DEVELOPMENT OF RURAL BACK YARD POULTRY Concept Paper for a new initiative Introduction 1.

1 though poultry development in the country has taken a quantum leap in the last three decades, the growth has been mainly restricted to commercial poultry. Rural backyard poultry, though still contributing nearly 30% to the national egg production, is the most neglected one. This is in spite of the fact that their poultry eggs and meat fetch a much higher price than that from commercial poultry. 70% of the poultry products and eggs are consumed in urban and semi urban areas and the rural consumption is quite low. Private poultry producers are also not able to attend to the needs of major rural consumers and to the consumers of the north-eastern states and other difficult regions. The major limiting factor in the way of increasing consumption of egg and poultry meat in rural area is poor availability. Most of the commercial poultry egg and meat production is centered in the urban and semi-urban areas. Due to their operation being of an industrial nature, the private sector is not inclined to go to the rural areas, particularly to small farmers and landless farmers including women. The private commercial sector is understandably reluctant to enter the rural backyard poultry sector as they aim at higher and quick profits, through larger investments. The commercial poultry sector is doing business, through integrated approach of contract farming using high-input and high-output birds. For the poorest of the poor and the landless, the major issues are food security and risk spreading through subsidiary income, which are not addressed by the private commercial sector. It is well known fact that a fairly significant proportion of the landless and marginal farmers eke out their living from poultry and other small ruminants. Backyard poultry requiring hardly any infrastructure set-up is a potent tool for upliftment of the poorest of the poor. Besides income generation, rural backyard poultry provides nutrition supplementation in the form of valuable animal protein and empowers women. It has also been noticed that the demand for rural backyard poultry is quite high in tribal areas. 1.2 It may also be mentioned that groups of small rural producers cater to the needs of consumers who have a specific preference for colored birds and brown-shelled eggs, both of which are mostly produced in the rural sector/ backyard poultry. Thus there is a need to take up specific rural poultry production programs, to meet the requirements of the rural consumers while constituting a source of subsistence income as a subsidiary occupation by taking up colored bird units ranging from 20 to 50 birds per family in their backyards. Such units require very little hand feeding and can give a fairly handsome return with bare minimum night shelter.

The vision: Holistic approach

2.1 Thus enriching small farmer and landless labor families through a more holistic and self-reliant approach not only in terms of improvement of income , employment and nutritional status but also in terms of fostering community development, gender empowerment and protection of environment, is envisaged on the larger canvass of rural development using poultry as a tool.

The mission: The Government of Indias initiative

3.1 The Department of Animal Husbandry has taken up in association with Indian Council of Agricultural Research a targeted program for up-gradation of low-input technology birds through their All India Coordinated Research Project on Poultry. The initiative has since developed and released birds like Vanaraja, Krishibro, Krishilayer, Caribro, Carired, Gramapria, Naked neck broiler, Dwarf broiler etc. by making available these stocks for further multiplication and distribution among farmers. 3.2 The Department of Animal Husbandry & Dairying has established four large scale Central Poultry Breeding Farms located in Mumbai, Bangalore, Bhubaneswar and Chandigarh and one Central Duck Breeding Farm at Bangalore by re-organizing their existing infrastructure. The breeding program by these Central Farms has been reoriented towards the goal of making rural poultry a viable income generation proposition. Accordingly, the basic purpose of the scheme is to increase egg and meat production especially in the rural areas of the country without putting substantial strain on feed resources and other inputs the cost of which the small farmers are not able to absorb. This will also meet the specific rural consumer preference as well as provide subsidiary occupation to rural poor, women and unemployed youth. The State Governments/ UTs have created sufficient infrastructure and made available technical manpower in the form of State Poultry Farms. But due to their financial constraints, the State Governments are unable to fully utilize these facilities as also the facilities being extended by the Central Farms to make available quality chicks to the farmers. 3.3 The Department of Animal Husbandry & Dairying has recognized the vast potential of this sector and has taken up the Challenge by implementing a scheme for boosting backyard poultry with appropriate stocks of birds suitable for this purpose. Under the Centrally Sponsored Scheme Assistance to State Poultry Farms, one time assistance is provided to State Poultry Farms to suitably strengthen them in terms of hatching, brooding and rearing of the birds with provision for feed mill, their quality monitoring and in-house disease diagnostic facilities. These farms maintain only the parent stock of

