India mulls setting up venture capital fund for poultry sector

India is considering to establish a special venture capital fund for the poultry sector, which would help small farmers by promoting value added poultry products.

The proposed fund includes a capital subsidy which is better than soft or interest-free loan to farmers, said an agriculture ministry official.

The proposed fund is expected to be launched shortly with a subsidy component of Rs200 crore.

Despite a relatively large size, the poultry industry comprises of mainly small players, thus limiting the scope of value addition and expansion. Therefore, the government is considering several proposals for ensuring growth of poultry processing and to ensure that incidents such as bird flu does not adversely impact the sector.