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FEASIBILITY REPORT ON ORGANIC FARMING AND ORGANIC JAGGERY PRODUCTION
BY:-
Aniruddha Vijaysinh Lad (MT14IND011)
M. TECH. Industrial Engineering 2014
Department of mechanical
Visvesvaraya National Institute Of Technology, Nagpur
Content
Introduction
Mission
Demand study
Location study
Raw material study
Technical study
Organic certification
Financial aspects
Introduction
Organic farming system in India is not new and is being followed from ancient time. It is a method of farming system which primarily aimed at cultivating the land and raising crops in such a way, as to keep the soil alive and in good health by use of organic wastes (crop, animal and farm wastes, aquatic wastes).
Organic agriculture has grown out of the conscious efforts by inspired people to create the best possible relationship between the earth and men.
During the last two decades, there has also been a significant sensitization of the global community towards environmental preservation and assuring of food quality.
The soil's living population of microbes and other organisms are significant contributors to its fertility on a sustained basis and must be protected and nurtured at all cost.
According to definition of FAO suggested that “Organic agriculture is a unique production management system which promotes and enhances agro-ecosystem health, including biodiversity, biological cycles and soil biological activity, and this is accomplished by using on-farm agronomic, biological and mechanical methods in exclusion of all synthetic off-farm inputs”.
Benefits
It helps in maintaining environment health by reducing the level of pollution.
It helps in keeping agricultural production at a higher level and makes it sustainable.
It reduces the cost of agricultural production and also improves the soil health
It ensures optimum utilization of natural resources for short-term benefit and helps in conserving them for future generation.
It improves the soil physical properties such as granulation, and good tilth, giving good aeration, easy root penetration and improves water holding capacity.
It improves the soil’s chemical properties such as supply and retention of soil nutrients, and promotes favorable chemical reactions
It has been demonstrated extensively that plant products from organic farming are substantially better in quality like, look, flavor, and aroma.
Mission
Enhancement of sustainable agriculture through increase in productivity and reducing costs of cultivation.
How to achieve
Enrichment of soil
Conservation of soil and rain water
Integration of animals
Banning of chemicals
Multiple cropping and crop rotation
Seed treatment
Demand study
There is a growing demand for organic foods driven primarily by the consumer’s perceptions of the quality and safety of these foods and to the positive environmental impact of organic agriculture practices.
There are also claims that food produced by organic methods tastes better and contains a better balance of vitamins and minerals than conventionally grown food.
Research has been shown the organic farming continuously expanded throughout the world and increasing 10-15% per year from last 10 years. Organic agriculture is an economical and reliable option of profitable livelihood that is why this method has a bright scope.
Organic jaggery : The demand for jaggery is steadily growing in the urban, rural and
semi urban areas. There are several applications of jaggery and almost all Indian households use it on day to day basis. Market for jaggery is round the year.
Apart from individual households, it is used in large quantities in food processing industries, restaurants, roadside dhabas, other eateries, hotels and clubs and by caterers. It has shelf life of more than couple of months.
Rice: Export Data of 2011-12
Source : APEDA (agri. And processed food products export development authority)
Overview of organic farming in India
Source : National Centre of Organic Farming
Domestic market : 5000 MT of rice in 2012
Zone wise turnover of organic foods in 2012
City Turnover in Cr
Mumbai 120
Chennai 55
Delhi/NCR 75
Bengaluru 45
Pune 15
Gurgaon 20
Location Study
Biranje mala, Kasaba Bawada, Kolhapur, Maharashtra 416 006
Address:-
Panchganga river
Land for organic farming : 2 Acre
Raw material Study
Fertilizers:-
Vegetable Market waste/Agro Waste compost
Bio fertilizer organisms:- Azospirillum, Azotobacter, Rhizobium
Vermicomposting
Biogas plant slurry
Neem extracts
Neem-Cow urine extract
Chilli-garlic extract
Some innovative formulation developed farmers and different NGOs:-Sanjivak, Jivamrut, Amrit Pani, Bijamrut
Address of organic fertilizers units :
Hanchinalkar Bio Products
Center Point Building Gala No. 6, Near Ingale Sari House Station Road , Kolhapur - 416001, Maharashtra
Sampanna Group
325, Palace View road Near Videocon Service Center New Palace , Kolhapur - 416003, Maharashtra
Kisan Agro Industries
Plot No-17,Sahu Coperative Industrial Estate,Jaysinghpur, Kolhapur - 416120, Maharashtra
Organic seeds:
Around 25 kg seeds for 0.7 acre 15,600 seeds for 1.3 acre
Contacts details of organic seed dealer
Padmavati organic Seeds
Near Bus Stand, Hatkanangle, Kolhapur - 416109, A/P Ingali Tal Hatkanangale Near Bus Stand
Naturogenic organic Food
Ganraj H. G. T. S., K. P. Nagar, Balaji Nagar, Dhankawdi Pune - 411043 Maharashtra, India
Amar organic Seeds Private Limited
No. 103/104/105, 1st Floor, Sheetal Plaza, 1125, Model Colony, Shivaji Nagar, Pune - 411 016, Maharashtra
Water and electricity:
Water is easily available as river is near the farm and there is also pipeline network in the farm
Electricity line is also available for pumping water.
