ACKNOWLEDGEMENT

First and foremost, I am thankful to my supervisor Prof. Vanlalchhawna for

his valuable guidance and constant supervision of my research which enabled
me to its completion.
I am deeply grateful to all the respondents of the field survey who made this
study a successful and exciting endeavour.
I am truly indebted to my fellow batch mates in the Economics Department
who encouraged me to pursue my work successfully.
My deepest gratitude goes to my parents and family members. Words do not
suffice my indebtedness to my parents who gave me the much needed courage
and constant inspiration. Their prayer for me was what sustained this noble
pursuit.
Above all, I wish to express my most gratitude to God, the Almighty Father,
for guiding me through all the difficulties and hardships.

(Rakesh Kumar)
INTRODUCTION

Introduction

The population of India increased from 361 million in 1951 to 1.252 billion in 2013. Although the
per capita availability of food grains also improved during the period, the land holdings as well as
the per capita availability of agricultural land have been shrinking. For instance, they have shrunk to
around 1.15 and
0.14 hectares respectively by the turn of the century1. The competing demands for land for other
sectors of development have shrunk land further. In the larger context of ensuring food and
nutritional security to the future generation, the only way to fulfill this obligation is through
continuous gain in productivity of various agricultural commodities.
Around 50 per cent of the total rural population in India is without both subsistence income and
housing due to small landholding. There is a general dependence on monsoon for crop production
and consequentially, a general inadequacy of agricultural inputs. This has resulted in a large portion
of the population of India living in poverty and directly affecting their productivity as well as their
innovative power.

The problems faced by rural population can be primarily classified into- livelihood, living
conditions, education and social upliftment. These deficiencies affect the quality of life of rural
population. The factors that adversely affect the income generation are scarcity of food, fodder and
fuel; inadequate housing; lack of irrigation; unemployment and underemployment; lack of
purchasing power; low crop yields; small land holding and poor quality of livestock. Once the rural
population can start earning adequate income, they would be able to overcome other problems.
Human food derived from animal is gaining importance in the dietary practice of the Indian masses.
Planning in the agricultural sector should be oriented such that emphasis is put on livestock
production. One such industry is poultry farming which has become the most popular avenue of self
employment among the rural masses. In addition, it has attracted much attention from the nutritional
content angle.
Poultry farming in India have proven to be capable of enhancing both the productivity per hectare
and the productivity per head in agricultural sector. Among poultry farming, broiler breeding
through the application of modern technology has been found to be warmly welcomed by the
agriculturists and others2. Mizoram presents an encouraging picture in poultry farming. The number
of commercial broiler poultry farms has increased, providing both direct and indirect employment to
both skilled and unskilled laborers. Though of recent origin, commercial poultry farming has
achieved momentum in Mizoram because of its wide and varied potential and capability of
employment creation, low investment, quick returns, lesser combination of various factors of
production, enhanced productivity per unit of agricultural land, maintenance of soil fertility, etc.
This study has aimed at detailing the various components of cost and revenue in the business of
poultry farming and the deducing of empirical evidences on the nature of relationship between
different variables, for instance, the gross income, rate of productivity, extent of capacity utilization,
size of farms in terms of number of birds reared and the farms’ overall financial performance. Along
with this, a descriptive approach was made to highlight the challenges and opportunities in poultry
farming in Mizoram, with special emphasis on its economic and financial aspects.
This study entitled ‘a study on the performance of poultry farmers in Samtlang village, Mizoram’ is
a search into the growth and development of poultry farms, specifically, in the private sector. The
title is further justified by a detailed analysis which encompasses such factors and dimensions that
reflect the overall efficiency of the poultry farms. The study has also attempted to make an appraisal
of functional problems currently being faced by the farms and to delineate the possible reasons for
the unprofitability of poultry farms, as far as the village is concerned.
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 1.1. Significance of the study

Mizoram is largely an underdeveloped state with and underdeveloped economy.

The mainstay occupation of the people has been dominated by Shifting Cultivation
almost throughout its short history. It was only recently that opportunities in
other areas of industry have been developed through the combined efforts of the
Government of India and Mizoram government.
Poultry Farming is fast becoming one of the most important subsidiary occupations
of the farming community in Mizoram. Poultry Farming is a remunerative business
both in rural and urban areas due to the requirement of small space, low capital
investment and quick return throughout the year. It has a significant role in the
eradication of malnutrition and poverty as well as eliminating under-employment
among the rural masses. Considering the industrial backwardness and the mounting
rate of unemployment and underemployment, commercial poultry farming can
effectively help in the economic development of Mizoram.
A number of notable Government schemes like Assistance to State Poultry Farms,
Rural Backyard Poultry Development and Poultry Estates under Centrally
Sponsored Schemes (CSS) and New Land Use Policy (NLUP) and Mizoram
Intodelhna Project (MIP) under state schemes have been implemented to develop
poultry industry in Mizoram. For instance, poultry farming is one of the primary
activities under NLUP with the State Agricultural Department as the nodal
agency. As a result, a large number of households

