Desi murgi farm project: plan, costs and expected returns

"Desi murgi palan" is one of the most searched farming terms in India, and almost every result is a project report promising a fortune from a hundred birds. The truth is simpler: country chicken farming is a genuinely good small business, but it is a slow business with thin per-bird margins that only work when you control feed cost and losses. This guide lays out the numbers honestly so your project plan survives contact with reality.

First decide what kind of project this is

The same ten birds mean completely different things depending on why you keep them. Pick the model before you buy a single chick, because housing, breed and market all follow from it.

Three scales of country chicken farming compared

Model	Birds	Purpose	Realistic outcome
Backyard / homestead	10–30	Home meat, eggs, some surplus sale	Cuts the household meat bill; small cash top-up
Small commercial batch	100–500	Live birds sold locally, direct or to traders	A supplementary income if you sell retail, not wholesale
Full-time farm	500+	Continuous batches, own breeding, multiple buyers	A livelihood — needs land, labour and a reliable buyer

Most people who fail started at the third model because a project report told them to. Start at the first or second, sell everything, then scale with money you have earned from birds rather than money you borrowed for them.

The four costs that decide everything

1. Feed — 60–70% of your total cost

This is the number that makes or breaks the project. A country bird eats roughly 70–90 g of feed a day once it is past eight weeks, and it takes five to six months to reach a saleable 1.5–2 kg. That is 12–16 kg of feed per bird. At ₹30–₹40 a kilo, you are looking at ₹400–₹600 in feed before you sell anything.

Anyone who quotes you a profit without this number is guessing. Your job is to cut it: free-range foraging, kitchen and farm waste, azolla, broken rice, locally milled mash, and growing your own maize if you have land.

2. Chicks and their survival

Native and improved-backyard chicks cost roughly ₹35–₹70 each depending on breed and season. But the cost that matters is the cost per surviving bird. Plan for 10–15% mortality in the first six weeks even when you do everything right. If you budget for 100 birds, house 110.

3. Housing and fencing

Country birds need shelter, not a palace: a dry floor, 1 sq ft per bird indoors, a run of 4–6 sq ft per bird outside, and predator-proof netting. Bamboo, palmyra and used tin work perfectly well. Budget ₹60–₹150 per bird for a simple shed with a fenced run.

4. Losses you did not plan for

Predation (cats, kites, jackals, snakes), a disease outbreak, or a buyer who disappears the week your batch is ready. Keep a cash buffer of 15% and never put the whole flock on one buyer.

A worked example: 100 birds

These are illustration numbers for a small commercial batch in Andhra Pradesh, sold live at the farm gate. Your costs will differ — the structure is what matters.

Illustrative costs and returns for 100 country chickens

Item	Basis	Amount
Chicks	110 × ₹50	₹5,500
Feed	110 × 12 kg × ₹34	₹44,900
Housing & fencing	One-time, spread over batches	₹12,000
Vaccination & medicine	₹15 per bird	₹1,650
Labour	Family labour, not costed	—
Total		₹64,050
Sale	95 birds × 1.8 kg × ₹400/kg	₹68,400

Where the money actually comes from

• Selling direct, not to traders. Every middleman takes a slice that is bigger than your margin.
• Selling live at the farm gate. No transport cost, no shrinkage, cash on the day.
• Selling to occasions. Festivals, functions and family gatherings pay a premium for a known, well-fed bird.
• Breeding stock. Good Aseel cocks and healthy native hens sell for far more than meat value — see our Aseel price guide.
• Repeat customers. One household that buys four birds a year for a decade is worth more than a one-off bulk order.

Housing that costs little and works

• Raise the floor 30–45 cm above ground on bricks or stone — dry birds do not get sick.
• Face the open side away from the prevailing rain wind; netting, not solid walls, on the run.
• One perch per 4 birds, 45 cm off the floor.
• Nests in the darkest corner: one box per 5 hens, with dry paddy straw.
• Predator netting buried 20 cm into the ground stops digging animals.

The timeline you should plan around

1. Month 0: build, buy chicks from a known hatchery or breeder, vaccinate on schedule (Marek's at day 1, RD at 7 and 28 days, fowl pox at 6–8 weeks — follow your local vet's protocol).
2. Month 1–2: brooding, warmth, clean water, starter feed. Highest mortality window.
3. Month 3–4: free range by day, shelter at night, grower feed plus foraging.
4. Month 5–6: finish, weigh, sell. Cocks first, hens later or keep for eggs.
5. Month 6: clean, rest the ground two weeks, start the next batch.

Five mistakes that sink first projects

1. Buying 500 chicks with no buyer arranged. Line up three potential buyers before the chicks arrive.
2. Feeding commercial broiler feed. It is formulated for 40-day growth, wastes money on a 150-day bird, and changes the meat texture people are paying for.
3. Mixing batches. One batch per shed, all in, all out. Mixing ages spreads disease and makes records meaningless.
4. No records. Feed bought, deaths, weights, prices — write it down or you will never know which batch lost money.
5. Believing a project report instead of a buyer. Talk to the person who will actually hand you cash.

Questions beginners ask

How much land do I need for 100 birds?

About 500–600 sq ft of fenced run plus a 120 sq ft shed. Half an acre with natural shade is comfortable and lets you rotate the run.

Do I need a licence?

Backyard flocks for household use generally do not. Commercial poultry units fall under state animal husbandry and local body rules, and larger units need pollution-board clearance — check with your panchayat and veterinary office before building, not after.

Native birds or improved varieties?

Native birds fetch the best price per kilo but grow slowest. Improved backyard varieties such as Vanaraja, Gramapriya and CARI-NIRBHEEK reach a saleable weight weeks earlier with similar hardiness — see the breed comparison and our notes on CARI-NIRBHEEK.

If you are still deciding whether this is worth doing at all, read why desi farming is sustainable and profitable and the list of real challenges first. Both are written to talk you out of a bad plan, not into one.