PLP 2018-19 – II

Kaimur

AREA DEVELOPMENT SCHEME ON GOAT REARING

Background:

The declining trend towards the capital formation in agriculture and allied sectors has
been a cause of concern for the policy makers. Considering the large number of small
and marginal farmers in the state and to encourage financing for asset creation,
NABARD has felt the need to promote single purpose Projects/Schemes on a cluster
basis. These cluster based projects taken together can be nomenclature as “Area
Development Scheme (ADS)” e.g., financing of dairy units, goat rearing, fisheries,
poultry etc.

The main focus of the ADS would be to give thrust on the identified activity/activities by
arranging for backward and forward linkages and providing term loan disbursements
through a Banking Plan. The implementation of the ADS would be co-ordinated by
NABARD, Lead bank, other banks, line departments and other important stake holders
like NGOs, JEEVIKA, Farmers’ Clubs etc., The Area Development Scheme (ADS)
envisages to give a boost to term loan base and thereby also accelerating the credit flow
to the priority sector.

Based on the survey in the district, the two activities Dairy and Goat Rearing under
Animal Husbandry have been identified. An ADS under Dairy activity has already been
launched. It has now been decided to launch one more ADS. Keeping in view of the
survey, it has been proposed to launch one more ADS for Goat Rearing in Kaimur
district for five years i.e. 2018-19 and 2022-23. ADS also encompasses the related
backward and forward linkages for ensuring a better result. The broader aspects related
to the project is outline below:

1. Introduction
The goat is a versatile animal which thrives well in every circumstances and low cost of
feeding. People in the district are in habit of rearing goat from very ancient times and at
present even, it is the choice of poor section of people in the district. It is also known as
the poor man’s cow. Rearing of goat is easy and it can be kept with little expenses. Goat

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has the ability to survive on little vegetation and grass. Goats are also used in ceremonial
feastings like Marriage, Holi, Durga Puja, Bakrid etc. Goat rearing helps the poor
families for making payment of social dues and hence it is said to be the ATM Card for
the poor section of the people. The rearing of Goat is an important economic activity
allied to agriculture to generate additional income and self employment to rural poor
especially the BPL families. With little expenses and involving the women labour, goat
rearing is an additional source of income for the poor. Goats are being reared by farmers
/ SHG members in the district in view of the low investment, reduced risk, capacity to
use local feeds and easy management by family members. This sector has tremendous
potential for employment generation and poverty reduction. Further, there always
remains the demand for goat meat, therefore, there is no issues related to its marketing.

2. Goat rearing in Kaimur district :

 Goat rearing activity is pursued by many poor families in rural areas in Kaimur
district.
 The average number of goats in the range of 2-3 per goat rearing family. This act
as an additional source of income. However, goat rearing is yet to develop on a
commercial basis in the district.
 The climate and economic condition of the district is suitable for goat farming.
 Goat is acting like a poor man’s cow in the district. Women do play an active role
in goat rearing.
 There is no distinct breed of goat in Bihar. Most of the goats available here belong
to the Black Bengal type and their crosses with different breeds of Indian origin.
 Marketing of goat is done by the unorganised sector and middlemen.
 Little care is taken to prevent diseases of goat. No vaccination of FMD & PPR is
given.
 Veterinary support from State Animal Husbandry Department is required.
 In order to goat rearing, trainings are conducted by R-SETI, Kaimur in the
district. And people are also extended training in State as well as out side the
state by ATMA who desired to pursuing goat rearing.

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3. Advantages of rearing goat :

 The necessary capital and investment for starting goat farming with this breed is
very low and it is within the ability of general people.
 Due to small body size and docile nature, housing requirements and management
problems with goats are less.
 Diseases are relatively less than other domestic animal.
 Male Bengal breed comes in puberty at the age of 8-9 months whereas the age of
1st kidding is on an average 14-15 months. Lactation length of this breed of goat at
farmer's field has been recorded as 80-120 days and kidding interval at 250 days
 Produce many goats in short time. The female goat becomes pregnant twice in 14
months and gives birth to two to three baby goat each time.
 Goats are ideal for mixed species grazing. The animal can thrive well on wide
variety of thorny bushes, weeds, crop residues, and agricultural by-products
unsuitable for human consumption.
 Goat creates employment to the rural poor besides effectively utilizing unpaid
family labour.
 Goat meat is consumed by majority of the people in the district.
 Goat milk is a source of cheap protein for the poor people and has medicinal
properties.
 Goats can be reared commercially and such venture is viable and may form
source of livelihood and extra income for poor people, especially women in the
villages.

