carnation nabard

7/31/2019 Carnation NABARD

1/17

Carnation

I. SALIENT FEATURES

1. Potential Centres

NASIK / PUNE / BANGALORE / DELHI Other locations could be selected based on parameters indicated in the project.

2.Export Oriented innovative technology

Import of most popular varieties

Cultivation inside plastic greenhouse under ultra high densities, 33/m2 with drip irrigation

Grading, packing, precooling, storage and transport as per European standards.

3.Estimated cost/ha.

A. Fixed cost Rs.45.00 lakhs.

B. Recurring cost Rs.23.70 lakhs (only for 1st year)

TOTAL cost Rs.68.70 lakhs

4. Project Benefit/Ha./Year

Yield (No. of Export Quality stem/ha.) Gross Income (Price Rs.5/stem)

Year 1 Nil Nil

Year 2 13.82 lakhs 69.10 lakhs

Year 3 - 15 15.55 lakhs 77.50 lakhs

5. Export Markets

Europe, U.S.A., Japan, Singapore, Hongkong and Middle East.

6. Financial Viability

BCR : 1.15

NPW : Rs. 48.44 lakhs

IRR : 31%

7. RepaymentIn 6 years with moratorium for the 1st year.

1. Introduction

Cut flowers are flowers which are grown and harvested for ornamental purposes i.e., for use in preparation

of bouquets, floral arrangements, worship and social occasions. They are highly perishable commodity andmost commonly used as fresh product; the use of dried cut flowers is very limited.

There are about 80 species of plants which produce commercially important cut flowers. The top ten cutflowers in international trade are roses, chrysanthemum, carnation, tulip, lily, freesia, gerbera, gypsophilla,cymbidium, iris, gladiolus, anthurium and narcissus. The varied agro-climatic conditions in India can permitcommercial cultivation of all these flowers either in open field or under protected conditions. However, thecommercial cultivation of cut flowers in the country has so far been restricted to rose, chrysanthemum,jasmine, marigold, tuberose and gladiolus, mainly due to near absence of domestic market for other flowers.


2/17

2. Export potential

The international trade of cut flowers was estimated to be US $ 2.34 billion during 1990. The market hasbeen growing at the rate of 10% per annum. The current export of cut flowers from India is reported aboutRs.2.50 crores only (1990-91). Potential of world market for all floricultural products has been estimated tobe US $ 50 billion with a 15 percent annual growth rate. In view of a number of strong points, in favour ofIndia, namely varied agro climate, skilled manpower, proximity to consuming markets, the Ministry ofCommerce, Government of India has identified floriculture, which includes cut flowers as an extreme focussegment for boosting export from India. The Expert Group set up by Planning Commission has proposed anannual export target of Rs.100 crores for cut flowers.

3. Export Market

The main importing countries for cut flowers are Germany, France, UK, USA, Switzerland, Italy,Austria, Denmark, Sweden, Belgium/Luxembourg and Japan (in order of the volume of imports).

The main exporting countries are Holland (70%), Columbia (9.2%), Israel (5.8%), Italy (4.9%),Spain (2.3%), Kenya (1.4%) and the Canary Islands (1.1%).

The five flowers, namely, rose, chrysanthemum, carnation, tulip and lily account for 70-75 per centof the world trade.

The target markets for cut flowers identified by the floriculture committee of the Commerce Ministryare Europe, Middle East, USA, Japan, Far East (Hongkong, Singapore).

4. Objectives of the project

The primary objective of the present project is to extend financial assistance for adoption of export orientedtechnology for cultivation of carnation, which ranks second/third in the world trade, so as to promote exportof carnation flowers from India.

5. Potential Centres

The selection of location for production of carnation or any other flower for export purposes depends mainlyon three factors;

cost of production

quality

cost of transportation.

Only the production of high quality flowers at low cost can face the international competition. Based on theseconsiderations, the location for the production should be decided.

Areas around Pune, Nasik, Bangalore and Delhi have been identified by experts as most potential centresfor cultivation of carnation. The other locations can also be selected on the basic factors indicated above.

6. Beneficiaries

Targeted beneficiaries could be individual entrepreneurs / partnership firms / companies / cooperatives.Technical / marketing tie-up with foreign firms / Indian Research Institutions / export houses would bedesirable.

