Chapter 3

Poultry Industry in India - An Overview

3.1. Introduction

Economic development of India depends to a considerable extent,

upon the development of Indian agriculture. About 64 per cent of the
people are dependent on agriculture and allied activities. Agriculture and
allied activities provide a major contribution to the country's national
income. As a part of agriculture, livestock sector/ animal husbanchy
plays an important role in the development of the economy. It offers
throughout the year, irrespective of seasons, employment to agricultural
labourers, small and marginal farmers. Further, it provides
supplementary income to the rural households.

Poultry farming is now recognised as one of the most suitable

agro-industries in the world. It is an industry with lots of potential for
intercropping from trees to other animal husbanchy activities. Poultry in
the present scenario of India is a powerful tool to fight poverty by
creating job opportunities for rural farm�rs/ land less farmers or small
to marginal landholders or weaker section of people in rural areas. It is
one of the sources of getting cheap and easily accessible nutritious
protein. Poultry farming is an ancestral small-scale agricultural
operation in our country and from backyard practice; it has now
developed as industry.
 57

3.2. Poultry Farming

The term 'poultry', though now exclusively used with reference to

chicken breeding, is really a word that encompasses a wide number of
avian species such as duck, turkey, geese and guinea fowl domesticated
for economic purposes. The word 'Fowl' is used to refer to poultry in
general and is used with reference to domestic chickens both hens and
cocks.

Young Student Encyclopaedia defines 'poultry': "Birds raised for

their meat and eggs are called poultry, chickens, ducks, turkeys, geese,
guinea fowl, pheasants and pigeons can all be poultry birds." 1

The Central Avian Research Institute, Izatnagar defined

poultry operations as: - "(i) Purely breeding programmes­
broilers, layers, (ii) Grand parent operations for broilers and
layers, (iii) Hatcheries producing one-day old chicks of
Grand parent, Parent and Commercial, (iv) Commercial
farms producing eggs and broilers, and (v) Poultry operation
also consists of breeding, hatching and producing eggs and
chicks of other avian species like turkey, quails, ducks,
guinea fowls etc. "2

The Working on a poultry unit depends on the type of poultry

farm. On commercial point of view, the poultry farm can be divided into
three types viz., Breeding farms, Broiler farms and Layer farm.
 58

3.2.1. Breeding Farm (Production of Day-Old-Chicks)

Breeding farm is meant for the only purpose of hatching and

raising poultry for sale to other farmers. Breeding farms are also called
hatcheries.

3.2.2. Broiler Farms (Production of Poultry Meat)

The evolution of broiler fann is correlated with to trend for chicken

meat production. Almost 86 per cent of all poultry meat is chicken meat
and remaining percentage is contributed by the production of turkey,
duck, goose meat and other kinds of poultry meat. Broiler birds are a
young chicken reared for the purpose of meat production. Broiler birds
has 1.5 to 2.0 kilogram's weight with tender meat, soft, smooth textured
and flexible breast. It is also known as 'frayer. In broiler farms, farmers
procure one-day-old chicks (broiler); reared up to the age of six weeks
and finally disposed in the market.

3.2.3. Layer Farms (Production of Eggs)

Layer farms are meant for the purpose of egg production. The layer
birds produces eggs for a number of months up to the age of 20 months
or less. Layer birds start production when they attain 22 weeks of age
and it rises sharply, reaching a peak at about 32-35 weeks of age, and
after that the same declines gradually. When the laying capacity of layer
birds deteriorates, they are sold off for the purposes of meat.

The system of poultry fanning can be. categorized into two types
viz., free-range system and intensive system. The free-range system is
.•
the traditional method of rearing birds in which the birds are finding its
 59

own food and require no proper care and no proper time scheduling of
food. It is also called 'Backyard System', followed by the household
sector in the rural areas. When the poultry rearing is confined in
particular area and well fed with proper balanced and timely diet is
called as Confining poultry or Intensive system. In India, the commercial
production of eggs (layer farm) and meat (Broiler farm) is conducted
under the Intensive system.

3.3� Brief Historical Background of the Industry

The history of poultry industry in India is of 5000 years old. There

is no clear-cut evidence regarding the time first chicken captured and
domesticated. An early written record is found in a Chinese
Encyclopaedia compiled from ancient document, which reveals the fact
that "fowls are creatures of the west". The Archaeological surveys
indicate that fowls were domesticated in China as early as 1400 B.C.3

In India, reference to the existence of poultry farming is availed of

Arthshastra of kautilya during the Mauryan Empire in 300 B.C. The
seals and toys bearing the picture of fowls were excavated from
Mohenzodaro, indicating that people of Indus valley knew fowl
domestication. 4 Till the beginning of 19th century the fowl were
maintained mainly for game of cock fighting and sacrificing to worship
God and Goddess. It was in the early 19th century that chicken were
raised for their fancy appearance, attractive body forms, plumage colour
and comb type. Least attention was paid to their growth and egg
production potential. During this period, the commercial poultry
production was practically non-existent and poultry farming was limited
to low productive domesticated fowls maintained under backyard
system.
 60

3.3.1.Development of Commercial Poultry Farming

The real beginning of the commercial hatchery industry in modern

times came in 1802 when Joseph. D. Wilson made the first long-distance
shipment of baby chicks, sending them to Chicago. In the late 1890's
.•
,}
:

there was a great developme_nt of poµltiy and egg-packing plants in the

mid-western United States. The operators of these plants began storing
eggs in refrigerated warehouses. In 1924, Prof. James G Halpin and co­
workers at the University of Wisconsin announced the part vitamin D
plays in the poultry ration. This knowledge brought about rapid
development of the commercial feed industry. The 1940's saw the greatly
expanded use of mechanical and labour-saving equipment in both the
production and marketing fields. Multi-story poultry houses, radiant
heat, caged hens; great strides in poultry disease control and prevention
are just a few of many other developments in specialised poultry
practices in the mid 20th century.

The credit of the pioneering action of commercial poultry farming

in India should be given to a few Christian missionary organisations and
to some British people who brought some superior exotic breeds in the
beginning of the 20th century for establishing their own poultry farm by
crossing and improving the indigenous stock. The major step towards
scientific poultry management in the country was the establishment of
the Poultry Research Division at the Indian Veterinary Research Institute
(IVRI) named as Imperial Veterinary Research Institute in March 1939.
The farm was stocked with birds of exotic breeds and crossed type to
improve egg production. The evolution of an effective vaccine against
Ranikhet disease by the IVRI in 1942 and a number of poultry units
were established by the Government. Because of these developments a
number of model poultry farms were established in the forties by
 61

different state Governments for demonstration, training and

multiplication of improved poultry stock. During the Second World War,
the demand of the army for egg and table birds increased to double the
number. To meet this demand the military authorities set up a number
of poultry farms with exotic stock. The cumulative effect of these
different activities was of a greater appreciation by the Central and State
Government regarding the possible advantages of poultry development.
The demonstration and extension work carried out by different poultry
farms created interest among farmers of localised rural areas in rearing
poultry of superior quality as their subsidiary occupation for economic
benefit. The production of broiler on a commercial scale commenced in
the early sixties with the introduction of hybrid strains from poultry
breeding farms in the United States, England and Europe.

Sixties proved to be the turning point in the history of poultry

production in the country. The concept of backyard poultry keeping
shifted to poultry farming as commercial enterprise. First commercial
chick was hatched in November 1962 at the Delhi-based Rani Shaver
Poultry Breeding Farms Pvt. Ltd. Commercial Production of balanced
compounded feed, modem veterinary medicines and vaccines, the
indigenous production of equipment for hatching and incubation, feed
mixing and commercial housing were also started at the same time.
Introduction of Intensive Poultry Development Project (IPDP), deep litter
system of management, import of high quality stock, mass preventive
vaccination against common avian diseases, income tax exemption for
the poultry sector were major contributing factors of this development.
Under the IPDP, all the required inputs and services such as good
quality birds and equipment, training of farmers, effective disease
control measures and improved management know-how were made
available to help farmers to start poultry units and provide facilities to
 62

market their outputs with an assured and a reasonable profit. As a

consequence of the concerted drive, poultry production started
increasing and gaining momentum. Scientific poultry breeding
programmes were launched during this period in the central poultry
farms as the first step towards attaining self-sufficiency in the
production and supply of high quality chicks. The training programme
for the farmers was extended. Financial assistance for supply of poultry
house materials and rearing equipment at concessional rates and
subsidy for purchase of incubators were extended. To process a large
number of broiler chicken quickly, several dressing plants of different
capacities were established at various places. As the country made
significant progress in poultry farming in the eighties the emphasis was
generally laid on promoting poultry production mainly through the
weaker sections of the people and bringing about qualitative
improvement in the services required for poultry farming. Additional
efforts were made in streamlining the infrastructure already developed.

The history of the poultry farming in India reveals the fact that
poultry husbandry is an old art. The story of the evolution and
development of the poultry industry shows that poultry husbandry is
comparatively a new science as it is only within the present century that
special attention has been given to raising poultry as a commercial
venture.

3.4. Production of Poultry Items

The poultry industry is mainly concer.ned with the production of

eggs and meat. Hence, it is quite relevant to examine the present
position of production of eggs and poultry meat before going in to the
other details of the industry.
 63

3.4.1.World Production of Poultry Items

The production of poultry meat and eggs has shown tremendous

development in the last 20 years. As per the FAQ statistics the world
poultry population, which stood at 10.6 million (Nos.) in 1990 increased
to 14.4 million (Nos) in 2000. During 1981-90 the developing nations
have shown an increased share in egg and chicken meat production in
world's market, from 32.9 per cent to 64 per cent against developed
nation. World production of eggs and broiler meat from 1997 to 2001 is
furnished in Table 3.1.

The world production of eggs, which stood at 666748 Million Nos.

m 1997 in_creased to 795711 Million Nos. in 2001. Likewise, the
production of broiler meat, which was 37018000 Metric Tonnes in 1997
increased to 47618000 Metric Tonnes in 2001. As per the data on 2001,
China is the largest producer of eggs in the world accounting 48.88 per
cent of the total production followed by the USA (10.68 per cent) and
Japan (5.27 per cent). In the case of broiler production, USA is the
largest producer in the world accounting 29.46 per cent of the total
production followed by the European Union (14.32 per cent) and Brazil
(13.79 per cent). In the case of egg production, the share of China was
42.34 per cent in 1997 and it increased to 48.88 per cent in 2001. The
share of USA in the production of broiler meat was 33.13 per cent in
1997, but it reduced to 29.46 per cent in 2001.India is the fourth largest
producer of eggs and got eighth largest producer of broiler in the world.
The share of India in the world was 4.30 per cent in egg production and
1.42 per cent in broiler production in1997. It increased to 4.79 per cent
in egg production in 2001. But, in the case of broiler production it
decreased to 1.24 per cent in 2001.
Table 3.1
. . .
Countries 1997 1998 1999 2000 200UPI
Eus Broiler Ell2'8 Broiler Ell'lls Broiler EllllS Broiler Eaz:rzs Broiler
USA 77676 12266 79896 12525 82944 13703 84420 13703 85020 14033
(11.64) (33.13) (11.49) (31.13) (10.88) {31.56) {10.83) (29.92) (10.68) (29.46)
Brazil 12596 4461 13636 4498 14768 5526 15654 5980 16435 6567
(1.88) (12.05) (1.96) (11.17) (1.94) (12.72) (2.01) (13.05) (2.06) (13.79)
European 72701 4868 73993 6789 74831 6614 74921 6654 73835 6822
Union (10.90) (13.15) (10.64) (16.87) (9.81) (15.23) (9.61) (14.52) (9.28) (14.32)
Russia 31900 * 33000 * 33000 * 33500 * 34200 *
(4. 78) (4.74) (4.33) (4.30) (4.29)
China 282350 5200 307760 3450 365300 4400 377420 5050 389000 5200
(42.34) (4.04) (44.26) (8.57) (47.93) (10.13) (48.44) (11.02) (48.88) (10.92)
Mexico 28170 1493 29898 1587 32428 1784 33310 1936 33640 2067
(4.22) (4.03) (4.30) (3.94) (4.25) (4.10) (4.27) (4.22) (4.22) (4.34)
India 28690 526 29476 540 30629 559 31770 575 38115 595
(4.30) (1.42) (4.23) (1.34) (4.01) (1.28) (4.07) (1.25) (4.79) (1.24)
Japan 42588 1124 42117 1097 41975 1078 41800 1091 42000 1074
(6.38) (3.03) (6.05) (2.72) (5.50) (2.48) (5.36) (2.38) (5.27) (2.25)
Other 90027 7058 85505 9748 86202 10084 86830 10811 83466 11260
countries (13.50) (19.05) (12.29) (24.15) (11.31) (23.22) (11.14) (23.58) (10.48) (23.63)
Total 666748 37018 695281 40234 762077 43412 778995 45800 795711 47618
(100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00} (100.00} (100.00}
*Included in the group of other countries.
(P) Provisional
Source: Counsellor and attache reports, official statistics and results of office research, United States Department of Agriculture, Foreign
Agricultural Service Commodity and Marketing Programmes Dairy, livestock, and poultry Division
Figures in parentheses are percentages of their respective totals

64
 65

3.4.2.Poultry Population in India

The composition of poultry population in India includes fowls,

ducks and other types of poultry such as turkey, geese and guinea fowl
etc. The Table 3.2 furnishes the composition of poultry population of
India as per the various censuses from the years 1977 to 1992.

