Nursery Technologies
COST OF CULTIVATION
  

The total cost of raising a nursery with 1.25 lakh seedlings has been estimated at Rs.2.172 lakh for the first year. The capital cost works out to Rs.0.802 lakh to be incurred in the first year. The recurring cost works out to Rs.1.37 lakh. The detailed item wise and year wise unit cost is furnished below assuming a wage rate of Rs.50/- per manday.

UNIT COST OF FOREST NURSERY IN 0.25 HA
  

 

1.25 lakh seedlings
Wage Rate: Rs.50/MD

S.No. Particulars of works Unit Cost. (Rs.)
Fixed Cost
1 Site Preparation 8 MD 400
2 Fencing with barbed wire for 150 RMT Rs.30/RMT 4500
3 Preparation of compost pit, nursery path 10 MD 500
4 Maintenance of irrigation source LS 2000
5 5 HP Diesel Pumpset LS 25000
6 Cost of pipeline for irrigation (100 mts.) Rs.15/RMT 1500
7 Cost of implements for nursery operations LS 2500
8 Cost of Water Tank LS 5000
9 Preparation of Polybeds (120) 100 MD 5000
10 Cost of Net for providing shade and installation LS 30000
11 SubTotal   76400
12 Contingency 5%   3820
13 Total   80220

 

Recurring Cost
S.No. Particulars of works Unit Cost. (Rs.)
1 Rent for land 0.25 ha. Rs.2500/yr 2500
2 Preparation of Seed beds (10) 10MD 500
3 Cost of seeds LS 5000
4 Cost of Polybags (400 Polybags/kg) Rs.40/kg 12000
5 Cost of Pot mixture including loading, unloading @ 2 kg/bag Rs.120/MT 30000
6 Cost of fertilizer @ 10 gm/polybag Rs.10/kg 12000
7 Cost of chemicals for plant protection LS 2500
8 Cost of diesel and lubricants for pumpsets @ 1.5 hrs for 100 days 1 ltr. /hr @ Rs.22/ltr. 3300
9 Cost of thatching material LS 1000
10 Cost of sowing on seed beds 10 MD 500
11 Cost of weeding and hoeing 50 MD 2500
12 Cost of picking up from germi beds 50 MD 2500
13 Filling up of polybags @ 200 Polybags /MD 625 MD 31250
14 Shifting of polybags 50 MD 2500
15 Cost of labour for irrigation 100 MD 5000
16 Cost of fertilizer application 25 MD 1250
17 Cost of application of insecticides 25 MD 1250
18 Maintenance of paths 10 MD 500
19 Maintenance of pumpset LS 2500
20 Watch and ward Rs.1000/month 12000
21 Subtotal   130550
  Cost of supervision 5%   6527
22 Total   137077
23 Grand Total   217297



Yield and Income

Year No. of Saplings Saleable seedlings @ 90% Actual Sale @ 90% Income @ Rs.2.50 per sapling
1 125000 112500 101250 253125
2 125000 112500 101250 253125
3 125000 112500 101250 253125
4 125000 112500 101250 253125
5 125000 112500 101250 253125


Economics of Forest Nursery on 0.25 ha.

Years 1 2 3 4 5
Cost 217297 137077 137077 137077 137077
Benefits 253125 253125 253125 253125 253125
Net Benefit 35828 116048 116048 116048 116048

PWC@ 15% 529259.89
PWB@ 15% 848514.26
BCR 1.60
IRR > 50%

RETURNS
  

 

Since the saplings would be ready for plantation anywhere from the 6th month to 12th month depending on the species, returns will be generated from the first year onwards. The returns have been calculated by taking 10% mortality and 90% of actual sale of the surviving saplings. The cost has been considered at Rs.2.50/- per sapling.

BENEFICIARIES CONTRIBUTION
  

 

The beneficiaries may contribute towards down payment ranging from 5 to 25% depending upon their category, i.e., small and other farmers in accordance with NABARD's norms. Beneficiaries own labour can also be taken as his contribution towards the margin money requirement.

QUANTUM OF REFINANCE
  

 

The loans extended by the banks to individual farmers and / or groups of individuals such as co-operatives under Wasteland development projects are eligible for refinance from NABARD to the extent of 100% of Bank loan.

RATE OF INTEREST
  

 

The rate of interest on refinance from NABARD will be as per the circulars issued by NABARD from time to time. The rate of interest to be charged to the ultimate borrowers would be decided by the financing banks. However for working out the financial viability and bankability of the model project we have assumed the rate of interest as 12%.


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