low-input technology birds duly identified by this Department in consultation with ICAR and State Governments. Necessary in-built provision has been made in the scheme for a revolving fund for purchase of replacement breeding stock, feed ingredients, transportation, medicines and vaccines etc. The amount so spent is recouped from the sale proceeds of eggs, chicks, culled birds and poultry manure etc. and could be in turn used by the farm year after year. The objective is to make it a financially self- sufficient unit. The pattern of assistance is 80% GOI share and 20% State share. The State Government is expected to ensure health coverage, marketing, extension and training of beneficiaries. New initiative 4.1 However, the major weakness of the present approach is absence of necessary linkages. The Central Poultry Development Organizations (CPDOs) as well as the State farms merely provide training and produce good quality germplasm. The enterprising farms link these two components with assistance available under similar schemes of Department of Women & Child Welfare and provide trainees with initial assistance in terms of 15-20 chicks plus some feed etc. The Scheme per se does not provide for these linkages and without them the benefit of training is also lost. Besides, the most important element of regular guidance and inputs for health care , feed supplement (rural backyard poultry birds become deficient in certain nutrients as they scavenge on locally available material and need supplements) and marketing back-up are absent in the present scheme. Moreover, with annual investment of just about Rs. 8.00 crores (the 10th five year plan allocation of Rs. 25.00 crores is nearly over) the coverage in terms of area and extent is very limited.

4.2 Thus, outreach to the poorest of the poor is still restricted as the inputs are not being provided to the really remote areas and also the weaknesses on account of absence of backward and forward linkages are not overcome. Another major reason for sluggish development seems to be the concomitant R&D support from Agricultural Universities/ Veterinary colleges not being adequate in linking up with extension agencies to provide suitable technical back up at farmers doorsteps. The extension support is missing. The scheme envisaged giving day old chicks to farmers with the intention that there will be a close attachment of the farmer during the growing stages to take care of the chicks, but lack of amenities (for brooding, suitable night shelters etc.) in primarily cold and rainy regions result in high mortality.

4.3 Keeping in mind the limitations of the various ongoing schemes and taking into account the need to have a deeper insight into the requirements of the rural poultry sector with focus aimed at the poorest of the poor, a Workshop on rural poultry: What has been done and what needs to be done was organized by the Department of Animal Husbandry

& Dairying on 24.05.2004. Representatives of State Governments, Other Departments/Ministries/Agencies and eminent scientists from Universities, Cooperative sector, Poultry Corporations, Central Poultry Development Organizations, international organizations (FAO & Swiss Development Corporation) and also private organizations attended the workshop. Various rural /family poultry models like Bangladesh models (BRAC & Proshika), Cuban model, Mozambique model etc. were studied and deliberated upon. It was seen that those countries had adopted a mother unit- cluster approach as per their needs including health service delivery and marketing. Brainstorming was done in the Workshop to arrive at a suitable and flexible model for India to suit its various agroclimatic regions and socio-cultural conditions. 4.4 Keeping the above points in mind it is now proposed that we may have a more holistic approach as follows: (i) Rural production & Social organization: The centrally sponsored scheme Assistance to State Poultry Farms was a step towards boosting rural poultry production but with some limitations. The pattern envisaged now will also cater to intermediate rungs of poultry farmers who will rear the chicks in so-called mother units and also help in providing the backyard poultry rearers with 4-8 week old reared chicks so as to minimize the otherwise high chick mortality. The training will be more intensive and services will be provided at their doorsteps. The formation of self-help groups will foster community development, gender empowerment and promote the concept of saving money amongst the poor to build self-confidence and social security in the long run.

(ii) Cluster approach: It is important that for financing by institutions and sustainability of a project, economic viability must be taken into account. An exercise, involving as small as 20 birds in the backyard can also be viable but not always monitorable. Further, we need to ensure that whatever little surplus production is there should effectively be channelized into a well-defined marketing set-up. This will open vistas for expansion and upgradation of activities at the backyard level. For this a cluster approach is necessary. (iii) Backward and forward linkages: The required minimum infrastructure, inputs, feed, health service dissemination etc. as backward linkage and marketing of egg, meat, poultry products as forward linkage have to be provided by a resource agency or link agency. Preferably, these units should concentrate on inputs and services including procurement, rather than production itself. The failure of most of the poultry corporations/federations has been generally attributed to their giving more attention towards production and less towards marketing.

