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New Financial Guidelines for a New Poultry Sector

by 5m Editor
11 March 2008, at 10:46am

INDIA - India's National Bank has issued new ‘Guidelines for Poultry Financing’, in order to encourage greater investment in the sector.

These Guidelines, which have been developed in consultation with stakeholders, are aimed at facilitating banks in developing internal expertise & products for providing needed working capital and term finance to the poultry sector.

A statement from the State Bank said that under these guidelines, individuals and all types of legal entities engaged in poultry related activities or desirous to establish new broiler, breeder, hatcheries or layer farms having sufficient knowledge and relevant experience will be eligible to draw loans under poultry financing.

iT SAID "The SBP has asked the banks to use these guidelines for developing their own products, according to their credit policy and operational & market requirements, subject to compliance with its (SBP) regulations for agriculture financing. Besides, banks may also coordinate with the concerned Government departments including SMEDA for obtaining the necessary information /feasibility report about the poultry sector, which will be useful for developing specific products for financing to this sector."

Under these Guidelines, financing will be provided to meet working capital and term finance requirements of poultry sector. Working capital financing on revolving basis can be provided for all activities including purchase of feed, birds/ day old chicks, feed raw material, vaccination, vitamin and other medication for poultry birds, saw dust, wood, coal, medicines, water filter cartages, over head expenses i.e. labor, utility bills, cost of fuel for generators & vehicles, transportation etc., utensils for poultry bird feed etc.

The term finance facilities can be provided for medium to long term credit needs of the poultry sector which may include construction of broiler, layer, breeder & hatchery farms and feed mills, control sheds automatic drinkers /tube feeders, generators, ventilators, table/ breeder eggs storage refrigeration plants, purchase of machinery/ equipment for poultry farm/ hatchery/ feed mill, transport vans - eggs and poultry carrying van, distribution vehicles such as motorcycles, pickups etc., deep freezers, slaughtering & de- feathering machine etc.

5m Editor