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How to Start a Chicken Farm Business in India?

Updated on:20/08/25
Joel Dsouza

Starting a chicken farm business in India is a great way to earn money, especially in rural and semi-urban areas. With the growing demand for chicken meat and eggs, this business can be very profitable if planned well.

India is the third-largest egg producer and the fourth-largest chicken meat producer in the world, with the poultry sector contributing more than ₹1.25 lakh crore annually to the economy. According to reports, India consumes over 95 lakh tonnes of poultry meat and more than 100 billion eggs every year, and the demand is rising by 6–8% annually.

You don’t need a big investment to begin; even a small setup of 500–1,000 birds can generate good returns if you manage it properly. In this guide, we will explain the steps to start your chicken farm, the types of poultry farming you can choose from, the licenses you need, and tips to grow your business successfully.

Why Start a Chicken Farm Business?

Chicken farming is one of the most popular and growing businesses in India. It is simple to manage, requires less investment, and offers good profit in a short time. Whether you live in a village or a town, this business can be started with proper planning.

How to Start a Chicken Farm Business

  • High Demand for Chicken and Eggs: Chicken and eggs are a part of daily meals in many Indian households. Hotels, restaurants, and markets also buy in bulk, so there is always a strong demand.
  • Low Investment, Good Profit: You can start small with limited chickens and expand as you earn. Basic equipment and setup don’t cost much.
  • Quick Growth and Fast Returns: Broiler chickens grow quickly, usually within 5–6 weeks, and are ready to sell. This gives you fast income compared to many other businesses.
  • Easy to Learn and Manage: You don’t need a special degree to start. With some basic training or guidance, anyone can learn how to care for chickens.
  • Government Support and Loans: The Indian government offers schemes like NABARD’s PVCF, National Livestock Mission, and Mudra Loans to provide subsidies and loans to farmers.
  • Suitable for Rural and Urban Areas: Whether you have a small land in the village or near a town, chicken farming can be done almost anywhere with the right setup.

What Is a Chicken Farm Business?

A chicken farm business means raising chickens to earn money by selling their meat or eggs. It can be done on a small or large scale, depending on how much land, money, and time you want to invest. There are two main types of chicken farming: one is for meat (called broiler farming) and the other is for eggs (called layer farming).

In this business, you take care of the chickens by giving them proper food, water, and a clean place to live. After a few weeks or months, you can sell the grown chickens or eggs in the market and earn a profit. Many people in India choose this business because it grows fast and doesn’t require too much experience to start.

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How to Start a Chicken Farm Business in 8 Steps

Starting a chicken farm may seem difficult at first, but with the right steps, it becomes simple and manageable. Whether you want to raise chickens for meat or eggs, this guide will help you understand the basic process from planning to selling.

Step 1: Decide the Type of Chicken Farming

First, decide what kind of chicken farming you want to do.

  • Broiler Farming (Meat Production): Broilers are raised for meat. They grow fast and are ready for sale in 5–7 weeks. They need energy-rich feed, less space per bird, and quick care for healthy weight gain.
  • Layer Farming (Egg Production): Layers are raised for eggs. They start laying at around 18–20 weeks and continue for more than a year. They need more space, a balanced diet with calcium, and regular care to maintain egg quality.

Tip: Start small with either broilers or layers to test the market before expanding into both.

Step 2: Choose a Good Location

Pick a location away from noisy or crowded areas to keep chickens safe and healthy.

  • The farm should be at least 500–1000 meters away from residential areas for biosecurity.
  • Choose clean, dry land with good drainage to avoid waterlogging and disease.
  • Ensure easy access to water, electricity, and transport for daily use and selling your products.

A well-chosen location reduces disease risk and makes farm operations smoother.

Step 3: Build a Safe Chicken House (Shed)

Build a poultry shed to protect chickens from sun, rain, and predators. Keep it clean, airy, and well-ventilated to prevent diseases.

  • Space Recommendations:
    • Broilers: 1–1.5 sq. ft. per bird
    • Layers: 2–3 sq. ft. per bird
  • Lighting: Use artificial lights during shorter days to support egg production in layers.

A well-designed shed ensures healthy, productive chickens and reduces risks of illness.

Step 4: Buy Healthy Chicks

Buy 1-day-old chicks from a trusted farm or hatchery for better adaptation. Ensure they are healthy, active, and vaccinated to reduce disease risk.

  • Source chicks from government-approved or reputed hatcheries to guarantee proper vaccination and quality.

Starting with healthy chicks sets the foundation for a productive and profitable farm.

Step 5: Arrange Chicken Feed and Water

Chickens need clean water and proper feed daily.

  • Broilers: Protein-rich feed for fast growth.
  • Layers: Balanced diet to support regular egg production.
  • Store feed in a clean, dry place to prevent contamination.
  • Use nipple drinkers or automatic waterers to keep water clean and reduce wastage.

Proper feeding and water management keep chickens healthy and productive.

