UNIT 3 POULTRY DEVELOPMENT

PROGRAMMES IN INDIA
Structure
3.0 Objectives
3.1 Introduction
3.2 Status and Perspectives of Poultry Farming in India
3.2.1 Structure of Poultry Sector
3.2.2 Regional Demand and Growth Patterns
3.2.3 Poultry Production Structure and Technical Performance
3.2.4 Poultry Marketing and Prices
3.3 Rural Livelihood Security
3.3.1 Poultry in Rural Development
3.3.2 Role of Women
3.3.3 Employment
3.4 Poultry Academic and Development Institutions
3.4.1 Veterinary Colleges
3.4.2 Poultry Academic and Research Organizations
3.4.3 Poultry Development Organizations
3.4.4 Polytechnic and Training Institutions
3.5 Government Schemes for Poultry Farming
3.5.1 Poultry Venture Capital Fund – A Central Sector Plan Scheme
3.5.2 Financial Assistance from Banks for Broiler and Layer Farming
3.5.3 Insurance Coverage for Poultry Farming
3.5.4 Prime Minister’s New 15 Point Programme for the Welfare of Minorities
3.6 Poultry Cooperatives
3.6.1 Formation of Co-operative Society
3.6.2 Benefits of Co-operatives
3.6.3 Status of Poultry Co-operatives
3.6.4 Institutions Supporting the Poultry Co-operatives
3.6.5 Future Strategy of Poultry Cooperatives
3.7 Let Us Sum Up
3.8 Glossary
3.9 Suggested Further Reading
3.10 References
3.11 Answers to Check Your Progress

3.0 OBJECTIVES
After studying this unit, you will be able to:
z recognize the status and perspectives of poultry farming in India;
z describe the role of poultry in rural livelihood security;
z summarise the poultry academic institutions and development associations as
well as government schemes available for poultry farming; and
z explain about the poultry cooperative societies. 37
Poultry Industry
3.1 INTRODUCTION
Poultry development programmes are not a matter of only plans, targets, budgets,
technology, material aid, experts and organizations to govern them. Rather, it is an
effective use of these mechanisms as educational means for changing the mind and
actions of all beneficiaries in such ways that they help themselves, attain economic
and social improvement. The Central and State Government agencies like Agriculture
Department, Animal Husbandry Department, Commerce & Industry Department,
Food Processing Department, Human Resource Development Department, Indian
Council of Agricultural Research (ICAR), Rural Development Department, Financial
institutions like Insurance Companies and Nationalized Banks, National Bank for
Agriculture and Rural Development (NABARD) are actively involved and play their
part.

3.2 STATUS AND PERSPECTIVES OF POULTRY

FARMING IN INDIA
Poultry is one of the fastest growing segments of the agricultural sector in India with
an average growth rate of 8 to 10 per cent per year. India is now the world’s third
largest egg producer and the fifth major producer of broilers. The estimated annual
poultry egg and meat production in India has steadily gone up to 45 billion eggs and
1.6 billion broilers in 2006 from a meager figure of about 5 billion eggs and 4 million
broilers in 1971. India’s contribution to world production is nearly 4% of eggs and
2% of chicken meat. With a turnover of more than 300 billion rupees, the poultry
industry provides direct and indirect employment to over five million people in the
country and has great potential to create gainful employment with every increase in
egg/meat consumption. It accounts about 1 % of the India’s Gross Domestic Product
(GDP) and 10 % of the total GDP attributed to livestock products. Consistent with
the increase in production and productivity, the per capita availability of eggs and
poultry meat in India has also increased to 45 eggs and 1.76 kg meat per annum,
which is still lower in comparison to recommended levels (Nutritional Advisory
Committee, Government of India) of 180 eggs and 11 kg of meat. If this gap between
the availability and requirement is filled, it provides nutritional security to all Indians
besides creating over 10 million jobs. For your comprehensive understanding, the
selected indicators of the development of the poultry sector are presented in the
following Table 3.1.
Table 3.1: Selected Indicators of Poultry Development in India during 2006

Indicators Quantity
Egg production 2.6 million tonnes (45 billion eggs)
Commercial broiler production 2.0 million tonnes (2.1 billion broilers)
Human Population 1.1 billion
Per capita egg availability 45 number
Per capita meat availability 1.8 kg
Turnover poultry sector Rs. 300 billion
Total poultry population 4574 million
Poultry feed production (By organized 13.2 million tonnes
sector)