(iv) Mother Units and Mobilizing NGOs/ SHGs: Suitable NGOs may be involved for operating the mother units, as far as possible. At the backyard rearer level it is necessary

that they may form Self Help Groups (SHGs) as it can address the problems of their micro-financing as well as foster dependence for common cause on other members with common interest. The financial institutions will also come forward easily to assist these highly motivated and confident homogenous groups. Economic viability of the mother units and their deep commitment are both essential for the success of the programme. (v)Convergence of Poultry activities: While reviewing the work done so far and the roles of various other departments/ agencies in the poultry sector, it was seen that there are many development programs for rural farmers, women, tribal and other weaker sections of the society wherein poultry keeping is also one of the components. NABARD and NCDC are also re-financing many poultry projects and, though lately the projects try to incorporate all major inputs and services like feed, health care, training etc., subsequent follow-up and constant interaction and updation are mostly lacking. Further, the programs implemented by different agencies are not complementing each other and have over-lapping objectives at times. Therefore, there is a clear need to dovetail and coordinate other poultry development projects to work towards a common goal of strengthening all the spheres of backward and forward linkages and Research and Development associated with this sector. The present proposal envisages linkages with other development agencies and programs through concatenating networks between agencies / programs and research institutes, State Agriculture Institutions/ other ICAR Institutions etc. This will not only help steering the course of the project for rapid and efficient implementation but also offer a platform for trouble-shooting and problem management together. (vi) Outreach of services: The skill and training dissemination as well as health care outreach are very limited through the present Government Animal Husbandry and Veterinary set up. It is, therefore, necessary to work in close liaison with the District Rural Development Agencies (DRDAs) who may help in increasing the outreach of activities and help in extension through District/ Block Extension teams. Suitable Link Worker Couples (LWC)/ Community Link Workers (CLW) / Village Facilitators (VFs)/ Poultry Link Workers (PLWs), may be selected through mass contact programs and trained intensively for skill and service dissemination. This additional tier of workers will not only increase the outreach but will develop the necessary rapport within and between the villages through their link and help sort out common problems. Link workers will be from the same villages and preferably more forward farmer couples, who along with their own operations will provide inputs and services to other villagers. This will go a long way in ensuring sustainability.

Institutional Set Up Proposed

5.1 The organizational structure for the new initiative is envisaged as follows: (i) Central Project Monitoring Unit (CPMU) & Project Steering Committee (PSC): Implementation of the project nationally is proposed to be spearheaded, coordinated and monitored by a CPMU with a core staff of specialized and professional personnel. The proposed scheme is meant to be flexible so that each State / UT is able to participate and formulate a proposal suited to local situations. States and UTs participating in the Project will receive assistance in the form of grant-in -aid. Implementation of the scheme would entail on the states decisions on a number of policy issues, a closer study of the breeding, health and management of poultry in the states, identification of major players and developing synergies among them etc. Each state would, therefore, go through a critical phase of appraisal and preparation before implementing the scheme and a major thrust is required to ensure that this phase takes as minimum time as possible so that the scheme is launched without much delay. The CPMU will review and monitor the scheme once it is implemented. The work of CPMU and the implementation of the scheme will be reviewed by a multi-departmental and inter-ministerial Project Steering Committee under the chairpersonship of Secretary, Animal Husbandry, and Government of India. (ii) State Implementing Agencies: To avoid existing hurdles and delays at the State Government level in transfer of funds and impart greater cohesion & professionalism, it is necessary that the functions may be carried out by an autonomous state implementing agency with a dedicated work force. An existing Poultry Corporation/ Federation or similar agency in the State may be nominated as SIA. If no such agency exists, a new state level autonomous body may be set up. Care will be taken to ensure that a sick organization with liabilities is not nominated for the purpose. It may be necessary that to ensure smooth and continuous production and supply, the breeding and multiplication farms, if required could be handed over to SIAs either by transfer or through a suitable lease agreement. The SIA will receive the project grants directly from the GOI and channelize them to other participating agencies including Directorate of Animal Husbandry and State Agricultural/ Veterinary Universities/ ICAR institutes etc. Developing synergies among major players in the State will be the responsibility of SIA. The SIA will charge for the goods and services provided by it in order to remain economically viable. The goods and services provided by SIA in turn would conform to the policy on poultry development of the State. This arrangement is likely to insulate the production and marketing network from budgetary fluctuations in the State and foster professionalism, efficiency and autonomy where it is required most. (iii) Involvement of NGOs: The experience across the country has shown that group formation and development is not a spontaneous process. A facilitator working closely with the communities at grassroots level can play a critical role in group formation and development. The quality of the groups can be influenced by the capacity of the