Technical study
Rice:-
Climate and soil requirement:- Rice grows best in tropical climate regions. However, it is also grown successfully in humid to sub-humid regions under subtropical and temperate climates. Rice is cultivated in almost all types of soils with varying degrees of productivity.
Cropping season and duration:-Depending upon the climate and water availability, rice is grown in all the three seasons, i.e., kharif, rabi and summer. The crop duration varies from 100 to 150 days.
Varieties:-HMT, Jaya, Pankaj, Ratna
Sugarcane:-
Climate and soil requirement:- Sugarcane is a long duration, high water and high nutrient demanding crop. It is grown under a wide range of climatic conditions, ranging from sub-tropical to tropical.
Cropping season and duration:- Depending upon the variety and sowing time, the crop takes about twelve to 18 months to mature. In general, January to March is the period for planting and December to March is the period for harvesting. In some states, sugarcane is grown round the year.
Important varieties:- Co-671, Co-740, Co-7219, Co-419, Co-86032, Co-1148
Soil testing:-
Useful tool for making fertilizer recommendations for various crops and cropping sequences as well as reclamation of problem soil.
To evaluate soil fertility status for making fertilizer recommendations
To predict the probable crop response to applied nutrients
To classify soil into different fertility groups.
To identify the type and degree of soil related problems like salinity, alkalinity and acidity etc. and to suggest appropriate reclamation and amelioration measures.
Address of soil testing labs
MOFF (Maharashatra Organic Farming Federation)
1038 / 11, Balaji Niwas , Flat No 5, Cosmos Bank Lane, Deep Bunglow Chowk, Model Colony, Pune – 411 016. [email protected]
Mattest Laboratory
23 Anandi Gharkul Vidya Colony, Datta Mandir Road, Ruikar Colony, Kolhapur - 416005
Sheetal Analytical Laboratory
217 Flat No 05 4th Floor Janapath Apartment, Sadashiv Peth, Pune – 411030
Crop rotation:-
The ideal method is to cultivate sugar cane in a crop rotation system. Rice can be taken as another crop, for maintaining soil fertility.
Sugarcane: jan to nov.
Rice : Kharif, may to oct.
Rice
Sugarcane
1st year 2nd year
1st stage1st stage
2nd stage
Total expected production(per annum):-
Rice : 6.2 ton in 0.7 acre
Sugarcane : 104 ton in 1.3 acre
Jaggery production:-
Jaggery production is on contractual basis.
Around 8 ton sugarcane produces 1ton of organic jaggery.
So from 104 ton of sugarcane total organic jaggery produced : 13 ton
Site address:-
Patil brothers jaggery production units
Biranje mala, Kasaba Bawada, Kolhapur, Maharashtra 416 006
Implementation schedule:
Sr. no. Description Time
1 Land Preparation 8-10 days
2 Soil testing 5-10 days
3 Cultivating rice 5 months
4 Cultivating sugarcane 11-12 months
5 Jaggery production 1 month
6 Organic certification 20- 30 days
Trading
Traders :
Osian International
Deshlahra Bunglow Plot No. 157, Ground Floor, Aarey Road, Opposite Amba Mata Temple, Goregaon West, Mumbai, Maharashtra India
Yesraj Agro Export Pvt. Ltd.
