CULTIVATION OF CAPSICUMS IN GREEN HOUSE
(Green House Technology)
1.0 EXECUTIVE
SUMMARY :
Capsicum pepper (Sweet)
growing in India is of recent interest due to high demand for fast food dishes
in Hotels and modern Restaurants. Cultivation of capsicum is an art and
knowledge for quality product for export market. To capture International
Market, Green House Technology for growing capsicum is the basic need under
Indian conditions. Capsicum trade has become a lucrative business for global
trade in recent years. Saudi Arabia and South Korea are leading importers of
Capsicum.
There
are 4 capsicum pepper (Sweet) varieties based on their color and quality. There
are red, yellow, green and lastly black varieties have been evolved. Black
variety is of recent origin and price is twice than other varieties. Major
varieties are California Wonder, Yolo Wonder and Golden Summer which are widely
appreciated and used for export markets. These varieties are resistant to mosaic
virus. There will be need to use organic manures and natural insecticides /
pesticides as capsicum are proposed to be exported and certificate of phyto
sanitary will be needed before export formalities.
Capsicum
are used in 3 Star and 5 Star Hotels for variety of food preparations,
extraction natural colors and preparing oleoresins and oils, also it is most
common for preparation of variety of Pizzas..
It is proposed to cultivate red, yellow and black capsicum varieties in 16000 Sq.mt. green house to yield 62 MTA (3 Crops per year) per acre. Thus, the total production will be 250 MTA capsicums per year, at the total project cost of Rs.360.00 lakhs. The proposed means of financing will be loans of Rs.150 lakhs from the NHB, Rs.100.00 lakhs from any State SIDC or other Financial Institutions, Rs.20.00 lakhs subsidy from the Government and the Promoter's contribution will be Rs.90.00 lakhs.
The
green house with Fan and Pad System of cooling Design will be adopted as a
technology for cultivation. The raw materials required would be hybrid renowned
seeds of different varieties of capsicums, fertilizers, pesticides, boxes for
packing etc. which are available easily.
The
power required will be 200 KVA and water 100,000 liters per day. The project is
technically and financially viable for 100% E.O.U. The manpower required will be
50.
2.0
THE PRODUCT AND
MARKET:
The proposed sweet capsicum varieties viz. red, yellow and black capsicums of most suitable strains would be grown. There is high demand in UAE, USA, UK, Korea and Japan.
The data on present installed capacity and capacity in pipelines are not available, as this product is absolutely new to entrepreneurs.
The
demand seems to be extremely high domestically and in the International market.
However, exact statistics are difficult to procure from various sources, study
and export sources at present.
The
demand - supply gap is definitely adequate to install similar 20 to 25 units
under green house technology.
The
price per kg. of Red Capsicum and Yellow Capsicum ranges from USD $ 5.00 to 5.50
and Black Capsicum fetches maximum price of USD $ 7.50 to 8.00 in off-season.
Green Capsicum also fetches USD $ 4.00 to 4.50 per kg. in European market. The
average price per kg. USD $ 5.00 has been considered for export market. The
average yield / acre is computed @ 62.00 MTA (3 Crops) in Green House.
The
Government of India's policy for the product and Agro-based Industries are
liberal with respect to import of machinery, plants, seeds, cash incentive, draw
back replenishment, subsidy in freight etc.
3.0 TECHNOLOGY
:
3.1 As regards technology, there are two technologies suitable under Indian conditions 1) Air Ventilated Green houses, 2) Fan and Pad System Green houses. Fan and Pad System of cooling is the most ideal and is dealt with in this project.
3.2
The size of the caption project is 250 MTA of capsicums per annum. In
fact, 150 MTA is also economical size of the project.
3.3
The names and addresses of the green house builders/agents are provided
at the end of the profile.
4.0 PROCESS
:
The
soil of the site is removed up to 18", mixed with sieved F.Y.M. and small
quantity of BHC or Endrex is added. The soil surface is sterilized, refilled
with mixture, drains are prepared, erection of green house structure with LD
Polythene sheet is erected. Seedlings are transplanted, regular drip irrigation,
fogging or misting and maintaining humidity etc. are attended.
The
flow sheet of site and field operations are -
Selection of Site
―
Soil & Water Analysis
―
Removal of Surface Soil
―
Mixing with F.Y.M. + BHC.
―
Refilling soil + F.Y.M. + BHC.
―
Preparing drains & beds
―
Extension of Power
―
Installation of Green House
―
Plantation of Seedlings
―
Cover roof with 50% shading net
―
Drip Irrigation & Misting
―
Harvesting
―
Grading
―
Packing
―
Transportation through cooling chain.
5.0
CAPACITY :
The
proposed capacity of production of three strains of capsicums is 250 MTA (3
Crops per year in 4 acres) in 16000 Sq.mt. Fan and Pad System of cooling green
houses.
6.0 RAW
MATERIALS AND UTILITIES :
6.1
The important raw materials are seeds of Hybrid strains of capsicums,
F.Y.M., Castor Cakes, Natural insecticides etc.
6.2
The utilities required are -
1)
Total Power Load
200 KVA
2)
Water
...100,000 Ltrs/Day
7.0 LOCATION
:
The
proposed location to establish the unit is at alocation near an international
Airport at an Industrial area where all infrastructure facilities like power,
water, drainage, transport-refrigerated vans, cooling chain, labour etc. are
available. Fresh crops can be exported from
the Airport.