facilitator. The facilitator may or may not be an official. In some cases, NGOs can not only work as the facilitator but also help in training and capacity building of facilitators. Such sensitive support mechanisms in the shape of NGOs or Community Based Organizations (CBOs) or network of community coordinators / animators or a team of dedicated functionaries of the Government who are fully engaged in the task of initiating and sustaining the group development process should be selected to manage the CRUs and also in the training teams. The coordinators / animators could be from the community or from outside the area. They could be leaders / members of SHGs, or persons having experience or training in the field of community organization and social mobilization. The selection of Facilitator / Community Coordinator and their training and capacity building for involvement in formation, development and training of SHGs is critical for the success of the Programme. The SIA may therefore select suitable organizations/societies/individuals as facilitators/community coordinators in the programme based on their past experience in SHG formation, community organization or any other similar work involving participatory approach, communication skill, ability to stay with the people in the rural area etc. They will have to stay for a period of 2-3 years with the Group to ensure continuity as well as to enable the Groups to mature into a self managed peoples organization. The SIAs may organize training and exposure programmes for the facilitators and should interact with them regularly to get feed-back about groups.

(iv) Formation/ strengthening of SHGs: The project will focus on organization of the poor at grassroots level through a process of social mobilization for poverty eradication through poultry activity. The SHG (self-help group) approach will be giving various advantages of binding each other and common arrangements for getting chicks, feed, deworming, disease control, marketing of eggs and culled birds. The approach to organize the poor stems from the conviction that there is a tremendous potential within the poor to help themselves and that the potential can be harnessed by organizing them. Social mobilization enables the poor build their own organizations (SHGs) in which they participate fully and directly and take decisions on all issues concerning poverty eradication. Simultaneously, SHGs have the advantage that they can ensure assistance be it in terms of credit or technology or market guidance etc. reaches the poor faster and more effectively.

(v) Clusters: The poultry activities may be taken up for implementation preferably in clusters. It must be noted that the clusters are not mere geographic agglomerations but units where the backward and forward linkages can be effectively established. This will facilitate greater control of the progress of the programme, including setting up of infrastructure, raw-material distribution, technology transfer as well as quality control. It is not essential that the proposed project should be implemented in each and every village of the Block. Advantage may be taken of the infrastructure already built up so that the

results may be more definite. At the same time, care must be taken to see that maximum number of villages is covered under the clusters.

(vi) Convergence & Synergy: It is necessary to synergize activities with other rural development departments/ agencies so that progress is made in this direction without overlapping objectives. Financial institutions must also be taken into confidence for concerted efforts towards micro-financing. There is a dire need to dovetail and coordinate other poultry development programmes to work towards a common goal of strengthening all the spheres of backward and forward linkages and Research & Development associated with this sector. The present proposal envisages linkages with other development agencies and programs through interlinking networks between agencies / programs and research institutes, State Agriculture Institutes/ other ICAR Institutes etc. This will not only help steer the course of the project for rapid and efficient implementation but also offer a platform for trouble-shooting and problem management together. Among the relevant schemes assisting poultry activities are Swarnjayanti Gram Swarozgar Yojana (SGSY) of Ministry of Rural Development and Support to Training and Employment Program for Women (STEP) Scheme of Department of Women & Child Development etc. These schemes have their own format and a few States are assisted under the same. However, these are like umbrella schemes supporting range of projects from different sectors like agriculture, horticulture, animal husbandry etc. and the outflow and investment for poultry per se is very nominal. Under SGSY, for example, Assam, Uttaranchal and Jammu & Kashmir have been assisted since the inception of the scheme in 1999 to the tune of around Rs. 24.5 crores central share compared to total central share of Rs. 808.68 crores, i.e. merely 3%. Thus the coverage for poultry is limited under these schemes.

5.2 Department of Animal Husbandry & Dairying being the nodal agency for poultry activity may be better able to provide a nucleus for the proposed schemes and encourage the State Implementing Agencies to directly access the funds from the other schemes being implemented by the above agencies, like SGSY(Ministry of Rural Development) as per their requirement. The new project is also envisaged to be a demand-driven pool of funds and separate state-wise allocation is not proposed so that funds may be drawn as per the requirement, capacity and capability of each individual State Implementing Agencies. This will help complement the other schemes instead of overlapping their components. Members from the above Departments/ agencies will also be a part of the Project Steering Committee so as to coordinate their activities in tandem with the State Implementing Agencys action plan.

