Economic Study of Poultry Development in India – A Regional Approach

Economic Study of Poultry Development in India – A Regional Approach*

S.P.BHARDWAJ AND ASHOK KUMAR
Indian Agricultural Statistics Research Institute
Library Avenue, NewDelhi 110 002

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Introduction

A general confidence has been created among the people that green revolution has ushered an era of self-reliance in the food grain production. The rapidly growing population has created some doubts in the said hypothesis. In fact, the crop production alone may not solve the food problem of the country. The advances in cereal technology, of course, can fill the empty stomach but it may not help in the balanced growth of the human body. The chief ingredients of balanced diet also comprise proteins, fats and vitamins, which are essential for growth. The supply of these items can easily be increased through increased production of livestock products. In the livestock sector, poultry is the most efficient enterprise for increasing the supply of desired proteins, fats and vitamins in a short period. Poultry farming in India, in spite of several constraints has progressed considerably during the last decade. Poultry production in India was confined to backyards till recently. Local breed of birds were reared for the supply of eggs and meat. The increasing demand for poultry products necessitates augmenting the supply by importing the improved breed of poultry birds. The proportion of hybrid population in the total population of poultry birds was about 2 percent during 1961. Within a couple of decades these birds have dominated the market sidelining the indigenous birds. The technological advances have revolutionised the role and structure of poultry industry in India. It has become one of the most specialized enterprises in many parts of the country. The present study has been undertaken to examine various aspects related to the growth and development of poultry production in the country. However, the broad objectives of the study are as follows:

1. To study the existing status of poultry sector in India
2. To examine the growth pattern of poultry in different region and
3. To construct developmental indices for poultry production in different states.

 Review of Literature

  Headley (1964) estimated the production functions for egg laying flocks of hybrid and leghorn hens, raised at Iowa state farms. The regression analysis indicated that flock size, housing area, corn equivalent labour and protein equivalents were significantly contributing the gross returns. Hunter (1981) studied the economic aspects of egg production on Australian poultry farms. This study revealed that feed costs occupy a major share of total cost of production of eggs followed by cost of chicks and labour. Maheshwari (1993) found that the market imperfections were caused by the nexus between producers and commission agents. This study was conducted in Mysore, Davengere and Hubli districts for three crops i.e. Paddy, Groundnut and Jowar. In Mysore, fragmented market and market sharing existed for all the crops. Cotton market in Davengere was competitive while the other markets showed more imperfections. She suggested that mere regulation is not enough to make wholesale market more competitive and direct sales need to be promoted. Bhardwaj et al. (1995), in the study of cost behaviour and marketing margins of broilers, observed that cost of raising broilers varies according to the size of poultry farms. In marketing broilers, the retailers earn maximum profits whereas the producers could earn profit only half of that of retailer. Bhardwaj et al. (1996), in the study of broilers in Haryana, concluded that the supply of broiler was affected by the mortality and culling rates of broilers, which are governed by age of birds and size of poultry farms. The depletion rate decreases as the size of poultry farm increases. The study further showed that the marketing practices were influenced by the size of farms and seasons. Pandey et al. (1996a) studied the status of poultry production in India and also analyzed the behaviour of production cost of poultry products in the selected areas. This study shows that Poultry had become a vital component of the farm economy as it generates additional income and employment in the rural area. The cost estimates revealed that feed alone accounts for about two-thirds of the total cost. The study concluded that availability of feed at reasonable prices would provide an incentive to the producers for more poultry production. Pandey et al. (1996b), examined that development of poultry was adversely affected by wide fluctuations in the demand. The study showed that rise in price of eggs was comparatively lower than the rise in prices of milk, food article and all commodities during the period of 1982-94. The production and disposal of eggs at poultry farms revealed that more than 98 percent of eggs are sold for profit. The main marketing agents were identified as wholesale dealer and contractors in the study. Iqbaluddin (1996) opined that in most of the poultry pockets in India, the marketing is still in the control of private traders. Fluctuation in the prices of poultry products is one of the main constraints for attracting investment in the sector. Market Intervention Scheme (MIS) for procurement of eggs in Andhra Pradesh, Tamil Nadu, Punjab, Haryana, Madhya Pradesh and Rajasthan by NAFED has shown encouraging results though the magnitude of operation is very small. Seetharaman (1996) studied the pattern of poultry development. He observed that out of 9 states with well-developed poultry industry, only in two states, i.e., in Gujarat and Maharashtra, the poultry cooperatives were doing well. He recommended that poultry cooperatives have to be extended in all the poultry producing states.