Table 3.2
Composition of Poultry Population of India as per Various Livestock
Census (in Million Nos.)
Composition 1977 1982 1987 1992 Compound
of Poultry Growth Rate (%)

Fowls 1493 1805 2510 2840 4.30

(92.91) (90.48) (91.17) (92.48)
Ducks 101 177 235 221 5.30
(6.28) (8.87) (8.54) (7.20)
Others 13 13 8 10 -2.00
(0.81) (0.65) (0.29) (0.32)
Total 1607 1995 2753 3071 4.41
(100.00) (100.00) (100.00) (100.00)
Source: Statistical Pocket Book-India, 1999, Central statistical Organisation,
Department of Statistics, Government of India
Figures in parentheses are percentages of their respective totals

The Table 3.2 reveals that India has witnessed significant growth
in the poultry population over the 15 years under review. The poultry
population which stood at 1607 Million (Nos) in 1977 has increased to
3071 Million (Nos) in 1992, recording a compound growth rate of 4.41
per cent. The composition of poultry population in 1992 shows that
fowls constitutes a major share in the poultry population i.e., 92.48 per
 66

cent of total poultry population. The ducks and other types of poultry
share the remaining portion in the poultry population. The population of
fowls in 1977 was 1493 Million (Nos), which increased to 2840 Million
(Nos) in 1992, recording a compound growth rate of 4.30 per cent. In the
case of ducks, the population 101 Million (Nos) in 1977, which increased
to 221 Million (Nos) in 1992, showing a compound growth rate of 5.30
per cent. However, the population of other types of poultry shows a
declining trend i.e., 13 Million (Nos) in 1977 reduced to 10 Million (Nos)
in 1992.

The details of state wise poultry population in India are furnished

in the Table 3.3. In the case of poultry population as per the livestock
census 1992, the state of Andra Pradesh ranked the first, accounting to
16.24 per cent of the total poultry population in the country. The
percentage of the growth rate over the previous census is 27.76 in the
state. The state of West Bengal ranks the second position. However, the
state witnessed significant fall in the percentage share of population. It
was 19.17 per cent (first rank) in 1987 census, but it got reduced to
12.18 per cent out of the total population in 1992. The percentage of
growth rate in the previous census is -29 .12 in the state. In the state of
Kerala, the percentage share of poultry population, which stood at 6.53
per cent in 1987, increased to 8.35 per cent in 1992. In Tamil Nadu, the
percentage share of poultry population, which stood at 7.83 in 1987
slightly increased to 7. 99 in 1992.
 67

Table3.3
State-Wise Poultry Population in India as per 1987 and 1992 Livestock Censuses (in
1000 Nos.)
State /Uts 1987 1992 % of increase
over the
Population %Share Population %Share prevoius census
Andra Pradesh 39,045 14.18 49,884 16.24 27.76
Arunachal Pradesh 1,121 0.41 1,187 0.39 5.89
Assam 11,451 4.16 16,394 5.33 43.17
Bihar 15,880 5.77 17,655 5.74 11.18
Delhi 220 0.08 28 0.01 -87.27
Goa 608 0.22 5,657 1.84 830.43
Gujarat 5,490 1.99 731 0.24 -86.69
Haryana 5,336 1.94 8,578 2.19 60.76
Himachal Pradesh 753 0.27 725 0.23 -3.72
Jammu& Kasmir 3,805 1.38 4,627 1.51 21.60
Karnataka 15,689 5.69 16,164 5.26 3.03
Kerala 17,993 6.53 25646 8.35 72.73
Madhya Pradesh 9,371 3.40 11,800 3.84 25.92
Maharashtra 24,828 9.02 32,.188 10.48 29.64
Manipur 3,018 1.09 3,259 1.06 7.98
Meghalaya 1,590 0.58 1,824 0.59 14.72
Mizoram 838 0.30 1,086 0.35 29.59
Nagaland 1,124 0.40 2,164 0.70 92.53
Orissa 12,597 4.57 13,062 4.25 3.69
Punjab 15,276 5.55 18,331 5.97 20
Rajasthan 2,605 0.95 3,053 0.99 17.20
Sikkim 254 0.09 302 0.09 18.90
TamilNadu 21,567_ 7.83 24,553 7.99 13.84
Tripura 1,865 0.67 2,597 0.84 39.24
Uttar Pradesh 9,317 3.38 10,790 3.51 15.81
West Bengal 52,781 19.17 37,407 12.18 -29.12
Andaman&Nicobar 443 0.16 611 0.19 37.92
Chandigarh 169 0.06 180 0.06 6.50
--
Dadra&Nagar Haveli 100 0.04 117 0.04 1.17
Daman&Diu -- -- 27 0.01
Lakshadweep 51 0.02 61 0.02 19.61
Pondicherry 108 0.04 120 0.03 11.11
All India 275,293 100.00 307,069 100.00 11.54
Source: Source: Statistical Pocket Book- India 1999, Central statistical Organisation, Department of
Statistics, Government of India
Figures in parentheses are percentages of their respective totals
Totals may not tally, as data relating to some states are not available.
 68

.,
3.4.3.Production of Poultry Items in India

The Table 3.4 exhibits the production of poultry items in India

from the periods 1950-51 to 2001-02.

Table 3.4
Production of Eggs (in Million Nos.) and Poultry Meat (in 1000
Metric Tonnes) in India
Period Eggs Percentage Poultry Percentage
increase over Meat increase over
10 years/ 10 years/
Annual growth Annual growth
rate(%) rate(%)
1950-51 1832 -- NA -
1960-61 2881 57.26 81 -
1970-71 6172 114.23 121 49.38
1980-81 10060 62.99 179 47.93
1990-91 21100 109.74 412 130.16
1991-92 21980 4.17 440 7.00
1992-93 22930 4.32 427 -2.95
1993-94 24170 5.41 454 6.32
1994-95 25980 7.49 468 3.08
1995-96 27200 4.70 479 2.35
1996-97 27500 1.10 479 --
1997-98 28690 4.33 526 9.81
1998-99 29476 2.74 540 2.66
1999-2000 30629 3.91 559 3.52
2000-01 31770 3.72 575 2.86
2001-02* 38115 19.97 595 3.48
Compound Growth
Rate(%) 6.10 4.98
*Provisional
NA: Not Available
Source: Annual Reports, Department of Animal Husbandry & Dairying, Ministry of
Agriculture, Government of India

The Table 3.4 reveals that India has witnessed significant growth
in the production of eggs and poultry meat from the period 1950-51 to
2001-02. The production of egg which stood at 1832 Million (Nos) in
 69

1950-51 has increased to 38115 Million (Nos) in 2001-02, recording a

compound growth rate of 6.10 per cent. In the case of poultry' meat
production, which was 81000 metric tonnes in 1960-61, increased to
595000 metric tonnes in 2001-02 recording a compound growth rate of
4.98 per cent.

The value of poultry items produced in India from the periods

1990-91 to 1999-2000 is furnished in Table 3.5.

Table 3.5
Value of Poultry Items Produced in India (Rs. in Crores at Current
Prices)
Period Eggs Poultry Meat Total Value
1990-91 1,343 2,406 3,749
1991-92 1,736 3,165 4,901
1992-93 1,840 3,402 5,242
1993-94 2,282 4,486 6,768
1994-95 2,603 5,109 7,712
1995-96 2,834 5,846 8,680
1996-97 3,168 6,217 9,385
1997-98 3,419 6,916 10,335
1998-99 3,717 6,502 10,219
1999-2000 4,005 6,229 10,234
Compound Growth 12.90 11.10 11.80
Rate(%)
Sources: Statistical Abstract of India - various issues, Central statistical Organisation,
Department of Statistics, Government of India.
 70

The total value of poultry items produced in India, which was Rs.
3749 crores in 1990-91 increased to Rs. 10,234 crores by 1999-2000,
recording a compound growth rate of 11.80 per cent. In the case of value
of eggs produced which was Rs. 1343 crores in 1990-91 increased to Rs.
4005 crores by 1999-2000; recording a compound growth rate of 12.90
per cent. The value of poultry meat increased from Rs. 2406 crores
in199-91 to Rs. 6229 crores in 1999-2000. It recorded a compound
growth rate of 11.10 per cent.

The details of state-wise production of poultry items in India are

furnished in Table 3.6. In the case of egg production during 1994-95, the
state of Andra Pradesh ranked first accounting to 20.89 per cent of total
production in the country. It slightly decreased to 20.09 per cent in
1998-1999. With the production of 5924 million eggs during 1998-99,
Andra Pradesh accounts for one-fifth of the eggs production in the
country. The per capita availability of eggs in Andra Pradesh is 58 eggs
vis-a-vis 35 eggs for all India. The state of Tamil Nadu has second
position accounting to 11.73 per cent of total production in the country
in 1994-95, but it slightly increased to 12.17 per cent in 1998-99. Other
leading states in the production of eggs in India during the year 1998-99
are Maharashtra (9.96 ·per cent), West Bengal (9 per cent) and Punjab
(8.92 per cent). The percentage share of Kerala, which stood at 7.37 per
cent in 1994-95, decreased to 6.93 per cent in 1998-99.
Table 3.6
State"Wise Production of Eggs in India (in Million Nos.)
State I Uts 1994"95 1995-96 1996"97 1997-98 1998-99
Production %share Prodcution %share Production %sabre Production %share Production %share
Andra Pradesh 5429 20.89 5435 19.98 5660 20.58 6020 20.98 5924 20.09
ArunachalPradesh 22 0.08 23 0.08 23 0.08 23 0.08 32 0.10
Assam 460 1.77 460 1.69 487 1.77 470 1.63 485 1.64
Bihar 1398 5.38 1398 5.13 1410 5.12 i
1400 4.87 1430 4.85
Goa 996 3.83 100 0.36 103 0.37 101 0.35 107 0.36
Gujarat 468 1.80 468 1.72 502 1.82 494 1.72 467 1.58
Haryana 633 2.43 634 2.33 644 2.34 632 2.20 683 2.31
Himachal Pradesh 66 0.25 67 f. 0.24 72 0.26 72 0.25 77 0.26
Jammu & Kasmir 318 1.22 318 1.16 396 1.44 382 1.33 520 1.76
Karnataka 1469 5.65 1470 5.40 1630 5.92 1558 5.43 1938 6.57
Kerala 1916 7.37 1987 7.30 2024 7.36 2033 7.09 2044 6.93
Madhya Pradesh 1145 4.40 1145 4.20 1250 4.54 1995 6.95 1400 4.74
Maharashtra 2501 9.62 2501 9.19 2687 9.77 2603 9.07 2938 9.96
Manipur 60 0.23 61 0.22 51 0.18 59 0.20 64 0.21
Meghalaya 75 0.28 75 0.27 80 0.29 77 0.26 82 0.27
Mizoram 19 0.07 20 0.07 20 0.07 19 0.06 33 0.11
Nagaland 44 0.16 45 0.16 46 0.16 45 0.15 48 0.16

71
 State I Uts 1994-95 1995-96 1996-97 1997-98 1998m99
Production %share Production %shnre l'roductlon %r.hare l11·oductlon '/or.bare l'rodudlon o/dbll'tl

Orissa 574 2.20 574 2.11 601 2.18 585 2.03 763 2.S8
J----------------- ----·-
Punjab 2438 9.38 2438 8.96 2733 9.93 2510 8.74 2630 8.92
Rajasthan 417 1.60 417 1.53 482 1.75 430 1.49 1.81
-�s-
534
·-

Sikkim 15 0.05 15 0.05 17 0.06 16 16 0.05

Tamil Nadu 3051 11.73 3048 11.21 3042 11.06 3217 10.62 3588 12.17
f---------..----------
Tripura 42 0.16 42 0.15 53 0.19 44 0. 15 108 0.36
·-·
Uttar Pradesh 626 2.40 627 2.30 700 2.54 671 -� 2.33 766 2.59
West Bengal 2500 9.62 2500 9.19 2600 9.45 2568 8.95 2653 9.00
f-------

Andaman & Nicobar 52 0.20 33 0.12 31 0.11 35 0.12 52 0.17

Chandigarh 33 0.12 7 0.02 5 0.01 4 0.01 17 0.01
Dadra & Nagar Haveli 7 0.02 4 0.01 4 0.01 3 0.01 4 0.01
. - - . -- - . -
Daman& Diu 3 0.01 5 0.02 7 0.02 7 0.02 4 0.01
- --
s
-- -- --- -
Lakshadweep 4 0.01 5 0.01 5 0.01 0.01 6 0.01
. ----··
Pondichcrry 10 0.03 10 0.03 8 0.02 7 0.02 9 0.03
All India 25980 100.00 27200 100.00 27500 100.00 28690 100.00 29476 100.00
···- ---··- .. . = ___ _____ _
,.
. . .. - ··-- - . ··-·-
Source: Statistical Abstract- Indi11 2001, Central 5tatl5tlc:al Organl5ation, Department of Statl5tlcs, Ouvernment of India.
Totals may not tally, as data relating to some 11tates are not avalhtble.

