Lemongrass
Printer-friendly versionFormulation of the Scheme:
The scheme is formulated for individual entrepreneur or a group of individuals or company having own or lease land and able to handle the agro-based enterprise. SHG members in cluster may also take such type of scheme.
Objectives:
- To popularize non-traditional cash crop to improve socio-economic status of farmers.
- To acquire loan by able enterprising farmers for cultivation and processing of Lemongrass for oil.
Area of operation
In flood free upland situations up-to 1000 m altitude.
Technical guidance:
NEDFi R&D Centre, Khetri, Kamrup.
About the crop
Lemongrass (Cymbopogon flexuosus),
| Family: | Poaceae |
| Variety | Krishna and CKP-25 |
| Economic parts | Fresh herbs. |
| End product | Lemongrass oil at farming level. |
| Uses | Oil is the source of Citral which is used as a basic raw material for synthesis of Beta-ionone used for synthesis of a number of useful aromatic compounds and Vitamin-A. This is thus used as substitutes of ‘cod liver oil. Citral itself is used in perfumery for various grades of soaps, detergents, cosmetics and flavour agent for soft drinks. |
| Soil | Well drained deep loam to sandy loam and loamy soil, rich in organic matter, upland situations and irrespective of surface topography |
| Climate | Warm and humid climate, upto 1000m altitude from MSL receiving well distributed medium to heavy rainfall. |
| Propagation | Vegetative means by separation of slips.1-2 slips per hill. |
| Land preparation | Medium range of land preparation or as zero tillage crops in slopes |
| Gestation period | 5 months |
| Crop cycle | 4 years |
| Cropping option | As irrigated and rainfed crops. |
| Planting time | April – October |
| Spacing | Normal planting distance is 45 cm x 45 cm. |
| Plant population | 50000 slips per ha. |
| Planting method | Planting is done in row to row method in triangular fashion highly desirable in slope land. |
| Manures: | Mix well 1.5- 2.0 ton FYM / compost per acre during land preparation followed by mulching of agricultural wastes. Organic practice gives better results. |
| Irrigation | Light irrigation just after planting is beneficial if planted in dry days. |
| Harvesting | Ground level harvesting is ideal. About 4 -5 harvests in a year and 15 times harvesting in 4 years. |
| Production: | Fresh herbs 80 MT per hectare per year. |
| Oil extraction: | steam distillation process and food grade stainless steel unit is used. |
| Oil recovery: | Commercial oil recovery is 0.6%. |
| Oil production: | Average 480 kg oil per ha per year. |
| Oil Price | Presently at Rs.600/ per kg. |
| Economic size of farm | 20 acres = 8 ha = 60 bighas |
Model scheme for lemongrass cultivation and oil extraction
Economic size of farm: 20 acres = 8 ha = 60 bighas
|
Heads of expenses |
Amount (Rs.) |
|
Capital expense 1. Construction of distillation shed of size 25 ft x 16 ft x15 ft, pre-cast RCC posts/ iron posts- 8 nos, Tubular iron frame and CGI sheet roofings, brick soling floor. |
100,000/ |
|
2. Water supply system: |
60,000/ |
|
2. Cost of distillation unit: |
320,000/ |
|
3. Installation charges |
20,000/ |
|
Sub total
|
5,00,000/ |
Per ha Cost of production of Lemongrass up to oil extraction (4-years crop cycle)