Services of qualified / experienced floriculturists are essential for the success of the project.7. Export Oriented Technology

The success of export oriented projects on any fresh produce will depend, among other things, on theadoption of innovative technology for both production and post harvest management. Salient features of the


3/17

technological innovations that might be followed are outlined below.

7.1 Pre-harvest Technology

7.1.1 Selection of species and varieties

While any of the species indicated in the preceding paragraphs could be selected for production of cutflowers in appropriate locations, the present model has been prepared for growing carnations. Its popularityranks among the top three cut flowers in the West. It is loved for its exquisite form, beauty and clove likefragrance and good vase life. The varieties which were very popular based on the recorded volume of salesin the auction centres of Holland during 1989-90 are enumerated below.

Standard Carnation Spray Carnation

Desio

White sim Karina Hilkari

Pallas Londorga Barbara Hibacer

Castellaro Elsy Londoure

Nora Barlo Bagatel Wesbag

Tanga Lontarion Eveline Hilsucces

Manon Korosa Silvery Pink

Sandrose Madea

Candy Klekopi Lior Aroiler

Candy Klemaxi Salmony Stasalm

Kletouwi Bianca

Sarina Lonseva Starlight Hilstar

Most of the varieties of carnation are photo-period insensitive. Ideal temperature requirement is about 10o Cin the night and 23o C in the day. High light intensity with a 12 hour day length may produce top quality

flowers.

7.1.2 Soil

Carnation thrives best in well drained soil with soil reaction from neutral to slightly alkaline.

7.1.3 Plastic Greenhouse

Carnation for export has to be grown under protected cover, not in open field conditions. In the West Almostentire carnation production takes place in glass green house, which enables fill control over climate.However, Colombia has shown that good quality carnation can also be grown under plastic green house,which is cheaper than glass green house. As a result, Colombia has captured a great deal of USA'scarnation market. A grower at Nashik has recently demonstrated that India can also grow carnation ofinternational quality in plastic green house. The suggested design is displayed in Exhibit Nos.III and IV.

Actual design should take into account wind direction and wind velocity.The roofing material could be Low Density Polyethylene (LDPE) of 200 micron thickness. One kg. of thismaterial covers 5.37 sq.m. LDPE has to be replaced every alternate year. The basic structural materialcould be M.S. angle iron of 40 x 40 x 5 mm size. The structure could also be made of wood, wherever,requisite quantity is available, in which case the cost would be brought down further. Construction could bephased out depending on planting programme in the 1st year.

7.1.4 Layout


4/17

Carnation might be grown in raised bed of soil. The suggested design is given in Exhibit Nos.I and II. Thiswould allow 72% utilisation of land.

7.1.5 Size of Unit

The minimum size proposed in the model is 1 ha. area of plastic green house, based on sizable volume ofexport and cost of infrastructure and its efficient utilisation. The other technical parameters could be as

under :-

7.1.6 Spacing : 20 cm x 15 cm

Main planting In 3 or more phases

Season August, September, October

7.1.7 Manure : 10 kg/m2

Fertilisers

Nitrogen } 200 ppm at 15 days internal

Potash } with irrigation

Phosphate : 700 kg. in two splits

Boron (Borax) : 38 ppm

7.1.8 Irrigation doses : 20 litre/m2 (twice a week)

Design of Drip system One lateral line (10 mm) in every alternate row

Micro tube : 2 litre/hr.

Main line : 30 mm

7.1.9 Plant Protection

Diseases : Pythium

Pythopthora rot

Fusarium wilt

Fusarium stem rot

Alternaria blight, Grey mold

Pests : Aphid

Meanlybug

Spidermite

Thrips


5/17

White fly

Control : (1) Soil sterilisation - Chloropicrin

(2) Dithane - 0.6 gm/litre

(3) Metasystox - 1.25 ml/litre

(4) Karathane - 1.00 ml/litre

Volume of preventive spray - 1500 litre/spray

Frequency - 50/year i.e. once in a week7.1.10 Other practices

Staking, Inter culture, Detopping, Debudding

7.2 Harvest and Post-harvest Management

Until recently, in the absence of scientific post-harvest management, cut flowers used to be grown in placesnear to the markets. There has been veritable sea-change in the situation during the last twenty years or so.Flowers grown in the far eastern part of Thailand are being exported as far away as ''Aalsmer'' in Holland.This could be attributed to the improved post-harvest management of cut-flowers.