72
 73

3.4.4.Per Capita Consumption of Poultry Items in India

In India majority of the poultry items such as eggs and meat is

marketed and consumed in fresh form. Poultry meat consumption
constitutes around 22 per cent of the total meat consumption in the
country. Egg powder manufacturers consume around 1% of the total egg
production in the country. There is wide gap existing between urban and
vast rural areas in the consumption of poultry items. As per the report of
Department of Animal Husbandry and Dairying, Government of India,
the urban population accounts for around 75% of the total poultry
consumption in the country. In urban areas, the per capita consumption
is 100 eggs and 1200 gms of poultry meat per annum while in rural
areas it is 15 eggs and 150gms per annum. The annual per capita
consumption of poultry items in India from the period of 1961 to 2000 is
depicted in the Table 3.7.

Table 3.7
Annual Per Capita Consumption of Eggs and Poultry Meat in India
Year Per Capita Availability
Eggs (Nos.) Poultry Meat (gms)
1961 7 188
1971 10 220
1980 18 266
1985 23 365
1990 28 498
1995 29 546
2000 35 575
Source: Annual Reports, Department of Animal Husbandry & Dairying, Ministry of
Agriculture, Government of India
 74

In the case of annual per capita consumption of eggs and poultry

meat in India during the year 2000 is around 35 eggs and 575 gms of
poultry meat, which is far below the minimum nutritional standards as
recommended by the WHO (180 eggs and 10.8 Kg meat per person per
year). But, the country has made significant improvement in the
consumption of poultry items over the past 40 years. In 1961, the per
capita consumption of eggs and poultry m.eat was around 7 eggs and
188 gms of poultry meat increased to 35 eggs and 575 gms of poultry
meat in 2000.

3.5. Marketing of Poultry Items

The introduction of modern marketi11g in poultry industry gave

emphasis on consumer-orientation and profitability of organisation as
well. The significance of marketing in poultry further increased in view of
the fact that the poultry products are perishable commodities and hence
require a quick disposal. In the absence of proper marketing facilities, a
high degree of wastages may be the fate of the producers of poultry
products. The market for poultry items may be in the form of export or
internal market.

3.5.1.World Export of Poultry Items

Poultry items are one of the important items traded in the

international market. Country-wise export of poultry items in the world
market is given in Table 3.8.
 Table 3.8.
Country-wise Classification of Exporters of Eggs (in Million Nos.) and Broiler Meat (in 1000 Metric Tonnes) in
the World Market
Countries 1997 1988 1999 2000 2001(P)
E22s Broiler E22s Broiler E22s Broiler E22s Broiler Eees Broiler
USA 2734 2116 2626 1978 1940 2080 2062 2231 2040 2521
(37.28) (45.00) (32.24) (40.50) (27.29) (40.48) (29.24) (39.81) (26.69) (44.96)
Brazil 20 650 7 594 24 750 30 893 35 1241
(0.27) (13.82) (0.08) (12.16) (0.33) (14.59) (0.42) (15.93) (0.46) (22.13)
European 1689 570 2618 788 2550 764 1903 762 2368 718
Union (23.03) (12.11) (32.15) (16.13) (35.87) (14.86) (26.98) (13.60) (30.99) (12.80)
Thailand * 192 * 274 * 288 * 328 * 425
(4.08) (5.61) (5.60) (5.85) (7.57)
China 957 350 868 323 774 375 984 464 1036 489
(13.04) (7.44) (10.65) (6.61) ( 10.88) (7.29) (13.95) (8.28) (13.55) (8.72)
Canada 323 56 367 53 454 47 600 55 650 69
(4.40) ( 1.19) (4.50) (1.08) (6.38) (0.91) (8.50) (0.98) (8.50) (1.23)
India 260 1 315 50 267 26 285 84 305 *
(3.54) (0.02) (3.86) (1.02) (3.75) (0.50) (4.04) (1.49) (3.99)
Other 1351 768 1312 824 1099 808 1187 696 1207 372
countries (18.42) (16.31) (16.11) (17.86) (15.46) (15.69) (16.83) (12.38) (15.79) (6.60)
Total 7334 4703 8143 4884 7108 5138 7051 5603 7641 5607
(100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00)
Source: Counsellor and attache reports, official statistics and results of office research, United States Department of Agriculture, Foreign
Agricultural Service Commodity and Marketing Programmes Dairy, livestock, and poultry Division
(P): Provisional.
*Included in the group of 'Other countries'.
Figures in parentheses are percentages of their respective totals.
75
 76

In the case of export of eggs, USA is the largest exporter in the

world market. However, its percentage share declined from 37.28 per

cent in 1997 to 26.69 per cent in

. 2001.· European Union ranks the
..
second accounting to the percentage share of 23.03 per cent in 1997,

increased to 30.99 per cent in 2001. India is also one of the exporters of

poultry items, but the percentage share in the world market is very low.

The percentage share of India in export of egg was 3.54 per cent in 1997,

which slightly increased to 3.99 per cent in 2001. In the case of export of

broiler meat also, USA is the largest exporter in the world market. Its

percentage share was 45 per cent in 1997and slightly decreased to 44.96

per cent in 2001. Brazil ranks the second in the export of broiler meat,

recording a significant increase in the percentage share of market. In

1997, its percentage share was only 13.82 per cent, but it increased to

22.13 per cent in 2001. The percentage share of India in broiler export is

very negligible i.e. 0.02 per cent in 1997, which increased to 1.49 per

cent in 2000.

3.5.2.Export of Poultry Items from India

India has only marginal role in the highly competitive world of

international trade of poultry. The export earnings from poultry are very

low. The value of export of poultry item� from India from 1991 to 2000 is

presented in Table 3. 9.
 77

Table 3.9
Value of Export of Poultry Items from India (Value in $1000)
Year Eggs Poultry Total Annual Growth Rate
of Total Value (%)
Meat Value
1991 3659 188 3847 --
1992 6057 29 6086 58.20
1993 2876 104 2980 -51.03
1994 2079 53 2132 -28.46
1995 4238 77 4315 102.39
1996 13036 3 13039 202.18
1997 13532 14 13546 3.89
1998 11973 41 12014 -11.31
1999 9579 25 9604 -20.06
2000 12741 93 12834 33.63
Compound 14.86 -8.00 -- 14.34
Growth Rate (%)

Sources: FAO Year Book 2001.

The export of poultry items from India in terms of total value has

shown significant increase from the year 1991 to 2000. The total value of

export, which stood at $ 3847000 in 1991, has increased to $ 12834000

in 2000, recording a compound growth rate of 14.34 per cent. However,

the annual growth rate in the total value of export shows a fluctuating
-
trend during the period. The highest annual growth rate is recorded

(202.18 per cent) in 1996. The value of egg export also witnessed

significant increase over the period. Its value of export, which stood at $
 78

3659000 in 1991, has increased to $ 12741000 in 2000, recording a

compound growth rate of 14.86 per cent. However, the value of poultry

meat export shows significant fall from$ 188000 in 1991 to$ 93000 in

2000.

3.5.3.World Import of Poultry Items

The Table 3.10 exhibits country-wise classification of import of

poultry items in the world market. It (Table 3.10) reveals the major

importing countries of eggs in the world market, Japan comes in the first

position, accounting to 34.46 per cent of the total import during 1997,

slightly increased to 35.57 per cent in2001. Hong Kong is the second

largest importer of eggs accounting 29.47 per cent of total import in

1997, slightly decreased to 29.34 per cent in 2001. In the case of broiler

meat import, Russia ranks the first, accounting to 27.21 per cent in

1997, increased to 29.17 per cent in 2001. Japan is the second major

importer of broiler meat in the world market. Its percentage share was

11.67 per cent in 1997, which increased to 16.16 per cent in 2001. The

percentage share of China, which stood at 17.58 per cent in 1997,

declined to 10.77 per cent in 2001. Among the importing countries, India

has only a negligible share in the import of eggs in the world market i.e.

0.53 per cent in 1997 slightly increased to 0.74 per cent in 2000.
 Table 3.10
' ' ,

Countries 1997 1988 1999 2000 2001(P)

Ee:es Broiler Ee:e:s Broiler Ee:e:s Broiler E!!!!S Broiler Eees Broiler
Russia 50 1161 50 1020 50 930 70 943 75 1281
(0.98) (27.21) (0.93) (28.69) (0.93) (23.33) (1.30) (23.40) (1.48) (29.17)
Japan 1741 498 1700 590 1976 667 2030 721 1800 710
(34.46) (11.67) (31.93) (16.59) (37.03) (16.73) (37.73) (17.89) (35.57) (16.16)
European 508 139 374 167 337 198 444 299 321 418
Union
Middle East
(10.05)
*
(3.25)
406
(7.02)
*
(4.69)
409
(6.31)
*
(4.96)
481
(8.25)
*
(7.42)
459 •
(6.34) (9.51)
399
(9.51) (11.50) (12.06) (11.38) (11.88)
China * 750 * 427 * 591 * 608 * 473
(17.58) (12.01) (14.82) (15.09) (10.77)
Mexico 217 113 270 181 171 188 176 219 178 235
(4.29) (2.64) (5.07) (5.09) (3.20) (4.71) (3.27) (5.43) (3.51) (5.35)
Hong Kong 1489 815 1498 269 1506 391 1452 239 1485 234
(29.47) (19.10) (28.14) (7.56) (28.22) (9.80) (26.99) (5.93) (29.34) (5.32)
India 27 -- 13 -- 136 -- 40 -- • --
(0.53) (2.44) (2:54) (0.74)
Canada 666 72 791 55 735 62 630 69 650 73
(13.18) (1.68) (14.86) (1.54) (13.77) (1.55) (11.71) (1.71) (12.84) (1.66)
Other Countries 218 312 467 437 252 478 336 472 391 445
(4.31) (7.32) (8.77) (12.28) (4.72) (11.98) (6.24) (11.71) (7.72) (10.13)
Total 5051 4266 5323 3555 5336 3986 5379 4029 5060 4391
(100.00) (100.00) (100.00) {100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00)
Source: Counsellor and attache reports, official statistics and results of office research, United States Department of Agriculture, Foreign Agricultural Service Commodity
and Marketing Programmes Dairy, livestock, and poultry Division.
(P): Provisional.
*Included in the group of 'Other countries'.
Figures in parentheses are percentages of their respective totals.

79
 80

3.6. Changing Scenario in the Indian Poultry Industry

During the last three decades, poultry has made great strides, and
form a backyard activity, but now it has sprung up to Rs. 8000 crores
industry and is expected to go up to Rs. 32000 crores by the year 2005. 5
This sector has been growing at an average rate of 8 per cent in egg
production and about 15 per cent in broiler production. It is the fastest
growing segment of the agricultural economy. The poultry industry in
India is undergoing many changes. The important among them are
briefly explained in the following pages.