4. Constraints with rearing Goat:

A. Pre-Production Stage :
i. Financial Constraints: Lack of access to credit from financial institutions.
ii. Non-financial constraints (Knowledge, skills and attitude for development
of goat entrepreneurs)

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B. Production Stage :
I. Goat rearing is not considered as an enterprise.
II. Vaccination of goats: gaps both at demand and supply side.
III. Feeding practices do not ensure the good physical growth of goats.

C. Post-Production Stage :
I. Marketing through unorganized sector (Resultantly, local goat meat shop
owner takes away the bulk of the share of the product value).
II. Limited or lack of information on the market price of the goat being
offered in the local as well as other nearest haats.

5. Concept of the Scheme

The scheme aims at promoting Goat farming among the SHG members as part of
agricultural development related activities first in 04 blocks (Chainpur, Chand,
Adhaura and Rampur) of Kaimur district. Interested SHGs/SHG members from
SHGs formed by NABARD, JLG members, JEEVIKA as well as who got training from R-
SETI, Kaimur will be identified as eligible borrower under the scheme. The Scheme will
focus on assiting women members of SHGs in optimising their livestock resources and
taking goat rearing as a potential livelihood supplement Madhya Bihar Gramin Bank
and Commercial Banks having their good branch network in the district have been
identified as financing banks under this Scheme. Financing will be done under (10
does + 1 buck ). The Scheme will focus on the induction of new animals, better
housing and veterinary care, especially against certain well-know killer diseases like
PPR (peste des petits ruminants). Necessary coordination with government agencies
would be ensured to procure and administer necessary vaccines. The programme will be
implemented in clusters so that capacity building, veterinary support, and marketing
can be taken up in a more systematic manner. The activity, therefore will provide them
an opportunity to engage and earn throughout the year. The Scheme, if implemented, in
true sense will help the rural SHG members to address all the constraints related to goat
rearing.

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6. Objective of the Scheme:

The specific objectives of the Scheme are:-

• Providing an Income Generating Activity at the doorstep of the SHG members to
create an alternate source of employment.
• To create atmosphere for rearing, financing and marketing of goat with
convergence of NABARD, LDM, prominent banks (eg. MBGB and CBs),
JEEVIKA, R-SETI, Kaimur, NGO's & Animal Husbandry Department of the
district.
• To augment the credit flow in priority sector.

7. Role of Stakeholders:

The Bank’s financing to this sector at present is not adequate and lack of finance is not
allowing this sector to grow. If bank financing is done at a large scale for goat rearing,
then it can definitely boost the meat sector in the district and at the same time help in
augmenting the flow of ground level credit as also the income to the SHG members in
the district.

The present Scheme proposes coordinated effort amongst NABARD, Banks, JEEVIKA,
R-SETI, Kaimur, NGOs and Animal Husbandry Department of the district. JEEVIKA,
R-SETI, Kaimur & the NGOs on its part will generate loan applications for financing and
will also arrange for the technical support as well as will ensure recovery of loan and the
banks will finance it on a priority basis within a time bound manner.

Backward - Forward linkages :

 Purchase of Quality Goat

Good Black Bengal goats or its crosses of 6-8 months with body weight of 10-15 kg will
be purchased locally or can also be made from local animal fairs organized within the
district and adjoining State.

 Fodder and feed

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The fodders such as berseem, lucern and oats in the Rabi and Maize, Sorghum, Guinea
grass and Cow pea in the Kharif could be cultivated by the farmers. Apart from fodder
balanced concentrate ration will be prepared under stall fed condition. Under semi-
intensive rearing system grazing for 6-8 hours a day on common property resources on
the bunds of canals, rivers, and ponds or fallow land will be allowed. Concentrate feed
would also be available from local market. Group members may formulate homemade
feed if they have the necessary experience.

 Marketing
JLG members in association with NGOs/JEEVIKA will form a society of goat producers
at Panchayat level. Goat Producers Society will arrange a weekly market and invite
traders to participate in that.

 Veterinary Health and AI

Veterinary services will be provided by experienced veterinary doctor arranged by the
NGO / Village Organization / JEEVIKA. However, in addition Department of Animal
Husbandry, Government of Bihar may depute BAHO/Block Vet Surgeons on weekly
basis to the project area for vaccination, disease surveillance and treatment of the
animals. Under the goat upgradation scheme of the State government, 1 buck may be
distributed at Panchayat level. The bucks used are of Beetal, Black Bengal and Sirohi
breeds. The JLG members who will be provided bucks will be earning income through
breeding charges.

