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Published on:

October 28, 2025

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Govt. Schemes

Poultry Farm Government Schemes: Subsidies and Loan Benefits

Starting a poultry farm sounds pretty exciting, does it not? But to do so, a lot of money is required at first. You have to build sheds, buy equipment, and get good quality feed even before you bring in any birds. For small farmers or beginners, this starting cost can feel like the biggest hurdle — may even be the only hurdle. The good thing is that the government now sees how important poultry farming is for jobs and food supply.

There are many government programs that give low-interest loans, and other financial help to help people start or grow their farms from nothing. This article explains major government schemes like NABARD, NLM, and AHIDF that support poultry farmers and help them make better financial decisions.

Understanding financial assistance for poultry farming

Govt financial support for poultry farming usually comes in two main forms, loans and subsidies. Both of these aim to ease the upfront costs of starting and scaling a business particularly in rural or semi urban areas.

What is NABARD and National Missions:

Two major institutions coordinate much of this support:

NABARD ( National Bank of Agriculture and Rural Development):

NABARD or the National Bank of Agriculture and Rural Development, does not directly issue loans or special subsidies to the farmers. Instead, it acts as a refinancing or channelising body, supplying funds to banks at concessional rates. These banks in turn provide affordable credit to poultry entrepreneurs. This mechanism ensures that credit remains accessible while maintaining financial discipline within the system.

NLM (National Livestock Mission):

This flagship central scheme promotes entrepreneurship and sustainability in livestock development. It provides capital subsidies for new units or upgrades to existing poultry farms, particularly small or medium farmers.

What is a back ended capital subsidy?

Many poultry subsidies are structured as back ended capital subsidies. This approach ensures reliability while lessening repayment pressure.

Here is how it works:

The entrepreneur takes out a full loan from a bank for the project's total cost.
The government subsidy amount is placed in a reserve account by the bank.
Once the entrepreneur starts repaying the loan, the subsidy is released in the later instalments. The overall amount that needs to be repaid gets reduced.

In first time loaners, this promotes responsible borrowing and good repayment habits,

Major government schemes and subsidies for poultry farming

Different schemes target different scales of operation from backyard poultry units to commercial farms in processing facilities. Here are the most relevant ones for small business owners:

National Livestock Mission (NLM) Entrepreneurship Component:

The NLM is the most farmer friendly initiative of poll show entrepreneurs. This promotes rural employment and generates income while keeping in mind the overall sustainable production practices.

Subsidy rates: Less or around ~50% of the project’s eligible cost.

Maximum Limit: Often limited, for example, at 25 lakhs Indian rupees for poultry projects.

Eligible expenses: construction of sheds, procurement of feeders, drinkers, incubators for chicks, and the initial cost of layer or broiler parent stock.

The NLM also supports backyard poultry farming for women's self help groups (SHG’s), Cooperatives and FPOs (Farmer Producer Organisations). Its flexibility makes it sustainable for both small scale and semi commercial ventures.

Animal Husbandry Infrastructure Development Fund (AHIDF):

The AHIDF focuses on strengthening the physical infrastructure needed for large scale poll production and processing.

Interest subvention: Provides 3% interest rebate on loans sanctioned by approved banks, reducing the effective borrowing rate.
Loan range: There is generally no strict upper cap which benefits larger commercial farms, feed plants or hatchery operations.
Credit guarantee: Includes a credit guarantee fund allowing small and medium enterprises to secure loans with less collateral.

For businesses planning to set up field mills, breeding firms or processing units, AHIDF offers a sustainable path to modernisation.

Poultry Venture Capital Fund (PVCF):

Previously administered through NABARD, the PVCF supported both new and existing poll revenues, although now merged with broader livestock development programmes, its structure remains relevant for understanding current funding models.

Subsidy rates: ~25%
Eligible: Broiler and layer farms, hatcheries, feed plants, and equipment purchases.

PVCF helped lay the foundation for many ongoing subsidy models emphasising inclusivity and regional balance.

Loan benefits and credit access

Financial Benefits	Scheme Source	Impact on Farmer
Capital subsidy (25-50%)	NLM and State Schemes	Lowers the principal amount owed to the bank
Interest Subvention (3%)	AHIDF	Reduces total interest burden and increases profitability
Refinance Facility	NABARD	Encourages banks to lend confidently to poultry farms
MUDRA Loan	PMMY	Gives loans up to ₹10 lakh without any security

Steps to avail these loans and subsidy

1. Prepare a project report:

Create a detailed and realistic project report covering technical design, operational plan and cost estimates. Banks rely on this to assess your loan eligibility.

‍2. Apply at a Linked Bank:

Submit your report to a scheduled commercial bank. RRB, or cooperative bank affiliated by NABARD.

‍3. Loan Sanction and Subsidy Adjustment:

Once approved, the loan is disbursed. The eligible subsidies are placed in a subsidy reserve fund account released only after certain repayment milestones are met.

‍4. Meet Eligibility Requirements:

Most schemes prioritise new entrepreneurs, SC or ST applicants, women farmers and individuals with suitable land, basic poultry knowledge.

Conclusion

Poultry farming has evolved from small backyard setups to organised high yield business lenses. The rising demands for eggs, broilers and processed food products. The sector presents significant opportunities, but accessing finance remains key Government programs such as the NLM, AHIDF, and state-level poultry initiatives, make this possible. Through a mix of Capital subsidies, interest rebates and for new entrepreneurs. Credit guarantees These schemes lower barriers for newer entrepreneurs, supporting long term industry growth.

By preparing a strong project proposal, maintaining transport and records and staying updated with the latest scheme notification, poultry entrepreneurs can secure vital financial backing. Financial planning and government support together form the backbone of a successful poultry business. Visit your local NABARD linked bank today to explore the most recent schemes!

FAQs

1. What is the Poultry Farm Loan Scheme 2025?

According to Keralacobank The Poultry Farm Loan Yojana reduces rural unemployment by funding poultry businesses and promoting self-reliance. It strengthens India’s poultry sector, ensuring affordable and sufficient chicken and egg supply. Beneficiaries can receive up to ₹9 lakh in loans with 25–33% subsidies with flexible repayment options.

2. How do State Governments Subsidise Poultry Development?

State governments offer poultry subsidies through financial aid, capital support, and infrastructure or training assistance. These schemes prioritize groups like women, SCs, and BPL families, requiring training completion and proper documentation. Subsidies are usually transferred directly to beneficiaries’ bank accounts in stages based on project progress.

3. What is NLM scheme?

The NLM (National Livestock Mission) poultry scheme provides a 50% capital subsidy, up to ₹25 lakh, for the establishment of rural poultry farms, hatcheries, and mother units. Learn more here.

‍4. What is the NLM scheme for dairy farming?

The National Livestock Mission (NLM) is a Government of India scheme that includes a component for dairy farming, though its primary focus is on entrepreneurship development for sectors like poultry, sheep, goat, and piggery, and breed improvement.

5.What is the Poultry Farm Subsidy Scheme?

Several government schemes offer subsidies for poultry farms, with the most prominent being the National Livestock Mission (NLM), which provides a 50% capital subsidy of up to ₹25 lakh for establishing rural poultry farms