3.6.l.Market Integration I Contract Farming

Market integration is a kind of business, which appeared in the

poultry farming in 1960's among the farmers in USA. In India, it
emerged in the broiler farming business in the beginning of 1990's and
popularised among the broiler farmers. In India, various big hatcheries
and feed manufacturers are engaging contract-farming operation with
broiler farmers. Under this system, the farming operation is carried out
..
on the basis of a contract between farmer/grower and firm. The firm may
.,
be independent contractor, large scale processors, feed company or other
party. The contracting finn generally assumes most or all of the price
risk in connection with marketing of the products produced by the
farmer and provides the day-old-chicks, feed, medicine/veterinary care
and supervision. The farmer has to provide the facilities of land,
housing, equipment, fuel and power, labour and daily management of
birds. As a return, the contracting firm will make payment in the form of
commission to the farmer/grower on the basis of feed convertibility ratio
or set amount per bird and incentive for better quality and weights of
bird produced. The calculation of commission may include charges or
deductions for mortality, condemnation, hauling charges and medicinal.
 81

The market integrators can minimise the cost of production by way of

self-owned infrastructure facilities of hatcheries, feed mixing unit and
transportation system. They have wide area of marketing network and
avoid unnecessary intermediaries in the marketing channel.

The main advantages of this system are (1) guarantees regular

returns to the farmers without bothering about the price fluctuation in
the market (2) the amount of working capital required would be less and
(3) reducing the risk and uncertainty in the farming operation. However,
the market integration has the following drawbacks also viz., (1) affects
the entrepreneurial ability and skill of the farmer for exploiting
maximum return from business by way of risk bearing (2) low return on
investment (3) inadequate amount of commission (4) exploiting farmers
with terms and conditions of contract and (5) lack of feasibility for the
small scale unit.

3.6.2.Globalisation and Poultry

Liberalisation of the national economy under GATT has opened up

opportunities and challenges for Indian poultry industry. The
agricultural sector including poultry will have no legal and constitutional
barriers of entry to India for any company in the world. With the
implementation of GATT, the Government's subsidy programmes and
Counter Veiling Duty (CVD) will also be forced to remove. The other side
of the coin would be the entry of multinationals into the poultry
industry. This brings in the concept of mergers, acquisitions, joint
ventures and business alliance. India has already removed Quantitative
Restrictions on import of frozen and cut chickens with effect from April
2000. Since, the Government of India has decided to lift the quantitative
 82

restrictions on import of poultry products, the customs duty on import of

poultry meat and meat preparations has increased from 35 per cent to
100 per cent. This action is taken by the Government as per the request
of National Egg Coordination Committee (NECC) for the purpose of
protecting the domestic poultry industry against uneven competition by
developed countries. The liberalisation policy also permits import of
grand parents and allowing substantial reduction in import duty. The
import duty on all equipments; plant aI1d machinery; and specified
capital goods for food processing including poultry has been brought
down. It is hoped that under the above, agreements, subsidies provided
by advanced countries will become much more competitive in the
international market.

3.6.3.Export Potentials

The poultry industry in India is capable for exporting the poultry

items in the international market. The entire poultry export scenario is
now shifting in favour of India's exports. At present, some of the major
Tamil Nadu-based integrated poultry farms are capable of meeting the
standards for the export of poultry product. Countries like West Asia,
Russia, Hong Kong and Japan are potential markets for Indian poultry
products. The wide spread foot and mouth disease (FMD) in European
countries has resulted in many meat consuming countries like Iran,
Russia, Iraq, Indonesia and China to consider India as an alternative
market, since in India the outbreak of the disease is reported to be
confmed only to certain states. Indian poultry industry has to search for
facilities for observing Hazard Analysis and Critical Control Point
(HACCP) to produce safe products for human consumption.
 83

3.6.4.Automation in Poultry Management System

With the sophistication and commercialisation of poultry and

move towards, modem automatic systems have been introduced in
poultry houses that would make routine operations lees dependent on
manual labour and more on mechanization. A beginning has already
been made in the field of automated watering, feeding and environment
control system. The use of plastics in the manufacture of equipments
has solved the maintenance problems. Improvements are taking place in
hatching and incubation equipments;and computerised feed plant
units.

3.6.S.Poultry Processing Industry

In western countries, 100 per cent chicken is processed, out of

which 80 per cent of this is sold as value-added products in the form of
cut-portions and boneless, further processed and branded. The
Venkateshwara Hatcheries Group set up the first poultry processing
plant in India more than a decade ago, but still the processing industry
continues to be at an infant stage. The development of modern poultry
processing industry in the country is regarded as a major thrust area in
the growth of broilers. In India about 550 million chickens are processed
per annum. Today only two per cent of poultry is processed in modern
plants. The trends in the market for poultry products in India attached
more significance to the poultry processing industry in India. They are: -
 84

1. Poultry meat is emerging as the most affordable and widely

acceptable for non-vegetarians.

2. Eggs are widely being accepted by the vegetarians in their

menu.

3. Fast food chains serving chicken- based recipes are adding to

the growing demands of poultry products.

4. Demand for poultry products in rural areas is increasing as

people have more purchasing power.

The future of poultry processing in India is enormous, as it can

target about 40 per cent of the urban and semi-urban population. The
sector for egg processing has opened up new export avenues. India
already has a plant for egg powder with small plant capacity in the
Central Avian Research Institute (CARl), Izatnagar. Processing plant with
modern technology will improve the product quality and food safety to
consumers. More processing firms interested to enter into this sector for
exploiting the domestic and export potentials in coming periods in the
changing scenario of world export market. Many multinationals are
investing in the projects in view of enormous growing potential in terms
of population size of Indian market, changing eating habits and demand
for hygienically produced safe products. The Venky's India Ltd planned
to start Quick Service Restaurant (QSR). The plant for the boneless
chicken, CfM (chicken-in-minutes) products and QSR products has a
slaughtering capacity of 4,000 birds per hour. Agro Corpex India Ltd is
to establish an egg washing, grading, packing and cold storage unit at a
cost of Rs. 51.60 million at Hyderabad.
 85

3.6.6.Poultry Technology Park

The Punjab Agro Industries Corporation and private promoters

have established India's first poultry technology park in the state of
Punjab. The cost of the project
. is Rs.140
, million and commenced the
operation by the end of the year 2002. . The poultry technology park
have a hi-tech automatic feed mill with a capacity of 100 tonnes per day,
a cold store with a storage capacity' of 50 million eggs, a poultry
medicine unit, a hi-tech poultry equipment production unit, an egg
grading and packing station. The parks has fully automatic feed mill
with a capacity to produce 100 tons of poultry feed everyday. Liquid
medicines, hi-tech poultry farming equipment, including automatic
drinking nipples, feeding systems and environment control system are
manufacturing in the poultry technology park. An exclusive focal point
for poultry in the park is that it provides private entrepreneurs an
opportunity to set up fully automated poultry farms.

3.6.7.Insurance Coverage on poultry

In India, the Oriental Insurance Co. Ltd established insurance

coverage on poultry in 1979. Diseases and natural calamities may affect
poultry industrial growth, which may strike despite preventive
measurers resulting in losses. A standardised comprehensive poultry
insurance policy which provides indemnity against death of birds due to
accident including fire, flood, cyclone/storm/earthquake, strike, riots or
diseases contracted or occurring during the period of insurance. The
insurance coverage is available to commercial layer, broiler chicks,
parent stock and grandparent stock. However, the insurance scheme on
poultry is not well established among the poultry farmers in the country.
 86

3.7. Development of the Poultry Industry under the Five

Year Plans

In all the five year plans, efforts for the development of livestock
was towards the qualitative and productivity improvement of cattle,
sheep, pig and poultry to meet the requirement of milk, meat, eggs, etc;
specific emphasis was given to build up infrastructure required for
accelerating the production programmes adopting advanced techniques
in animal husbandry practices.

A modest beginning towards commercial poultry farming was

made during the First Five Year Plan (1951-52 to 1955-56), in which Rs.
2.5 crores was spent on poultry development. For the purpose of
supplying improved breeds of chicken to interested farmers, thirty-three
Poultry Extension Centres were established during the period.

During the Second Plan Period (1956-57 to 1960-61), projects

were initiated to encourage both backyard poultry farming in rural areas
and the commercial poultry farming in urban areas. Organised poultry
development began during the Second Five year Plan, when systematic
efforts were made to promote poultry farming on commercial lines in the
country. To develop genetically the superior stocks imported from foreign
countries, four Regional Poultry Breeding Farms were established during
the period. As a result of these, poultry feed and equipment industries
were getting established. Approximately Rs. 2.8 crores was spent on
poultry development during the Second Five Year Plan.
 87

During the Third Five Year Plan Period (1961-62 to 1965-66), Rs. 8
crores was allocated for poultry programmes, but only Rs.4.5 crore was
spent. A favourable ground for launching bigger poultry plan was
developed during the time and national and international agencies like
the United States Agency for International Development (USAID), Applied
•
Nutrition Programme, Freedom from Hunger Campaign, United Nations
Development Programmes also helped to boost up the poultry
development programmes in India. As, a result, four franchise hatcheries
with foreign collaboration were set up. About 10,000 pure line chicks
were imported from Australia. Large-scale poultry processing plants were
set up in Poona and Chandigarh. All these developments led to a rapid
increase in the number of commercial poultry farms with improved
stock.

During the Fourth Plan Period (1969-70 to 1973-74), maJor

emphasis was laid on the expansion of poultry marketing facilities.
Further, the Government permitted private sector to establish
commercial hatcheries during this plan. An out lay of Rs. 115 million
was provided in this plan for the development of industry. Agriculture
Universities also played an important role by providing well-trained
personnel for poultry extension and research work during this period.

In the light of the above, during the Fifth and Sixth Five Year Plans
(1975-76 to 1979-80 and 1981-81 to 1984-85), steps were taken to
improve marketing facilities in order to raise egg production from 7,740
million eggs to 15,000 eggs through commercial poultry farming. The out
lay for Fifth and Sixth Plan were Rs.355 million and 426 million
respectively. During the fifth and sixth plan period, the egg production
has made annual growth rate of 3.5 and 8.4 per cent.
 88

During the Seventh Plan (1985-90) a sum of Rs. 602 million was
provided, which shows an increase of 41.31 per cent than in the case of
the Sixth Plans. During this period egg and broiler production registered
a compound growth rate of 7.23 per cent and 18 per cent respectively.

During the Eighth Five year plan (1992-97), the egg production
which was at the level of 22 billion (Nos.) during 1991-92 increased to
28.2 billion (Nos.) during 1996-97.The p�r capita availability of eggs
increased from 25 to 30 eggs per annum for the same period. Poultry
farming has been identified as one of the thrust areas for the Eighth
Plan. The plan envisages an annual growth target of 7 per cent for eggs
and 18-20 per cent for broilers. The actual annual growth rate of egg
production was 4.58 per cent. The development of poultry farming on
cooperative basis will be given priority to help small rural farmers in the
unorganised sector. A number of poultry estates is also being planned to
set up in collaboration with NCDC, NABARD, State Governments and
Non-Government Organisations for providing all the necessary facilities,
including inputs, credit and marketing. It is also proposed to set up a
National Poultry Development Board to promote and coordinate various
activities concerning poultry and export of its products.

During the Ninth Plan (1997-2002), Animal Husbandry and Dairy

development activities will receive greater attention, as this sector plays
an important role in generating employment opportunities and
supplementing the income of small and marginal farmers and land less
labourers, especially in the rain fed and drought-prone areas. In order to
achieve the objective of the Ninth Plan, the value of poultry products is
targeted at annual growth rate of 7.5 per cent. The Plan for egg
 89

production targets set at 35 billion (Nos.). For poultry, about two million
tonnes of Maize will be required and this demand would be met through
the accelerated development programme for Maize. Adequate Credit and
marketing support, modernisation and up gradation of processing
facilities and measures for harnessing the energies of private
entrepreneurs, co-operative institution, self-help groups and other
I
voluntary agencies are some of the maj~,r thrust areas in this sector.
Such a well co-ordained and comprehensive approach will induce the
farmer to take up scientific management of livestock and all these bridge
the gap between potentialities and the actual performance in this crucial
sector. As per the provisional data, the annual growth rate of egg
production is 4.34 per cent.

