HomeBlogAgricultureAbout Poultry Farming and how to Do Poultry Farming? Cost & Profit Explained

About Poultry Farming and how to Do Poultry Farming? Cost & Profit Explained

How to Do Poultry Farming? Cost & Profit Explained

Do you want to launch a poultry farming business? A fantastic method to increase income and promote food security is through poultry farming. It’s a profitable and popular sector in India.

This blog will take you through the process of beginning a poultry farm. We’ll talk about how to choose the correct breed, set up your farm, and manage your flock. Additionally, you’ll discover the expenses and the potential profits you can make.

What is Poultry farming?

What is Poultry farming

Poultry farming means raising chickens, ducks, turkeys, and other birds for meat and eggs. This business is popular among farmers because it is very easy to start and profitable.  Moreover, this business is very space-efficient, which makes it perfect for beginners. Furthermore, it improves food security by consistently delivering fresh foods. In general, farmers can enjoy several advantages from raising poultry.

Is Poultry farming profitable in India?

Is Poultry farming profitable in India?

Yes, poultry farming can be profitable in India with the right planning. Let’s assume you start with 500 chickens. Each chicken can produce around 250 eggs per year. If you sell each egg for ₹5, you can earn ₹6,25,000 from eggs alone. Additionally, if you sell some chickens for meat, assuming each chicken sells for ₹200, you could earn ₹1,00,000 by selling 500 chickens.

You will have some costs, such as feed, housing, and healthcare, which might total around ₹3,00,000 per year. After subtracting these expenses, your profit could still be around ₹4,25,000. This shows that with proper care, poultry farming is profitable in India.

Top States for Poultry Farming

Top States for Poultry Farming

Importance of Poultry Farming in India

Importance of Poultry Farming in India

Poultry farming is very profitable in India due to several reasons. Check them below:

  • Provides a good source of protein, like eggs and meat.
  • Helps farmers earn money quickly, as chickens grow fast.
  • Supports the rural economy, helping small farmers and their families.
  • Reduces the need to import eggs or meat, keeping costs lower.

How to Start a Poultry Farming Business in India?

Starting a successful and simple poultry farming business in India is a feasible choice. Its rapid growth and low investment requirements make it a popular option. Depending on the need in the market, you can grow chickens for meat or eggs. Poultry farming may provide a stable income flow and steady development if done correctly. The following steps will teach you how to launch and run a profitable poultry farm. These steps will walk you through the procedure and make it easy to understand and follow.

1. Identify the Types of Poultry Farming

There are two common types of poultry farming in India:

  • Layer poultry farming
  • Broiler poultry farming

a. Layer Poultry Farming

Layer poultry farming mainly deals with the production of eggs. Between 18 weeks to 78 weeks is the average age of these birds. At this point, the birds begin to consistently lay eggs. To maintain high productivity, farmers keep a close eye on their surroundings and health. Eighteen weeks later, the birds start laying. Their egg production typically starts to decline around 78 weeks.

b. Broiler Poultry Farming

Raising hens only for the purpose of producing meat is known as Broiler poultry farming. Farmers choose breeds that grow quickly and attain market weight. Broilers are usually ready for sale after 6 to 7 weeks. Farmers provide them with healthy meals and clean water throughout this period. Proper care and adequate housing contribute to healthy development. In comparison with other types of poultry farming, broiler farming is more popular since it can be highly profitable and takes less time. Numerous farms sell broilers to nearby markets or meat providers.

2. What is the poultry housing system?

A poultry housing system is a structure used to grow poultry, such as hens. Initially, it shields them from unexpected weather and any threats. Secondly, it gives them adequate room to walk around. Furthermore, adequate ventilation maintains the quality of the air. The birds are more at ease when there is adequate lighting. Finally, a clean environment promotes their well-being. In general, effective chicken farming requires high-quality housing.

1. Litter Poultry System

This is a method of raising poultry in which birds are kept on a floor covered with bedding material, such as straw or sawdust, to prevent the birds from touching the bare floor.

Litter Poultry System

2. Cage Poultry System

The Cage Poultry System is a method of housing egg-laying hens in which they are kept in small wire cages, typically with several birds in each cage.

