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.  moffpune@gmail.com

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.  moffpune@gmail.com

Bureau Veritas Certification India Pvt. :

Ltd. 6th Floor Opp. Ansa Industrial Andheri (East) Mumbai-400 072 (Maharashtra) Phone No.: 022- 56956300 Email: scsinfo@in.bureauveritas.com

Natural Organic Certification Agency :

Chhatrapati House Ground Floor Near P. N. Gadgil Showroom Pune-411 038 (Maharashtra) Phone No.: 020-25457869 Email: contact@nocaindia.com

Control Union Certifications :

8th Floor 33rd – 14th Road Junction Off Linking Road, Khar (West) Mumbai –400052 (Maharasthra) Phone 022-67255396 Email: cuc@controlunion.in

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