both urban and rural have adopted poultry as their main occupation in the state. For instance, it is
now observed that majority of households in Samtlang, Lungleng, Hualngo and Melriat villages in
Aizawl district are now primarily dependent on poultry
It is imperative, therefore, to study the economics of the growth and development of commercial
poultry farms in the state. The series of studies conducted by technical veterinarians and others
regarding flock size, system of rearing, livability, housing, feeding efficiency, processing and
marketing etc., have hardly touched the economic and financial aspects of commercial poultry
farming. Hence, an attempt has been made here to analyze different aspects of commercial poultry
farming in Samtlang.
Thus, in light of the recent developments, it is worth examining the recent trend and growth
scenario of poultry industry in Mizoram. This study is meant to illuminate the overall development
of poultry farms in Samtlang to arrive at-
Useful empirical insights for effective policy formulation and implementation, and
Marketing and financial data for the welfare of current and future poultry farmers in
Mizoram.

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Scope of the study

The Government of Mizoram under the New Land Use Policy Program has set up a comprehensive
development scheme for the development of animal husbandry in general and poultry farms in
particular. Plan has been made under the same scheme to develop better vertical integration farming
system i.e. contractual system in Samtlang, Mizoram to increase the production of egg and meat and
provide better remuneration to poultry farmers.
Samtlang today is fast becoming an important hub of poultry industry in Mizoram. Located at a
distance of 14 kilometers from Aizawl, the village comprises of 160 households of which 50
families are actively engaged in varying degrees of poultry farming, both full-time and part time. It
is one of the few villages in Mizoram where one can find a large concentration of households
engaging in large-scale production and commercialization of poultry meat and eggs. Samtlang,
today, is the largest in the state in terms of gross production, total number of poultry farmers, total
number of poultry hens and total number of households engaging in employment directly related to
poultry and its ancillary industries. Accordingly, Samtlang village is the selected area of this study.

Research problem

The present study is to evaluate and bring into picture various aspects of poultry farming in
Samtlang. The major problems posed are:
What is the extent of growth and development of commercial broiler poultry farming in Samtlang?
Whether the individual poultry farms are functioning efficiently?

Whether the trends in input cost are in proportion with output prices?

To see if the current levels of profitability of broiler poultry farms are being supported by feed
convertibility, capital and labour productivity, capacity utilization and capital intensity?
How far the sizes of commercial broiler poultry farms influence the financial performance?

Objectives of the Study

The proposed study will try to examine the problem of employment and livelihood condition of
poultry farmers in Samtlang with the following objectives in mind:
To assess the profitability of poultry farming through cost and return of poultry farming.
To identify the problems and constraints associated with poultry farming.
To suggest possible solutions for those problems.

Hypothesis

The following hypothesis is proposed to be tested in the study:

1. There is a positive correlation between production and farm input in poultry farming.

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Definition of concepts

The important indices and terms used to express the performance level of poultry farms are briefly
given in this part as:
Capacity Utilization:

It stands for the ratio of floor area occupied to the floor area available. Symbolically-
Capacity utilization = (Occupied floor area in square foot/Actual floor area in square foot)*100

Capital Employed:

This refers to gross capital employed (i.e. current assets + fixed assets)

Capital Intensity:

It relates the investment in fixed assets with the input of labour hours. Symbolically-
Capital intensity = Input of fixed capital in rupees/Input of labour hours

Capital Productivity:

It relates the output of meat with the investment in fixed assets. Symbolically-
Capital productivity = Output of meat in kilograms/Fixed capital investment in rupees

Feed Price ratio:

It measures the amount of revenue generated from every rupee spent on feed. Symbolically-
Feed price ratio = Total value of meat or eggs/Total cost of feed provided

Labour Productivity:

It is the relation between the quantity of meat produced and the total input of labour hours.
Symbolically-
Labour productivity = Total live weight of fowls/ Labour input in hours

Return on Investment:

This shows the relationship between net profit and capital employed. Symbolically-
Return on Investment = Capital turnover ratio*Net profit ratio

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Research methodology

The study was based on primary and secondary data. The unit of analysis was individual
poultry farmers in Samtlang village who were the respondents for this research.
Primary Data:

Structured questionnaire and personal interview were employed. Most of the respondents
from the private poultry farms were reluctant to disclose information regarding poultry
farming unless they are convinced about the purpose and use. Personal interview was found to
be more appropriate than any other method of data collection. Of the 160 families in the
village, 50 are actively engaged in poultry farming. Hence, a sample size of 30 was
purposively chosen using Simple Random Sampling making use of Tippet’s random number
table.
Most of the data pertaining to poultry farming was collected from the owners of the farms,
who were the primary respondents of the study. Data relating to wage payment, medication,
shed-cleaning, feeding practices, etc. were also collected from the workers as they were better
sources of information than many of the owners. This approach also provided chances for
cross checking. The data so collected formed the basis for preparing profit and loss accounts
and balance sheet of individual units. Except a few, all other poultry farms in private sector
were unable to give dependable information. Personal observation was

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