Did you know that poultry and egg consumption in India is continually increasing? Yes, as demand steadily rises, India remains among the top 5 global poultry producers.

Poultry farming is one of the fastest-growing agribusiness sectors in India, and the government of India is already running a National Livestock Mission to promote poultry farming. Not only is it a lucrative business, but it also contributes towards a better environment and nutrition. For example- from eggs to manure, a poultry farm is a source of many valuable resources.

So, if you are willing to step into your own poultry business, you are at the right place. From selecting birds to procuring small business loans, here’s a complete guide on successful poultry farming in India.

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Steps to start poultry farming in India

 Choose a poultry sector

Poultry farming can be of two types- broilers and layers. The difference is quite simple, broiler chickens are raised for meat, whereas layers are raised for eggs. Therefore, the first step is to choose what kind of business you want to proceed with.

You can also choose multiple sectors among poultry farming, such as meat production, egg production, poultry feed production, chicken breeding (hatchery), and egg/meat processing. The type of poultry sector largely determines your capital costs, equipment, and other requirements.

Choose the type of chicken

Since the broiler chicken breed makes up for most poultry farming, let’s take a deeper look. Broiler chickens can be classified into two types:

  • Commercial broiler chicken breeds: These breeds are reared only for chicken meat. They are genetically made to produce meat with a higher conversion rate than eggs. Commercial broiler chickens are usually slaughtered once they become 6-8 weeks old. 
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Some of the most common commercial broiler chicken breeds: Hubbard, Cobb, Caribro, Avian, Krishibro, etc.

  • Dual-purpose broiler chicken breeds: These breeds are raised for both meat and egg production. Dual-purpose broiler chicken breeds are modified to be self-reliant, strong, and have larger bodies. They are also known for laying brown-shelled eggs. 

Some of the most well-known dual-purpose broiler chicken breeds include Rhode Island Red, New Hampshire, White Plymouth Rock, Gramapriya, etc.

Have a business plan

Like all businesses, poultry farming also requires a well-planned business blueprint. You can always do a little market research before setting the goals of your business. 

A typical business plan for a poultry farming business consists of the following details:

  • Details of land or space where your farm will be located
  • Pieces of equipment to be used in the farm
  • Details of types and breeds of birds
  • Details of the eggs production process
  • Details of broiler breeding process
  • Details of human resources
  • Cost analysis
  • Details of funds and loans
  • Marketing strategies and advertising techniques

Arranging capital

The capital and operating costs will primarily depend on the size of your poultry business. For example, if you plan to start a small-scale poultry farm, you will need anywhere between INR 50,000 to INR 1,50,000. As the size increases, the investment might also go up to 10-15 lakhs. 

There are many ways you can meet your financial requirements, such as:

  • Small business loans
  • Borrow from your friends or relatives
  • Government schemes

However, a small business loan is considered the best option, as you can enjoy tax rebates on your loan amount. Also, various government schemes have been launched to support small businesses, for example- PM SVAnidhi This particular scheme focuses on providing affordable working capital loans to street vendors (small business owners) to resume their livelihoods after being affected by the Covid-19 lockdown.

Working Capital Loan

Licensing and registration

Whether you are starting a small or large poultry farm, you need to get your business registered. Some licenses and registration you might need to go through are:

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Location of poultry farm

It is essential to choose a feasible location for your poultry farm. The site must have all the necessary facilities like water supply, drainage supply, and electricity supply.

Now, the selected area needs to be divided into three parts which are:

  • Floor space
  • Feeder space
  • Waterer space

The requirements mentioned above can vary according to the number, breed, and health condition.

Note: Avoid setting up a poultry farm in residential areas because poultry farms often produce a foul odor. However, make sure it’s easily accessible to the targeted market.

Setting up the farm and equipment

This step covers building the poultry farm design and buying various equipment. The standard equipment required in a poultry farm can be:

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

Hiring and deploying labor

Labour required is directly proportional to the number of birds available in the poultry farm. For beginners, it is safe to start with 200 to 500 birds. Once you gain the experience and understand the workflow, you can manage and expand the number of birds according to yourself.


As your farm is set and the poultry products are ready, you need a good marketing strategy to generate profit. Choose the right market to sell your products. For example, if your farm is set up in the city’s outskirts, you can easily become a supplier to the city’s retail shops. Or you can partner with your local poultry distributor and so on.

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Other marketing techniques include websites, visiting cards, advertisements, pamphlets, etc.

A poultry farm business can be very promising in terms of production and profits. However, the right business plan and capital investment are the initial steps that help set up the business.

At Ziploan, you can procure small business loans up to 7.5 Lacs in just three days! With minimal documentation and zero prepayment charges, Ziploan emerges as a one-stop solution to booming small-scale businesses.

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Poultry Farming in India – FAQs

How much does it cost to start a poultry farm in India?

The general amount of funds required in starting a poultry business in India is approximately around 50,000 to 2 Lakh rupees.

Is poultry farming profitable in India?

Total sale value/ income from the chicken @ Rs 90/kg: Rs 21, 60,000.00. The total profit on the investment is around: Rs 4, 44,000.00 (annually). The sale of other by-products of the farms like manure and gunny bags can bring in an extra income of around Rs 20,000.

Is poultry a good business?

Owning a poultry farm can be a lot of hard work, but it can also be very satisfying. Poultry farming has proven already that it can be very lucrative. If you have the appropriate space and the knowledge, starting a small poultry farm could be a great source of income for your family.

How can I get a subsidy in poultry farming?

For poultry farming, you can obtain loan from any government bank. B. State Bank of India (SBI) gives loans up to 75% of the total cost for this work and it provides loans up to Rs 3,00,000 for a poultry farm of 5,000 chickens. From here, you can take a loan of up to 9 lakh rupees.

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