Potential and Evaluation of the Economic Incentives Linked to Egg Production in West Bengal, India

Abstract

This study evaluates the potential and effectiveness of the West Bengal Incentive Scheme 2017 (WBIS 2017) in promoting commercial egg production in West Bengal, with a specific focus on commercial layer poultry farms. The study examines whether the Scheme contributed to augmenting production, movement towards egg self-sufficiency, farmer welfare, employment generation, consumer benefit and long-term sectoral sustainability.
A mixed-methods evaluative approach was adopted using secondary data, a structured quantitative survey and qualitative stakeholder interviews. Secondary data included Scheme records, poultry-sector data, egg-price trends, feed-ingredient price movements and farm-level feed-cost data. Primary quantitative data were collected through a stratified random survey of farmers. Qualitative data were obtained through judgment-sample interviews with policymakers, sector institutions, veterinarians and selected large farmers.
The findings were interpreted within the context of external shocks like post-COVID feed-cost escalation and market volatility. These findings indicated that WBIS 2017 was effective as a production-oriented investment-support intervention. Secondary and primary evidence also indicated that the Scheme contributed materially to the expansion of indigenous commercial layer capacity in West Bengal - a sanctioned increase of approximately 65 lakh birds by 2025 - augmenting the State’s local egg-production base.
However, the benefits were spatially concentrated in districts such as Bankura and Paschim Medinipur.
Findings also indicate that, although the Scheme supported investment and materially augmented production - it was comparatively less effective in addressing farmer welfare and long-term sustainability issues. Severe feed-cost escalation, working-capital stress, declining profitability, market-price pressures and continued interstate egg inflows limited farms’ financial resilience. These issues remained unaddressed by the Scheme.
The Scheme benefiting consumers economically, was not supported by the findings either. Consumer benefits were observed primarily in terms of freshness and local availability rather than affordability - egg prices were observed rising during the study period.
The study concludes that WBIS 2017 was partially successful — stronger as a production capacity instrument, weaker as a holistic sustainability-oriented framework. It recommends redesigning future poultry-sector incentives focusing not only on capacity enhancement, but also on feed-cost support and working-capital assistance. Market-linkage mechanisms, district-wise planning, faster subsidy release and sustainability-linked support structures are also identified as areas requiring support.