 METHODOLOGY:

 WEIGHTED POULTRY DEVELOPMENT INDEX (WPDI)

Where

WPDI = Weighted Poultry Development Index for j th states of India.

= Mean of ith parameters

= is the estimate of variance of i th parameter for j th state

K = number of parameters such as:

Layer of parent stock

Number of improved birds in the total population

Number of hatcheries (private and public sector)

Bird’s productivity (No. of eggs produced per annum)

Status of Poultry in India

Poultry enterprises in India can distinctly be grouped into two categories i.e. developmental poultry farms and commercial poultry.

 a) Developmental poultry

 It is referred to village/unorganized poultry because these enterprises operate on low scale using less amount of capital and traditional technology. The unit volume of production is low due to the above constraints. However, the concept of developmental poultry is very much relevant for our rural area to enhance the cash earnings of rural poor. The poultry was included into various Central and State Government sponsored programmes such as Integrated Rural Development Programme (IRDP), Special Livestock Production Programme (SLPP), Tribal Development Programme (TDP), etc. to popularize poultry in rural areas. However, the growth of developmental poultry could not succeed at desired level.

 b) Commercial Poultry

Commercial / industrial poultry referred to large-scale enterprises where the number of birds per unit is large enough to reap maximum advantages of technological improvement. These enterprises enjoy various economies of scale of operation and thus are able to absorb the fluctuations in demand and supply and input cost, etc. The growth of this sector remained highly significant over the years though it is confined to some pockets of the country.

 Population of Poultry Birds and their distribution

The poultry population in India is given in (Table‑1) during 1951 was 73.5 millions and the same has increased 138.5 millions in 1972 (i.e. just doubled) and increased to about four times by 1992 i.e. 307.07 millions. The growth in population remained 5.32 percent per annum during 1951-56, 5.47 percent per annum during 1977-82 and 5.79 percent per annum (Maximum) during 1982-87. The minimum growth in population was recorded during 1961-66 i.e. 0.21 percent per annum. Distribution or spread of poultry birds over the space may be examined by two approaches:

a) Distribution according to area (rural/urban) and

b) Distribution according to different regions.

 Birds’ population in rural/urban area:

Based on Livestock Census, 1987 and 1992, the distribution of poultry birds [Table‑2] reveals following interesting features:

1. Rural and semi-urban area accounted for the largest number of poultry birds (more than 90%).
2. Population of improved breed of both layer and meat type has increased much faster during the two periods as compared to desi breed.
3. The population of broilers has increased rapidly i.e. 21 percent per annum as compared to layers.
4. The proportion of bird’s distribution in two areas does not reveal much variation during the period.

Regional distribution, as shown in table‑3, reveals that there exists wide disparity in the population of poultry in different regions. Maximum population of birds i.e. 42 percent is confined to Southern Region, followed by Eastern Region 21.88 percent, Western Region, 19.42% and least in the Northern Region i.e. 14.5%.

The leading poultry producing states in different regions were Andhra Pradesh and Tamil Nadu in Southern Region, West Bengal and Bihar in Eastern Region, Maharashtra in Western Region and Punjab in Northern Region.

Productivity of Desi and Improved Birds i.e. eggs produced per annum also varies in different regions. Maximum productivity of desi birds i.e. 91 reported in Eastern region and a minimum of 15 eggs per annum in Northern Region. In case of improved birds, the productivity is highest in Southern Region 241, followed by 238 in Western Region, 209 in Northern region and 204 in Eastern Region. State-wise, the productivity of desi birds was maximum in Himachal Pradesh i.e. 168 egg per annum and least i.e., 79 in Nagaland. In case of improved birds, the maximum productivity was 278 eggs per annum in Andhra Pradesh and minimum 180 eggs/annum again in Nagaland.