Step 6: Take Care of Chicken Health

Check your chickens daily for signs of sickness and keep their area clean and dry.

Provide vaccines and medicines as advised by a vet to prevent common diseases, such as:

  • Newcastle Disease
  • Avian Flu
  • Coccidiosis
  • Fowl Pox

Regular health care ensures your flock stays healthy, productive, and profitable.

Step 7: Get Required Licenses

Before starting, ensure you have all necessary government permissions.

  • State Poultry Farming Registration: Required in most states for commercial farms.
  • FSSAI License: Needed if selling processed chicken or eggs.
  • Pollution Control Clearance: May be required depending on farm size and local rules.

Proper licensing keeps your business legal and avoids future penalties.

Step 8: Market and Sell Your Products

Once broilers are ready or layers start laying eggs, sell to local markets, shops, hotels, or directly to homes.

  • Build regular buyers like hotels, restaurants, and egg suppliers.
  • Add value with branded egg trays, cleaned/dressed chicken, or farm-fresh labeling.
  • Promote your products via social media or WhatsApp groups for daily/weekly stock updates.
  • Maintain a consistent supply to gain customer trust and loyalty.

Good marketing ensures steady sales and long-term growth for your farm.

How Much Does It Cost to Start a Chicken Farm Business in India?

Before starting a chicken farm, it's important to understand how much money you will need. The cost depends on the size of the farm, the number of chickens, and whether you choose broiler or layer farming. Below is a basic cost estimate for starting a small-to-medium chicken farm in India with around 500 chickens.

Item Estimated Cost (INR) Description
Land (Rent or Own) 10,000 – 50,000/month Depending on location and area (approx. 1,000–2,000 sq. ft. for 500 chickens)
Poultry Shed Construction 50,000 – 1,00,000 Basic shelter with proper ventilation and fencing
Baby Chicks (Broilers/Layers) 20 – 50 per chick For 500 chicks: ₹10,000 – ₹25,000
Feed for 1 Month 30,000 – 50,000 Cost for feeding 500 chicks (broiler/layer feed)
Water System & Feeders 10,000 – 15,000 Drinkers, feeders, water tanks, etc.
Electricity & Lighting 5,000 – 10,000 For fans, bulbs, heaters, etc.
Medicines & Vaccinations 5,000 – 8,000 To keep chicks healthy and prevent diseases
Labor (Optional) 8,000 – 12,000/month If you hire help to manage the farm
Miscellaneous Expenses 5,000 – 10,000 Transport, cleaning materials, safety tools, etc.

Total Estimated Cost: ₹1.3 Lakh – ₹3.2 Lakh

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Common Challenges in Chicken Farming and How to Overcome Them

Starting a chicken farm is a great business idea, but like any business, it comes with some problems. If you understand these challenges early and take the right steps, you can avoid losses and run your farm smoothly.

How to Start a Chicken Farm Business

1. Chicken Diseases

Challenge: Infections like bird flu or other common poultry diseases can spread quickly and cause major losses.

Solution: Keep the farm clean and give vaccines on time. Regular check-ups can help prevent disease outbreaks

2. High Feed Costs

Challenge: The price of chicken feed keeps changing and can be expensive, which affects profit margins.

Solution: Buying feed in bulk or learning to make your feed mix can save money over time.

3. Lack of Proper Knowledge

Challenge: Beginners may not know how to take care of chickens, manage temperature, or give the right food and medicines.

Solution: Attend a short training course or watch reliable videos online to learn the basics of chicken care.

4. Market Fluctuations

Challenge: The selling price of chicken and eggs can go up and down, making income uncertain.

Solution: Try selling directly to shops, homes, or hotels nearby to avoid loss due to price drops in large markets.

5. Waste Management

Challenge: Chicken farms produce a lot of waste, which, if not handled properly, can create bad smells and health issues.

Solution: Chicken droppings can be used as organic fertilizer in farming. This reduces waste and helps farmers nearby, too.

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Frequently Asked Questions (FAQs)

Is chicken farming a good business in India?

Yes, chicken farming is a very good and profitable business in India. With the increasing demand for chicken meat and eggs, especially in both rural and urban areas, many people are turning to poultry farming to earn a steady income. If managed well, it can become a long-term source of profit.


How much land is needed to start a small chicken farm?

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What is the cost of starting a chicken farm in India?

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What are broiler chickens?

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Do I need any license to start a poultry farm in India?

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How many chickens should I start with?

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Can I raise chickens in my backyard or at home?

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Joel Dsouza
Joel Dsouza

Joel Dsouza is a Chartered Accountant and compliance expert who has advised over 1,000 startups and SMEs on company registration, tax structuring, and MCA compliance. A member of ICAI and Co-Founder at RegisterKaro, Joel is committed to promoting financial literacy and simplifying India’s startup ecosystem. His deep expertise across all three levels of Finance and Portfolio Management makes him a trusted voice for entrepreneurs seeking clear, actionable guidance.

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