Source: Watt Executive Guide 2008-09

38
3.2.1 Structure of Poultry Sector Poultry Development
Programmes in India
Based on the level of production of egg and meat, poultry sector may be structured
into 3 and they are as follows:
(i) Family poultry system for food security
In this extensive backyard rearing system, the family members, especially the women
take care of the stocks, which are very small in numbers, averaging 20 birds per
family. The produce is consumed by the family and are also distributed as gifts or
occasionally bartered for other commodities. The major inputs required for this
sector are locally adaptable improved variety of stocks with better productivity and
low mortality, health care, trainings and extension. Formation of cooperatives, self-
help groups, societies etc., will increase awareness about nutrition and also help the
farmers realize surplus (excess) production through proper technological adoption,
thus adding to their income as a supplementary (additional) source.
(ii) Smallholders
These groups of farmers practice extensive to semi-intensive rearing, which help
them, address the issues of food security and also enable surplus production for
marketing. The size of flocks may vary from a few hundreds to few thousands in
clusters. This sub-sector requires some minimal infrastructure like poultry sheds and
equipments, intensive training of farmers in chick rearing, health care, inputs like
balanced feed and good quality stocks of both improved desi and commercial varieties
along with micro-credit for produce collection and marketing. The cooperative/self-
help groups set up for facilitating inputs acquisition and marketing helps this sub-
sector to become economically viable. Linkages with District Rural Development
Agencies (DRDAs), Banks, Krishi Vigyan Kendras (KVKs) and Non-Governmental
Organizations (NGOs) will help technology and credit to flow to the farmers.
(iii) Commercial operations
This is a highly organized and viable sub-sector employing intensive farming and
sophisticated breeding systems. High productivity of the birds are their main feature,
requiring high inputs and giving high output with nearly 300 plus eggs per year and
Feed Conversion Ratio (FCR) of less than 2.0. This sub-sector is also going through
a gradual change from individual operation to integrated one. Contract farming by
large breeders is also one of the emerging features, to cash on the economies of
scale. Stress is on marketing, health care, processing, achieving standards for food
safety and exports. These operations range from thousands to hundreds of thousands
of stock for breeding and millions for rearing. The major requirement of this sub-
sector is high yielding birds, health care, huge infrastructure for hatchery, housing,
transport, cold chain, marketing intelligence and export standard compliance.

3.2.2 Regional Demand and Growth Patterns

Economic surveys indicate that the northern and eastern regions account for the
largest share of India’s population, but their population tend to be less urbanized
than in the southern and western areas. In contrast, the southern and western regions
are the most urbanized and have the highest average per capita income. The four
southern states viz. Andhra Pradesh, Karnataka, Kerala and Tamil Nadu accounts
for about 45 per cent of the country’s production, with a per capita consumption of
57 eggs and 500 g of broiler meat. The eastern and central regions of India account
for about 20 per cent of egg production, with a per capita consumption of 18 eggs
and 130 g of broiler meat. 39
Poultry Industry 3.2.3 Poultry Production Structure and Technical
Performance
The structure and cost of production in the Indian poultry meat industry vary from
region to region. Independent and relatively small-scale producers still account for
most production, relatively large-scale integrated producers account for a growing
share of output in some regions. Integrated operations include large regional firms
that incorporate all aspects of production, including raising grandparent and parent
flocks, rearing day-old-chicks, contracting production, compounding feed, providing
veterinary services, and wholesaling. Large-scale integrated producers are most
prominent in the southern and western regions. Smaller, independent, and sometimes
partially integrated producers account for most poultry production in the northern
and eastern regions.

3.2.4 Poultry Marketing and Prices

Most poultry meat in India is marketed to consumers in the form of live birds, with
only a small share of output now marketed as chilled, frozen, or further processed
products. The cost of moving live birds, including transport, shrinkage, and mortality
cost severely limit inter-regional movements. As a result, the Indian poultry markets
are regional, rather than national in scope and there is limited potential for low-cost
producers to market their product in higher cost regions. The Indian broiler sector
operates almost completely as a live-bird market, with poultry retailed as live birds
and slaughtered for customers in retail shops. This practice is due to the lack of cold
chain facilities, which limits capacity to market chilled or frozen products, and with
consumer preference.

Check Your Progress 1

Note: a) Use the space given below for your answers.
b) Check your answers with those given at the end of the unit.
1) Expand the following:
i) DRDA .....................................................................................
ii) GDP .....................................................................................
iii) KVK .....................................................................................
iv) NGO .....................................................................................
v) NABARD .....................................................................................
2) Fill up the blanks from three options given in bracket:
i) India produces ............................ billion eggs. (30; 45; 60)
ii) India produces ............................ billion broilers. (1; 2.1; 5)
iii) Per capita egg consumption is ............................ (25; 35; 45)
iv) Per capita meat consumption is ............................ kg. (1.5; 1.8; 2.5)
v) Turnover in poultry sector is .......................... billion. (Rs. 100; 200; 300)

3.3 RURAL LIVELIHOOD SECURITY

In general, livestock production in India is taken up by the smallholders and the
sector is extremely livelihood intensive. All different operations are crucial for players
of different strata it caters to and no section can be ignored. The requirements of
40
different sections are also varied and any policy accordingly has to make separate Poultry Development
Programmes in India
provisions at different levels, which will enable poultry to take livestock revolution
to newer heights.