During the Tenth Plan period (2002-07), the value of poultry

products targeted at the growth rate of 8.63 per cent. The Planning
Commission had planned a poverty alleviation programme, of which 50
per cent depended on livestock associated works in rural India.

3.7. General Problems of the Industry in India

In India, the poultry industry as whole is suffering from various

problems, which created some obstacles in the speedy development of
the industry in the region. The following are the major problems of the
industry: -

3.8.1. Shortage of Feed Ingredients

Poultry farmers all over the Country are facing an extremely

difficult situation, due to a severe shortage of poultry feed ingredient. In
 90

India, the majority of poultry feed ingredients are contributed by the

agriculture sector and any problem in monsoon can lead to fluctuation
of maize cost thus affecting the profitability of a poultry farm. The
requirement of maize by poultry sector has gone up due to the increase
in egg and broiler production. However, maize production in the country
has been stagnant for the past five years. As a result, the maize prices
for end users have increased. This has resulted in increase in the cost of
production of broiler. The layer poultry farmers in the country have been
forced to cull birds to control production of eggs for restricted market
supply to maintain the prices. The layer farmers from all the Eggs
Producing Zones are in the process of curtailing down their egg
production by culling their old aged flocks. The falling prices of eggs, and
the continuously rising prices of maize and other inputs have resulted in
poor feed conversion and direct losses to the farmers.

3.8.2. Impact, of Globalisation

The industry is facing the serious threat of imports and the price
fluctuations. The removal of quantitative restrictions in the post-WTO
regime had led to the import of products of unknown brands, which were
cleared by the customs without being checked for health, hygiene and
prevention of food adulteration labelling standards. Without any sample
testing, health checks and the other requirements for prevention of food
adulteration, there was a danger that disease could be imported to India,
which was not currently present. Developed countries were exporting
poultry products to India at very low prices. If large-scale import of
poultry products is allowed, the local shops may have to be closed. The
bound rate of import duty on poultry products was up to 150 per cent.
Currently the effective rate of import duty on eggs was 40 per cent, eggs
 91

products 62.8 per cent, chicken meat 19.6 per cent and processed
chicken products 57.2 per cent.

3.8.3.Lack of Processing of Poultry I Value-added Products

In India there is no tradition of processed poultry in which the

poultry is frozen, which provides higher durability to the poultry
products. The consumers mostly prefer to purchase the poultry products
"
lively. The consumers feel that they" are getting fresh chicken, if it is
slaughtered and dressed in front of them. The concept of dressed of
frozen chicken is yet to be accepted by the householder. This leads to
wide price fluctuations, thus impacting the profitability of poultry farms.
The demand for value added products based on the items of poultry like
egg powder, Kababs, samosas and nuggets etc. will have to be
popularised among the people. The poultry processing industry in India
is still in its infancy.

3.8.4.Disorganised and Poor Marketing System

The disorganised marketing system has led to a skewed

distribution of eggs and chicken meat in India. The distribution is
concentrated in urban centres and thus catering only to the needs of 25
per cent of the population. There are also regional disparities in
consumption patterns. The poor marketing of poultry products in India
can be attributed to several problems of the industry. Development of
infrastructure of procurement, storage, transportation and distribution
has not fully developed. Cold-storage facilities for holding eggs and
poultry meat during peak season period are not available. Cold chain for
distribution is non-existent. Other reasons related with marketing are
 92

lack of systematic efforts at market or product promotion and

inadequate processing facilities.

3.8.5. Environmental Pollution

Though poultry industry is a very viable sector of Indian

agriculture, it is a source of pollution like other industries. Main
pollutants from this industry are dust and gases in poultry house; used
litter materials; dead birds; dust in feed-processing plants; by-products;
waste products from hatchery and slaughtering house. These create
some problems to the development of the industry.

3.8. Government Agencies for the Development of Poultry

Industry in India

The Government of India has established the following agencies for

the development of the industry on proper lines. A brief of the working of
the agencies is given in the following pages:

a. Department or Animal Husbandry and Dairying (DAHD)

Agriculture including livestock is the responsibility of state

Government, but the central Government also play an important role in
the livestock service sector. The Department of Animal Husbandry and
Dairying (DAHD} in the Ministry of Agriculture (MOA), Government of
India was created in 1991. Its activities are primarily concentrated on
supplementing and complementing the efforts of the state Government
in enhancing productivity levels of livestock through genetic upgrading,
disseminating appropriate technologies, developing health services,
 93

improving processing facilities and strengthening marketing

infrastructure. Apart from taldng important policy decisions and
providing infrastructure support, the Department is now planning to
diversify its activities by stepping up the production of quail, guinea fowl
etc.

1. Central Poultry Breeding Farms

Four Central Poultry Breeding Farms located in four different Agro

climatic zones viz. Bangalore, Mumbai, Bhubaneswar and Chandigarh
was established during the second five-year plan period. The Central
Poultry Breeding Farms are providing necessary back-up services in the
field of breeding to meet the increasing demands of quality chicks in the
country, particularly the needs of small farmers and backyard poultry
farmers in whom the private sector is not generally interested.

2. Central Poultry Training Institute

The Central Poultry Training Institute is conducting many short

and medium term training courses covering various aspects of poultry
production and management including areas of breeding management,
nutrition, technology/ marketing and day old chick sexing etc. This
facility caters to both private and public sector for the training of
trainers.

3. Regional Feed Analytical Laboratories

In order to monitor the quality of the feed/feed ingredients, the

Department has established three Regional Feed Analytical Laboratories
 94

at Mumbai, Bhuvaneswar and Chandigarh to analyse the various

poultry feed/feed ingredients sample received from public and private
sector organizations for various parameters.

4. Assistance to State Poultry/Duck Farms

This scheme has been started as a Centrally Sponsored Scheme

during nineth Plan and is being implemented in the North-Eastern
States including Sikkim as a 100 per cent central assistance to
strengthen at least two duck/poultry farms in each State. Its aim is to
maintain identified low-input technology birds to be distributed among
the beneficiaries like landless and marginal farmers, women in groups
etc.

b. National Co-operative Development Corporation (NCDC)

With a view to develop poultry farming as a source of gainful

employment for landless labourers; small and marginal farmers and
other weaker sections in rural areas, The NCDC has been extending its
assistances to Poultry Co-operatives. Integrated approach to the
programme was adopted for the development of production,
procurement, marketing and other activities. Presently, the stress is on
developing the 'marketing and service base' by the poultry farmers
initially and then on taking up of integrated projects. Under the scheme,
assistance is provided in three phases viz., the service base, marketing
stage and integrated approach.
 95

c. National Bank for Agricultural and Rural Development

Bankers look at the poultry industry as one of the sources of

deployment of credit. Growth of popltry from the stage of backyard
"

poultry to large-scale commercial units is made possible through the

active support extended by banking sector. The establishment of different
models of poultry units starting from 100 birds unit of the small and
marginal farmers to the large-scale commercial unit has been the result
of the pro-active role taken by the banking sector. NABARD has been
extending refinance support to banks for financing poultry schemes such
as: -

1. Breeding Schemes related to grandparent and parent breeding

farm-cum-hatchery.

2. Commercial production Schemes related to the egg production,

broiler meat production, quail production and duck production.

3. Marketing Schemes related to the egg processing and integrated

schemes of hatchery cum broiler rearing cum processing unit.

4. Infrastructure development Schemes related to the production

of poultry vaccines, medicines and poultry feed plants.

5. Schemes for by-products related to conversion of poultry by-

products to usable materials.
 96

6. Innovative schemes for the application of innovative

technologies in poultry management.

NABARD has extended grant from research and development fund

for conducting studies on various diseases and evolving suitable vaccine
against the diseases. They also conduct regional studies for evaluating
the poultry development before and after the implementation of various
schemes and give valuable recommendations to the development of the
industry. Further, Central Government Scheme and State Government
Scheme are being implemented through NABARD.

d. Department of Biotechnology

Department of Biotechnology, Government of India has

implemented scheme for transferring and demonstrating the available
technology in the field of broiler production in semi-urban and semi-
rural areas. The schemes mainly emphasis the promotion of bio-
technological approaches in broiler production; utilisation of agricultural
and industrial by-products m broiler feed making; and popularise
production and marketing of cut-up parts of broilers. They are
implementing the schemes through various nodal agencies. The schemes
aim at identifying twenty-five farmers in each year who have necessary
land and infrastructure facilities. The farmer identified would be
required to produce 11000 broilers and market them in a year. The
farmers will be guided in the procurements of inputs, obtaining credit
farm financial institutions and guided in the management and
marketing of broilers produced. Technical assistances and health care
will be provided free of cost. The farmers will get training in the
production and processing of products. The scheme also provides the
 97

assistances to the beneficiaries in the formation of Poultry Co-operatives

and establishing linkage with existing Poultry Marketing Co-operatives.

...
e. Central Poultry Development Advisory Councll

Ministry of Agriculture, Government of India has formed the

Central Poultry Advisory council. This forum was created for interaction
between Government officials, poultry scientists and representatives of
various facets of poultry, state Government representatives to find ways
and means for faster and planned growth of poultry in the country. Its
meetings were held at regular intervals under the Chairmanship of
Minister of Agriculture.

f. Education and Research

India's first Poultry Science Department was set up in 1939 at the

Indian Veterinary Research Institute (IVRI). Later, in 1979 it developed
into India's premier research institute for poultry called as Central Avian
Research Institute (CARl). Two other apex agencies in the public sector
are the Central Poultry Training Institute (CPTI) at Hessargbatta in
Bangalore and the Indian Council for Agricultural Research Project
Directorate on Poultry in Hyderabad.

g. Agricultural and Processed Food Products Export

Development Authority (APEDA)

APEDA provides several incentives, including financial assistances

for the promoting export of poultry products. The important schemes for
the development of the industry are schemes for export promotion;
research and development; quality control; modernisation and up
 98

gradation; development of infrastructure and services, feasibility studies

and product publicity.

Since, the present research is concerned with the investigation on

the working of the poultry industry in Kerala and Tamil Nadu on a
comparative way; it is now worthwhile to examine the present position of
the industry in the two states. This has been attempted in the following
pages.

3.9. Poultry Industry in Kerala - An Overview

Livestock development as a household activity had a long tradition

in Kerala. As per the Livestock Census of Kerala 1996, the share of the
State in the country's poultry population is 8.35 per cent. Backyard
poultry farming was unique and very popular in Kerala in the past and
still it is the major source (90 per cent) of the domestic production of
eggs. Commercial egg production relying entirely on purchased feed is
uneconomic in Kerala. Therefore, poultry farming on commercial lines is
largely confined to broiler production. The feed requirements of the
poultry industry in Kerala is fully depending on the purchased feed from
the outside the state. The home production/mixing of poultry feed in the
state is very negligible. In the case of egg, the domestic production is
sufficient to meet only 25 per cent of the internal requirement.e The state
is largely dependent on external sources for maintaining the supply of
poultry items. According to a study conducted by Meat Products of India
(MPI) in 1995, Kerala topped the country in the consumption of meat,
including that of poultry.
 99

3.10.1.Poultry Population in Kerala

The poultry population in the state of Kerala as per the various

livestock census is furnished in Table 3.11.

Table 3.11
Poultry Population of Kerala as per Various Livestock Census
(Number of Birds in Lakhs)
SI. Category 1977 1982 1987 1996 Compound
No Growth Rate(%)

1 Fowls 129.56 145.19 170.92 256.46 2.30

(96.76) (96.26) (94.98) (95.18)
2 Ducks 4.30 5.30 8.46 11.87 3.50
(3.21) (3.52) (4.70) (4.40)
3 Others 0.03 0.34 0.58 1.12 12.82
(0.02) (0.22) (0.32) (0.42)
Total 133.89 150.83 179.96 269.45 2.40
Poultry (100.00) (100.00) (100.00) (100.00)
Source: Fifteenth livestock census-1996, Department of Animal husbandry,
Government of Kerala.
Figures in parentheses are percentages of their respective totals

The state of Kerala has witnessed significant growth in the poultcy

population over the thirty years from 1977 to 1996. The poultcy

population, which stood at 133.89 lakhs (Nos) in 1977 increased to

269.45 lakhs (Nos) in 1996, recording a compound growth rate of 2.40

per cent. The composition of poultry population shows that fowls

 100

constitute a major share in the poultry population i.e., 95.18 per cent of

total poultry population in 1996. The ducks and other type of poultry

share the remaining portion in the poultry population. The population of

fowls in 1977 was 129.56 lakhs (Nos), increased to 256.46 lakhs (Nos) in

1996, recording a compound growth rate of 2.30 per cent. In the case of

ducks, the population was 4.30 lakhs (Nos) in 1977 increased to 11.87

lakhs (Nos) in 1996, showing a compound growth rate 3.50 per cent.

