Model Bankable Projects

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Mode l Bank able Proj ects Plantation / Horticulture 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

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Page 1: Model Bankable Projects

Model Bankable Projects


    Plantation / Horticulture


1. Potential Centres


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.)

Year 1

Year 2

13.82 lakhs

Year 3 - 15 15.55 lakhs 5. Export Markets

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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 and most 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 cut flowers 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 permit commercial cultivation of all these flowers either in open field or under protected conditions. However, the commercial 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. Export potential

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

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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 cent of the world trade.

The target markets for cut flowers identified by the floriculture committee of the Commerce Ministry are 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 oriented technology for cultivation of carnation, which ranks second/third in the world trade, so as to promote export of carnation flowers from India.

5. Potential Centres

The selection of location for production of carnation or any other flower for export purposes depends mainly on 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 these considerations, the location for the production should be decided.

Areas around Pune, Nasik, Bangalore and Delhi have been identified by experts as most potential centres for 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 be desirable.

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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 the adoption of innovative technology for both production and post harvest management. Salient features of the 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 cut flowers in appropriate locations, the present model has been prepared for growing carnations. Its popularity ranks among the top three cut flowers in the West. It is loved for its exquisite form, beauty and clove like fragrance and good vase life. The varieties which were very popular based on the recorded volume of sales in the auction centres of Holland during 1989-90 are enumerated below.

 Standard Carnation Spray CarnationDesio  White sim Karina HilkariPallas Londorga Barbara HibacerCastellaro Elsy LondoureNora Barlo Bagatel WesbagTanga Lontarion Eveline HilsuccesManon Korosa Silvery PinkSandrose MadeaCandy Klekopi Lior AroilerCandy Klemaxi Salmony StasalmKletouwi BiancaSarina Lonseva Starlight Hilstar Most of the varieties of carnation are photo-period insensitive. Ideal temperature requirement is about 10o C in 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.

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7.1.3 Plastic Greenhouse

Carnation for export has to be grown under protected cover, not in open field conditions. In the West Almost entire 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's carnation market. A grower at Nashik has recently demonstrated that India can also grow carnation of international 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 this material covers 5.37 sq.m. LDPE has to be replaced every alternate year. The basic structural material could 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 be phased out depending on planting programme in the 1st year. 

7.1.4 Layout 

Carnation might be grown in raised bed of soil. The suggested design is given in Exhibit Nos.I and II. This would 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 of export 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

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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




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 week

 7.1.10 Other practices 

Staking, Inter culture, Detopping, Debudding 

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7.2 Harvest and Post-harvest Management 

Until recently, in the absence of scientific post-harvest management, cut flowers used to be grown in places near 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 with half-open flowers, or almost fully open flowers. Spray cultivars are harvested when there are 2 fully open flowers on the stem. Standard carnations can also be harvested at the stage of mature, large but tight buds with 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, may be stored upto 8 weeks. Flowers destined for storage should be free from diseases and pests. Harvesting should 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 and transported to the grading hall.

7.2.2 Grading

After harvest, the flowers should be graded to different classes according to their qualities. The European Community's common quality standards for fresh cut flowers have been given in Annexure 1. For flower export

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company, grading hall/shed is essential. Grading tables, enable the grading of flowers according to their 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 Thiosulphate Solution (STS) or some other floral preservatives. The preservatives promote longevity and quality of cut flowers. 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.

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 of 10 pieces should be tied with a rubber band at the base of the stems. The bunches may be wrapped in paper. 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 telescopic style boxes made of corrugated fiberboard. Boxes must be strong enough to support the weight of at least 8 full boxes placed on top of one another under conditions of high humidity. Special boxes equipped with a container for water in which flowers are held in a vertical position have been

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developed in the West. The ends of flowers can also be placed in absorbent cotton saturated with water and enclosed in waxed paper or polyethylene foil (0.004-0.006mm. thick) which permits air exchange. All gaps inside the boxes should be filled 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 from flowers is a rather slow process and metabolism may continue even at a low temperature, the heat from the freshly harvested flowers needs to be removed rapidly before shipping or storage. Pre-cooling is that rapid removal of field heat to bring the produce temperature down to or near to its subsequent storage or shipping temperature. Precooling units are available that can cool from 4 to more than 100 boxes of flowers in less than 1 hour as against 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 be constructed 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 air cooling is considered as the best for cut flowers. This operates by forcing cold aid through boxes which have vents 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. The speed of the air flow may bring down the temperature of the flowers to the air temperature in the cold room is less than an hour. The suction is switched off as soon as the temperature of carnation flowers is near 00C The humidity must be maintained