The post harvest management actually starts with harvesting of flowers.

7.2.1 Harvest

Carnation flowers mature in 4-5 months period. Standard cultivars are harvested at ''Paint Brush'' stage withhalf-open flowers, or almost fully open flowers. Spray cultivars are harvested when there are 2 fully openflowers on the stem. Standard carnations can also be harvested at the stage of mature, large but tight budswith calyxes filled with petals or buds with petals just beginning to appear on the upper portion (i.e. at

''cross'' stage). Such buds may be stored under dry condition for 5-6 months (except yellow colour varieties).Flowers partly open when harvested at the star stages with petals emerging about 0.5 cm above calyx, maybe stored upto 8 weeks. Flowers destined for storage should be free from diseases and pests. Harvestingshould be done in the early morning and/or in the late afternoon, and they should not be wet at harvest.Immediately after harvesting flowers should be placed in a bucket of clean water inside the green house andtransported to the grading hall.

7.2.2 Grading

After harvest, the flowers should be graded to different classes according to their qualities. The EuropeanCommunity's common quality standards for fresh cut flowers have been given in Annexure 1. For flowerexport company, grading hall/shed is essential. Grading tables, enable the grading of flowers according totheir sizes. It is normally sufficient to have a smooth table marked with the length of each grade.

7.2.3 Flower Preservatives

All cut flower auction centres in Western Europe require flowers to be pretreated with Silver ThiosulphateSolution (STS) or some other floral preservatives. The preservatives promote longevity and quality of cutflowers. They are mainly composed of sugar, germicide, STS, weak acid and growth substances.Concentration of preservatives are indicated below :-

i) 8-Hydroxquinoline sulphate or Hydroxyquionoline citrate 200-600 ppm

ii) STS - 0.2-4mM.

iii) Cytokinin - 10-100 ppm.


6/17

iv) Sugar - 0.5-2%

v) Citric acid - 50-100 ppm.

7.2.4 Packing

Packing comprises three stages :

bunching, wrapping and packing. The exact number of stems stipulated per bunch i.e. 5,10, or multiples of10 pieces should be tied with a rubber band at the base of the stems. The bunches may be wrapped inpaper. Plastic can promote fungal attack. However, wrapping is not essential.

Many different cardboard boxes are used for packing. For long-term transport, it is best to use telescopicstyle boxes made of corrugated fiberboard. Boxes must be strong enough to support the weight of at least 8full boxes placed on top of one another under conditions of high humidity. Special boxes equipped with acontainer for water in which flowers are held in a vertical position have been developed in the West. Theends of flowers can also be placed in absorbent cotton saturated with water and enclosed in waxed paper orpolyethylene foil (0.004-0.006mm. thick) which permits air exchange. All gaps inside the boxes should befilled with shredded paper.

Boxes used during forced air cooling must have vents on either side. Total vent size should equal 4-5% of

the area of the end wall of the box.

7.2.5 Pre-cooling

After packing, the flower should be pre-cooled as soon as possible. Since temperature reduction fromflowers is a rather slow process and metabolism may continue even at a low temperature, the heat from thefreshly harvested flowers needs to be removed rapidly before shipping or storage. Pre-cooling is that rapidremoval of field heat to bring the produce temperature down to or near to its subsequent storage or shippingtemperature.Precooling units are available that can cool from 4 to more than 100 boxes of flowers in less than 1 hour asagainst the requirement of 12-24 hours if the boxes are stalked.The pre-cooling equipments can be installed in cold store or a separate pre-cooling chamber can beconstructed alongside cold store. In the present model separate built-in pre-cooling and cold store units,

which would be kept in grading shed have been suggested. Of the various methods of pre-cooling, forced aircooling is considered as the best for cut flowers. This operates by forcing cold aid through boxes which havevents at each end.One of the vents at each end of the box is connected to a hold in the wall of the chamber with a suction. Thespeed of the air flow may bring down the temperature of the flowers to the air temperature in the cold roomis less than an hour. The suction is switched off as soon as the temperature of carnation flowers is near 00CThe humidity must be maintained at high level (90-95%).7.2.6 Storage