However, the population of other types of poultry shows negligible

portion, but it has made significant growth rate.

The district-wise poultry population of Kerala as per the livestock

census of 1987 and 1996 is furnished in the Table 3.12. The district-

wise poultry population as per the livestock censuses 1996 shows that

the district of Thrissur ranked the first accounting to 11.04 per cent of

total poultry population in the state. The percentage of growth rate over

the previous censuses is 72.68 in the district. The district of Alappuzha

ranks the second by recording significant growth rate of 101.07 per cent

in the poultry population. The percentage share of the district in the

total population was 7.17 per cent in 1987 census but it increased to

9.83 per cent in 1992. The district of Malappuram ranks the third

accounting to 9.75 per cent of the total poultry population in the state.

The highest growth rate is recorded in Kannur district (109.58 per cent).
 ?~~~
! "t Gi~'~,. 101

Table 3.12 t ',~; ~ A' i '

~;~X··."""·'
District-wise Poultry Population of Kera .' per the Livestock
Census 1987 and 1996 (in Number of Birds)
81. Name of District 1987 1996 %of
increase over
No Population %Share Population %Share the previous
census
1 Thiruvananthapuram 1857069 10.31 2048252 7.60 10.29
2 Kollam 1445862 8.03 2499899 9.28 72.90
3 Pathanamthitta 974546 5.41 1158820 4.30 18.91
4 A1appuzha 1290625 7.17 2595082 9.83 101.07
5 Kottayam 1572041 8.73 2333387 8.66 48.43
6 Idukki 688331 3.82 1181290 4.38 71.62
7 Ernakulam 1849277 10.27 1944378 7.22 5.14
8 Thrissur 1723459 9.57 2976096 11.04 72.68
- ' - -----------,-----.- .-.- -_._ ..... _._----- -_._--_.- . _ - - - - - e-------
9 Palakkad 1283920 7.13 2273383 8.44 76.32
10 Malappuram 2017816 11.21 2626343 9.75 30.16
11 Kozhikkode 1340293 7.44 1695386 6.29 26.49
12 Wayanad 428080 2.37 847781 3.15 98.04 '
13 Kannur 898098 4.49 1882224 6.99 109.58
14 kasargod 626396 3.48 883770 3.28 41.09
State Total 17995813 100.00 26946091 100.00 49.74

Source: Fifteenth livestock census-1996, Department of Animal husbandry,

Government of Kerala.

3.10.2. Production of Poultry Items in Kerala

The production of poultry items such as eggs and poultry meat in

Kerala is furnished in the Table 3.13. The state of Kerala has witnessed
significant growth in the production of eggs and poultry meat over the
 102

sixteen years from1985-86 t02000-01. The egg production stood at 1361

Million (Nos) in 1985-86, increased to 2034 Million (Nos) in 2000-01
recording a compound growth rate of 2.70 per cent. In the case of
poultry meat production, which was 12000 Tonnes in 1985-86,
increased to 41515 Tonnes in 2000-01 recording a compound growth
rate of 8.04 per cent. The highest annual growth rate of 10.32 per cent
in the production of eggs was recorded during the period 1991-92 and
25.03 per cent in the production of poultry meat in 2000-01.

Table 3.13
Production of Eggs (in Million Nos.) and Poultry Meat (in Tonnes) in
Kerala
---,._----
Period Eggs Annual Growth Poultry Annual Growth
Rate (%) Meat Rate (%)
1985-86 1361 - 12000 -
1986-87 1397 2.64 14000 16.67
1987-88 1440 3.08 16000 14.28
1988-89 1468 1.94 18000 12.50
1989-90 1501 2.25 20000 11.11
1990-91 1550 3.26 22000 10.00
1991-92 1710 10.32 24000 9.09
1992-93 1774 3.74 26000 8.33
1993-94 1844 3.94 28000 7.69
1994-95 1916 3.90 30000 7.14
1995-96 1987 3.70 32000 6.67
1996-97 2024 1.86 32134 0.42
1997-98 2033 0.45 31688 -1.40
1998-99 2044 0.54 32480 2.51
1999-2000 2054 0.49 33204 2.23
2000-01* 2034 -0.97 41515 25.03
Compound Growth Rate 2.70 -- 8.04

*Provisional
Source: Bulletin of Animal Husbandry Statistics 1999 and Reports on Integrated
Sample Survey-2000-0 1, Department of Animal Husbandry, Government of Kerala
 103

The district-wise production of eggs in Kerala from 1998-99 to

2000-01 is furnished in Table 3.14. The district of Ernakulam ranks the

. .
first in the production of eggs. in the state of. Kerala accounting to 10.40
"

per cent (2126.64 lakhs Nos.) during the year 1998-99, which increased
to 11.94 per cent (2430.19 lakhs Nos.) in 2000-01. The district of
Thiruvananthapuram the ranks the second accounting to 10.09 per cent
in 1998-99 and it increased to 11.14 per cent in 2000-01.

Even though, the production of poultry items shows an increasing

trend; the gap between the requirement and domestic production of
poultry items in Kerala is widening. The Table 3.14 shows the deficiency
between requirement and domestic production of eggs in Kerala.

Table 3.14
Deficiency in Requirement and Production of Eggs in Kerala (Million
Nos.)
Year Requirement Production % of production Deficiency % of defICiency
to requirement to requirement
1993-94 4023 1844 45.84 2179 54.16

1994-95 4077 1916 47.00 2161 53.00

1995-96 4131 1987 48.10 2144 51.90

1996-97 4198 2024 48.21 2174 51.79

1997-98 4252 2033 44.66 2219 55.34

1998-99 4320 2044 47.31 2276 52.69

1999-2000 5063 2054 40.57 3009 59.43

Source: Compiled from Bulletin. of Animal husbanchy Statistics 1999, Department of

Animal husbanchy; and Economic Review 2001, State Planning Board, Government of
Kerala.
 104

The Table 3.14 reveals that the gap between the requirement and
production of poultry items (deficit) is widening in the state. In 1993-94,
the deficiency in the production of egg was 2179 Million Nos (54.16 per
cent of requirement), it increased to 3009 Million Nos (59.43 per cent) in
the year 1999-2000. The percentage of domestic production to satisfy
the requirement was 45.84 during the period of 1993-94 and it declined
to 40.57 in 1999-2000.

The deficiency in the requirement and production of poultry meat

in Kerala is furnished in the Table 3.15.

Table 3.15
Deficiency in Requiiement and Production of Poultry Meat in
Kerala (in Tonnes)
Year Requirement* Production % of production Deficiency % of deficiency
to requirement to requirement
1993-94 119647 28000 23.40 91647 76.60
1994-95 121253 30000 24.74 91253 75.26
-
1995-96 122859 32000 26.05 90859 73.95
-
1996-97 124867 32134 25.73 92733 74.27
1997-98 126473 31688 25.05 94785 74.95
1998-99 128480 32480 25.28 96000 74.72
1999-2000 130540 33204 25.44 97336 74.56

* Total requirement of meat including livestock

Source: Compiled from Bulletin of Animal husbandry Statistics 1999 and Reports on
Integrated Sample Survey-2000-01, Department of Animal Husbandry, Government of
Kerala

In the case of poultry meat production, the state is not able to

meet the requirement of meat supply. During the period of 1993-94, only
 105

23.40 per cent of total requirement was satisfied through the internal
production. Only slight difference is observed in the deficiency of
production i.e. 76.60 per cent in 1993-94 decreased to 74.56 per cent in
1999-2000.

3.10.3. Per Capita Availability of Eggs and Poultry Meat in Kerala

The annual per capita availability of eggs and poultry meat in

Kerala is depicted in the Table 3.16.

Table 3.16
Annual Per Capita Availability of Eggs and Poultry Meat in Kerala
Y cur' I
Egg Alllllud Growth J'oultry Meal Anlluill Growll.

(in Nos.) Rate (0/0) (in Kilogram) Rate (0/0)

1991-92 59 - 0.827 -
1992-93 60 1.69 0.884 6.89
1993-94 62 3.33 0.939 6.22
1994-95 63 1.61 0.993 5.75
1995-96 65 3.17 1.045 5.24
1996-97 65 - 1.033 -1.15
1997-98 65 - 1.006 -2.61
1998-99 64 1.54 1.015 0.89
1999-2000 63 1.56 1.025 0.98
2000-2001 63 - 1.277 24.58

Source: Bulletin of Animal husbandry Statistics 1999 and Reports on Integrated

Sample Survey-2000-01, Department of Animal Husbandry, Government ofKera.la
 106

The annual per capita availability of eggs which stood at 59 eggs

during the period of 1991-92, increased to 63 eggs during 2000-01. In
the case of poultry meat, the annual per capita availability, which stood
at 0.827gms in 1991-92 increased to 1.277 kilograms in 2000-01.
However, the annual per capita availability of eggs and poultry meat in
the state is far below the recommended rate 180 eggs and 1.9 kilograms
meat per year per person (WHO).

3.10.4. Marketing of Poultry Items in Kerala

In Kerala the marketing of poultry items such as eggs and broiler

meat is performed through various channels of internal and external
sources of supply. In the marketing of eggs, majority of requirements are
satisfied through the external sources (import from the states of Tamil
Nadu and Andra Pradesh). Five channels of distribution are operating in
the marketing of eggs in the state of Kerala. The channels of distribution
in the marketing of eggs in Kerala are given in Fig. 3.1.

The supply of broiler in the state of Kerala is mainly depending on

the import of items from the state of Tamil Nadu. Hence, the supply of
broiler in the state can be grouped into two viz., internal sources and
external sources. The internal sources include the products supplied by
the own farming units and market integrators working within the state.
The external source refers to the import of the products from the
neighbouring states. There are seven channels of distribution operating
in the marketing of broilers in the state. The different channels of
distribution in the marketing of broilers in the state are given in Fig. 3.2.
 101

Intenaal So1U'Ce8 Ezteraal Soarces

tproctucert (Produce.,

'llF 1F
Agents Traders
(Assembling) (Production Centre)

'll 1F 'llir

Wholesaler s
(Conswnption Centre)

u· ,. 1r ,.
I Retailers

~,. 1r 'll 1r 'llF

I CoDaamel'8

Fig. 3.1. Channels of Disbibtioo in the Muketiog of Eggs in Be......

 108

Ed. . . . So1IMes
(pmdueeq
Own Farmers I Market Integratars

~
Traders
(Productioa Centre)
"
I Wholesalel's
I !
Whalesalel's
~,

(COIUUDl,1iOll Centre)

.,r , r ~,
." "

I Rebil.,.s
I I RpbiJws
I
r ,,. .,Ir , ,,.
" "
I Coasamen

Fig. 3.2. C....... ofDistribatioa ill tile -.attetiag oI8a'oJ1en ill Be.....
 109

3.10.5.Government Agencies for the Development of

Poultry Industry in Kerala

The Government agencies operating under the state level for the
development of the industry and their activities are briefly reviewed
below.

a. Department of Animal Husbandry

The Department of Animal Husbanchy in Kerala has been

implementing a number of programines for the increase of poultry
production and productivity. The major activities of the department for
the development of poultry sector are:

1.Veterinary Services

The department is establishing a network of veterinary institutions

at different levels to provide veterinary aid in the state. In Kerala,
all district headquarters and Gram Panchayats (local bodies) have
veterinary institution.

2. Disease Investigation and Control Programme

This programme is mainly for studying the various diseases of

livestock and poultry and to chalk out future control and
eradication measurers. For this purpose, the Laboratory at Palode
in Thiruvananthapuram district has an investigation unit for
poultry diseases.
 110

3. Avian Disease Diagnostic Lab

It is established during 1979 at Thiruvalla with an aim to

investigate various diseases of poultry and advice the control
measurers to be followed by the farmers.

4. Animal Disease Surveillance Scheme

This scheme was started during the year 1982 at

Thiruvananthapuram. The object of the scheme is to collect,
compile, analyse and interpret data of livestock and poultry
diseases prevalent in the state.

