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Pig Farming Loan, Subsidy, Schemes, How To Apply

Pig Farming Subsidy, Loan, and Schemes

Today, let us discuss Pig Farming Loan, Subsidy, NABARD Schemes, and Eligibility.

Pigs are reared by the poorest of the rural people and they provide meat, dung and few byproducts like bristles, etc. These animals have wide adaptability to suit for different agro-climatic conditions. Pig farming can play an important role in improving the socioeconomic status of this section if existing constraints on their economic rearing are removed. Pig farming as a commercial venture is yet to be adopted in all countries. Pig farming will offer employment opportunities to seasonally employ rural farmers and supplementary income to improve their living standards. Some advantages of pig farming are:

  1. The pig has got maximum feed conversion efficiency, i.e. they produce live weight gain from a given weight of feed than any other class of meat-producing animals except broilers.
  2. Pig can utilize a wide range of feedstuffs viz. Grains, forages, damaged feeds and the garbage and convert them into valuable nutritious meat. However, feeding on spoiled grains, garbage, and other unbalanced rations may result in lower feed efficiency.
  3. Pigs are prolific with a shorter generation interval. A sow can be bred as early as 8 to 9 months of age and can farrow twice in a year. They produce 6 to 12 piglets in each farrowing.
  4. Pig farming business requires a small investment in buildings and equipment.

Bank Loan for Pig Farming:

This contains information on land, livestock markets, availability of water, feeds, veterinary aid, breeding facilities, marketing aspects, training facilities, the experience of the farmer and the type of assistance available from State Government Regional Pig breeding centers. This also contains information on the number of and types of animals to be purchased, their breed, production performance, cost and other relevant input and output costs with their description. Based on this, the total cost of the project, margin money to be provided by the beneficiary, requirement of bank loan, annual expenditure, income, profit and loss statement, repayment period, etc., can be worked out and included in project cost.

The following information on technical, financial and managerial aspects in detail based on the kind of unit and capacity.

Technical:

  1. Nearness of the preferred area to financing bank’s branch.
  2. The availability of excellent quality animals in nearby livestock markets/ breeding farms.
  3. Source and accessibility of training facilities.
  4. The availability of concentrate feeds and kitchen/ hotel/ vegetable market waste and broken grains from godowns.
  5. Availability of required medicines, vaccines, and veterinary services.
  6. Availability of veterinary aid and marketing services near the scheme area.
  7. Reasonability of a variety of production and reproduction parameters.

Financials:

  1. Unit cost – The average cost of pig farming breeding stock.
  2. Input cost for feeds, veterinary aid, insurance, and labor cost, etc.
  3. Output costs are the sale price of fatteners, piglets, and culled animals
  4. Income-expenditure account and annual gross surplus
  5. The cash flow analysis.

Managerial:

Borrower’s profile

  1. Individual/Partnership /Companies/ Corporation/ Co-operative Society /Others
  2. Capability in running the proposed business
  3. Experience in planning activity or others
  4. The financial soundness
  5. Technical and other particular qualifications

Others:

  1. The name of the financing bank
  2. Assistance accessible from State/ Central Government
  3. The regulatory clearances, if any etc.

Financial assistance obtainable from banks/NABARD for pig farming:

For pig farming development schemes with large outlays, detailed project reports will have to be prepared. The objects such as land development, construction of sheds and other civil structures, the purchase of the breeding stock, equipment, feed cost up to the point of income generation are normally considered under bank loan. Other items of investment will be considered on need basis after providing that the satisfactory information justifying the need for such items.

Pig Farming Loan, Subsidy, Schemes, How To Apply
Pig Farming Subsidy.

Sanction of Bank loan and its disbursement:

After ensuring technical feasibility and economic viability, the plan is sanctioned by the bank. The loan is disbursed in stages against the formation of specific assets such as the construction of sheds, purchase of equipment and animals. The end use of the fund is verified and regular follow-up is done by the bank.

Read: Greenhouse Farming Subsidy, Loan.

Pig farming loan:

Purpose: Pig farming loans are sanctioned for improving/establishing piggery farms for fattening/ breeding, including the purchase of boars, sows, feeds and construction of a pig sty.

Eligibility

  1. There should be satisfactory accommodation for the existing animals as well as those proposed to be purchased.
  2. Veterinary assistance should be readily accessible.

iii. Suitable breeds of pigs should be simply available.

  1. The feed should be simply available at reasonable cost.
  2. There should be an excellent demand for pork, bacon, ham, and sausage. Essential permission from municipal authorities wherever needed.

Unit cost and Outlay

An outlay of the project depends on the local conditions, the unit size and the investment components included in the project. Prevailing market prices or cost may be considered to arrive at the outlay.

Margin Money

Margin depends on the group of the borrowers and may range from 10% to 25%. Banks are free to choose the role of interest within the overall RBI guidelines. However, for working out the financial viability and bankability of the project we have assumed the rate of interest as 12% p.a.

Loans up to Rs.1lakh – Nil

Loans above Rs.1lakh – 15-25%

Security

The security will be as per NABARD/RBI guidelines issued from time to time.

For loan up to Rs.1, 00,000/-: Hypothecation of assets produced out of our finance.

For loans above Rs.1, 00,000/-: Hypothecation of crops/assets produced out of our financial and Mortgage of land properties.

Repayment Period of Loan

Repayment period depends upon the gross surplus in the plan. The loans will be repaid in suitable half yearly/annual installments, usually within a period of about 5 to 6 years with a grace period of one year.

  1. i) When the loan is granted for breeding of pigs for production of piglets for sale and construction of the pigsty, the loan should be repaid within 4 to 5 years in yearly installments including initial repayment holiday of 12 months.
  2. ii) When the loan granted is for the purchase of piglets for fattening, the loan should be repaid in one lump sum within twelve months or marketing, whichever is earlier.

Insurance of Pigs:

Animals might be insured annually or on long term master policy, where ever it is applicable.

Objectives:

Eligibility:

Read: Tractor Subsidy, Bank Loan, Eligibility, Schemes.

State Bank of India (SBI) loan for Pig farming:

Under Animal Husbandry Programme, SBI-State Bank of India provides loans for the eligible individuals to start Pig Farming.

EDEG (Entrepreneurship Development and Employment Generation)

EDEG method is for Pigs development. It is a Government plan to encourage Pig Farming in India.

The objectives of EDEG scheme:

Beneficiaries: Farmers, Companies, Cooperatives, individual entrepreneurs, NGOs, Groups of organized and unorganized sector, which include Self Help Groups (SHGs) and Joint Liability Groups.

Subsidy for various areas and different categories of beneficiaries:

  1. Normal areas
Category

 

Back ended subsidy

 

Credit

 

Beneficiary Share/Margin Money

 

BPL/SC/ST

APL

33.33%

25%

56.67%

65%

10%

10%

  1. Northeast region/Hill areas
Category

 

Back ended subsidy

 

Credit

 

Beneficiary Share/Margin Money

 

BPL/SC/ST

APL

50%

35%

40%

55%

10%

10%

Pig Development-EDEG

  1. Commercial rearing units (3 sows + 1 Boar) – At 25% level subsidy- ceiling Rs. 25,000/-.
  2. Pig breeding farms (20 sows + 4 Boars) – At 25% level subsidy- ceiling Rs. 2,00,000/-.
  3. Retail pork outlets with facility for chilling- At 25% level subsidy- ceiling Rs. 3,00,000/-.

Note: The above information can be applied to all the states in India including:

Read: Prawn Cultivation.


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