After pre-cooling, blooms must be kept under continuous refrigeration during distribution for maximumbenefit. Pre-cooling has little or no value if low temperature are not maintained during subsequent periods.The optimal storage temperature for cut flowers may vary according to stage of flower development andmethod of storage. Carnations cut at bud stage are stored at 00C whereas open carnations are stored at 3-40 C in water.For export oriented units, storage is required because the refrigerated van may not be available for shipmentimmediately after pre-cooling.7.2.7 TransportThe quality of flowers can be damaged during transit from cold store to the airport. A refrigerated van fortransport to the airport should, therefore, be used. Cold store at the Airports of Delhi, Bombay and


7/17

Bangalore are likely to be ready soon. In case of delay in the availability of air cargo space, the cold storefacility at the exit points should be availed of.If buds of carnations are harvested at the ''cross'' stage, they can be transported by sea in refrigeratedcontainers with proper preservatives.8. Project Components

In the light of technology outlined in the preceding paragraph, the project could comprise the following majorcomponents :

8.1 Land

3 acres for green house and other facilities. The land might have already been under cultivation.

8.2 Fencing

Barbed wire (6 strands) fencing for 3 acre block, Perimeter 460m. Angle Iron (40 x 40 x 5mm) each 1.5 mlength at the interval of 2 m.

8.3 Farm Road (internal)

About 400 m long and 2 m wide dressed with broken bricks.

8.4 Greenhouse

Plastic green house with gross size 1 ha. on the lines of technical specifications given under paragraph7.1.3.

8.5 Carnation cutting and cultivation

Technical aspects have been detailed under paragraph 7.1.6 to 7.1.10.

8.6 Irrigation System

1. Tubewell - 3''2. Motor - 3 H.P.3. Overhead Tank - 1000 litre capacity4. Pumphouse - 2m x 2m x 3m5. Drip System - vide paragraph 7.1.3

6. Pressure gauge water meter

8.7 Grading and Packing Shed

200 sq.m area raised pucca cemented floor with roof of corrugated G.I. sheet. Open on all sides.

8.8. Pre-cooling chamber

3.5 H.P. 1 tonne in 4 hours, with compressor, evaporator, condenser and blower.

8.9 Walk-in cold store

Size 10' x 10' x 7'4'', H.P. 1.5, with compressor, evaporator and condenser.


8/17

8.10 Reefer Van

8.11 Fax machine, electric typewriter and telephone

8.12 Grading table and office furniture and farm equipments

8.13 Office and store - 100 sq.m area9. Availability of Materials and Equipments

All the material and equipments mentioned in preceding paragraphs are available in the domestic market,except planting material. Rooted cuttings of carnation varieties have to be imported every alternate year.Once imported though they can be propagated locally paying royalty, it might be better to continue importsince existing varieties of cut flowers including carnation quickly loose popularity with the advent of newvarieties. Moreover, breeding and propagation would require much higher level of technical expertise andinvestment than mere production.LDPE of good quality for roofing of the green house will be available from IPCL. This also will requirereplacement every alternate year.10. Estimated Cost

A. Fixed cost vide Annexure A Rs. 45.00 lakhs

B. Recurring cost vide Annexure B to D (for1st year only)

Rs. 23.70 lakhs

Total Capital Expenditure Rs. 68.70 lakhs

11. Projected yield

Since the grower-exporter is expected to adopt the latest technology of carnation growing, asoutlined in the paragraph 7, projected yield of 240 stems/m2, with 80-90% exportable quality couldbe achieved (vide Annexure F)

12. Sale PriceBased on the price trends of carnation cut flowers in various international markets and alsodiscussions with an Indian exporter, a conservative sale price has been assumed at Rs.5.00/stem.

13. Financial AnalysisFor financial analysis, net annual income without the project has been assumed to be Rs.10,000/-per ha. Result of the analysis is as under :-

NPW at 15% DF : Rs.48.44 lakhs

BCR at 15% DF : 1.15

IRR (vide Annexure G) : 31 %

14. FinanceThe project on export of cut flowers would be considered for refinance support by NABARD.Therefore, all eligible scheduled banks may consider financing the activity.

15. Margin MoneyThe farmer-exporters should normally meet 25% of the project cost out of their own resources.

However, NABARD could consider providing margin money assistance in suitable cases as per theguidelines vide circular No.DPD.67/92-93 (Ref.No.3708/NFS-85/92-93) dated 27 Feb. 1993.