3.3.1 Poultry in Rural Development

In true terms, the livelihood security aims at not merely increasing the quantity of
production but to have a holistic approach wherein problems of deprived socially
backward sections of the society, gender inequality and malnutrition are also dealt
with. Poultry, due to its least demanding nature in terms of infrastructure in the
backyard set up, has been widely accepted by the rural poor. More than 50% of the
landless and marginal farmers at the bottom end of the smallholder spectrum make
out their living from poultry. With Government and institutional support/financing,
groups of such farmers are also organizing themselves through cooperatives, self
help groups and societies for facilitating backward and forward linkages. Therefore,
such activities bring about other developmental progress with increasing awareness,
women’s participation, literacy, health care etc. propelling a holistic improvement.
Poultry rearing has also been seen as a popular activity among the tribal people who
have been associated with it since ages.

3.3.2 Role of Women

Management of poultry has been associated with women for various historical and
social factors. In developing countries, including India, the women dominate most
activities and are also slowly participating in the work like shelter construction and
marketing, which were so far considered male domain. Family poultry is easily
managed within home- sheds and in rural areas this is the main resource which
women farmers have more access to benefits.

3.3.3 Employment
As income and employment in crop reached saturation, the non-crop sector including
dairy and poultry underwent an upward shift significantly. With the demand for poultry
increasing and production reaching nearly 45 billion eggs and 2.1 billion broilers,
this sector now employs over 5.0 million people. At least 80% of employment in the
poultry sector is generated directly by farmers, while 20% is engaged in allied activities
like feed production, pharmaceuticals, equipment etc. It is also estimated that for
increase in per capita availability of one egg and 50 g of poultry meat, an additional
25,000 job opportunities are created.

Check Your Progress 2

Note: a) Use the space given below for your answers.
b) Check your answers with those given at the end of the unit.
1) Fill in the blanks from three options given in bracket:
i) The poultry sector will employ ................ million people (2; 4; 5).
ii) The farmers contribute ................ % of employment in poultry sector.
(60; 70; 80)
iii) Earning from poultry is preferred by ................ % of landless farmers.
(30; 40; 50)
iv) Tribal people is very fond of rearing .......................................
(buffaloes; elephant; poultry)
v) Family poultry is usually managed by .....................................
(children; labour; women) 41
Poultry Industry
3.4 POULTRY ACADEMIC AND DEVELOPMENT
INSTITUTIONS
In India, poultry academic and development institutions are classified into the following
types:

3.4.1 Veterinary Colleges

Veterinary colleges under State Agricultural Universities (SAUs) or State Veterinary
Universities (SVUs) deal with training in poultry courses during undergraduate
veterinary education and specialized masters and doctorate programmes in poultry
science. There are about 37 veterinary colleges in the country. Poultry Science
departments in these colleges offer training programmes to the farmers. You may
contact nearby veterinary college for information or assistance in poultry farming.

3.4.2 Poultry Academic and Research Organizations

The Central Avian Research Institute (CARI) belonging to Indian Council of
Agricultural Research (ICAR) conducts research and offers masters and doctorate
programmes in Poultry Science and Short-Term Specialized Training (STST)
programmes to graduates as well as Short-Term Training on Poultry Farming (STTPF)
to interested farmers. Another institute of ICAR is Project Directorate on Poultry
(PDP), Hyderabad dealing with research and training in Poultry Science.
Table 3.2: Poultry Academic and Research Organizations

State Institute/Organizations
Uttar Pradesh CARI, Izatnagar, Bareilly
Andhra Pradesh PDP, Rajendranagar, Hyderabad

3.4.3 Poultry Development Organizations

During the 10th Five Year Plan, it was decided to combine all the existing 13 Central
Poultry Development Organizations (CPDO) region-wise into 4 Centers (Table 3.3)
so as to convert the poultry developmental activities in a single window system.
Their major objective now is only to encourage backyard or rural poultry. These
Centers are now being used for diversification production program as one of the
thrust areas by taking up duck, turkey, Japanese quail and Guinea fowl farming.
Table 3.3: Poultry Development Organizations

Eastern Region CPDO, Bhubaneswar (Orrisa)

Northern Region CPDO, Chandigarh
Southern Region CPDO, Bangalore (Karnataka)
Western Region CPDO, Mumbai (Maharasthra)

3.4.4 Polytechnic and Training Institutions

The diploma programmes and short to medium duration training programmers are
offered by the polytechnic and training institutions. They give more emphasis on
practical and hands-on training. As such, the trainees spend about 75% of their time
in farms and about 25% in classrooms (theory). In addition to these institutes, some
associations, federations, KVKs and NGOs are also working for poultry
42
development. You may contact any of the above institutes nearer to your place for Poultry Development
Programmes in India
information or training related to poultry farming.

Check Your Progress 3

Note: a) Use the space given below for your answers.

b) Check your answers with those given at the end of the unit.

1) Expand the following:

i) CARI ...................................................................................

ii) CPDO ...................................................................................

iii) ICAR ...................................................................................

iv) PDP ...................................................................................

v) STST ...................................................................................

3.5 GOVERNMENT SCHEMES FOR POULTRY

FARMING
The below mentioned programmes or schemes are exclusively meant for poultry
development. However, under different plan programmes like Integrated Rural
Development Programme (IRDP), Pradhan Mantri Gramin Sadak Yojana
(PMGSY), Development of Women and Children Area (DWCRA) etc. Central
and State governments are providing assistance for poultry farming. You may contact
nearby veterinarian, rural development officer or banks to know and obtain assistance
from such programmes.

