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Plant Nursery Project Report For Bank Loan in Indi
Plant Nursery Project Report For Bank Loan in Indi
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Introduction: Hello friends, we are back with a great information on plant nursery project report for bank loan in India, plant nursery
license in India, plant nursery setup cost, and profits in plant nursery. Due to the increasing demands for the vegetables, fruits and the
other greenery products, there is a demand for seeds and seedlings in India per year. In this pre-requisite, plant nurseries play a major
role in supplying the seeds and seedlings to meet the quality seeds or seedlings demand in India. You must get a plant nursery project
report before starting a commercial plant nursery.
Different kinds of plant nurseries target on different types of end-products by producing short rotation tree species, in turn to meet the
needs such as juice, jam, pickles, timber for furniture, plywood, pulp and paper. Hence the nurseries have become a potential tool in
producing the quality seedlings and also the plant nursery management is an important thing to execute these things in a successful
way. Waht are we waiting for? Let’s get into the project report of plant nursery.
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Fertile soils
Soils play the crucial role in setting up plant nursey units. Select well-drained, light to medium fertile soils and it is better to avoid saline,
alkaline, or water logging soils.
Irrigation source
The infrastructure to provide the irrigation source includes-Drip irrigation system, manual watering with cans, micro sprinklers for root
stocks, micro sprinklers for poly tunnels, water storage tank of 10,000 Litre capacity, and a well laid out pipeline system which has to
reach and meet all the requirements.
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Availability of labour
Plant nursery production requires highly skilled labour along with semi-skilled labour for critical inputs. They should carry out the
operations like layering, grafting, budding, pruning, etc. for the maintenance of the successful commercial plant nursery unit.
Power supply
Regular power supply has to be maintained as it is essential for operating irrigation system and other arrangements in plant nursery
units.
Propagation structures
These are required for ensuring best root growth, hardening, plant multiplication bud or graft union and other important ones. Based
on the different requirement these are classified into
Mist chambers
Mist chambers provides cool and humid microenvironment especially for softwood cuttings, perennial root crops and other hard to root
species. This mist chambers require 20-25 sq m area.
Polyhouse
Poly house set up is an area in plant nursery unit where you can find the light and humidity at an optimum level, which is required for
the development of grafted or budded plants. This requires 200 sq m poly house for a stock of around 10,000 rooted or budded or
grafted nursery plants.
Fencing
As the plant nursery area will be growing a large quantities of plants, seedlings, plantlets etc. it should be protected from stray cattle
and trespassers, by using proper fencing around the plant nursery area.
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Name and address of the key person along with the phone number who is responsible for setting up commercial plant nursery unit.
Description about the location of the land where you are planning to setup commercial plant nursery unit along with the proper
documents of the land (which should be minimum 1 ha).
Mention the reasons why you have selected this area for setting up a commercial plant nursery unit along with the findings of study
carried out in this regard.
List of plants selected to be multiplied along with the types and name of plant variety.
Component wise cost of project and quotation for setting up commercial plant nursery unit along with the source of funding.
Mentioning the source of mother plant along with the place and date of plantation.
List of districts, areas, talukas, and villages covered under your nursery setup.
Total economics of project including profitability, and costs at which plantlets or seedlings made available to farmers. Capacity of
production in producing the planting materials required.
Certificate stating that the plant nursery unit has not received subsidy from any other source.
Social benefits by the nursey units in the form of direct employment, or indirect employment or any others.
Commitment of the plant nursery organization in deploying the experts, and staff relate to project for continuity and accountability.
Detailed report about the sustainability of the project with special its reference in generating income.
Also need the signature of the in-charge; signature of head of the department/director of the institute; signature of financial advisor.
Mission of the plant nursery dedicated in providing wide variety of plants or trees.
Keyways to success.
Steps involved in how to start the commercial plant nursery, start-up requirements and expenses involved, start-up funding, total
funding required, total assets including liabilities such as current borrowings, accounts payable, and other liabilities.
Details about company ownership, the products of the plant nursery, market segmentation, market analysis, competition, sales
strategy, management details including personal plan for owners, employees, and others.
Break-even analysis should be provided at least for 3-5 years along with the profit or loss analysis.
The project balance sheet should be clear enough to understand the ratio analysis of sales growth.
Paying taxes in timely manner and listing out them in the budget sheet.
Visiting nearby plant nurseries for learning the different activities in plant nursery management
Nursery Management.
The person responsible for setting up the nursery unit should get a prior license to initiate the business.
The department will inspect the stocks from where you are getting the mother plant samplings or stockings etc. which should be an
authorised one.
They will also inspect the land documents where you are planning to setup the plant nursey along with the climatic conditions.
They will also investigate the potential market for plant nursery based on type of material which you chose to propagate.
The other important resources which they will go through includes seeds or samplings or seedlings or bundling, containers in which
they are grown, mulching, soil conditions of the land selected to propagate, equipment and implements.
They will also test your educational qualifications or the knowledge you have in propagating the plants.
Financial resources to setup the nursery like bank loans, subsidies, financial resources from private sector etc.
They will also go for a keen check of the presence of the nematodes, viral infections, vectors etc. in and around the area you have
chosen to set up the nursery.
After successful inspection of all these then they will issue a certificate to the licensed nursery.
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Costs involved in setting up plant nursery unit
Set A:
Set B:
Costs involved for purchasing the plant protection chemicals – Rs. 5,000
Total costs involved in setting up a commercial plant nursery (Set A+ Set B) – Rs. 1,200,000.
First year:
Second year:
In second year there won’t be any costs for setting up so the costs involves only set B which is Rs. 1,20,000.
You also have to include the repayment of the loan – Rs. 1,00,000.
Profit measure in second year = Rs. 4,00,000 – Rs. 2,00,000 = Rs. 2,00,000/year.
It continues in the same way in further years based on the loan you have taken from the bank, based on the setup and based on the
plant varieties you choose to propagate.
Introduction about the farmer who is willing to setup the plant nursery unit.
The list of documents which you need to submit to the bank loan includes-
8 ‘A’ land report of the location which you selected to setup a plant nursery unit.
Estimation of number of plants which you propagate to setup plant nursery setup.
Soil and water analysis report of the land which you selected to setup the nursery unit.
Buyer’s letter
Land documents of the area along with the climatic conditions that support to setup the unit.
Bank provides loan with an interest rate of 12-14% for 5-7 years repayment period in the form of EMI options for quarterly or for every six
months. It sanctions about the 67% of the loan where you need to keep the remaining percent (33%) of the amount to setup the plant
nursery unit.
Here is the list of banks which supports the farmers by giving the loans to setup the nursery units. These include – State Bank of India,
Bank of Baroda, Bank of India, Maharashtra Bank, and IDBI Bank.
After going through these entire documents and a thorough check of the field investigation, then the loan will be sanctioned based on
the requirements and the amount you have quoted to the bank.
That’s all folks about plant nursery project report and plant nursery licensing information. You might be interested in How to Grow
French Beans in Pots.
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Author: Jagdish