8. Scheme Activities:
The Major activities to be performed during the Scheme tenure is as follows:

• Selection of interested beneficiaries from SHGs and interested individuals.

• Training on goat farming.
• Induction of improved breed of goat.
• Veterinary support at local level on sustainable basis.
• Better management practices, and

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• Marketing support.

9. Key Challenges/Issues:

The coordination amongst all the stakeholders and the timely availability of the
resources will be the key to success for each of the above activities. The success of the
Scheme can also be supplemented by creating awareness, training, expert discussion
and dissemination of information and linkage with govt. programs

10. Expected benefits:

The most important benefit of the scheme is higher income and increased economic
benefits to the SHG members through improved livelihood based on goat farming.
NABARD, Commercial Banks, Madhya Bihar Gramin Bank, R-SETI, Kaimur, JEEVIKA
and the partner NGOs aims to empower the rural women through community
participation and by involving them in goat farming so as to ensure sustainable income
opportunities to them.

11. Financial Details:

The loan requirement for the Scheme has been proposed based on the assessment in
consultation with the Animal Husbandry Department, Scientists (KVK) and some of the
villagers of the target areas. However, the actual identification & selection of the
borrowers will be done during the actual execution of the Scheme once Scheme is
implemented. The Scheme envisages sanction of (10 does+01 bucks) to SHGs/members
of SHGs on individual basis and interested individuals. It is proposed to finance such
1500 units in 4 blocks of the district over a period of five years (2018-19 to 2022-23).
Thus, the Scheme envisages sanction of a total of 1500 applications for the district.
Block-wise /year- wise targets/ projections under Area Development Scheme are given
in the annexures. Summary of the Financials are as under :

---------
Physical and Financial Projections under the
Area Development Scheme for Goat Rearing

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a) Unit Cost
Unit Cost of the above activities with breakups are given below:
(Rs lakh)
10+1 unit under 10+1 unit reared
Sl.
Particulars semi-intensive under stall fed
No.
system condition
1 Cost of Animals 24750 24750

2 Equipments 1100 1100

3 Cost of Construction of Shed 17300 17300

Feed Cost (Capitalized up to 15

4 months from the start of project for 7117 24117
Does, Buck kids of all the batches)
5 Insurance 1733 1733

6 Medicines and Overhead 3000 3000

Total Investment Cost 55000 72000

7 Margin money 5000 22000
8 Bank loan 50000 50000

Block-wise Physical and Financial Projections under the

Area Development Scheme for financing in five years
(Rs lakh)
Sl. No. of Physical Unit Total Bank
Name of block
No. JLGs Nos. Cost Finance
1 Chainpur 375 1875 0.55 937.50
2 Chand 375 1875 0.55 937.50
3 Adhaura 375 1875 0.55 937.50
4 Rampur 375 1875 0.55 937.50
Total 1500 7500 3750.00
Projection for the year 2018-19
(Rs lakh)
Sl. No. of Physical Unit Total Bank
Name of block
No. JLGs Nos. Cost Finance
1 Chainpur 75 375 0.55 187.50
2 Chand 75 375 0.55 187.50

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3 Adhaura 75 375 0.55 187.50

4 Rampur 75 375 0.55 187.50
Total 300 1500 750.00

Projection for the year 2019-20

(Rs lakh)
Sl. No. of Physical Unit Total Bank
Name of block
No. JLGs Nos. Cost Finance
1 Chainpur 75 375 0.55 187.50
2 Chand 75 375 0.55 187.50
3 Adhaura 75 375 0.55 187.50
4 Rampur 75 375 0.55 187.50
Total 300 1500 750.00

Projection for the year 2020-2021

Sl. No. of Physical Unit Total Bank

Name of block
No. JLGs Nos. Cost Finance
1 Chainpur 75 375 0.55 187.50
2 Chand 75 375 0.55 187.50
3 Adhaura 75 375 0.55 187.50
4 Rampur 75 375 0.55 187.50
Total 300 1500 750.00

Projection for the year 2021-2022

Sl. No. of Physical Unit Total Bank

Name of block
No. JLGs Nos. Cost Finance
1 Chainpur 75 375 0.55 187.50
2 Chand 75 375 0.55 187.50
3 Adhaura 75 375 0.55 187.50
4 Rampur 75 375 0.55 187.50
Total 300 1500 750.00

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Projection for the year 2022-2023

Sl. No. of Physical Unit Total Bank

Name of block
No. JLGs Nos. Cost Finance
1 Chainpur 75 375 0.55 187.50
2 Chand 75 375 0.55 187.50
3 Adhaura 75 375 0.55 187.50
4 Rampur 75 375 0.55 187.50
Total 300 1500 750.00

12. Duration / Repayment Period:

The Scheme activities are spread over a period of Two years i.e. 24 months. However,
the repayment schedule in respect of each unit under the scheme will be 05 years.
Moratorium period of 12-15 months may be extended.