3.5.1 Poultry Venture Capital Fund – A Central Sector Plan

Scheme
The main objective of the scheme is to create a venture capital fund for providing
financial assistance to agricultural farmers, individual entrepreneurs and groups of all
sections of unorganized as well as organized sector for the following purposes:
z To boost the unorganized poultry sector in states where development is in
primitive state and also to give incentive and create infrastructure facilities for
export of poultry products by organized sector from advanced states.
z Establishment of poultry breeding farms with low input technology and also for
other poultry species.
z Setting up of poultry feed plant and laboratory.
z Setting up of egg grading, packing and storing facility for promoting export.
z Marketing of poultry products (specialized transport vehicles, cold storage
etc.).
i) Activities and area of operation covered under the scheme
The following activities will be funded under the scheme either individually or in
combination:
43
Poultry Industry z Broiler/Egg carts for sale of poultry products - Rs.0.10 lakhs.
z Central grower unit (12,500 birds per batch and 4 batches per year) – Rs.
20.00 lakhs.
z Egg grading, packing and storage for export capacity - Rs.80.00 lakhs.
z Establishing poultry breeding farms with low input technology birds and also
for ducks/turkey/guinea fowl/Japanese quail/emu/ostrich etc. - Rs.30.00 lakhs.
z Establishment of feed godown, feed mill, feed analytical unit - Rs.16.00 lakhs.
z Marketing of poultry products (specialized transport vehicle, cold room storage
facilities and retention shed for birds) - Rs.25.00 lakhs.
z Retail poultry dressing unit (up to 300 birds per day) - Rs.5.00 lakhs.
The Scheme is meant for implementation in any part of India. However, thrust is in
states like Andhra Pradesh, Karnataka, Madhya Pradesh, Maharashtra, North-
Eastern states, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and
Uttarakhand. For North-Eastern states, an allocation of Rs.2.0 crores out of Rs.7.2
crores may be made while the Canara Bank, Indian Bank, Punjab National Bank
(PNB) and State Bank of India (SBI) have promised to take lead in implementing
this scheme, other commercial banks, cooperative banks and regional rural banks
may also participate as per the field level demand.
ii) Eligibility
The eligible beneficiaries shall include agricultural farmers and individual entrepreneurs
and groups of all sections of unorganized as well as organized sector. Preference
may be given to Pheriwalas, which will generate self-employment for urban poor.
iii) Preparation of projects
The borrowers selected by identified banks will be financed for specific activities
under poultry sector and assisted under the scheme. The borrowers will prepare a
bankable project and submit it to the banks for consideration under the scheme.
The fund provided will be kept with NABARD and will act as a revolving fund from
which the beneficiaries under the scheme will be given a interest free loan of 50% of
the total cost of the project subject to the ceiling indicated above. 10% of the total
investment will be borne by the borrower as his margin and the bank will charge an
interest rate applicable as per their norms on the balance loan amount of 40% of the
project cost. This will help the borrower in reducing his interest burden.
iv) Repayment of loan
Repayment period of loan will depend upon the cash flow and will be up to a maximum
of 7 years including grace period of two years. Any deficiency in repayment in the
project will be the responsibility of the bank as the borrowers are to be identified
and selected by them.

3.5.2 Financial Assistance from Banks for Broiler and Layer

Farming
The financial assistance in the form of loans is available from various nationalized
banks with refinance facility from NABARD for starting a broiler or layer farm. The
banks provide financial assistance for the following purposes:

44
i) Purpose of financial assistance Poultry Development
Programmes in India
The items of finance would include:
z Construction of broiler sheds, brooder, grower and layer sheds.
z Construction of feed store, quarters etc.
z Purchase of poultry equipments such as brooders, debeakers, feeders, filler-
flats for egg, nest boxes, waterers, etc.
z Cost of day-old chicks, feed, medicines and labour cost for the rearing period
(first 7 weeks period for broilers and first 5 to 6 months for layers).
z Cost of land is not considered for loan. However, if land is purchased for
starting a broiler farm, its cost can be treated as party’s margin money up to
10% of the total cost of project.
z Facilities such as land development cost, fencing, water and electricity, essential
servants’ quarters, godowns, transport vehicles, broiler dressing, processing
and cold storage facilities can also be considered for providing loan.
ii) Scheme formulation for bank loan
The beneficiary can prepare a scheme after consulting local technical persons of
State Animal Husbandry/Veterinary Department, Poultry Corporation or Private
Commercial Broiler Hatcheries. The scheme should include information on land,
water and electricity facility marketing aspects, training facilities and expertise of
entrepreneurs and the type of assistance available from State government, poultry
corporations and local hatcheries. It should also include data on proposed capacity
of the farm, total cost of the project margin money to be provided by the beneficiary,
requirement of bank loan, estimated annual expenditure, income and profit and the
period for repayment of loan and interest.
iii) Scrutiny of scheme by the bank
The bank officers also can assist in preparation of the scheme or filling in the prescribed
application form. The scheme so formulated should be submitted to the nearest
branch of bank. After the scheme is submitted to the bank, it is examined for technical
feasibility and economic viability. Other documents such as loan application forms,
security aspects, margin money requirement etc., are also examined.
iv) Sanction of bank loan and its allocation
After ensuring technical feasibility and financial viability, the scheme is sanctioned by
the bank. The loan is allocated in 2 or 3 stages, such as against the creation of
specific assets, construction of sheds, purchase of equipments and machinery,
recurring cost on purchase of chicks, feeds, medicines, vaccines, electricity, water
and labour. The end use of the fund is verified and constant follow up is done by the
bank.
v) Margin money
The NABARD has defined farmers into three different categories and where subsidy
is not available, the minimum down payment as shown below (Table 3.4) is collected
from the beneficiaries.