3. Decide on Chicken Breed

Broiler chickens are classified into two breeds types:

A. Commercial broiler chicken breeds

These breeds are commercially reared to extract mainly their meat. They are ready to slaughter once they are 6-8 weeks old. Such breeds are genetically made to produce more meat. Some of the common commercial breeds of chicken are:

  • Hubbard
  • Caribro
  • Cobb
  • Avian
  • Krishibro

B. Dual purpose broiler chicken breeds

The dual breeds of broiler chickens are genetically modified to produce both meat & egg. They have heavy & strong bodies. Moreover, they lay brown-shelled eggs.

Some of the famous dual broiler chicken breeds are:

  • Rhode Island Red
  • Gramapriya
  • New Hampshire
  • White Plymouth Rock
  • Gramapriya

Select the breed based on the vision and capital you have to start your poultry farming business in India.

4. Have the Right Capital

The amount of capital required will depend upon the size of the business you are planning to start. The capital investment can be roughly between INR 50,000 to 2,00,000 for small-scale poultry farming businesses. Whereas, if you wish to start a large-scale poultry business, the investment can be as massive as Rs 10-15 lakhs.

However, if you don’t own such capital, you can:

A. Take small business loans – The best thing is, the interest rates can be less & you get tax rebates on the loan amount.

B. Take part in the government. schemes & programmes – You can avail of schemes like PM SVAnidhi Scheme. The government launched this loan scheme to help street vendors who suffered during Covid 19 wave. The scheme aims to grow the economy of street vendors by providing easy working capital loans. PM SVANidhi is a micro-credit scheme that grants loans up to INR 10,000 with subsequent amounts as INR 20,000 and INR 50,000 with a 7% interest subsidy without any collateral. The scheme aims to raise individuals’ capital power and facilitate digital transactions among street vendors.

C. Crowdfunding – You can ask people to offer generous funds in small or any capacity they can.

D. Or you can lend it even from any friends & family who support your vision of starting a poultry business.

5. Apply for Licences & Permits

Applying for certain licences and certificates is very important to start any small to big poultry farming business legally and safely in India. You will require the following registrations & licences to make your business lawful and credible.

6. Have a Poultry Farming Business Plan

Create a blueprint about how you will be starting the farm. Find answers to the following points in that plan:

  • Land or area to start
  • Poultry farming equipment list
  • Types/methods of poultry farming
  • Eggs production process
  • Broiler breeding process
  • Capital & cost evaluation
  • Funds & loans
  • Marketing & distribution channels

Check outBest farming Implements from top brands!

7. Select the Business Location

Location is the most important factor in starting your poultry farming business. Make sure the location you choose has all amenities like electricity, water, drainage channels, local markets, selling markets, etc. However, keep the farm or factory in slightly isolated or far-off locations from residential areas, as chickens produce a foul smell.

Based on the type of chicken, breed & health condition, you will need space where you can have 3 separate areas of-

  • Floor space
  • Waterer space
  • Feeder space

8. Gather the Right Equipment

To continue the process, you will need the right kind of equipment. You will need:

  • Nests
  • Feeders
  • Cages
  • Coops
  • Waterers
  • Coops
  • Crates
  • Incubator
  • Egg tray & washers
  • Lighting fixtures
  • Perches
  • Brooders or heaters
  • Dressin & ventilation system
  • Waste disposal system

Also Check – Top quality 4wd Tractors in budget

9. Select Labour & Staff

The number of labourers and staff will depend on the size of the farms or the number of birds you own. For beginners, you can start with just 200-500 birds and employ people to feed or breed them as per your budget, size & type of farm & requirements.

You must hire a knowledgeable 3-4 staff that you can entrust with the following responsibilities:

  • To feed food and water to the birds.
  • Walk through the farm to notice any sick or injured birds.
  • To assist in egg collection, sorting & grading if it’s layer farming.
  • To support putting eggs in cartons on a layer farm.
  • And, to regulate the climate & temperature of the farm, keeping birds’ comfort in view.
  • To conduct frequent maintenance throughout the farm. And ensure the watering, lighting & heating systems are working just fine.
  • To ensure high standards of animal welfare are thoroughly met.

