TOPIC:CERTIFIED SEED PRODUCTION OF OPEN POLLINATED RICE

INTRODUCTION:.

Rice is the principal food crop in India. India is the main center for rice farming, production,
and consumption. In rice production, China at the first position in the world and India stands
in the second position. Because of its long history of cultivation and selection under diverse
environments, O. sativa has acquired a broad range of adaptability and tolerance so that it can
be grown in a wide range of water/soil regimens from deeply flooded land to dry hilly slopes
(Lu and Chang, 1980). In Asia, cultivars with resistance to aluminum toxicity and with
tolerance to submergence by flood water (IRRI, 1975), high salinity and cool temperatures at
the seedling or ripening stage have been developed (Chang, 1983). In Africa, cultivars with
tolerance to iron toxicity and heat constraints have also been developed and cultivated. Rice
is now grown in over 100 countries on every continent except Antarctica, extending from 50°
north latitude to 40° south latitude and from sea level to an altitude of 3 000 m.

The geographical site of the origin of rice domestication is not yet definitely known. The
general consensus is that rice domestication occurred independently in China, India and
Indonesia, thereby giving rise to three races of rice: sinica (also known as japonica), indica
and javanica (also known as bulu in Indonesia). There are indications that rice was cultivated
in India between 1500 and 2000 B.C. and in Indonesia around 1648 B.C. Rice was rapidly
dispersed from its tropical (southern and southeastern Asia) and subtropical (southwestern
and southern China) habitats to much higher altitudes and latitudes in Asia, reaching Japan as
recently as 2 300 years ago (Chang, 1983). It was introduced to points as far as West Africa,
North America and Australia within the last six centuries.

In india ,West Bengal contributes maximum production of rice. Rice is grown in around 43
million hectares area in India with an average yield of 2.56 tons per hectare. For a good
harvest, a good crop is required and to raise a good crop many factors like fertile land,
quality seed, timely sowing, transplanting, irrigation, fertilizer application, weeding,
protection from insects and diseases, harvesting, threshing, processing and storage are to be
cared for. Seed is the first input of crop production on which the performance and efficiency of
other inputs depend. Use of quality seed alone can contribute to 5-20% of higher yield in rice crop.
Therefore, in a crop production programme the role of good quality seed is very important . Though
all these factors contribute for a good crop yield, among them quality seed is a unique and
important factor that alone can enhance the yield by 20%; and without this other factors fail
to contribute to their potential. Therefore, the role of quality seed in enhancing crop
production is very important.

Every farmer should be able to access healthy seeds which are genetically pure, with high
seed vigour and good germination percentage. Timely availability of good quality seeds at
reasonable price ensures good yield and profit to the farmers. The seeds play a vital role in
agriculture and acts as a carrier of the genetic potential of varieties. Quality seed production
which follows efficient certification procedures plays a major role in the increase of food
production of our country. In the current scenario, the demand for good quality certified
seeds far exceed the availability in the market.
Indian Seed Industry is one of the biggest seed market in the world.Indian seed system is a
robust and fool proof system where so many organisations are formed which are involved in
safe-guarding the seed quality and producing different classes of seed so that the seed chain
moves smoothly and our farmers get a continuous supply of quality seed. In our country the
number of small and marginal farmers is very high, those who cannot even buy certified
seed every year due to poverty. Again, the country is unable to supply good quality seed to
around 37 % of farmers due to shortage in production of this seed through the seed chain. In
this condition, many of our farmers use their own saved grain as seed for crop production.
These farmers do not see any difference between grain and seed. Therefore, it is now time
to energise our seed production system to produce more quality seed.

OBJECTIVE:

1.Primary objective:  A wellorganized seed certification should help in accomplishing the

following primary objectives-

 Undertake the business.

 The systematic increase of superior varieties.
  To ensure the acceptable standards of seed viability, vigour, purity and seed health. 
 Provision for continuous supply of comparable material by careful maintenance.

2.Secondary objective: There are several secondary objective also. Those are-

 Avail the suitable market price for marginal farmers.

 Supporting business centre likelogistic and trading of agricultural product.
THREATS
Climate change affects all types of seed production. Seed cultivation in unfavourable
environment has many losses. Example,if there is a drought year or if there is a flood
year. But cultivation is very good in this favourable environment.

SWOT ANALYSIS:
 STRENGTHS:
 A strong team of organization who will involve in the business
 There is a scope in future as now a day there is a demand of quality seeds for hybrid
seed production
 WEAKNESS:
 Less idea about the new technology
 Less idea about the product quality
 Lack of adequate infrastructure facilities
 Inadequate tie-up with industrial units for entrepreneurship development
 OPPORTUNITIES:
 Government hand holds support
  Agri products based area
 Local and national as well as international market
 THREATS:
 Competition by private companies and agencies
 Unpredictable climate and weather leads unexpected field problems
 Big player may be entered
 New unit may be established
 Outbreak of pest and disease cause more field problems which require immediate
attention and requires lot of time and manpower

ASSUMPTION OF THE PROJECT-

A. YEARLY TARGET:

Production 100 tonnes

Area 20 hectares
B. FIXED COST:

CONSTRUCTION AREA Rs. /Sq. ft. COST

Building 500 sq. ft 1700/- 850000/-
Drying & Processing 1000 sq. ft 700/- 700000/-
Unit
Electrification - - 40000/-
Water Connection and - - 50000/-
Pipeline
TOTAL 1640000

Machine Unit Cost in Rs.