45
Poultry Industry Table 3.4 : Beneficiary Contributions for Different Categories of Farmers

Sl. Category Farmer Level of Pre- Beneficiary’s

No. of Farmer Development Return to Contribution
Resources
1 Small farmers Up to Rs. 11,000 5%
2 Medium farmers Rs.11,001 to Rs.19,250 10%
3 Large farmers Above Rs.19,250 15%

vi) Interest Rate

As per the Reserve Bank of India (RBI) guidelines, the present rates of interest
(approximate) to the ultimate beneficiary financed by various agencies are as under:
Table 3.5: Rates of Loan-interest for Different Types of Banks

Sl. Loan Amount Commercial Bank (CB) State Cooperative

No. and Regional Rural Bank (SCB) /State
Bank (RRB) Land Development
Bank (SLDB)
1 Up to and inclusive 12.0% As determined by
of Rs. 25,000 SCB/SLDB subject to
Min. of 12% (for all
loan slabs)
2 Over Rs. 25,000 and 13.5% -do-
up to Rs. 2 lakhs
3 Over Rs. 2 lakhs As determined by -do-
CB/RRB

vii) Repayment of loan

The loan repayment is determined on the basis of gross surplus generated in the
scheme. Usually, the repayment period of loan for broiler farming is 5-6 years. The
loan for layer farming will be repaid in suitable monthly or quarterly installments
usually within a period of seven to eight years with first year as grace period.

3.5.3 Insurance Coverage for Poultry Farming

It is advisable for broiler and layer farmers to take out insurance cover for their flock
of birds against deaths from certain diseases and other accidents. All four insurance
companies in India, namely National Insurance Company, New India Assurance
Company, Oriental Insurance and United India Insurance Company extend such
insurance cover for poultry production. The details of poultry insurance schemes at
present are as follows:
i) Scope of the cover
Insurance cover provides compensation against the deaths due to accidents including
civil disorder, cyclone, earthquakes, fire, flood, lightening, riots, strikes and terrorism
and diseases contracted or occurring during the policy period.
ii) Applicability
The insurance scheme is applicable to poultry farms consisting of all types of exotic
and crossbred poultry birds in India.
iii) Minimum birds for insurance
z Under bank finance for all type of birds-500.
z Under General Type: Broilers-100 per batch, Layers-500 per batch,
Hatchery-2000 per hatch
46
iv) Age group and Premium rates Poultry Development
Programmes in India
Type of Bird Age Group Premium Rates
Broilers Day One to 8 weeks 1.5% of peak value
Layers Day One to 20 weeks 3.2 %
21 to 72 weeks 3.5 %
Hatchery or breeder farm Day One to 72 weeks 5%

v) Insured sum
The value of the bird is fixed in relation to the age of the bird and a valuation chart is
prepared.
vi) Veterinary examination
A veterinary certificate from a qualified and registered veterinarian is necessary for
acceptance and granting of insurance cover.
vii) Claim procedure
z A claim form duly certified by the veterinarian.
z Daily records of mortality.
z Purchase invoice of the bird.
z Other proofs such as medical bills, photograph etc.

3.5.4 Prime Minister’s New 15 Point Programme for the

Welfare of Minorities
The Government of India (GOI) has recently launched this programme to ensure
that the beneficiaries from minority communities get a fair share of bank credit under
various Governments sponsored schemes as well as other priority sector lending.
An important objective of the programme is to ensure that the appropriate percentage
of the priority sector lending is targeted for the minority communities and the benefits
of the various Government sponsored schemes for the under-privileged reach the
disadvantaged sections of the minority communities. The bank loans for poultry
farming are also available under this scheme from public sector banks.

Check Your Progress 4

Note: a) Use the space given below for your answers.
b) Check your answers with those given at the end of the unit.
1) Expand the following:
i) IRDP ......................................................................................
ii) PMGSY ......................................................................................
iii) RRB ......................................................................................
iv) SCB ......................................................................................
v) SLDB ......................................................................................

3.6 POULTRY COOPERATIVES

Cooperative is defined as an autonomous association of persons united voluntarily
to meet their common economic, social, and cultural needs and aspirations through
a jointly-owned and democratically-controlled enterprise. A cooperative may also 47
Poultry Industry be defined as a business owned and controlled equally by the people who use its
services or who work at it. The objectives of poultry cooperatives are to:
z develop manpower for poultry industry,
z launch activities for production of eggs and poultry meat,
z provide facilities for more profitable marketing, and
z undertake various extension and poultry husbandry activities.

