Poultry development
POULTRY DEVELOPMENT
OBJECTIVE:
The main objective of financing poultry is to increase egg/meat production by meeting financial requirement of the proponents who are willing to undertake poultry as a subsidiary or main occupation.
PURPOSE :
Financing can be considered for the following types of poultry schemes.
Establishment of small poultry (layer or broiler) units of 200 to 500 birds as subsidiary occupation by the farmers and agricultural labourers.
Individual registered partnership firms limited companies and registered co-operative societies having necessary trained and technical personnel and management experts for running following commercial poultry units.
Establishment/expansion of layer farm,
Establishment/expansion of broiler farm,
Establishment /expansion of hatchery farm,
Establishment / expansion of production –cum-processing units.
The following items are eligible for finance under different poultry schemes.
Construction of brooder/grower houses, feed godowns, acquisition of electricity and water supply, purchase of cages, purchase of feeders, waterers, feed/egg, trolleys, vaccination equipments ,etc.
Poultry co-operative may require finance for purchase of feed mixing plant, feed ingredients and for stocking of feeds for their members.
Integrated layer units will also require finance for construction of broiler houses, purchase of machinery/equipment for dressing of bird, refrigerated storage facilities for dressed birds and refrigerated van for their transport.
Hatchery units will require finance for egg rooms fumigation room, egg cooling room, room for egg incubators, room for chick sexing as well as and vaccination and packing room.
Larger poultry units may also require finance for purchase of air conditioners, stand-by generator.
ELIGIBILITY:
1. Individual farmers/agricultural labourers who are experienced/trained in poultry management are taking up poultry farming as a subsidiary occupation.
2. Individual registered partnership firms, limited companies, etc., are eligible for bank credit for large poultry units. These units should have trained/ technically qualified personnel for running the unit.
TECHNICAL FEASIBILITY:
The following aspects should be taken into account while assessing the technical feasibility for a poultry project:
a) Sustainability of climate;
b) Availability of day old chicks, feed, etc;
c) Requirement of housing and equipments;
d) Availability of electric power;
e) Veterinary care;
f) Marketing arrangements;
g) Experience of the proponent/availability of the trained/technically qualified personnel for running the unit etc.
FINANCIAL VIABILITY:
The assessment of financial viability of poultry units should include reasonableness of cost of various items of the scheme. Cost benefits analysis of the scheme should be worked out over the scheme period to find out net income generation vis-à-vis servicing of the debt apart from the entrepreneur getting a fair amount of return on the investment. Subsidies available to small/marginal farmers, agricultural labourers, scheduled casts and scheduled tribes under various programmes should be taken into account while studying the financial viability of the scheme.
QUANTUM OF FINANCE/MARGIN:
The amount of finance will depend upon the type and size of the poultry unit and the fixed costs and the working capital requirement during the gestation period. Working capital for the first 6 to 7 months in case of layer farms, 2 to 2.5 months in case of broiler farms and normally 6 to 7 months for hatcheries should be capitalized and included in the project cost.
Margin:
For marginal/small farmers, agricultural labourers and scheduled castes/scheduled tribes and other weaker sections. Subsidy available from various sources to be treated as margin.
For others -15 to 25% depending upon the financial capability of the proponent and size of the project.
Type of facility/term:-
Term Loan – Annual review.
SECURITY:-
Demand Promissory Note(L-434),
Composite Agreement for Hypothecation(CHA-1/CHA-2),
Borrower’s loan application should clearly state the purpose for which the advance is sought and being an integral part of the documents, a copy of such application must be attached to the Agreement for Hypothecation.
L-515 declaration as to relationship with Director/Officials,
L-516 or Annex the clauses on non-diversion of funds and securitization enclosed to Br. Cir.No.97/186 dated 08.03.2004 with CH I/CHA-II/CHA-IV
Equitable or legal mortgage or deed of declaration of land/superstructure, as appropriate where the limit exceeds Rs.50000/- (legal mortgage of land is to be taken in form CHA-4),
Letter of Guarantee from a guarantor wherever considered necessary in the limit above Rs.50000/-.(CHA-3)
INSURANCE :
Comprehensive insurance of birds covering diseases to be obtained for poultry development under all government sponsored schemes, small and medium poultry farms having bird strength upto 10,000/-.
In respect of commercial farms and 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.
Comprehensive insurance of poultry birds covering diseases may not be insisted upon in respect of large poultry farms and hatchery farms with strength of birds above 10,000, obtention of such insurance be left to the discretion of the borrower/s.
Obtention of regular fire and strikes, riots, 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.
DISBURSEMENT:
The execution of the scheme should be planned in a phased manner. Disbursement should be in accordance with the progress made in execution of different items of the scheme. At every stage of disbursement, the progress of the work should be verified by conducting post-disbursement inspections. As far as possible the loan amount should be disbursed directly to the concerned contractor/dealer/supplier/agency against proper bills/receipt and statement of completion from the borrower.
REPAYMENT:
Layer Farms : Monthly instalments after a gestation period of 6-7 months after purchase of day old chicks.
Broiler Farms : Monthly or quarterly depending upon the size of the unit and income generation pattern after a gestation period of 3 months after purchase of day old chicks.
Hatchery Units: Monthly instalments to start 7 to 8 months after the first purchase of parent stock as day old chicks
Regds
Manoj Singh