16. Interest Rate

Interest rate will be as indicated by RBI/NABARD from time to time. The existing rate of interest atthe ultimate beneficiary's level is 15% p.a. However, the repayment programme has been workedout at 17% interest to take care of interest tax and other charges etc.

17. Scale of Refinance

In view of the priority attached to the export, NABARD is agreeable to provide refinance support to the


9/17

extent of 90% of the bank loan.

18. Security

Banks may charge such security as permissible under RBI norms.

19. Repayment

The loan will be repaid in six years with moratorium for the 1st year, vide Annexure-H.Annexure A

FLORICULTURE FIXED ASSETS

(In Rupees)

1 Fencing (Barbed Wire) 23,000

2 Farm Road 10,000

3 Green House (Poly house) (1 Ha) 1,400,000

4 Irrigation Systems (Drip) 391,000

5 Grading/Packing Shed 200,000

6 Office and Store 300,000

7 Pre-Cooling Unit 400,000

8 Cold Storage 400,000

9 Reefer Van 900,000

10 Fax Machine 30,000

11 Telephone 10,000

12 Typewriter 15,000

13 Furniture 30,00014 Equipment (Misc.) 30,000

4,139,000

Contingency 361,000

Total 4,500,000

Annexure A-1

ESTIMATED COST OF FENCING & FARM ROAD

I. FENCING:

Area : Say 3 Acre Block

Perimeter = 460 m.


10/17

1 Barbed wire @ Rs.1.25/m (16 gauge)

6 Strands For 460 m. Rs. 6 x 1.25/m

For 460 m. =Rs.3450/-

=Rs.3500/-

2 Angle Iron (40 x 40 x 5mm.)

Length 1.5 m. at interval of 2m i.e. Total length230 x 1.5 m. =345 m.

=350 m. (at 3 kg./m)

=1050 kg.

=1100 [email protected]/kg

Total Cost Rs.15,400/-

3 R.C.C. Pole @ 12/pole for 230 poles =Rs.2760/-

4 Labour Rs.3/m i.e. Rs.1380

Grand Total, say Rs.23,000/-

II ROAD

Total Length 400 m. (approx.)

Width 2 m.

Area 800 sq.m.

Rate Rs.12/sq.m.

Cost : Rs.96,000/- say Rs.10,000/-

Annexure A-2

Summary of the Estimated cost ofGREEN HOUSE / HA

A. Green house structure Rupees

1 M S Angle (40 x40x5mm) 42tonnes 588,000

2 12 mm rods 400 tonnes 56,000

3 Labour cost @ 1300/tonne 59,800

B. Greenhouse gutter

1 G.I. sheet 550 sq.m 88,000

2 Labour cost Rs.10/sq.m. 5,500

C. RCC Pole (size 0.05 m3)

1 For 600 poles @ Rs.80/pole 48,000

2 12 mm rods 2.2 tonnes 31,000

D. LDPE sheet

1 14650 sq. m. @ Rs.25/sq.m 366,0002 Labour @ 20 mandays/unit 50,000

1000 mandays @ Rs.50/day (skilled labour)

1,292,300

E. Curtain wall 75,000

Total

Say = Rs.14.00 lakhs

1,367,300


11/17

Annexure A-3

ESTIMATED COST OF DRIP IRRIGATION SYSTEM

Sl. No. Cost Estimates per Bed Rupees

1 Main line, 30 mm, 2m width/bed Red Rs.15/m 30.002 Lateral line, 10 mm, 4 lines each of 24m length bed 288.00

2 x 24 = 96 m,

Rate Rs.3.00/m

3 Lateral connectors 4 nos @ Rs.6.00 24.00

4 End connectors 4 nos @ Rs.4.50 18.00

5 Micro tubes (2 litre/hr) 240.00

4 x 60 @ Rs.1.00

6 Tees, end plug 500.00

7 Joint end plug etc. 500.00

Total 1600.00

Total number of beds / ha. = 200

Total cost = 200 x 1600 = Rs. 3,20,000/-

Other Items Rupees

1 Filtration and Fertigation unit 5,000

2 Pressure gauge water meter 1,000

3 Overhead tank (1000 litres) 6,000

4 Shallow Tubewell (2'') 9,000

5 Pumpset (3 HP) 5,000

6 Pump house 5,000

Total 31,000

Gross Total = Rs.3,51,000.00

Installation charges (5%) 17,550

Contingency (3%) 10,530

379,080

Say380,000

Annexure B

CULTIVATION EXPENSES

(Rs./ha)