3.6.1 Formation of Co-operative Society

The steps followed for formation of dairy co-operatives is applicable to the starting
of poultry co-operative also. All the poultry farmers are eligible to become members
of the society. The society is to be run by a duly elected managing committee. The
chairman elected by the society appoints a secretary, who in turn acts as a manager.
He should have a thorough knowledge of poultry husbandry activities. The members
of the society decides the source of supply of chicks, feed and also disposal of
birds, whereas the union takes care of loans, repayment, insurance, loss due to
unexpected causes etc.
At the district level, nearly 150-200 societies can form into one union. The union
should have hatchery, feed manufacturing plant, egg cold storage facilities, packing,
service and training centre. The union should be run by a duly elected chairman,
vice-chairman and board members. A number of poultry producers’ union come
together to form the State Poultry Producers’ Co-operative Federation, which may
be linked to the national organization.
Unlike the dairy co-operatives, which emerged due to the initiative from the dairy
farmers for marketing their milk, the poultry co-operatives have emerged mainly
due to the government’s initiative. The poultry co-operatives were started with an
intention to provide employment to the weaker sections of the community. The degree
of people’s participation and involvement in poultry co-operatives is mainly to obtain
loans and avail subsidy. The poultry market is not always steady and the price of the
produce keeps fluctuating.
The expectations from poultry co-operatives are as follows:
z Bargaining for good price for the output.
z Considered as institution to promote socio-economic change of weaker sections.
z Considered to be institutions for transfer of technology.
z Provision of cheap, quality feed.

3.6.2 Benefits of Co-operatives

z Development of togetherness among the farmers.
z Reduction of social evils such as untouchability.
z Reduction of age-old superstitions prevalent among the farmers in the
management of livestock and birds.
z Increased productivity due to adoption of improved scientific practices
advocated.
z Profitable price for their produce through marketing.

48 z Employment opportunities for rural youth and farm women.

z Development of leadership qualities of the members. Poultry Development
Programmes in India
z A considerable portion of the profit obtained from the co-operatives was utilized
for the development of schools, hospitals etc.
z An overall improvement in the status of living such as increased material
possession, providing better education to children etc.

3.6.3 Status of Poultry Co-operatives

At present, there are about 2,595 poultry co-operatives societies in India. Out of
the nine states with well developed poultry industry, the co-operatives are performing
well only in two states viz. Gujarat and Maharashtra. The number of societies doubled
during the period 1972-92, but the percentage of dormant and loss-making societies
constitutes about 80%. Even after the three decades of intensive poultry development,
the poultry co-operatives have not been able to establish themselves on a strong
footing.
i) Gujarat Poultry Co-operatives
In the state of Gujarat, some voluntary agencies introduced the industrial estate
concept for poultry industry. A flock of 100 to 150 birds were put in a compartment
and assigned to the beneficiary, who had to perform activities like visiting the hen
house three times a day for cleaning, feeding and watering the birds. The society
also provides feed and made arrangements to market the eggs. Subsidy was also
offered for the construction of sheds under tribal development programme. Gujarat
is the only state where a strong co-operative federation exists.
ii) Maharashtra Poultry Co-operatives
The co-operative societies in Maharashtra have set up a centralized poultry shed,
where chicks are reared up to 20 weeks and when the birds are ready for laying,
they are given to the members in flocks of 100-200 birds to rear near their homes
with subsidies for constructing sheds. They also supply feed and arrange for marketing
of products. Though the society pays uniform price for the eggs throughout the year,
the farmers are reluctant to supply these when the market prices are higher. Though
the number of poultry co-operatives in the state is increasing, they still have a long
way to go to flourish as an industry.
iii) Poultry Co-operatives in other States
The poultry co-operatives in Andhra Pradesh, Kerala, Karnataka, Madhya Pradesh,
Rajasthan, Tamil Nadu, Uttar Pradesh, West Bengal etc., are still poorly developed.
The concept of developing poultry schemes for the economically weaker sections
led to the development of poultry units at scattered and far-off places and to some
extent succeeded in persuading the farmers to purchase their feed at reasonable
prices, to seek medical cover, and to sell their eggs on their own. The beneficiaries
were new entrants to these schemes and they had poor knowledge to check mortality
and to prevent various emerging diseases in the birds. In many states, the poultry
co-operatives assumed a mercantile role of merely buying and selling eggs and feed.