5. Veterinary Biological Institute

The institute at Palode in Thiruvananthapuram district is

producing viral and bacterial vaccines against the diseases on
livestock and poultry.

6. Regional Poultry Farms

There are seven Regional Poultry Farms functioning in

Thiruvananthapuram, Kollam, Kottayam, Emakulam, Palakkad,
Kozhikode and Kannur districts under the department.

7. District Poultry Farms

There are two District Poultry Farms functioning in Idukki and

Malappuram districts.
 111

8. Central Hatchery

It was started during the year 1962 at Chengannur and producing

day-old-chicks of layer, broiler and quails. The other institutions
working under this hatchezy are Chick sexing school, Poultzy
training centre, Feed compounding factozy, Feed testing laboratozy
and Mobile veterinazy hospital. But, at present the working of the
hatchezy is not performed well due to the various internal
problems.

9. Broiler Farm

The broiler farm established in Thiruvananthapuram district is

producing commercial broiler chicks. But, its working is not
satisfactozy to the requirements of the industzy.

10.lntensive Poultry Development Block (IPD)

It was established in Thiruvananthapuram and Muvattupuzha

with a view to encourage farmers to take up poultzy farming. They
are providing necessazy inputs such as quality chicks, feed and
financial assistances as interest free loans to the farmers. But, at
present the working of the IPD is not conducive to the development
of the industry in the state.

11. Extensions and Training Programme

For imparting training to farmers on scientific management

practices of animal husbandzy including poultzy, there are four
 112

training centres at Thiruvanthapuram, Ernakulam , Kannur and

Chengannur .

However, the working of the Animal Husbandly Department in the

state is not conducive to solve the problems of the poultry fanners.

b. Kerala State Poultry Development Corporation (KSPDC)

Kerala State Poultry Development Corporation Ltd is a fully owned

Government Company established in 1989 with an authorised capital of
Rs. 100 lakhs. The major objective of the Corporation is to provide the
much-needed impetus to the promotion and development of the poultry
sector in the state. The principal activities of the Corporation include
providing quality chicks and inputs like feed, medicines, equipment etc.
to the fanners at reasonable cost. Apart from this, the Corporation is
also engaged in developing infrastructure facilities, providing support

services and implementing appropriate market intervention programme.

The Corporation undertakes the following activities:

1. Broiler Breeding Farm and Hatchery

The Corporation has a broiler breeding farm and hatchery at

Kodappanakkunnu in Thiruvananthapuram district, having a
capacity to rear 25000 Parent Stock and to hatch 56 lakhs Day-
Old-Chicks per week.

2. Egger Hatchery and Layer Farm

The Corporation has initiated steps to set up egger hatchery and

 113

layer farm at Kottiyam. The activities of this unit are under the
various stages of implementation, but it is not in progress.

3. Feed Mixing Plant

The Corporation has decided to establish a feed mixing plant at

Mala with an installed capacity of producing 23000 million tonnes
per annum. But, the steps in this regard are not progressive.

However, the working of the Corporation is not progressive as per

the objectives and aims laid down by them. The various sachems and
projects initiated by the Corporation such as egg marketing scheme
(EGMA stalls); Pullet Rearing Programme (under MLDP) and a proposal
to start Poultry Processing and Dressing Unit were dropped in the way of
its implementation. Some projects and schemes initiated by the
Corporation ware totally failures in achieving the objectives. At present,
the working of the Corporation is limited to the production of broiler
chicks only.

c. Kerala Agricultural University

Kerala Agricultural University, Mannuthy has a full-fledged college

of Veterinary and Animal Science with Centre for Advanced Studies in
Poultry Science. It has a model poultry farm under All India Co-
ordinated Research Project on Poultry Improvement. The Centre for
Advanced Studies in Poultry Science in collaboration with the
Directorate of Extension has been involved in different extension
education programmes, which have created grater awareness among the
farmers in poultry production. The research carried out has resulted in
 114

the development of a cross bird for backyard and a hybrid for

commercial layer farming. They also act as a nodal agency in the
implementation of schemes promoted by the Department of Bio-
Technology, Government of India.

3.11. Poultry Industry in Tamil Nadu - A Brief Proffie

The poultry developments in Tamil Nadu had taken place in late

1970's and made rapid progress up to 1990's. The technical and
infrastructure facilities; and ideal agro-climatic conditions boost the
development of the industry. After 1990's due to the overproduction and
severe competition from big private firms, the industry has slugged in its
growth. One of the features of the development of poultry in Tamil Nadu
is its over concentration in certain areas.

Namakkal Zone is the fifth biggest poultry Zone in the world. It is

also the second largest Poultry Zone /Egg Basket of India after
Hyderabad. As per the average data published by the Veterinary college
and Research institute (Namakkal), there are 6500 poultry farms in this
zone, of which nearly 3000 farms are in Namakkal town itself, which is
called Egg City or Poultry Town. There are 18 million layers, which
produce 11 million eggs per day in Namakkal Zone. The daily turnover of
poultry from this Zone is Rs.5 crore. Poultry industry of Namakkal
provides direct and indirect employment opportunity to more than one
lakh people, out of which about 30 per cent are women; engaged in
poultry farming, hatcheries, feed mixing, cage making and packing of
eggs. The growth of the poultry industry in this zone is achieved without
any assistance or development work carried out by the Government. As a
result of water scarcity, the agricultural activities in this region are not
 115

possible. Therefore, the farmers turned to poultry farming.

Tamil Nadu is one of the leading states in broiler production. In

India, Tamil Nadu stands sixth in broiler production. Broiler industry

has come to occupy an important place in Tamil Nadu. Several financial

institutions like nationalised banks and commercial banks are

functioning to cater to the financial needs of the broiler producers in a

larger way. There are many hatcheries and feed manufactures to supply

the broiler farmers with chicks and feeds. Broiler farming in Tamil Nadu

is mainly concentrated around the consuming centres like Chennai,

Madurai, Salem, Nammakal and Coimbatore districts. Palladam area of

Coimbatore district is the biggest broiler pocket in Tamil Nadu. As per

the records of Broiler Co-ordination Committee in Palladam, the industry

in the region has been rearing 12 to 15 lakhs broiler chicks per week

and producing about 20 lacks kilograms broiler meat in over 1500

farms. Market integration is acts as boon to the growth of the industry in

this area.

3.11.1. Poultry Population

The poultry population in the state of Tamil Nadu is depicted in

Table 3.17.
 116

Table 3.17
Poultry Population in Tamil Nadu as per Various Livestock Census
(Number of Birds in Lakhs)
SI. Category 1977 1982 1989 1994 1997 1998 CGR*
No (%)
1 Fowls 141.73 180.06 211.51 234.25 267.01 277.27 3.10
98.79 98.48 98.06 98.20 98.29 98.58
2 Ducks 6.16 2.78 4.16 4.25) 4.59 3.12 -3.00
1.21 1.52 1.93 1.78 1.69 1.11
3 Others 0.02 0.05 0.05 0.87 45.80
0.01 0.02 0.02 0.31
Total 143.47 182.84 215.70 238.54 271.66 281.27 3.11
Poul 100.00 100.00 100.00 100.00 100.00 100.00

*CGR: Compound Growth Rate

Source: Fourteenth livestock census-1989 and Inter-census estimate for 1998,
Department of Animal husbandry, Government of Tamil Nadu, Chennai.
Figures in parentheses are percentages of their respective totals

The state of Tamil Nadu has witnessed significant growth in the

poultry population over the 21 years from 1977 to 1998. The poultry
population, which stood at 143.47 lakhs (Nos) in 1977 Census increased
to 281.27 lakhs (Nos) in 1998 Census, recording a compound growth
rate of 3.11 per cent. The composition of poultry population shows that
fowls constitute a major share in the poultry population i.e., 98.58 per
cent of total poultry population. The ducks and other type of poultry
share the remaining portion in the poultry population. The population of
fowls in 1977 was 141.73 lakhs (Nos), increased to 277.27 lakhs (Nos) in
1998 census, recording a compound growth rate of 3.10 per cent. In the
case of ducks, the population was 1.21 lakhs (Nos) in 1977, decreased to
1.11 lakhs (Nos) in 1998. But, the population of other types of poultry
shows negligible portion i.e., 0.02 lakhs (Nos) in 1989 increased to 0.87
lakhs (Nos) in 1998, recording a compound growth rate of 45.80 per
cent.
 117

The district-wise poultry population of Tamil Nadu as per the

livestock inter-census estimate for 1998 is furnished in the Table 3.18.
The Table 3.18 shows that Salem district has the highest poultry
population in the state, accounting to 22.26 per cent of total population.
The district of Coimbatore (7 per cent) and Erode (6.41 per cent) are
occupying the second and third positions respectively.

Table 3.18
District-wise Poultry Population of Tamil Nadu as per the Livestock
Census 1998 (in Number of Birds)
SI. No Name of District 1998 Percentae:e Share
1 Chennai 1'1132 0.04
2 Kancheepuram 694136 2.47
3 Tiruvallur 847917 3.01
4 Cuddalore 656121 2.33
5 Villupuram 988413 3.51
6 Vellore 1534637 5.46
7 Tiruvannamalai 811965 2.89
8 Salem 6263128 22.26
9 Namukkal 967117 3.44
IO Dharmapuri 633471 2.25
11 Erode 1802452 6.41
12 Coimbatore 1971461 7.00
13 Nilgiris 183316 0.65
14 Tiruchirapalli 662969 2.36
15 Karur 770467 2.73
16 Perambalur 689152 2.45
17 Pudukkotai 993596 3.53
18 Thanjavur 640391 2.28
19 Nagapattinam 683619 2.43
20 Tiruvarur 641217 2.27
21 Madurai 739967 2.63
22 Theni 262132 0.93
23 Dindigul 71'2213 2.53
24 Ramanathapuram 615067 2.19
25 Virudhunagar 687234 2.44
26 Sivagangai 683126 2.42
27 Tirunelveli 671715 2.39
28 Tootticorin 626102 2.22
29 Kanniyakumari 683007 2.43
Total 28127240 100.00
Source: Inter-census Estimate for the Livestock and Poultry-1998, Department of Animal husbandry,
Government of Tamil Nadu, Chcnnai.
 118

3.11.2. Production and Per Capita Availability of Eggs in Tamil Nadu

The production and per capita availability of eggs from 1991-92 to

2000-01 is furnished in the Table 3.19.

Table 3.19
Total Egg Production and Per Capita Availability of Eggs per Year in
Tamil Nadu
Year Egg Production Annual Growth Per Capita
(in Million Nos.) Rate(%) Availability of Eggs
per Year (in Nos.)
1991-92 2704 - 51
1992-93 2845 5.21 51
1993-94 2919 2.60 52
1994-95 3051 4.52 54
1995-96 3048 -0.06 54
1996-97 3042 -0.20 54
1997-98 3217 5.75 59
1998-99 3588 11.53 59
1999-2000 3845 7.16 63
2000-2001 3930 2.21 63
Compound
Growth Rate(%) -- • 4.20 2.30

Source: Reports of Department of Veterinru.y Services, Government of Tamil Nadu,

Chennai.

In the case of egg production, the state has made significant

growth from 1991-92 to 2000-01. The egg production stood at 2704

Million (Nos) in 1991-92, increased to 3930 Million (Nos) in 2000-01,

 119

recording a compound growth rate of 4.20 per cent. The annual growth

rate of production of eggs over the period shows fluctuating trend. The

highest annual growth rate (11.53 per cent) was recorded during the

year 1998-99. The per capita availability of eggs per year during the year

2000-01 is 63 eggs, which are far below the minimum nutritional

standards as recommended by the WHO (180 eggs per person per year).

But, the state has made significant improvement in the consumption of

eggs over the periods mentioned above. In 1991-92 the per capita

consumption of eggs was 51 eggs, it increased to 63 eggs by recording a

compound growth rate of 2.3 per cent.

The district-wise production of eggs during the year 2000-01 is

presented in the Table 3.20. In the State of Tamil Nadu, the commercial

poultry farm contributes 54.38 per cent of the total production of eggs.

The small scale-farming units contribute the remaining portion. The

highest percentage of share in the production of eggs is accounted by the

Namakkal district i.e. 24.44 per cent of total egg production in the state.

The district of Coimbatore (3.28 per cent) and Erode (2.46 per cent)

shared second and third ranks respectively.

