Introduction
Poultry farming has become one of the fastest-growing agribusiness sectors in India. It provides employment, improves nutrition security through eggs and meat, and generates steady income for farmers. Both the Central Government of India and the Government of Karnataka recognize the importance of poultry and have designed subsidy programs and financial support schemes to encourage farmers, Self-Help Groups (SHGs), entrepreneurs, and rural youth to take up poultry farming.
However, while many farmers know there is “subsidy” available, they often lack clear, detailed, and step-by-step information about:
- Which schemes exist
- How much subsidy is offered
- Who is eligible
- What documents are needed
- How to apply and get approval
- What risks to avoid
This comprehensive article explains everything in detail — from central schemes like the National Livestock Mission (NLM) to Karnataka state-level supports, along with practical project reports, subsidy calculations, marketing strategies, and risk management.
By the end of this guide, you will be able to:
- Understand the types of subsidies available for poultry farming.
- Know the application process for both state and central schemes.
- Learn about technical requirements (shed design, feeding, vaccination, biosecurity).
- Explore sample business plans and subsidy calculations.
- Avoid common mistakes and increase your chances of approval.
Part 1 – Central Government Subsidy Schemes for Poultry Farming
1. National Livestock Mission (NLM)
The National Livestock Mission (NLM) is the flagship program of the Department of Animal Husbandry and Dairying (DAHD), Government of India. It covers breed improvement, entrepreneurship, fodder development, and livestock health.
- Subsidy Available:
- 50% capital subsidy for establishing poultry farms, hatcheries, brooder units, and rural backyard poultry projects.
- Maximum subsidy ceiling: Generally ₹25 lakh for poultry projects (subject to guidelines and project type).
- Who Can Apply:
- Individual farmers
- SHGs, Farmer Producer Organizations (FPOs), Women entrepreneurs
- Startups in poultry sector
- Components Covered:
- Poultry sheds
- Brooders and hatchery equipment
- Feed storage & silos
- Feeders, drinkers, and water systems
- Manure and waste management units
Why NLM is important:
It is the primary central subsidy scheme for poultry entrepreneurship. Without NLM, very few capital subsidies exist at national level. It reduces initial investment burden and makes poultry farming viable.
2. Livestock Health & Disease Control Programme (LHDCP)
This is not a capital subsidy scheme but very important for poultry farmers.
- Purpose: To control and eradicate diseases like Newcastle Disease, Avian Influenza, etc.
- Benefits:
- Free vaccination drives for poultry birds.
- Compensation for mass mortality during disease outbreaks.
- Relevance: Reduces risk of sudden loss, improves productivity, and supports farmers indirectly.
3. NABARD & Poultry Venture Capital Fund (PVCF)
NABARD (National Bank for Agriculture and Rural Development) supports poultry farming through:
- Refinance support for banks that lend to poultry projects.
- Poultry Venture Capital Fund (PVCF) for financing infrastructure.
- Linking poultry subsidy (under NLM) with bank loans.
Role of NABARD:
It is the channelising agency — meaning central subsidies are often routed through NABARD to banks, and then to the beneficiary.
4. Other Central Initiatives
- National Animal Disease Control Programme (NADCP): Support for vaccination against Foot-and-Mouth Disease (for livestock, indirectly benefits poultry farmers in mixed farms).
- Skill Development Programs: Central government sponsors poultry training through Krishi Vigyan Kendras (KVKs) and extension centers.
Part 2 – Karnataka Government Poultry Subsidy Programs
While central subsidies are common across India, Karnataka has state-specific poultry development programs under the Department of Animal Husbandry and Veterinary Services (AHVS).
1. Karnataka Poultry Development Schemes
- The state provides additional financial support on top of central subsidies.
- In some years, Karnataka has announced special packages for SC/ST farmers, women entrepreneurs, and rural youth to set up poultry units.
- Subsidies often cover:
- Rural backyard poultry distribution (free chicks + feed support).
- Small poultry shed construction.
- Feed subsidy during crisis (e.g., drought or pandemic).
- Training & capacity building through AHVS.
2. Interest Subsidy and Loan Support
- Karnataka sometimes offers interest subsidy on loans taken for poultry farms.
- Ex: If you take a bank loan of ₹5 lakh under NLM, Karnataka may cover part of the interest, reducing repayment burden.
3. State-Specific Training & Extension
- The AHVS Karnataka runs regular training for poultry entrepreneurs.
- Training certificates often increase chances of subsidy approval.
Part 3 – Eligibility Criteria
To apply for poultry subsidy in Karnataka or through central schemes, you must:
- Be a resident farmer or entrepreneur (individual, SHG, FPO, company).
- Own or lease land where poultry shed will be built.
- Have a project report with cost estimates and production plan.
- Provide promoter contribution (usually 10–25% of total cost).
- Take a bank loan for the remaining cost.
- Not be a loan defaulter with any bank.
- Complete training/EDP (if required under NLM).
Part 4 – Subsidy Coverage (What Costs Are Covered)
Government subsidies generally cover capital expenditure only. That means:
- ✅ Poultry shed construction
- ✅ Hatchery and brooder equipment
- ✅ Feed silos, storage, feeders, drinkers
- ✅ Fencing, waste management systems
- ✅ Power backup (generators/solar, if allowed)
They usually do not cover:
- ❌ Recurring feed cost
- ❌ Labor wages
- ❌ Daily medicines
- ❌ Electricity bills
Part 5 – Application Process
Here is the step-by-step process:
- Prepare Project Report – include capital cost, operating cost, income, and repayment plan.
- Attend Training – at AHVS, KVK, or a poultry training center.
- Apply at District AHVS Office – fill subsidy application form.
- Approach Bank for Loan – submit project report + subsidy form.
- Field Inspection – AHVS officer inspects site.
- Sanction & Disbursement – bank releases loan, you invest promoter share, subsidy is released later.
Part 6 – Sample Project Cost & Subsidy Calculation
Example: Small Broiler Unit (2,000 birds)
- Shed & infrastructure: ₹2,50,000
- Equipment: ₹1,50,000
- Brooders & initial stock: ₹50,000
- Miscellaneous: ₹50,000
- Total Project Cost = ₹5,00,000
Under NLM:
- Subsidy (50%) = ₹2,50,000
- Promoter Contribution (20%) = ₹1,00,000
- Bank Loan = ₹1,50,000