3.6.4 Institutions Supporting the Poultry Co-operatives

i) National Agricultural Co-operative Marketing Federation
The National Agricultural Co-operative Marketing Federation of India (NAFED)
has been entrusted with responsibility of operating a market intervention scheme to
enable the farmers to get reasonable price for eggs. NAFED is expected to buy two 49
Poultry Industry crore eggs in a year which is less than one-third of a day’s egg production in the
country.
ii) National Co-operative Development Corporation
To accelerate the poultry development, National Co-operative Development
Corporation (NCDC) seeks expert guidance to formulate viable schemes. In this,
the primary poultry co-operatives were promoted to rear and supply layer birds
and feed, and collect the eggs for marketing. The NCDC promoted this integrated
poultry scheme and the supply of ready-to-lay birds to the members under a lease
programme. During the Eighth Five Year Plan, NCDC modified the scheme
particularly with respect to farm level production. It also proposes to sanction 90
more projects with a contribution of Rs. 100 crores.
iii) National Scheduled Caste and Scheduled Tribe Finance and
Development Corporation
The national scheduled caste and scheduled tribe finance and development
corporation (NSFDC) was set up to promote economic development of the members
of Scheduled Castes and Scheduled Tribes whose family incomes are below twice
the poverty line limit. NSFDC provides seed capital and term loans to members of
Scheduled Castes and Scheduled Tribes through state Governments.
iv) Poultry Egg and Meat Production Co-operatives
In the case of poultry industry, the egg and broiler production are two distinct sub-
sectors and the role performed by co-operatives in these sectors are also entirely
different. Hence, there are two separate co-operatives namely, Egg Producers’ Co-
operatives and Poultry Meat Producers’ Co-operatives.
(a) Egg Production Co-operatives: Poultry farmers get all the inputs namely
chicks, feed etc., from the co-operatives. National Egg Co-ordination
Committee (NECC) fixes the price and hence all the producers get the same
price. The eggs produced directly reach the consumers without any sort of
processing unlike in the case of milk. The co-operatives can also oversee the
marketing aspect, but the main problem is that they have to handle a large
volume of eggs. The cost of feed accounts for nearly 65-70 per cent of egg
production and hence the co-operatives have to concentrate on this operation
with high managing capability. Hence the failure of some of the co-operatives is
primarily due to small size of operation and poor management.
(b) Poultry Meat Production Co-operatives: In India, most of the broiler units
sell live birds and they are transported to far-off places especially to major
consuming centres. The broiler co-operatives in India do have very little scope
for conferring huge benefits to the farmers, who usually sell the birds to
middlemen. In the private sector, a few poultry processing units have been set
up and they too are handicapped for want of supporting infrastructures like
refrigerated transit facilities and absence of retail outlets for processed chicken.
The poultry co-operatives can play a significant role in meat processing but this
would call for huge capital investment and strong marketing capability. Agencies
like All India Broiler Farmers Marketing Cooperative Limited (BROMARK)
and Broiler Coordination Committee (BCC) are declaring prices for broiler/
poultry based on market dynamics and has participation of farmers, which
helps tackle the problem of middlemen to some extent.
(c) Poultry Federation of India: The Poultry Federation of India (PFI) is united
50 voice of the industry with government and the general public. The mission of
 the PFI is to preserve, promote and protect the activities that bring value to Poultry Development
Programmes in India
stake holders of the poultry industry in India. The PFI membership consists of
growers, producers, industry employees, allied industry suppliers and “main
street” businesses, which recognize the importance of poultry in Indian’s
economy.

3.6.5 Future Strategy for Poultry Co-operatives

The future strategy for growth of poultry co-operatives is that they should have
market orientation. The role of co-operatives is generally assumed to be cost reduction
and appropriation of value addition. For achieving the prosperity of their members,
the co-operatives should take special care of risks, namely sudden fall in productivity
and violent price fluctuations etc. An organized development of poultry co-operatives
is needed. There is also a proposal to set up a National Poultry Development Board
(NPDB). The poultry co-operatives should concentrate both at the grassroots level
production and at specialized marketing.

Check Your Progress 5

Note: a) Use the space given below for your answers.
b) Check your answers with those given at the end of the unit.
1) Expand the following:
i) BROMARK ......................................................................................
ii) NAFED ......................................................................................
iii) NCDC ......................................................................................
iv) NECC ......................................................................................
v) NPDB ......................................................................................
vi) PFI ......................................................................................

3.7 LET US SUM UP

Poultry is one of the fastest growing segments of the agricultural sector in India with
an average growth rate of 8 to 10 per cent per year. Based on the level of production
of egg and meat, poultry sector may be structured into 3 viz. Family poultry system
for food security, Smallholders and Commercial operations. The four southern states
viz., Andhra Pradesh, Karnataka, Kerala and Tamil Nadu accounts for about 45
per cent of the country’s production. Most poultry meat in India is marketed to
consumers in the form of live birds, with only a small share of output now marketed
as chilled, frozen, or further processed products. Poultry rearing has also been seen
as a popular activity among the tribal people who have been associated with it since
ages. Management of poultry has been associated with women for various historical
and social factors. With the demand for poultry increasing and production reaching
nearly 45 billion eggs and 2.1 billion broilers, this sector now employs over 5.0
million people. In India, poultry academic and development institutions are classified
into Veterinary Colleges, Poultry Academic and Research Organizations, Poultry
Development Organizations and Polytechnic and Training Institutions. Different plan
programmes like Integrated Rural Development Programme (IRDP), Pradhan Mantri
Gramin Sadak Yojana (PMGSY), Development of Women and Children Area
(DWCRA) etc. Central or State governments are providing assistance for poultry
51
Poultry Industry farming. Out of the nine states with well developed poultry industry, the co-operatives
are performing well only in two states viz. Gujarat and Maharashtra. National Egg
Co-ordination Committee (NECC) fixes the price and hence all the producers get
the same price. All India Broiler Farmers Marketing Cooperative Limited
(BROMARK) and Broiler Coordination Committee (BCC) are declaring prices
for broiler/poultry based on market dynamics and has participation of farmers, which
helps tackle the problem of middlemen to some extent.