Major components of the scheme

6.1 The envisaged scheme will have the following major components: (i) Production Inputs

a) Germplasm: ICAR, Central Poultry Development Organization and wherever possible State Poultry Farms will ensure availability of quality chicks suitable for rural poultry b) Feed & Feed ingredients: The minimal feed requirement (as a supplement to scavenging) may be assessed and accessibility to important ingredients may be ensured in consultation with Agriculture & Cooperation and Food & Civil Supplies Departments. Quality assurance may be done by ICAR & CPDOs. c) Vaccines/ medicines: State Veterinary biological & ICAR will ensure availability of vaccines/ medicines etc.

Technological aspects of these input deliveries like cold-chain etc. may be ensured by CPDOs, Ministry of Food Processing Industries etc.

(ii) Infrastructure development: The major infrastructure development involved is strengthening of existing State Government farms to make available chicks, quality feed, and healthcare under a single window approach. The Department of Animal Husbandry & Dairying is already implementing a Centrally Sponsored Scheme: Assistance To State Poultry Farms which is launched during the 10th Plan in all the States/ UTs of the country. The pattern of assistance is 100% in the case of North Eastern States including Sikkim whereas it is 80:20 in respect of other States between Center and State respectively at the rate of maximum Rs. 85.00 lakhs for each farm. In the existing premises of the State poultry farms promotion of guinea fowl, quail, turkey can also be taken up as a new activity. One time assistance is provided to suitably strengthen the farms in terms of hatching, brooding and rearing of the birds with provision for feed mill and their quality monitoring and in-house disease diagnostic facilities. These farms maintain the parent stock of low input technology birds duly identified by this department in consultation with ICAR and State Government. Necessary in-built provision has been

made in the proposal for revolving fund for purchase of replacement breeding stock, feed ingredients, transportation, medicines and vaccines etc. The amount so spent has to be recouped from the sale proceeds of eggs, chicks and culled birds etc. and can be in turn used for the farm year after year making it a financially self-sufficient unit. While this scheme will be continued, selection of State Farms for assistance under this and the extent of assistance extended will be decided so as to ensure the successful implementation of the new scheme. So also the existing Central Sector scheme, Central Poultry Development Organizations, whose mandate is already oriented towards rural poultry development, will give the major technical backstopping to this scheme. The second major infrastructure requirement is hatchery/ resource unit /(Central Grower Units) at strategic locations where the existing State Poultry farms may find it difficult to provide effective input & service delivery due to long distances. However, this component will be taken up later and therefore initially the mother units and consequently beneficiary units will be located at distances within easy reach of CPDOs and selected State Farms.

The third major infrastructure requirement envisaged are the mother units, which are the nurseries for chick rearing. These will be mostly set up by NGOs. The functions and economic viability of the mother units are described separately. (iii) Training

The members of the district/ block extension teams may be trained for selection and further training of poultry link workers and beneficiaries for SHG formation. Beneficiaries training in poultry rearing and associated activities will be provided by the CPDOs and State Farms.

(iv) Marketing: The State Implementing Agencies would ensure the marketing of surplus produce mainly through the mother units. Economics of the beneficiary unit