Sl.No. Particulars Ist Year 2nd Year

1 Land Preparation and Layout 2,000 --

2 Soil Sterilisation Rs.15/m2 108,000 --

3 Bed Preparation 5 mandays/bed 25,000 --


12/17

200 beds. Rs.25/manday

4 Planting Material} Annexure B. 1,800,000 --

5 Manures and Fertilizers

(i)Manures 7,000 7,000

(ii)Fertilizers Annexure B.2 14,000 14,0006 Plant Protection Chemicals 45,000 45,000

7 Electricity for Irrigation 500 500

8 Labour 1800 mandays

@ Rs.25.00/manday

45,000 45,000

2,046,500 111,500

Say Rs.20.50 lakh Say Rs.1.15 lakh

Annexure B-1

ESTIMATED COST OF PLANTING MATERIAL

Quantity Required

1 Spacing 20 x 15 cm

2 Density 33/m2

3 Growing space 7200 Sqm/ha

4 Quant ity of Plant ing material required 237,600

5 Assuming 6.66% Morality 2,37,600 + 15,840

= 253,440.00

Say = 253,500.00

6 Price Rs.7.00/Rooted cutting

7 Total Cost Rs.25,000. 12.0%

Say Rs.18.00 lakhs

Annexure B - 2

ESTIMATED COST OF AGRICULTURAL INPUTS

A. Manures

Farm Yard Manure @ 10 kg/m2

70 MT/ha

@ Rs.100/MT = Rs.7000.00/ha

B. Fertilizers (Nutrients) Rate Quantity Amount (Rs.)1 N Rs.6/kg 700 kg/ha 4,200

2 P2O5 Rs.7/kg --do-- 4,900

3 K2O Rs.3/kg --do-- 2,100

Total 11,200

4 Borax and other micro

Nutrients (LS) 2,800


13/17

Total Cost 14,000

C. Plant ProtectionChemicals

Rate Quantity Amount (Rs.)

1 Dithane M 0.6 gm/litre 45 kg/ha 4,500

@ Rs.100/kg

2 Metasystox 1.25 ml/litre 94 litres/ha 11,280

@ Rs.120/litre

3 Karathane 1.00 ml/litre 75 litre/ha 22,500

@ Rs.300/litre

Total 38,280

Note : (i) Volume of Spray 1500 litre/ha

(ii) No.of sprays 50/year

D. Soil Sterilization

By Chloropicrin @ Rs.15/m2 (custom application)

Rs.1,08,000.00

E. Miscellaneous Chemical Rs.6,720.00

Annexure C

POST HARVEST EXPENSES

(Rs. in lakhs)

Sl.No. Particulars 1 yr. 2 yr. 3-15 yrs.

1 Preservatives and Chemicals @ Rs.0.25/Stem -- 3.45 3.89

2 Packing Box - 600 Stem/Box @ Rs.100/box -- 2.3 2.59

3 Transportation from Farm to Air Port(Rs.0.04/Stem)

-- 0.55 0.62

4 Air freight (Rs.0.75/Stem) -- 10.36 11.66

5 Labour :-

Year 2 - 500 mandays -- 0.12 0.15

Year 3 - 600 mandays

6 Cost of running

Pre-cooling unit, (Annexure C-1)

Cold Store and

Refrigeration -- 0.55 0.62

7 Commission on Sale

Agent (7%) and E.C.(18%) -- 17.27 19.44

Total -- 34.6 38.97

Annexure C - 1

ESTIMATED COST OF ELECTRICITY CONSUMPTION


14/17

1. Refrigeration unit in Van

7.5 HP x 0.75 kw x 200 x 24 hr

(assuming 200 operational days & 1 HP = 0.75 kw)

= 27,000 kw hr.