3.8 GLOSSARY
Billion : Equals to 100 crores.
Commercial Poultry System : is a highly organized and viable sub-sector
employing intensive farming and sophisticated
breeding systems. High productivity of the
birds are their main feature, requiring high
inputs and giving high output with nearly 300
plus eggs per annum.
Dormant : Temporarily quiet, inactive, or not being used.
Family Poultry System : is this extensive backyard rearing system,
where the family members, especially the
women take care of the stocks, which are
very small in numbers, averaging 20 birds per
family.
Incentive : Something that encourages effort or action.
Million : Equals to 10 lakhs.
Poultry Venture Capital Fund : A central sector plan scheme to create a
venture capital fund for providing financial
assistance to agricultural farmers/ individual
entrepreneurs and groups of all sections of
unorganized as well as organized sectors of
poultry.
Smallholding Poultry System : is the extensive to semi-intensive rearing,
which help farmers to address the issues of
food security and also enable surplus
production for marketing. The size of flocks
may vary from a few hundreds to few
thousands in clusters.
Tonne : Equals to 1,000 kilogram.

3.9 SUGGESTED FURTHER READING

AHD. 1993. Animal Husbandry and Dairying. Report of the Technical Committee
of Direction for Improvement of Animal Husbandry and Dairying, GOI, New
Delhi.
Sachdev, A P. 2001. Marketing System in India, Blue Cross Consultants, New
Delhi, India, Unpublished Report.
Shyam Sunder, Raju M.V.L.N. and Rama Rao, S.V. 1999. Strategy of Commercial
and Backyard Poultry Production in 21st Century in India, Project Directorate
52
on Poultry, Hyderabad.
 Poultry Development
3.10 REFERENCES Programmes in India

AHD. 1993. Animal Husbandry and Dairying. Report of the Technical Committee
of Direction for Improvement of Animal Husbandry and Dairying, GOI, New
Delhi.
AHD. Poultry Development, Government of India, Ministry of Agriculture,
Department of Animal Husbandry, Dairying and Fisheries, New Delhi, http://
ahdhp.org/poultrydevelopment.htm
AHD. 2005. Draft National Poultry Policy. Government of India, Ministry of
Agriculture, Department of Animal Husbandry, Dairying and Fisheries, New Delhi
Model Bankable Projects: Animal Husbandry Volume II: Broiler Farming,
http://www.nabard.org/modelbankprojects/animal_broiler.asp
Model Bankable Projects: Animal Husbandry Volume II: Layer Farming, http://
www.nabard.org/modelbankprojects/animal_layer.asp
Prabakaran, R. 2003. Good Practices in Planning and Management of
Integrated Commercial Poultry Production in South Asia. FAO Animal
Production and Health Paper 159, FAO, Rome.
Sachdev, A P. 2001. Marketing System in India, Blue Cross Consultants, New
Delhi, India, Unpublished Report.
Shyam Sunder, Raju M.V.L.N. and Rama Rao, S.V. 1999. Strategy of Commercial
and Backyard Poultry Production in 21st Century in India, Project Directorate
on Poultry, Hyderabad.

3.11 ANSWERS TO CHECK YOUR PROGRESS

Check Your Progress 1
1) (i) DRDA District Rural Development Agency
(ii) GDP Gross Domestic Product
(iii) KVK Krishi Vigyan Kendra
(iv) NGO Non-Governmental Organization
(v) NABARD National Bank for Agriculture and Rural Development
2) (i) 45
(ii) 2.1
(iii) 45
(iv) 1.8 kg
(v) Rs. 300 billion
Check Your Progress 2
1) (i) 5 million
(ii) 80%.
(iii) 50%.
(iv) poultry
(v) women
53
Poultry Industry Check Your Progress 3
1) (i) CARI Central Avian Research Institute
(ii) CPDO Central Poultry Development Organization
(iii) ICAR Indian Council of Agricultural Research
(iv) PDP Project Directorate on Poultry
(v) STST Short Term Specialized Training
Check Your Progress 4
1) (i) IRDP Integrated Rural Development Programme
(ii) PMGSY Pradhan Mantri Gramin Sadak Yojana
(iii) RRB Regional Rural Bank
(iv) SCB State Commercial Bank
(v) SLDB State Land Development Bank
Check Your Progress 5
1) (i) BROMARK All India Broiler Farmers Marketing Cooperative Limited
(ii) NAFED National Agricultural Co-operative Marketing Federation
of India
(iii) NCDC National Co-operative Development Corporation
(iv) NECC National Egg Coordination Committee
(v) NPDB National Poultry Development Board
(vi) PFI Poultry Federation of India

54