7.1 As mentioned earlier, the beneficiaries will be supplied at a time with 20 to 50 chicks which are 6 weeks old. The economics of a beneficiary unit having 20 birds is worked out here. The initial fixed expenditure to be incurred is Rs. 1300 (Rs. 1200 for night shelter and Rs. 100 for the feeders and drinkers). The first batch of 20 chicks will cost Rs. 600 at the rate of Rs. 30 per chick. The cost of feed required (at the rate of 30 grams per day per bird) for 5 weeks and medicines will come to Rs. 250. After the first 5 weeks, feed worth Rs. 250 will be provided for another 5 weeks. This entire cost of Rs. 2400 will be subsidized as the beneficiary who often would belong to a BPL family cannot afford to make any investment. The beneficiary will rear the birds and she will sell the male birds (about 10 in number) when they are 16 weeks old; this is expected to fetch about Rs. 1050. The female birds will start laying eggs when they are 28 weeks old till the 80th week. It is expected that each bird will lay on an average 3 eggs per week during this period. The eggs of these country birds are expected to fetch a minimum price of Rs. 1.50 each. At the end of the 80th week the beneficiary will sell the culled female birds for meat purposes earning an income of about Rs. 750. Meanwhile, 26 weeks after the supply of the first batch of birds another batch of 20 birds will be supplied to the beneficiary with feed and medicines. It is proposed to provide 80% of the cost of this (i.e. 80% of Rs. 850) as subsidy as the income which has accrued to the beneficiary by that time would not be significant. Like this, 20 six week old chicks will be supplied to the beneficiary after a gap f every 26weeks. The subsidy for the third batch will be restricted to 60% (of Rs. 850) and no subsidy is proposed to be given for subsequent batches of birds as the beneficiarys income stream (from sale of culled birds and eggs) would enable her to meet the required expenses apart from using part of the income for the consumption of the family. With this cycle for the supply of six week old birds and the subsidy pattern mentioned above, it has been worked out that in the first 72 weeks after the beneficiary gets the first batch of birds, she will get a total income of Rs. 6270, out of which she has to incur expenses of Rs. 4460 (net of a total subsidy of Rs. 2290), leaving her with a surplus income of Rs. 1810. After this, the annual income of the beneficiary will be Rs. 8280, annual expenses Rs. 6200 and thus surplus income of Rs. 2080. If the beneficiary is able to take 30, 40 or 50 birds in a batch, her surplus income in the first 1-1/2 years will be Rs. 2715, Rs. 3620 or Rs. 4525 respectively and annually thereafter Rs. 3120, Rs. 4160 or Rs. 5200 respectively.

Economics of a mother unit

8.1 Each CPDO or State Poultry Farm which will function as the nucleus breeding farms for the supply of one day old chicks will have attached to it 10 mother units initially and 15 mother units from the third year onwards. As mentioned earlier, the mother unit has to supply 6 week old chicks to the beneficiary units with feed and medicines, and also to market the eggs and the culled birds unless the beneficiary is able to sell the same locally. The mother unit has also to periodically provide necessary services to the beneficiaries. For the success of the scheme, it is, therefore, very important to ensure the economic viability of the mother unit. Each mother unit is expected to cater to 200 beneficiaries initially (later this is expected to be increased to 300). The mother unit has to supply 6 week old chicks to each beneficiary (an average of 30 per beneficiary is assumed) once every 26 weeks, making a total of 12000 chicks per year. The mother unit gets one day old chicks (at a cost of Rs. 10 per chick) and rears them till 6 weeks and then supplies them to the beneficiaries at a price of Rs. 30. The total number of 12000 chicks expected to be supplied to the beneficiaries in a year are to be reared in seven batches of about 1720 each. After meeting all costs of feed, medicines and labor costs, the mother unit will earn a margin of Rs. 5 per chick. Its annual net income will thus be Rs. 60,000. 8.2 The initial fixed cost to be incurred in setting up a mother unit will be Rs. 90,000(consisting of Rs. 80,000 for a poultry shed of area 1000 sq. feet with asbestos roof); Rs. 5000 for feeders and drinkers and Rs. 5000 for cycles (with proper attachments for carrying chicks and birds) and other miscellaneous costs. It is proposed that 10% of this cost should be borne by the NGO setting up the mother unit, 30% as interest free loan by Government, 20% as subsidy by Government and 40% as loan by banks. The loan will be repayable in five years. Out of the annual income of Rs. 60,000, the mother unit will have to meet the annual interest and repayment burden of about Rs. 15,000, leaving a net income of Rs. 45,000. In addition to this the mother unit can earn margin on sale of culled birds (an also eggs) which the beneficiaries are not able to dispose of locally. Assuming that the proportion of such birds to be sold by the mother unit comes to about 25%, the annual net income (at the rate of Rs. 5 per bird) will come to Rs. 15000 giving a total income of Rs. 60,000. This is expected to ensure the general viability of the mother units. From the second year onwards when a mother unit is able to cater to 300 beneficiaries, the net income from the sale of 6 week old chicks will be Rs. 67,500 and the margin from sale of culled birds will be Rs. 22,500 making a total of Rs. 90,000.

