Plant Nursery Project Report for Bank Loan in India

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.

A guide to plant nursery project report for bank loan in India

Plant nursery is a well-designed site which produces healthy and quality seedlings that are developed and grown under favourable conditions and these are maintained well until they are ready for planting in the fields. According to the survey by State of Indian Agriculture at present there are about 10,000 to 13,000 registered nurseries which are registered under public and private sectors meeting 40-50% of the requirements. Hence this point has become the most crucial one to start or plan a nursery business setup. This blog provides you all the details to plan nursery project report for bank loan in India.

A guide to Plant Nursery.
A guide to Plant Nursery.

Plant nursery project report requirements to setup the unit in India

These are the requirements to set up plant nursery units, which includes selection of agro-climatically suitable location, fertile soils, irrigation source, availability of labour, power supply and the project components includes propagation structures, mist chambers, poly house, shade net area, mother plant garden, root stock seed beds, tools and implements, fencing, and  maintenance requirements.

Selection of agro-climatically suitable location for plant nursery unit

For setting up a commercial plant nursey production unit, you need to select an area which is agro-climatically suited for the cultivation and production of envisaged crops. Make sure that the area should be well connected to the transport. You need to avoid selecting the areas which are prone to natural calamities. If you are confused to select the location you can seek the guidance of district agriculture or horticulture departments for setting up the ideal location of the plant nursey units.

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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.

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.

Shade net area

Shade net area is essential to create microclimate to acclimatize and to attain hardening of layered or budded or grafted plants. This area is protected from direct sunlight, heavy rainfalls, and other extremities. This requires 500 sq m of area.

Mother plant garden

Mother plant garden is the basic requirement to set up commercial plant nursery unit. Mother plant should be protected from pest diseases and other infection. These mother plants should be sourced from authentic government plant nurseries or from agriculture research units or from reputed registered plant nurseries. The mother plant garden requires 6,000 sq m of area which can afford the space for 1500 mother plants of different varieties if crops based on the demand.

Root stock seed beds

These are also called plant nursery beds which are used in raising root stock seedlings. It requires a working area of 60 cm between the beds to undertake the activities like sowing, weeding, plant protection, watering and easy uprooting of root stock plants.

Pot mixture preparation

Pot mixture is done using the inputs like soil, leaf mold, manure, fertilizers, etc., in the pots for the better growth and establishment of nursery plants. The FYM, leaf mold and soil are mixed in proportion of 2:1:1 and are filled in the pots or polybags. For performing potting operations an area of 30-50 sq m of land is utilised.

Tools and implements

Plant nursery operations requires special tools such as grafting knives, budding knives, and the implements includes sprayers along with the equipment like wheel barrows for moving the potted plants with the nursery area.

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.

Project proposal for setting up commercial plant nursery unit

The project proposal for plant nursery should be routed through state Horticulture Mission along with their recommendation. This requires the following things to submit the proposal.

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Plant Nursery Project Proposal.
Plant Nursery Project Proposal.
  • Name and address of the commercial plant nursery unit.
  • Mention the activities performed in the plant nursery unit.
  • Name and address of the key person along with the phone number who is responsible for setting up commercial plant nursery unit.
  • Briefing about the plant nursery unit or regarding your project.
  • Objectives of the 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.
  • Area of operation with special recommendation from state Horticulture Mission.
  • 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.
  • List or number of farmers benefitted by your plant nursery units.
  • 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.
  • Mentioning the SWOT analysis.
  • Implementation schedule of the commercial plant nursery unit.
  • Also need the signature of the in-charge; signature of head of the department/director of the institute; signature of financial advisor.

Commercial plant nursery project plan

Commercial Plant Nursery.
Commercial Plant Nursery.

This requires the details such as

  • Objectives of the plant nursery set up
  • Mission of the plant nursery dedicated in providing wide variety of plants or trees.
  • Keyways to success.
  • Summary about the plant nursery set up.
  • 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.
  • Total plant investment, total capital, total funding.
  • 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.

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Management of plant nursery units

This includes the following steps which has to be taken care of-

  • Potting the seedlings
  • Providing proper manuring and irrigation to the seedlings or plantlets
  • Learning different propagation techniques for multiplying useful plant species
  • Weed control mechanisms and methods
  • Preventive measures against heat and cold
  • Packing of nursery plants
  • Measures followed in controlling different kinds of diseases, infections etc.
  • Sale management especially during rainy season
  • Proper management of mother plants
  • Visiting nearby plant nurseries for learning the different activities in plant nursery management

    Nursery Management.
    Nursery Management.

How to get the plant nursery license in India

For getting license to set-up plant nursery unit in India you need to pay a challan of Rs. 100/- in the name of state director of horticulture or in any government treasury, or state bank of India. The license will be initially provided for a period of 3 years and is further extended after the submission of renewal application. Licensing requirements for plant nursery units includes the following-

  • 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.
  • Testing for following proper pest control methods.

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:

Costs involved in land development – Rs. 60,000

Costs involved in preliminary works – Rs. 50,000

Costs involved in poly house construction – Rs. 7,50,000

Costs involved in water supply arrangements – Rs. 65,000

Costs involved in irrigation and fertigation systems – Rs. 65,000

Costs involved in construction of fencing – Rs. 50,000

Costs involved in construction of store room – Rs. 40,000

Costs involved in purchasing creeper and trailing rope – Rs. 20,000.

Set B:

Costs for fertilizers and manures – Rs. 20,000

Costs for micronutrients – Rs. 20,000

Costs involved for purchasing the plant protection chemicals – Rs. 5,000

Costs involved in packaging plants – 5,000

Costs involved in transportation charges – Rs. 10,000

Labour charges – Rs. 30,000

Miscellaneous charges – Rs. 10,000

Total costs involved in setting up a commercial plant nursery (Set A+ Set B) – Rs. 1,200,000.

Profits in commercial nursery plant set up

Income generated by plant population, plantlets, seedlings, total production – 4,00,000

First year:

Total cost in first year – Rs. 1,200,000

Total income from sale – Rs. 4,00,000

First year – Rs. 4,00,000 – Rs. 1,20,000 = Rs. – 8,00,000.

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.

How to apply for bank Loan for plant nursery setup

The initial setup for a plant nursery unit approximately costs 12-15 lakhs, which includes cost per acre. Many banks are providing loans to setup plant nursery units to the farmers. To get a loan from the bank you need to submit the following project report which needs the following-

  • Introduction about the farmer who is willing to setup the plant nursery unit.
  • Objective for plant nursery
  • Technical analysis of the plant nursery unit
  • Economic analysis for setting up the plant nursery unit.

The list of documents which you need to submit to the bank loan includes-

  • A detailed Project report for setting up plant nursery unit.
  • 8 ‘A’ land report of the location which you selected to setup a plant nursery unit.
  • 7/12 of the land report of the plant nursery unit.
  • Estimation of the poly house construction of plant nursery unit.
  • Blueprint of the poly house in the plant nursery unit.
  • Estimation of number of plants which you propagate to setup plant nursery setup.
  • Irrigation setup inputs and costs involved in setting up a nursery unit.
  • 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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