BHUBANESWAR: With Odisha lagging behind in egg production to meet its daily requirement, the state government is planning to provide more subsidy to mechanised layer farming to encourage agri-entrepreneurs for large-scale investment.
At a recent high level meeting chaired by chief secretary Manoj Ahuja, it has been decided that the Fisheries and Animal Resources Development (FARD) department would approach the Industries department to include the ‘mechanised layer egg production’ projects under the priority sectors defined in the Industrial Policy Resolution (IPR-2022).
Sources said if these projects come under the priority sector as defined in the IPR, investors can avail enhanced subsidy and other benefits as applicable. The existing provisions under Mukhyamantri Krushi Udyog Yojana (MKUY) and State Poultry Policy are not sufficient enough to encourage interested investors to go for large-scale layer farming.
Although the FARD department had earlier moved the Industries department to include the ‘mechanised layer egg production’ projects costing more than Rs 50 crore, under the priority sectors of IPR-2022, it was denied. The Finance department observed that mechanised layer egg production comes under agricultural activity/operation as per NIC code and cannot be considered as an industrial activity, officials said.
“It has been decided at the high-level meeting that fresh efforts will be made to include it under the priority sector considering Odisha’s growing demand for eggs and the need for improved farmer income. The enhanced subsidy support will lead to a significant increase in egg production yielding and better bio-security,” he said.
Investors are not encouraged by the subsidy under MKUY as it provides a maximum 50 per cent of capital investment with a cap of Rs 1 crore. If the average capital investment in case of layer farming is taken into account, then an investor gets assistance only about 14 pc of the total capital investment which is much less than other agri-enterprises. There is no provision for financial assistance for mechanised layer farming with investment of over Rs 50 crore in any of the state government schemes.
Odisha ranks 10th in egg production in the country with a production of 1.17 crore eggs per day. The current shortfall stands at 21 lakh as the state needs 1.38 crore eggs per day and the shortage is expected to go up to 40 lakh if five eggs are provided a week under the mid-day meal programme.