10. Market Your Business

Identify how uniquely you would package your egg cartons for them to stand out in the market. As well as figure out the vendors, distributors or retailers who would sell your produced eggs.

Since we are in the digital age, you can also list yourself on instant delivery platforms like Blinkit, dunzo, Big Basket, Godrej’s Nature Basket, and many other platforms of choice.

Layer Poultry Farming Cost & Profit Analysis

Poultry farming business is easy to start with capital as small as Rs 2 -3 lakhs. If you start layer farming at a small level with just 1500 chickens, you can earn somewhere between INR 50,000 to 1 lakh. After deciding on the chicken, ascertain the place where you will be rearing them. Further, the estimated cost of starting the layer farming would be:

  • You need to have INR 50,000 to buy the chickens.
  • Besides this, you should have INR 1-2 lakh for spending on the cage & equipment.
  • You also need to have some money set aside for buying food & medicines for the chickens.

Note that the hens start laying eggs after 20 weeks and continue to do so for up to a year. You will be required to spend approx. INR 1 – 2 lakh for feeding the chicken. A layer bird can lay around 300 eggs annually.

If you start with 1500 hens and get 290 eggs from each hen, you will get around 4,35,000 eggs within a year. Even if you are able to sell 4 lakh eggs (after wastage), one egg retails for Rs. 5-7 in the market.

So, you will easily earn an annual revenue of:

When the price is Rs 5

Rs. 5 X 4,00,000 = INR 20,00,000

When the price is Rs 7

Rs. 7X 4,00,000 = INR 28,00,000

Poultry Farming Subsidies

The amount of subsidy provided by the Indian government for poultry farming can vary depending on the specific scheme and the region. However, here are some general guidelines:

  • National Livestock Mission (NLM):
    • Capital subsidy: Up to 50% of the project cost, with a maximum of Rs. 25 lakhs.  
    • Interest subvention: Up to 3% on loans taken for the project.
  • Pradhan Mantri Micro Units Development and Refinance Agency (PM MUDRA Yojana):
    • Loans: Up to Rs. 10 lakhs for poultry farming.  
    • Interest rates: Vary depending on the loan category (Shishu, Kishor, Tarun).
  • State-level schemes:

    • Vary widely: Subsidies can range from a percentage of the project cost to direct cash grants.  

It’s important to note that these are general guidelines, and the actual subsidy amounts may vary. For the most accurate and up-to-date information, it’s recommended to consult with local government offices or agricultural extension services in your area.

You can easily get a new tractor loan with the application process!

Final Thoughts

These were the quick steps to start a poultry farming business plan in 2023 and beyond. By ensuring the above steps, right from selecting the poultry type to evaluating the govt. With subsidies, you can start a profitable poultry farming business in India. By investing a little capital as Rs 4-5 lakhs, you can expect to earn an income of INR 20 lakhs.

If you wish to explore other farming activities, make sure to have absolute quality farming tractors & implements from the best brands. And for more poultry farming information, stay tuned to our web stories.

Frequently Asked Questions About Poultry Farming

1. What is poultry farming?

Ans. It is a process of rearing birds either domestically or commercially to extract their by-products like meat, eggs & feathers.

2. What are the advantages of poultry farming in India?

Ans. Poultry farming is not seasonal, as eggs have huge demand yearly. Moreover, less capital investment & huge profit potential could be other reasons to pursue this business.

3. Is poultry farming profitable in India?

Ans. You can earn an average revenue of up to Rs 10-15 lakhs from the poultry farming business in India.

4. How to start poultry farming in India?

Ans. You’ll just need to identify the capital, location, govt. Schemes and types of poultry farming: Get started.

5. What management practices are common in dairy and poultry farming?

Ans. In dairy & poultry farming, you need clean & ventilated spaces and proper vigilance to prevent disease-infecting pathogens.

6. How much will it cost to start poultry farming for beginners?

Ans. You would need approx. INR 50,000 to 2 lakh to start your poultry farm.

7. Is there any poultry farming training?

Ans. You can avail of poultry farming training from various institutions like:

  • Central Poultry Training Institute
  • Suguna institute of poultry training
  • Central Avian Research Institute

Related Blog
Top Mushroom Producing States in India
Tips for Saffron Cultivation in India

scroll to top