| Sl | Heads of expenses | Rate/mds | 1st year (Rs.) | 2nd year (Rs.) | 3rd year(Rs.) | 4th year (Rs.) | Total (Rs) | Total mds |
|
1 |
Land lease |
|
7500/ |
7500/ |
7500/ |
7500/ |
30,000/ |
|
|
2 |
Land preparation |
3500/ ha |
3500/ |
- |
- |
- |
3500/- |
- |
|
3 |
Cost of planting material @ Rs. 0.40 per slips for 50,000 slips |
- |
20,000/ |
- |
- |
- |
20,000/- |
- |
|
4 |
Planting |
150/ |
11,250 |
- |
- |
- |
11,250 |
75 |
|
5 |
Manures and Fertilizers + applications |
-do- |
4,000/ |
5,000 |
4,000 |
4,000 |
19,000/ |
40 |
|
6 |
Weed control 1 time and Intercultural operations |
-do- |
11,250 |
11,250 |
11,250 |
11,250 |
45,000/ |
300 |
|
7 |
Plant protection |
-do- |
500/ |
500/ |
1000/ |
1000/ |
3,000/ |
15 |
|
8 |
Harvesting (total 3+4+ 4+4 =15 times in 4 years) |
-do- |
33,750/ |
45,000/ |
45,000/ |
45,000/ |
1,68,750/ |
1125 |
|
9 |
Distillation cost @ Rs. 120/ kg oil |
|
57,600/ |
57,600/ |
57,600/ |
57,600/ |
230,400/ |
2400 |
|
10 |
Marketing expenses @ 1% of gross return |
- |
2880/ |
2880/ |
2880/ |
2880/ |
11,520/ |
- |
|
12 |
Misc. expenses |
|
2770/ |
2270/ |
2770/ |
2770/ |
10,580/ |
|
|
|
Sub-Total |
|
1,55,000/ |
1,32,000/ |
1,32,000/ |
1,32,000/ |
4,02,000/ |
3955 |
|
|
Grand Total for 8 ha (Rs. In lacs) |
|
12.40 |
10.56 |
10.56 |
10.56 |
44.08 Lacs |
31640 mds |
Manpower:
|
Sl. No. |
Designation |
Numbers |
CTC per annum |
Total (Rs. In Lacs) |
|
1. |
Production Manager |
1 (One) |
1,80,000/ |
1.80 |
|
2. |
Field Supervisor |
1 (One) |
1,20,000/ |
1.20 |
|
3. |
Factory Watchman |
1 (One) |
72,000/ |
0.72 |
|
|
Total |
3 (Three) |
3,72,000/ |
3.72 |
Total Recurring Expenses:
|
Recurring expenses: |
Amount (Rs. In Lacs) |
||||
|
1. Cost of cultivation, processing and up to oil sale. |
1st year |
2nd year |
3rd year |
4th year |
Total |
|
12.40 |
10.56 |
10.56 |
10.56 |
44.08 |
|
|
2. Depreciation on Capital cost @ 10% |
0.50 |
0.50 |
0.50 |
0.50 |
2.00 |
|
3. Interest on recurring expenses @ 12% |
1.49 |
1.27 |
1.27 |
1.27 |
5.30 |
|
4. Manpower |
3.72 |
3.72 |
3.72 |
3.72 |
14.88 |
|
Total Recurring Expenses |
18.11 |
16.05 |
16.05 |
16.05 |
66.26 |
Economics of the scheme (Lemongrass cropping in 4-years crop cycle)
|
Oil yield/ income |
1st year |
2nd year |
3rd year |
4th year |
Total |
|
Oil yield (kg) |
3840 |
3840 |
3840 |
3840 |
15,360 kg |
|
Gross income from oil sale @ Rs. 600/kg |
23,04,000/ |
23,04,000/ |
23,04,000/ |
23,04,000/ |
92,16,000/ |
|
Total Recurring Expenses |
18,11,000/ |
16,05,000/ |
16,05,000/ |
16,05,000/ |
66,26,000/ |
|
Net Return |
4,93,000/ |
6,99,000/ |
6,99,000/ |
6,99,000/ |
35,90,000/ |
Financial assistance requirement: Capital cost in 1st year + 1st year Recurring cost = (Rs. 5.00+Rs. 18.11) = Rs. 23.11 Lacs
Assumptions:
- Cultivation and processing as per package of practices.
- Man-days rate as per prevailing rate.
- Yields and selling rates calculated at lower most rates.
- Planting materials shall be collected from Registered Nurseries / Govt. Nurseries of genuine types/ varieties.
- Marketing factors are considered during crop selection.
- Processing by standardized methods only.
- Value of spent materials is not included in any calculations.
- Promoter’s leased land only.
- Returns calculated out based on existing market rates only.
- Crop insurance not included.
- Garden registration, sale tax if any impose by Govt. not included.