13. Economics of the Activity/ Financial Analysis:

Techno-economic norms, Income, expenditure, gross surplus, NPW, BC ratio and IRR
from the activities are worked out and all the investments were economically viable.

NPW @ 15 % DCF BC Ratio @ 15 %

Unit IRR (%)
(Rs.) DCF
10+1 unit under semi-
86409 2.51 >50
intensive system
10+1 unit reared under stall
93962 1.8 >50
fed condition

14. Programme Management:

The Scheme will be implemented by NABARD through NABARD SHPIs, JEEVIKA and
R-SETI, Kaimur in coordination with Commercial Banks and Madhya Bihar Gramin
Bank and Animal Husbandry Department. Financing Banks will facilitate towards

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timely credit support to the promoted groups. The overall management of the Scheme
will be monitored by DDM, NABARD, LDM, Kaimur, Director, R-SETI, Kaimur & DPM,
JEEVIKA. All the stakeholders will be required to work as per the plan prepared and the
strategies adopted. Regular field visits will ensure timely progress of the Scheme.

15. Implementation Strategy:

The Strategies for implementation are as follows:

• With the consultation of these institutions simple but reliable procedure of
lending, security, recovery and penalty would be evolved.
• Specific documentation and accounting system would be evolved which would be
simple and easily understandable.
• Monitoring and evaluation will be conducted regularly at every level for smooth
implementation of the Scheme.

At the beneficiary level, the following implementation strategies will be adopted:

 Selection of better breeds for improvement.

 Change of management practices: Stall-feeding will be encouraged due to
shrinkage of pastureland. Fodder trees should be planted around the house.
Household available feed resources will be utilized for goat production.
 Health care: Anti-parasitic drug before and after monsoon will be administered
specially in flood-affected areas of the district. Vaccination of emerging and new
diseases like PPR and FMD will be given.
 Marketing: Organized marketing facilities will be developed.
 Awareness and training programme for scientific goat farming.

16. Monitoring and Evaluation:

The system of Monitoring and evaluation would start right from the planning phase
where the activities to be performed under the Scheme will have a month wise action
plan and then sub plans to execute those individual plans. Regular monitoring and
evaluation would take place through field visits to check the physical progress under the
Scheme.

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17. Viability of the Scheme

Scheme funding / pattern of investment -

Bank’s share: Maximum Rs. 50,000/- to each JLG members.

Entrepreneur’s contribution: Remaining amount of the Project Cost.

• It may be noted that for calculating the Scheme economics, rate of interest on
bank loan has been taken as 12.0%.

18. Risk Factors & Mitigation Strategies:

The disbursement of loan will be among the selected members of SHGs on individual
basis and interested individuals in 4 blocks of Kaimur district. The selected members
will be given training at R-SETI, Kaimur. Further, the field staff of JEEVIKA, and NGOs
will be given responsibility for recovery of loan from the SHG members. Apart from the
above, R-SETI may also pursue for recovery of loan with the trainees who got training
and availed loan for goat rearing. The separate computerized loan disbursement and
recovery system will be managed and adopted at the level of JEEVIKA & the NGOs
involved. A PIMC may be constituted for review and monitoring of the scheme in which
all the stakeholders will be the members. The PIMC meeting will be held quarterly.

19. Margin Money & Insurance:

Margin money under the scheme is 10%. The animals would be insured under long term
master policy, wherever applicable. Alternatively they would be insured annually under
the normal scheme.

20. Availability of refinance to banks on concessional Rate from NABARD

towards financing under Area Based Scheme:

The concessional refinance will be available from NABARD to RRB and Co-operative
bank for their financing under Area Development Scheme. 100% refinance will be
available to them under the scheme and the rate of interest on refinance will be 0.50%
less than the applicable rate of interest on refinance. Full refinance support will be made

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available to commercial banks also for their financing under Area Development Scheme
prepared by NABARD.

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