connected with Animal Husbandry like Pisciculture, Piggery, Poultry etc.
Farmers can get a loan amount up to 100 percent on the cost of the asset or project cost. Eligibility - All individual farmers, agricultural laborers with certificates or experience in poultry management can avail of bank credit for poultry units.
Layer poultry farming means raising egg laying poultry birds for the purpose of commercial egg production. Layer chickens are such a special species of hens, which need to be raised from when they are one day old. They start laying eggs commercially from 18-19 weeks of age.
The value of output from the poultry sector is nearly Rs 330 billion and there are a total of 300,000 poultry farms in India. Over 90 per cent of the poultry production comes from small poultry farmers, who are located in rural areas. There are about 123,000 poultry farmers in India.
NABARD provides refinance assistance under Automatic Refinance Facility (ARF) to eligible banks for a wide spectrum of manufacturing, processing and service sector activities under RNFS (Investment Credit).
NABARD provides refinance assistance under Automatic Refinance Facility (ARF) to eligible banks for a wide spectrum of manufacturing, processing and service sector activities under RNFS (Investment Credit).
Any Indian Citizen who has a business plan for a non-farm income generating activity such as manufacturing, processing, trading or service sector whose credit need is up to 10 lakh can approach either a Bank, MFI or NBFC for availing of MUDRA loans under PMMY.
Under the PMEGP project, beneficiaries are required to pay a minimum portion for the project cost and avail subsidy on loan taken from the banks linked with the scheme. The subsidy is decided based on the category and area to which the applicant belongs.
The interest rate applicable to PMEGP shall be the normal interest rate ranging between 11% to 12%, and the repayment tenure can range from three years to seven years following an initial moratorium.
If you are thinking about a 5000 chickens farm, then you must have at least 0.5m x 0.5m square meter area for a chicken till its full growing process time. That means you should have a 1500 square meter area of 15m x 100m.
In India Daulat Farms Group is the largest Kadaknath Day Old Chicks & Chickens, Country Day Old Chicks & Chickens, Brown layer Chicks and Eggs producing company with state-of-the-art chicken processing unit and poultry feed plant. Daulat Farms Group export their quality products to 50 countries.
Total chicken sold @ 6 batches/ year: 12,000. Total sale value/ income from the chicken @ Rs 90/kg: Rs 21, 60,000.00. The total profit on the investment is around: Rs 4, 44,000.00 (annually). The sale of other by-products of the farms like manure and gunny bags can bring in an extra income of around Rs 20,000.
The poultry industry consists of four main areas of production: broiler, egg, pullet, and breeder bird. Broiler production is the growing of birds for meat. Egg production involves keeping layers to produce eggs for human consumption. Pullet production is the raising of hens that will be used for laying purposes.
Haryana, West Bengal & Uttar Pradesh are the leaders in poultry meat production in the country. The largest producer of meat in the country is Uttar Pradesh producing 23% of the total meat followed by West Bengal contributing 12% to the meat production.
What are the licenses required for starting poultry farm in India. No objection certificate from the local government in the area which you are planning to setup a poultry farm. NOC from pollution board f the area. Electrical permission whether to have a transformer based on the size of farm you are planning to setup.
Layer poultry farming means raising egg laying poultry birds for the purpose of commercial egg production. Layer chickens are such a special species of hens, which need to be raised from when they are one day old. They start laying eggs commercially from 18-19 weeks of age.
Up to 25% subsidy is given by the government for poultry farming. Up to 35% subsidy is given by the government for poultry farming for SC / ST class people.
animal husbandry, Controlled cultivation, management, and production of domestic animals, including improvement of the qualities considered desirable by humans by means of breeding. Animals are bred and raised for utility (e.g., food, fur), sport, pleasure, and research.
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