Mahalaxmi, Market Yard, Gultekdi, Pune, Maharashtra India
Bishnoi Trading Corporation
18, Satyamev Arcade, Near Highway Mall, Chandkheda, Ahmedabad, Gujarat India
Organic Certification
It is a certification process for producers of organic food and other organic agricultural products. In general, any business directly involved in organic food production can be certified, including seed suppliers, farmers, food processors, retailers and restaurants.
It is intended to assure quality and prevent fraud.
For consumers, "certified organic" serves as a product assurance, similar to "low fat", "100% whole wheat", or "no artificial preservatives".
Some agencies are
MOFF (Maharashatra Organic Farming Federation) :
1038 / 11, Balaji Niwas , Flat No 5, Cosmos Bank Lane, Deep Bunglow Chowk Model Colony, Pune – 411 016. [email protected]
Bureau Veritas Certification India Pvt. :
Ltd. 6th Floor Opp. Ansa Industrial Andheri (East) Mumbai-400 072 (Maharashtra) Phone No.: 022- 56956300 Email: [email protected]
Natural Organic Certification Agency :
Chhatrapati House Ground Floor Near P. N. Gadgil Showroom Pune-411 038 (Maharashtra) Phone No.: 020-25457869 Email: [email protected]
Control Union Certifications :
8th Floor 33rd – 14th Road Junction Off Linking Road, Khar (West) Mumbai –400052 (Maharasthra) Phone 022-67255396 Email: [email protected]
Financial aspects
Description Sugarcane ( Rs ) Rice ( Rs )
Land preparation 4000 3000
Seed cost 5000 1875
Fertilizer cost 5000 2000
Inter cultivation/Weeding
4500 3000
Irrigation and electricity cost
3000 1000
Harvesting cost 5000 4500
others 5000 5000
Total 31500/- 20375/-
1. Cultivation Cost :
2. Manpower cost :
1 permanent (agricultural diploma holder)
• Salary : 15000/ month (1,80,000/ annum)
Other manpower- when ever required on contractual basis
3. Training and consultancy cost : 20,000/-
4. Farm equipment, crop protection and miscellaneous : 30,000/-
5. Jaggrey production cost :
Cost per ton of organic jaggery production process : 20,000/-
Total cost of 13 ton jaggery produced is : 2,60,000/-
6. Certification cost :
Combined certification cost : 40000/-
Sr. no.
Description Cost
1 Small farmers 5000 flat fee
2 Travel and inspection 8000 / day
3 Report preparation 5000/ certificate
Financial Analysis
Source of finance:
Bank Name : Bank Of Maharashtra
Principle Amount : 6,00,000
Rate of Interest : 12.5 % per annum
Loan tenure : 4 years
Cost of production per annum :
Sr. no. Description cost
1 Land Own
2 Cultivation Cost 51,875
3 Manpower cost 1,80,000
4 Training and consultancy cost 20,000
5 Farm equipment and crop protection 30,000
6 Jaggery production cost 2,60,000
7 Certification cost 40,000
8 Interest @12.5 % 75,000
Total 6,56,875/-
As agricultural goods are exempted from tax, no tax on organic jaggery production and organic rice production.
Annual turnover :
Rice @ 50/kg : 6200 * 50 = 3,10,000/-
Jaggery @ 55/kg : 13,000 * 55 = 7,15,000/-
Total =10,25,000/-
Annual profit :
10,25,000 - 6,56,875 =3,68,125/-
Net profit ratio :
=( Annual Profit / Annual Turnover ) * 100
=(3,68,125 /10,25,000)*100
=35.91%
Breakeven analysis:
Description Total production cost (per annum)Rs.
Total profit per ton (per annum)Rs.
Breakeven point(ton)
Organic Jaggery 4,64,000 19,307.69 24.03
Organic Rice 1,92,875 18,891.12 10.20
Payback period :
= original investment / annual income
= 6,56,875/3,68,125
= 1.78 years
= 2 years
Thank You