Regional distribution of hybrid parent stock as shown in Table‑4 reveals that it is heavily concentrated in the Southern Region as nearly 45% of layer parent and 37% of eggs type birds are confined to this region. Northern region ranked second in this connection with layer parent 27% and 25% of birds parent stock. This is followed by Western Region with nearly 20% and 25% of layer percent and birds parent stock respectively. Eastern region have only 9% of layer parent and 14% of bird parent stock. State-wise concentration of percent stock of both layer parent and birds parent also reveals the similar trend. The ranking of different states remained as Andhra Pradesh (25% and 18%), Tamil Nadu (14% and 9%), Maharashtra (12% and 18%), Punjab (10% each) and West Bengal (3% and 9%) of layer parent and birds parent stock.

 Poultry Development in India

 Weighted Poultry Development Index (WPDI)

Status of poultry in different states / UTs was examined by constructing developmental indices on parameters such as layer parent stock, number of improved birds to the total poultry population, number of hatcheries (both in private and public sector), and birds productivity (i.e. no. of eggs produced per annum) as shown in Table‑5 Following technique has been used to construct indices for major poultry producing states/UTs in the country. The poultry Development index constructed for the major poultry producing states of Indian Union as the weighted average of the different parameters where in weights are reciprocals of their variances. The states have been arranged in the ascending order of WPDI. This implies that state with least WPDI is placed on number one and so on. Assam & N.E. States thus find first place in the order i.e. poultry is least developed in these states followed by Bihar, Orissa, and Himachal Pradesh etc. Andhra Pradesh is on the top of developmental status of poultry in India. In order to classify all the states in to two groups WPDI at 0.5200 level has been chosen arbitrarily as the dividing point of different states. In this way all the states may be arranged in two groups on the basis of low/high poultry development.

• Slow poultry developing states

 Northern Region – Himachal Pradesh & Uttar Pradesh

North East & Eastern Region: Assam and N.E. States

Central and Western Region: Madhya Pradesh and Goa

Southern Region: Kerala

 b. High Poultry Developing States

Northern Region: - Haryana and Punjab

Central Region: - Rajasthan

Western Region: - Gujarat and Maharashtra

Southern Region: - Andhra Pradesh, Tamil Nadu and Karnataka

Eastern Region: - West Bengal

Growth in production.

Poultry products have shown a massive growth in the country over the years 1961 the egg production was 2881 million which has increased to about 30,000 millions in the year 1996, broiler production starting from zero base has grown to a level of 400 millions in the yea 1996. Similarly poultry meat, which was about 81 thousand tones in the year 1961, has increased to 659 thousand tones during the same period. The increased production has made more availability of poultry production for consumption.

Growth in Production and Productivity of Eggs and Broiler Meat

The per capita availability of eggs and poultry meat has increased from 7 to 32 and 188g to 707g respectively during the period of 1961-95.

 b. Growth in Egg Production

Growth in egg production in the major producing states of different regions of the country was examined during the period of 1980-98. The period was further divided in to twoparts i.e.,1980-89 and 1990-98.Compound growth and simple growth rates were calculated for the three periods and four regions are given in Table‑6.

1. Northern Region-There has been a significant growth in egg production in all the egg producing states of the region. Punjab witnessed maximum growth of 3.12 percent/annum during first period and 3.03 percent/annum in the inter period followed by Himachal Pradesh (3.03, 2.94) Haryana (2.98, 2.96) and U.P. (2.80, 2.86) percent per annum during the second period i.e. 1990-98 witnessed a comparatively less growth in egg production in the region.

 2. Western Region – The major egg producing states in the region witnessed a much significant growth in egg production during first period except for Rajasthan where the second period i.e. 1990-98 observed much higher growth of 2.99 percent per annum Maharashtra state eggs production shows highest correlation of 99 percent within the same time period. The over-all growth in the states of Gujarat, Madhya Pradesh, Maharashtra and Goa remained as 2.90, 2.89, 2.83 and 2.82 per annum respectively.

