- Comprehensive insurance of birds covering diseases to be obtained for poultry development under all government sponsored schemes, small & medium poultry farms having bird strength upto 10000.
- In respect of commercial farms & hatchery units having fully automated management system or environmentally controlled management, obtention of comprehensive insurance of birds covering diseases be waived, irrespective of its size.
- Obtention of regular fire and strikes, note, civil commotion (SRCC) comprehensive insurance policy for poultry structure, hatchery building, other civil work, machinery, equipment, feed mill, stock of feeds, medicines, vehicles, etc. financed under poultry development schemes.
Scheme formulation for bank loan
A scheme can be prepared by the promoter after consulting local technical persons of State Veterinary / Animal Husbandry department, Poultry Corporation or private commercial broiler hatcheries. If possible, they should also visit the progressive broiler farmers in the area and discuss the profitability of farming.
A good practical training and experience on a broiler farm will be highly desirable, before starting a broiler farm. As broilers have to be sold within 35 to 40 days of age, regular and constant demand for broiler meat and nearness of the farm to the market should be ensured.
The scheme should include information on land, water and electricity facility, marketing aspects, training facilities, expertise of entrepreneurs and the type of assistance available from State government, Poultry Corporations, local hatcheries. It will also include data on proposed capacity of the farm, total cost of the project, margin money to be provided by beneficiary and requirement of bank loan, estimated annual expenditure, income and profit and the repayment of loan and interest.
A format developed for project report preparation for a commercial broiler farm is given in Annexure -I
. Appraisal of the project
The bank officers can also 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 the bank.
The bank will then examine the scheme for technical feasibility and economic viability.
A. Technical feasibility - this would briefly include:
(a) Suitability of climate and potentiality of the area
(b) Technical norms including schedule for replacement of flocks
(c) Infrastructure and other facilities available for supply of inputs, veterinary aid, marketing etc., and training/experience of the beneficiary
B. Financial viability - this would briefly include:
(a) Unit cost and loan requirement
(b) Input cost for chicks, feed, veterinary aid, labour and other overheads
(c) Output cost i.e. sale of broilers, manure and other miscellaneous items.
(d) Calculation of annual gross surplus (income-expenditure)
(e) Cash flow analysis
(f) Repayment schedule i.e. repayment of principal loan amount and interest
Other documents such as loan application form, security aspects, margin money requirements etc. are also examined. A field visit to scheme area is undertaken for conducting techno - economic feasibility study for appraisal of the scheme.
Lending terms - General:
Outlay of the project depends on the local conditions, unit size and the components included in the project. Prevailing market prices may beconsidered to arrive at the outlay.
Margin Money :
Margin depends on the category of the borrowers and range from 5 to
Banks are free to decide the interest rates within overall RBI guidelines. However, for working out financial viability and bankability of model project, we have assumed rate of interest as 12% p.a.
Security will be as per NABARD / RBI guidelines issued from time to time.
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 6 to 8 years.
The birds and other assets (poultry shed, equipment) may be insured. Wherever necessary Risk/Mortality fund may be considered in lieu of poultry insurance.
Investment Size: 30 Lacs (10,000 birds) | Poultry Layer Farming (Investment Size Rs.1 Cr)