Physical targets and financial implications

9.1 Based on the above assumptions, the physical targets and cost of implementing the scheme are worked out as below:
Sl.No. Component/ Costs Year I 35 350 70
910

Year II 40 400 120

650

Year III 40 600 180

780

Year IV 40 600 180

Year V 40 600 180

1. 2. 3.
4.

5.

6.

7.

Cumulative no. of nucleus breeding farms Cumulative no. of mother units No. of beneficiary families (000) Financial assistance towards fixed cost of beneficiary families (at the rate of Rs. 1300)-Rs. in lacs Subsidy towards input costs of beneficiary families(assuming average batch size of 30 birds)Rs. in lacs Subsidy towards fixed cost of mother units (at the rate of Rs. 18,000 i.e. 20% of Rs. 90,000)Rs. in lacs Interest free loan (net of recovery) to mother units (at the rate of Rs. 27,000)- Rs. in lacs Poultry training cum extension centers for training of trainers, poultry link workers etc. (25,15 and 15 centres to be set up in the Ist, 2nd & 3rd years at the cost of Rs. 2 lacs each)-Rs. in lacs Skill upgradation and training of beneficiaries (70,000 to be trained in Ist year & 50,000 in each subsequent year)- Rs. in lacs Administrative expenses, monitoring & evaluation- Rs. in lacs Total cost

1,607

1,683

1,760

459

63

36

95

14-19 (Net rec. of 5) 30

54-23=31

Rec.of 32

Rec. 32

of

8.

50

30

9.

420

300

350

350

400

10.

120 3,265

130 2,797

140 3,127

160 937

200 568

Thus the total cost of the programme during the five year period will be Rs. 106.94 cr or about Rs. 107 cr( of which Rs. 60.6 cr will be in the 10th Plan period). ( It is clarified here that the funds required for strengthening of State Poultry Farms which will function as nucleus breeding farms are not included here, as the same will be met from the

existing scheme of Assistance to State Poultry Farms, for this purpose, the 10th Plan outlay for this scheme will have to be increased suitably). As indicated, the total number of beneficiary families will be 180,000. To the extent that funds from schemes implemented by other Departments like Rural Development Department, Women& child Development can be mobilized, the number of beneficiary families will increase. It is expected that during he five year period, an additional 40,000 families can be assisted under those schemes. So also, in due course it will be necessary to set up poultry processing plants for which the schemes under the Ministry of Food Processing Industries will be availed of. COST OF INFRASTRUCTURE PROPOSED TO BE SET UP YEAR-WISE FOR FIVE YEARS
(Rs. in lakh Sl.No. Component/ cost 1. Satellite Hatcheries Year of Implementation I II III IV V 10 50 50 0 Remarks Total 200 Assuming cost of each Satellite Unit around Rs. 10.00 lakhs and proposing 10 and 5 Units during Ist and 2nd year respectively and another 5 Units during 5th year. 780 Assuming single Mother Unit cost to be around Rs. 1.2 lakhs during Ist and 2nd year and Rs. 1.5 lakhs during 3rd year and proposing for Establishment of 350, 50, 200 units during Ist, 2nd and 3rd year respectively. 110 Assuming cost of each Centre to be around Rs. 2.00 lakhs and proposing 25, 15, 15 Centres during Ist, 2nd and 3rd year respectively. 1500 Assuming cost of each Mini plants with dressing capacity of 500 birds per hour and proposing 5 units to be set up each year during the 3rd, 4th and 5th year . 2270 Assuming 70,000 beneficiaries are trained during the Ist year and 50,000 each during the

2.

Mother Units

42 0

60

30 0

3.

Poultry Training- 50 cum-Extension Centres for training of trainers, poultry link workers etc. Poultry Units Processing -

30

30

4.

50 0

50 0

50 0

5.

Skill upgradation 42 and training of 0 beneficiaries

40 0

45 0

50 0

50 0

6.

Administrative 70 expenses, monitoring and evaluation

80

90

90

90

420

subsequent years. Further only Honorarium is proposed @ Rs. 600, 800, 900, 1000, 1000 during Ist, 2nd, 3rd, 4th and 5th year respectively. Assuming cost per unit @ Rs. 2.00 lakhs during the Ist two years and Rs. 2.5 lakhs during the last three years and proposing as earlier, for 35 units during the Ist year and 40 units during the subsequent years.

7.

Lumpsum for 15 Establishment of 0 Central Project Monitoring Committee and Survey and Evaluation Studies Grand Total

15 0

10 0

50

50

500

5780