Pig Farming Loan, Subsidy, Schemes, How To Apply - Agri Farming

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Pig Farming Loan, Subsidy, Schemes, How To Apply

By Jagdish Reddy - January 26, 2019

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 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:

To support commercial pig rearing by farmers/ laborers to improve production performances of native breed
through cross-breeding by using selected animals of high performing breeds and by providing incentives in
conditions of capital subsidy for ensuring the viability of the pig breeding, rearing, and related activities.

Eligibility:

Producer companies, partnership firms, corporations, NGOs (Non-Governmental Organization), SHGs, JLGs,
cooperatives, and individual entrepreneurs.

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:

To encourage commercial rearing of pigs by adopting scientific methods and creation of infrastructure
Production and supply of better germplasm
To organize stakeholders to popularize scientific practices
Create provide chain for the pork industry
To encourage value addition for better income

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 33.33% 56.67% 10%


APL 25% 65% 10%

2. Northeast region/Hill areas

Category Back ended subsidy Credit Beneficiary Share/Margin Money


       

BPL/SC/ST 50% 40% 10%


APL 35% 55% 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:
Pig Farming Subsidy In Haryana.
Loan For Pig Farming In Punjab.
Pig Farming Loan In Assam.
Pig Farming Project Report For Bank Loan.
Piggery Farming Loan In Manipur.
Pig Farming Loan in Karnataka.

Read: Prawn Cultivation.


Jagdish Reddy
https://www.agrifarming.in

Mr. Reddy was born in farmer's family and was into 'IT' profession where he was not happy with his activities. Decided to come back to
farming, agriculture sector as a Farmer and Writer. He plans collaborating his agriculture, horticulture and farming knowledge into a
subject of help to all those who wish grow crops, venture into farming or gardening.

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