Laptop 1 20000
Printer 1 20000
Desktop 1 20000
Fan 6 6000
Light 10 5000
Electrical Goods Total Rs.71000
Pipeline 30000
Generator 1 50000
Weighting machine(100 kg capacity) 2 17000
Electric motor 1 Hp 1 7000
Grading machine 1 350000
Germinator 1 70000
Moisture meter 2 60000
Sprayer 2 14000
Printing Machine 1 250000
Submersible Pump 50000
TOTAL Rs. 969000
 Machineries & Equipment Cost:
C. VARIABLE COST:
 Rentals/year:

Land 20ha Rs. 14000/bigha Rs. 2100000

Cold storage 20 tonne Rs. 1500/unit Rs. 30000
Tractor 40 days Rs. 1000/day Rs. 40000
Total Rs.2170000
 Raw materials:

Seed(40kg/ha) 800kg Rs. 70/kg Rs. 48000

Urea 70 bags Rs. 370/bag Rs. 25900
Phosphate 100 bags Rs. 420/bag Rs. 42000
Potash 27 bags Rs. 980/bag Rs. 36460
Fertilizer(80:40:40 Rs. 94360
kg/ha)
Pesticides - - Rs. 30000
Fungicides - - Rs. 30000
Total Rs.306720

 Other Expenses/year:

Fuel (Rs. 93/lit) 20lt/ha 400lt/yr RS. 37200

Power consumption 50 unit/day 15000 unit/ yr RS. 135000
(RS. 9/unit)
Transportation RS. 40000
Packing Materials RS.30000
Branding/promotion RS.40000
Repairing & RS.30000
Maintenance
Seed certification RS.1000
Seed licensing RS.20000
TOTAL Rs. 3,33,200
Bank Interest 12%
Insurance on 3%
Construction
Salary 3%
Increment/Year
Depriciation on 10%
building
Depriciation on 15%
machineries
D. MANPOWER:

MANPOWER SALARY/MONTH SALARY/YEAR

Manager 1 RS.20000/- RS.240000/-
Sales Person 2 RS.20000/- RS.480000/-
Labour 1400 Working day RS.400/day RS.560000
TOTAL RS.1280000/-
E. SALES EXPECTION:

Year Targeted Expected Seed Selling Total Sales

Production Production Price(Rs./kg) Value(Rs.)
(Tonnes) (tonnes)
1st 50 43 110 4675000
2nd 70 60 116 6872250
3rd 100 85 121 10308375
4th 100 90 127 11460488
5th 100 90 134 12033512
6th 100 90 140 12635187
7th 100 95 147 14003999
 FINANCIAL ESTIMTATE-
COST OF 1st year 2nd year 3rd year 4th year 5th year 6th year 7th year
PRODUCTION
Total 1640000 1476000 1328400 1195560 1076004 968403.6 871563.24
Construction
Cost
Depreciation 164000 147600 132840 119556 107600.4 96840.36 87156.324
percentage on
building
Construction 1476000 1328400 1195560 1076004 968404 871563 784407
Cost at the end
to be carried
forward
Total 969000 823650 700103 595088 505825 429951 365458
Machineries &
Equipment Cost
Depreciation 145350 123547.5 105015.37 89263.2 758737.2 64492.7 54818.7
percentage on
machineries
Machineries 823650 700103 595088 505825 429951 365458 310639
cost at the end
to be carried
forward
Total fixed cost 2609000 2299650 1328400 1195560 1076004 968403.6 871563.24

Rental 2170000 2235100 2302153 2371218 2442354 2515625 2591093

cost/year
Raw material 306720 315922 325400 335162 345217 355574 366241
cost/year
Other 3,33,200 343196 353492 364097 375020 386271 397859
expenses/year
Manpower 1280000 1318400 1357952 1398690 1440650 1483870 1528386
cost/year
Total Variable 4089920 4212618 4338997 4469167 4603241 4741340 4883579
cost/year
Cost of 6698920 6512268 6367500 6259815 6185070 6139694 6120600
Production
Equity 2009676 1953680.4 1910250 1752748.2 1855521 1841908.2 1836180

Dept 4689244 4558587.6 4457250 4507066.8 4329549 4297785.8 4284420

Dept, Equity 2.33 2.33 2.33 2.33 2.33 2.33 2.33

ratio
Expected sales 4675000 6872250 10308375 11460488 12033512 12635187 14003999
value
Expected gross - 359982 3940875 5200673 5848442 6495493 7883399
profit 2023920