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at high level (90-95%). 7.2.6 Storage After pre-cooling, blooms must be kept under continuous refrigeration during distribution for maximum benefit. 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 and method 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 shipment immediately after pre-cooling. 7.2.7 Transport The quality of flowers can be damaged during transit from cold store to the airport. A refrigerated van for transport to the airport should, therefore, be used. Cold store at the Airports of Delhi, Bombay and Bangalore are likely to be ready soon. In case of delay in the availability of air cargo space, the cold store facility 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 refrigerated containers with proper preservatives. 8. Project Components In the light of technology outlined in the preceding paragraph, the project could comprise the following major components :

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,

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Perimeter 460m. Angle Iron (40 x 40 x 5mm) each 1.5 m length 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 paragraph 7.1.3.

 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 7.1.36. 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.

8.10 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 area 9. Availability of Materials and Equipments

 All the material and equipments mentioned in preceding paragraphs are available in the

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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 import since existing varieties of cut flowers including carnation quickly loose popularity with the advent of new varieties. Moreover, breeding and propagation would require much higher level of technical expertise and investment than mere production. LDPE of good quality for roofing of the green house will be available from IPCL. This also will require replacement every alternate year. 10. Estimated Cost 

A. Fixed cost vide Annexure A

Rs. 45.00 lakhs

B. Recurring cost vide Annexure B to D (for 1st 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, as outlined in the paragraph 7, projected yield of 240 stems/m2, with 80-90% exportable quality could be achieved (vide Annexure F)

12. Sale PriceBased on the price trends of carnation cut flowers in various international markets and also discussions 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

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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 the guidelines 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 at the ultimate beneficiary's level is 15% p.a. However, the repayment programme has been worked out 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 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


(In Rupees)

 1 Fencing (Barbed Wire) 23,0002 Farm Road 10,000

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3 Green House (Poly house) (1 Ha)


4 Irrigation Systems (Drip) 391,0005 Grading/Packing Shed 200,0006 Office and Store 300,0007 Pre-Cooling Unit 400,0008 Cold Storage 400,0009 Reefer Van 900,00010 Fax Machine 30,00011 Telephone 10,00012 Typewriter 15,00013 Furniture 30,00014 Equipment (Misc.) 30,000

    4,139,000  Contingency 361,000  Total 4,500,000 Annexure A-1



Area : Say 3 Acre Block

Perimeter = 460 m.

 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 length


230 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 =Rs.2760/-

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for 230 poles4 Labour Rs.3/m i.e.


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 of GREEN HOUSE / HA

 A. Green house


  1 M S Angle (40 x40x5mm) 42tonnes

  2 12 mm rods 400 tonnes  3 Labour cost @ 1300/tonneB. Greenhouse gutter    1 G.I. sheet 550 sq.m  2 Labour cost Rs.10/sq.m.C. RCC Pole (size 0.05


  1 For 600 poles @ Rs.80/pole  2 12 mm rods 2.2 tonnesD. LDPE sheet    1 14650 sq. m. @ Rs.25/sq.m  2 Labour @ 20 mandays/unit    1000 mandays @ Rs.50/day

(skilled labour)     E. Curtain wall      Total

Say = Rs.14.00 lakhs

 Annexure A-3

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 Sl. No.