8.0 ORGANIZATION
AND MANPOWER :
The
manpower required would be -
a)
Production Manager (Agronomist)
..1
b)
Supervisors
..
..3
c)
Engineers
...2
d)
Administrative Staff
2
e)
Skilled Workers
.15
f)
Unskilled Workers
.24
g)
Others
.
...3
--------
Total
50
9.0 PLANT
AND EQUIPMENTS :
There
will be need for steel fabricated green house with Fan and Pad Cooling system,
drip irrigation, togging system, shading net 50%, filter pump and PVC pipeline,
low density stabilized polythelene sheets of 200 micron to cover roof and walls,
automation by computer system. The names and addresses of the green house
builders/agents are provided at the end of the profile.
10.0 ESTIMATED
PROJECT COST :
( Rs. in Lakhs)
i)
Land 5 Acres & Site Development
..30.00
ii)
Buildings & Green House in 16000 Sq.mt
180.00
iii)
Plant & Machinery
. 50.00
iv)
Misc. Fixed Assets
..35.00
v)
Planting Materials etc
10.00
vi)
Contingencies
.30.00
vii)
Margin Money for Working Capital
... 25.00
--------------
Total
360.00
11.0
MEANS OF
FINANCING :
The
proposed means of financing for capsicum project will be -
(Rs.in lakhs)
1)
Term loan from the NHB @ 5% rate of interest per annum
..Rs.150.00
2)
Term loan from SIDCs or other Financial Institutions @ 16%
rate
of interest p.a
..Rs.100.00
3)
Subsidy from the State Govt......
Rs.
20.00
4) Promoter's Contribution Rs. 90.00
---------------
Total
360.00
12.0 PROFITABILITY :
The cost production covers cost of seed, cost for raising seedlings,
labour cost, transport, air freight etc. Separate provision for interest and 3%
taxes on revenue have been made in the profitability.
Assumptions :
1)
The capacity utilization of the proposed unit is assumed at 60%, 80%, and
90% in the 1st, 2nd, and 3rd years respectively
and 90% in subsequent years.
2)
Out of the total harvest per year, 80% of the production would be
exportable capsicum and 20% will be marketed in domestic market.
3)
The average price per kg. of capsicum has been accounted at USD $ 5.00
4)
The revenue from domestic market has purposely not been accounted for, as
it may be a cushion for price and other variations.
5)
The rate of interest p.a. for the loans of NHB and SIDC or other
Financial Institutions have been computed at 5% p.a. and 16% p.a. respectively
for 5 years.
(Rs. in lakhs)
| SNo | Particulars | Years of Operation | |||||||||
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | ||
| 1 | Sales | 240 | 320 | 360 | 360 | 360 | 360 | 360 | 360 | 360 | 360 |
| 2 | Cost of Prod. | 72 | 96 | 108 | 110 | 112 | 114 | 115 | 117 | 120 | 120 |
| 3 | Admini. Exp. | 7.75 | 8 | 8.50 | 9 | 9.50 | 10 | 10.50 | 11 | 11.50 | 11.50 |
| 4 | Interest & Taxes | 31 | 29 | 22 | 20 | 15 | 11 | 11 | 11 | 11 | 11 |
| 5 | Overheads | 2 | 3 | 3 | 4 | 4 | 5 | 5 | 6 | 6 | 6 |
| 6 | Taxation | - | - | - | - | - | - | - | - | - | - |
| 7 | Total Exp. | 113 | 136 | 142 | 143 | 141 | 140 | 142 | 145 | 149 | 149 |
| 8 | Net Profit | 127 | 184 | 218 | 217 | 219 | 220 | 218 | 215 | 211 | 211 |
Pay-back period : 3.00 years
DSCR : 1.97
13.0
SUMMARY
AND CONCLUSIONS :
The
product is a luxury item but most popular in International Hotels and
Restaurants. In maintaining the
quality, it is suggested 8 to 10 days of storage
in freezer, without any spoilage. It is also suggested in the project to
cultivate 3 varieties of capsicums with proper product-mix based on
International price and market tie-up. As no more data is available, detailed
foreign demand may be studied for price and quantity of supply etc. from 3rd
year net profit is Rs.200 lakhs p.a.
1)
MKS Fruit Veg.
Unit
15,
Barrets
Industrial Park,
Park
Avenue, South Hall,
Middlesex.
2)
Fyffes Group Ltd.
F-231
235, Fruit & Vegetables Market
New
Covent Garden,
LONDON
SW8 5EW.
3)
Suma Fruit International Ltd.
Suite
22/23, 1st Floor,
The
London Fruit Exchange
Spital
Fields Market,
Brushfield
Street,
LONDON
E. I. 6 HB.
4)
International Fruchtimport
Gesellschaft
Weichert
& Co. Fruchthof
D-2000
Hamburg 1.
15.0
BUILDERS
OF GREEN HOUSES/AGENTS :
1)
Ammerlaan Agro Projects b.v.
2671,
LL Naaldwijk,
HOLLAND,
Zwartendijk. 52.
2)
Dalsen Horticultural Projects
Technology Supplier as well.
Wousewag
9, 2635 CG Den Hoorn,
HOLLAND.
3)
Agricultural Engineering Maasbra Holland
Groesweg
22, 5993, NN Maasbree
HOLLAND
(De Schor Industrial Estate)
4)
J. M. Vander Hoeven B.V.
Galgeweg
46, P. O. Box.82,
2690,
ABS Gravenzande,
NETHERLAND.
5)
Kirloskar, Tata and Many Others