= Rs.27,000/year (assuming electricity charges Rs.1/hr)

2. Pre-cooling Unit

2800 watt x 300 x 24 hr (300 operation days/year)

= 20,160 kw.hr - Rs.20,160/year

= Rs.20,200/year

3. Walk-in Cold Store

2000 watt x 300 x 24 hrs

(300 operating days)

= 14,000 kw.hr

= Rs.14,400/year

Total = Rs.61,600/year say Rs.62,000/year

Annexure D

OVERHEADS

A. Salary per year Rupees.

1 Manager - 1 60,000

2 Assistants - 2 72,000

(Production, Marketing

& Office)

3 Clerk-cum-Typist - 1 24,000

4 Guards - 3 27,000

5 Driver for Van 10,000

6 Mechanic/Overseer 12,000

7 Contingencies 5,000

Sub total 210,000

B. Office Overheads

1 Stationery 2,500

2 Postal 2,500


15/17

3 Electricity 3,000

4 Travels 2,000

Sub total 10,000

C. Insurance (from 1st year onwards) 100,000

D. Repairs 100,000

& Maintenance (2nd year and onwards)

Annexure E

Recurring Expenses

YEAR (Rs.in Lakhs)

Annexure F

PROJECTED PRODUCTION AND INCOME

Sl.No. Particulars 1 yr. 2 yr. 3-15 yrs.

1 No. of flowering stems per plant -- 8.00 8.00

2 No. of flowering stems / m2 -- 240.00 240.00

3 No. of flowering stems / ha (in lakhs) -- 17.28 17.28

4 No. of export quality flowers (in lakhs)

Year 2: 80%

Year 3: 90%

-- 13.82 15.55

5 Gross income (Rs. in lakhs)

Assuming price Rs.5/Stem

-- 69.10 77.75

BCR = 379.83 / 331.39 = 1.15 NPW = Rs. 48.44 lakhs

IRR = 30+5 (2.25/2.25(-4.69) = 30+5 (2.25 / 6.94)

IRR = 30 + 1.62 = 31.62 %

Annexure H

REPAYMENT SCHEDULE

(Rs. in lakhs)

Year Net

IncrementalBenefit

Bank o/sat

beginningof theyear

Interest@ 17%

Repaymentof Interest

Repaymentof Princial

Outstanding atthe end

Surplus

1 -68.80 51.53 8.76 -- -- 60.29 Nil

2 29.50 60.29 8.76 17.52 8.53 43.00 3.00

3 9.82 43.00 7.31 7.31 -- 43.00 2.51


16/17

4 33.33 43.00 7.31 7.31 21.00 22.00 5.02

5 9.82 22.00 3.74 3.74 3.00 19.00 3.08

6 33.33 19.00 3.23 3.23 19.00 Nil 11

Annexure I

European Community's CommonQUALITY STANDARDS

Extra Class

Produce which qualifies for Class I without the aid of any tolerance. This excludes American Carnations withsplit calyx.

Class-I

Flowers must be of good quality, characteristics of the species variety. They must be whole, fresh,unbruised, free of animal or vegetables parasites and resultant damage, free of residues of pesticides andother extraneous matter affecting appearance and free of development defects. Tolerance permitted upto 7

per cent.

Class-II

Flowers which do not meet all requirements of Class-I but are whole, fresh, free of animal parasites. Slightdefects such as malformation, brushing, damage, small marks, weaker and less rigid stems may be presentprovided they do not impair appearance. Tolerance permitted upto 10%.

EC's standards are generally applicable to all cut flowers - no separate standard for different species of cutflowers have been established with the exception of mimosa. Whereas, the United Nation's EconomicCommission for Europe has recommended general as well as specified standards for a number of flowers.

The U.S.A. has no official standards for cut flowers. The society of America Florists has recommendedstandards for certain cut flowers which included carnations. The grades are known as Blue, Red and Greenand are based on flower diameter and length of stem.

The ECE of UN or EEC standards ignore length of stem and flower diameter in making class selections.Thus Extra Class may contain classified flowers with both long and short stems. Nonetheless flowers mustbe sorted out according to stem length as given below :-

Description Code Minimum & Maximum Stem Length (in cm)

0 Less than 5cm or flowers marked without stems

5 5-10

10 10-15

15 15-20

20 20-30

30 30-40

40 40-50

50 50-60

80 80-100

100 100-120

120 120


17/17

carnation nabard

Documents