 3. Southern Region: In this region, the maximum and highly significant growth of 3.14 percent per annum was observed in Tamil Nadu during first period, 2.79 in second period and 2.96 percent/annum in entire period followed by Andhra Pradesh at 2.97, 2.92 and 2.91 percent/annum respectively, Karnataka at 2.88, 2.83 and 2.84 per/annum and in Kerala 2.86, 2.82, 2.83 percent/annum respectively in the first, second and entire period of study.

 4. Eastern Region: In the Eastern RegionSikkim has observed a maximum growth of 3.20, 2.85 and 3.04 percent/annum in egg production in first, second and entire period followed by the West Bengal 3.15, 2.78, 2.92 percent/annum, Nagaland 2.99, 2.79 and 2.95 percent/annum. Meghalaya 2.99, 2.80 and 2.86 percent\annum Manipur 2.87,2.68 and 2.85 per annum, Bihar 2.93, 2.12 and 2.82 percent/annum, Assam 2.87, 2.77 and 2.81 respectively. At national level the growth in egg production remained higher in first period, at 2.96 percent/annum, in second period 2.84 percent/annum and in entire period the growth was 2.90 percent/annum.

 c. Growth in Bird's Productivity Level

Productivity of desi and improved birds in different regions has been examined for the period of 1987-88 to 1994-95 as shown in Table –7. The mean productivity level of Desi birds was maximum i.e. 156 egg/annum in Himachal Pradesh in Northern region and minimum of 62 egg/annum in Manipur in Eastern Region. Whereas in case of improved birds the maximum productivity of 278 eggs/annum was reported in Andhra Pradesh in Southern region and minimum of 109 egg/annum in Manipur state in the Eastern Region.

 Summary and Conclusion

The increasing demand for poultry products has transformed poultry sector activity into a full-fledged industry from a mere household/backyard activity until recently. Technological advances have revolutionised the role and structure of poultry industry in India. The distribution of poultry population suggests that it has concentrated over some limited pockets. 42 percent of total population of poultry birds is confined to Southern region, 22 percent in the Eastern Region, and 20 percent in Western Region and remaining about 16 percent in the Northern region. The improved breed of birds accounts for 59 percent of the total birds population and contributing about 89 percent of the total egg production in the country. The funds allocated for poultry development during the various plans are very minimal. However, the poultry sector has attained the production targets satisfactorily. The status of poultry development in different states reveals that poultry sector in most of the states is still less developed. Only few states like Andhra Pradesh, Maharashtra, Haryana, Punjab, Tamil Nadu and Gujarat are surplus states in poultry production. The study on cost of poultry production reveals that feed is the major component of cost followed by other items such as cost of one-day-old chick, cost of medication and labour cost etc. Marketing of poultry products suggest that they have to more a long distance for marketing. The marketing channel is well organized and operates in a fairly competitive environment. The price movements in wholesale market as well as in the retail market over the year have grown at a significant rate. The price series correlation in the wholesale and retail market during the period under study remained positive and significantly high. Which implies that wholesale and retail market showed strong integration in the commodity market and the price movements in one market are fully transmitted to other markets. Export of poultry products has also growing at a significant rate and large amount is coming in the form of valuable foreign exchange every year.

 Table‑1: Population of Poultry Birds in India

Data Source: Poultry Industry Year Book 1997

 Table‑2: Distribution of Birds (No. of Birds "000")

Data Source: Basic Animal Husbandry Statistics 1999 (AHS Series-7)

 Table‑3: Regional Distribution of Poultry Birds (Population in '000.)

Source: Basic Animal Husbandry Statistics 1999 AHS - Serirs-7

Table‑4: Regional Distribution of hybrid parent stock 1994

Source: Poultry Industry Year Book 1997

Table‑5 Poultry Development Index in Different States/UTs. of India

Table‑6 Regional Growth in Eggs Production

Data Source: Basic Animal Husbandry Statistics 1999.

Table‑7 Productivity of Birds (Period 1987-88 to 1994-95)

REFERENCES

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