 120

Table 3.20
District-wise Production of Eggs in Tamil Nadu (2000-01.)
Sl. No Name of District Eggs Percentage Share of
(in Lakhs Nos.) Total
1 Chennai 46.01 0.12
2 Kancheepuram 270.46 0.69
3 Tiruvallur --- - 478.34 1.23
Cuddalore 146.10 0.37
5 Villupuram 258.07 0.66
6 Vellore 346.56 0.88
7 Tiruvannamalai 211.64 0.54
8 Salem 296.69 0.75
9 Namakkal 9602.43 24.44
10 Dharmapuri 613.53 1.56
11 Erode 967.73 2.46
12 Coimbatore 1290.47 3.28
13 Nileiris 29.12 0.07
14 Tiruchirapalli 229.43 0.58
15 Karur 289.89 0.74
16 Perambalur 151.65 0.39
17 Pudukkotai 258.65 0.66
18 Thaniavur 200.37 0.51
19 Nagapattinam 182.04 0.46
20 Tiruvarur 192.46 0.49
21 Madurai 235.58 0.60
22 Theni 109.09 0.28
23 Dinditrnl 189.27 0.48
24 Ramanathapuram 129.24 0.33
25 Virudhunagar 251.79 0.64
26 Sivagangai 181.24 0.46
27 Tirunelveli 176.18 0.45
28 Tootticorin 301.52 0.77
29 Kannivakumari 291.92 0.74
Add Egg production in 21367.01 54.38
Commercial Poultrv Farm
State Total 39294 100.00

Source: Reports of Department of Veterinary Services, Government of Tamil Nadu,

Chennai.
 121

3.11.3. Marketing of Poultry Items in Tamil Nadu

In Tamil Nadu, major portion of production of poultry items are

marketed outside the state. The external marketing of poultry items in

the state are operated through the traders/wholesalers. The marketing

of eggs in Tamil Nadu is mainly concerned with the supply from

Nammakal Zone. Nearly 55 per cent of eggs produced in Namakkal Zone

are marketed outside the state. The remaining portion is consumed by

the state. The National Egg Co-ordination Committee (NECC) 1n

Namakkal fixes the prices of eggs. There are three channels of

distribution operating in the internal marketing of eggs in the region.

The different channels of distribution in the internal marketing of eggs in

the state are shown in Fig.3.3.

The marketing of broilers in the state is mainly concerned with the

production of broilers in the Palladam area of Coimbatore district. The

Broiler's Co-ordination Committee (BCC) in Palladam fixes the prices of

broilers. There are five channels of distribution operating in the internal

marketing of broilers in the region. The channels of distribution in the

internal marketing of broilers in the state are given in Fig. 3.4.

 122

Producer

Tradm-

,.
I Wholesal11

,. ,, 1'

RetailPl

,' 1r

ConsumPJ

Fig. 3.3. Channels of Distribution in the Internal Mlrketiag of Eggs

in Tamil Nadu
 123

Producer

Wholesaler Trader
(Production Centre) _ (Production Centre)

,,
Wholesaler
(Conswnption Centre)

,,
Retailer

,,
Coasamer

Fig. 3.4. Cbaaaels or Distribution ia the latemal Mutretiag of Broilen ia

Tamil Nadu
 124

3.11.4.Government Agencies for the Development of

Poultry Industry in Tamil Nadu

The Government agencies in the poultry sector in Tamil Nadu and

their activities are stated briefly in the following pages:

a. Department of Animal Husbandry

The Department of Animal Husbandiy in Tamil Nadu has been

playing a very crucial role in the development of poultry industry in the
state. The following are the activities undertaken by them:

1. Poultry Extension Centres

Twenty-six Poultry Extension Centres and two hatcheries are

functioning in TamilNadu under the control of Animal Husbandry
Department. It acts as a model farm and also advices the
interested poultry farmers about the various aspects of poultry
breeding and management.

2. Poultry Disease Diagnostic Laboratory

In certain poultry pockets of TamilNadu like Salem and Erode, two

Poultry Disease Diagnostic Laboratories are functioning in Salem
district and Erode district. It educates the poultry breeders about
the modern lines of poultry rearing, diagnosing the various poultry
diseases and its preventive measures. It also helps in analysing
the poultry feed and gives necessary guidelines on the various
aspects of feeding and other managements.
 125

3. Extension Activities

The department is conducting exhibition at various places of the

State during the local festivals fairs and other occasions to educate
the public on modem Animal Husbandry activities and on public
health. The extension staffs of the Department are participating in
the weekly Television and Radio Programme. The Animal
Husbandry Department through its various schemes, projects and
institutional set-ups, have benefited the people in numerous ways
in tum uplifting the animal wealth economy in TamilNadu.

4. Veterinary Health Services

With the view to ensure proper Veterinary aid and animal health
services to the livestock and Poultry population of State, a network
of Veterinary Institutions ranging from Veterinary Dispensaries,
Veterinary Hospitals, Clinician Centres, Veterinary Poly clinics,
Mobile Veterinary Units, Mobile Veterinary Dispensaries are
working at various levels. They are also used for taking prompt,
preventive measures against various contagious and infectious
diseases of different origins. Animal Disease Intelligence Units
have been established, to forecast _the incidence of Epidemics and
thereby assisting the field staff to undertake vaccination of
Livestock and Poultry. Animal Disease Surveillance Unit 1s
functioning in the Directorate combining with National Informatics
Centre to monitor the outbreak of diseases in various regions of
the State in order to take immediate control measures and give
necessary guidance.
 126

5. Veterinary Institutions

There are at present three Polyclinics, twenty-four Clinician

Centres, 121 Veterinary Hospitals, 807 Veterinary Dispensaries,
fifty-four Mobile Veterinary Units, 383 Mobile Veterinary
Dispensaries and fourteen Animal Disease Intelligence Units
serving the Public at large. These institutions provide facilities for
treatment for various types and kinds of ailments of both
contagious and non-contagious nature affecting various species of
Livestock such as cattle, Sheep, Goats and Poultry etc.

6. Institute of Veterinary Preventive Medicine

The Institute of Veterinary Preventive Medicine m Ranipet is a

premier Institute of its kind in Tamil Nadu under the control of
Animal Husbandry Department of the State. This institute is
producing various kinds and types of vaccines against well-known
and widely prevalent contagious and infectious diseases that affect
and cause large-scale loss of lives and loss of production in
different species of livestock and poultry. In addition, this Institute
is also playing a key role, in the control and prevention of major
livestock and Poultry diseases by offering diagnostic facilities.

7. Central Referral Laboratory

This laboratory undertakes analysis of Clinical samples such as

blood, urine, dung etc, presently received from field level
Veterinary Institutions in the State and provides proper diagnostic
facilities and guidelines to the field level officers in the control
measures. This laboratory along with Institute of Veterinary
 127

Preventive Medicine helps in supplementing and augmenting the

overall efforts of the Animal Husbandty Department for
containing, controlling and eradicating the well-lmown livestock
diseases.

8. Animal Disease Intelligence Units

This unit helps in diagnosing the vanous diseases and their

causative agents during Outbreak. It also helps in prevention and
control of infectious diseases. These units are functioning in 14
districts of Tamil Nadu. The specimens like dung, blood, urine,
skin scrapings, nasal washings are collected, examined for
diagnosing the various diseases of livestock and poultry.

b. Tamil Nadu Poultry Development Corporation (TAPCO)

This Corporation was established with intention to improve the

quality of the Poultry in Tamil Nadu with a total capital of Rs.100 lakhs
on 12th July 1973. The paid up capital of the corporation is Rs. 126.69
lakhs. The Corporation is established with.the objectives of (1) regulating
the poultry development by improving its capacity to produce more
number of eggs and increased quality of meat (2) helping the poultry
breeders in poultry development (3) prov.iding all the inputs for poultry
development and marketing (4) helping the poultry breeders with
transport facilities, distribution, import and export. The Corporation
undertakes the following activities for the development of the poultry
sector:
 128

1. Hatcheries

Two hatcheries one for layer chicks and another for broiler chicks
are functioning at Madurai and Coimbatore district respectively.
These hatcheries produce quality chicks for increased production
of eggs and meat respectively.

2. Feed MixiDg Unit

To provide quality feed to the parent stock and poultry Extension

counters, the Feed Mixing Unit is functioning at Kappalur.

3. Analytical Lab

An Analytical Lab is functioning at the Feed Mixing Unit, Kappalur

for assessing the quality of feed produced. This lab checks up the
queries from public and other institutions for analysing the feed,
material as the case may be by remitting reasonable fees. Poultry
breeders and farmers can get the formula of manufacturing quality
poultry feed from this institution.

4. Marketing Units

There are six marketing units functioning under the Corporation

in the places of Nandanam, Namakkal, Salem, Trichy, Coimbatore,
Madurai. The consumers can draw their requirement of eggs,
broiler chicken etc., from these units for a reasonable price
suitable to the pockets at any time at their requirements. The
eggs, meat, broiler chicken available in these units are of good
 129

standard and hygienic quality. Public can get the technological

advise for keeping, poultry in their backyard and Farm from these
units. It procures broilers from producers and supplies them to
hotels, hostels, military campus and other institutions. It also
procures broilers from wholesalers when demand exceeds. They
made tie-up arrangement/market integration with producers for
the marketing of their products.

5. Grower Farms

There are three Grower farms functioning under the corporation.

They are situated in Chingleput, Coimbatore and Erode District.
These firms are maintained as a piece of model farm and meat the
demands of the public in and around the farm for their technology
know-how. These farms maintained broilers and supplying broiler
chicks to the farmers. Technical know-how can be obtained from
the technical people working in these farms. But, these farms are
not functioning at present.

6. Information System

In formations with regard to poultry keeping and economics in

poultry keeping etc., are published in the form of booklet.

7. Non- Meal Scheme

The Corporation has taken up the job of supplying eggs under

Noon Meal Scheme to all the Noon Meal centres in Tamil Nadu.
 130

However, at present the working of the Corporation has been not

satisfactory due to the low performance, red tapism and stiff competition
from private firms. Thus, the Government of Tamil Nadu intends to wind
up the Corporation.

c. Veterinary CoUege and Research Institute

The Veterinary University/ Colleges and Research Institutes are

playing key role in the development of the industry. Through their
research programmes on genetic improvement, disease control and feed
balance, they are actively participating in the development of the
industry. Further, the extension activities conducted by these
institutions have strengthened the development of the industry. They
provide the following services:

1. They provide the facilities to the farmers for clarifying their

doubts and seeking information regarding various animal
husbandry activities.

2. They established a healthy linkage with various development

departments of the district for carrying out the educational
programmes with Animal Husbandry Department, Rural
Development Department, Banks, Insurance Companies and
Service Organisation.

3. The farmers were taken to the university's farms on field trips

to give practical exposure, motivating and guiding the farmers
to participate in the periodical training programmes.
 131

4. Training programmes are conducting to extension personnel

and entrepreneurial farmers.

From the foregoing discussion it is clear that even though Kerala

enjoyed a dominant position in the production of poultry items till early
70's, now the domestic production is not sufficient to meet the full
requirements of poultry items in the state. Hence, in order to fill the gap
of production deficiency, the state depends largely on import from Tamil
Nadu.The situation may be due to the problems of the poultry units in
the different areas of its working. In contrast to this, in Tamil Nadu even
though there is competition among poultry entrepreneurs, they are
engaging the production of poultry items and marketing them both
internally and exporting to outside the state in large quantities at low
price. At this juncture, it is quite relevant to conduct a comparative
investigation on the working of poultry industrial units in Kerala and
Tamil Nadu. This forms the core of the present research project.
However, before going to the details of the working of the industry it is
highly useful to understand the socio-economic conditions of the poultry
farmer entrepreneurs in both the states. The ensuing chapter fulfils this.
 Works Cited

1 Young Student Encyclopaedia quoted in Production and Marketing

of Poultry Products in India, byV. K. Agarwal, (New Delhi: Mittal, 1974) 2.

28.M. Chad.ha, "Poultry to Become Rs 32,000 Crore Sector by

2005." Poultry Fortune 6(2000): 25.

3V.K. Agarwal, Op. Cit., p. 2.

4 Ibid.,.

ss.M. Chad.ha, Op. Cit., p. 23.

6Govt of Kerala, Economic Review (Thiruvananthapuram: State

Planning Board, 2001) 56