Cost Estimates per Bed Rupees

1 Main line, 30 mm, 2m width/bed Red Rs.15/m


2 Lateral line, 10 mm, 4 lines each of 24m length bed


2 x 24 = 96 m,  Rate Rs.3.00/m  

3 Lateral connectors 4 nos @ Rs.6.00


4 End connectors 4 nos @ Rs.4.50


5 Micro tubes (2 litre/hr) 240.004 x 60 @ Rs.1.00  

6 Tees, end plug 500.007 Joint end plug etc. 500.00

Total 1600.00Total number of beds / ha. = 200

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


 Other Items Rupees

1 Filtration and Fertigation unit


2 Pressure gauge water meter


3 Overhead tank (1000 litres)


4 Shallow Tubewell (2'')


5 Pumpset (3 HP) 5,0006 Pump house 5,000  Total 31,000  Gross Total = Rs.3,51,000.00  Installation charges


  Contingency (3%) 10,530    379,080  Say 380,000

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 Annexure B




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

200 beds. Rs.25/manday

25,000 --

4 Planting Material} Annexure B.

1,800,000 --

5 Manures and Fertilizers  (i)Manures 7,000 7,000  (ii)Fertilizers

Annexure B.214,000 14,000

6 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


   Quantity Required    1 Spacing   20 x 15 cm2 Density   33/m23 Growing space   7200 Sqm/ha4 Quantity of Planting

material required 


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5 Assuming 6.66% Morality

  2,37,600 + 15,840

      = 253,440.00  Say   = 253,500.006 Price   Rs.7.00/Rooted

cutting7 Total Cost   Rs.25,000.

12.0%  Say   Rs.18.00 lakhs Annexure B - 2


 A. Manures  

 Farm Yard Manure

@ 10 kg/m2

    70 MT/ha

   @ Rs.100/MT = Rs.7000.00/ha

 B. Fertilizer

s (Nutrients)

Rate Quantity Amount (Rs.)

1 N Rs.6/kg 700 kg/ha 4,2002 P2O5 Rs.7/kg --do-- 4,9003 K2O Rs.3/kg --do-- 2,100

    Total 11,2004 Borax

and other micro


Nutrients (LS)




 C. Plant



Rate Quantity

Amount (Rs.)

1 Dithane M

0.6 gm/litre

45 kg/ha 4,500


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2 Metasystox

1.25 ml/litre

94 litres/ha


    @ Rs.120/litre


3 Karathane

1.00 ml/litre

75 litre/ha


    @ 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)



E. Miscellaneous Chemical Rs.6,720.00 Annexure C


(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,      

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(Annexure C-1)  Cold Store and      

  Refrigeration -- 0.55 0.627 Commission on Sale        Agent (7%) and E.C.

(18%)-- 17.27 19.44

  Total -- 34.6 38.97 Annexure C - 1


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 - 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

= Rs.14,400/year

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

 Annexure D


 A. Salary per year Rupees.  1 Manager - 1 60,000  2 Assistants - 2 72,000    (Production, Marketing

& Office)


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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   210,000B. Office Overheads    1 Stationery 2,500  2 Postal 2,500  3 Electricity 3,000  4 Travels 2,000    Sub total   10,000C. Insurance (from 1st

year onwards)  100,000

D. Repairs   100,000  & Maintenance    

 (2nd year and onwards)


 Annexure E

Recurring Expenses

YEAR ( Lakhs)

 Annexure F


 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)

-- 69.10 77.75

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Assuming price Rs.5/Stem

 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


(Rs. in lakhs)


Net Incremental


Bank o/s at beginning

of the year

Interest @ 17%


of Interes



of Princi


Outstanding at the end


1 -68.80 51.53 8.76 -- -- 60.29


2 29.50 60.29 8.76 17.52 8.53 43.00


3 9.82 43.00 7.31 7.31 -- 43.00


4 33.33 43.00 7.31 7.31 21.00 22.00


5 9.82 22.00 3.74 3.74 3.00 19.00


6 33.33 19.00 3.23 3.23 19.00 Nil 11 Annexure I

European Community's Common QUALITY STANDARDS

 Extra Class

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


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 and other extraneous matter affecting appearance and free of development defects. Tolerance permitted upto 7 per

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Flowers which do not meet all requirements of Class-I but are whole, fresh, free of animal parasites. Slight defects such as malformation, brushing, damage, small marks, weaker and less rigid stems may be present provided 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 cut flowers have been established with the exception of mimosa. Whereas, the United Nation's Economic Commission 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 recommended standards for certain cut flowers which included carnations. The grades are known as Blue, Red and Green and 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