Tuesday, July 31, 2012

SESAME SEED SCENARIO IN INDIA


Production and Market of sesame seed in India

India had been a dominant and one of the oldest producers of sesame in the world. Sesame seed provides a traditional source of oil for many communities in India. The country produces around 680000 metric tons of sesame seed annually and stands at the second place in terms of production. The country also ranks 1st in the context of the area covered under the cultivation of the crop. The states, Gujarat and West Bengal account for the maximum production in the country producing 2 lakh tons sesame seeds every year. The list of all the major sesame-producing states in India is shown below
  • Gujarat
  • West Bengal
  • Rajasthan
  • Tamil Nadu
  • Orissa
  • Madhya Pradesh
  • Andhra Pradesh
  • Maharashtra
  • Uttar Pradesh
  • Punjab
  • Karnataka
India produces a wide variety of sesame seeds differing in colors, size, oil content etc. the eastern part of the country generally produces seeds of inferior quality in colors like red and black. But the western part of the country produces a much superior quality sesame seeds mostly white in color. The production figure of sesame in the country is a highly variable figure as the production is largely dependent on the monsoon and the rainfall level.
Indian market
The sesame plant owes its origin to the Indian subcontinent and that’s why the crop has a vital link with the country. The uses that the crop offers were spread through out the world from India only. Various Hindu legends tell about how the seeds were used as flavouring agents and as a source of oil in the ancient time. The weather conditions in India also suit the crop and that is why the country is one of the largest producers of sesame. The country is positioned at the second place in the list of largest sesame seed producing countries. India’s annual average production hovers around 680000 metric tons contributing around 22% in the world’s total production. Gujarat and West Bengal are the major producers. In context of consumption of the crop, India again is one of the major sesame consuming countries of the world having sesame oil consumption figures 1.6 lakh metric tons in 2004-05.
In the world market for sesame, India has a reputation of being a net exporter. The country is one of the largest exporters of sesame exporting around 5.4 lakh metric tons sesame annually. As the production in India is sufficient to satisfy the domestic consumption demand, the left over sesame i.e. around 25% of the total production is exported to various importing nations of the world. The countries that forms part of the market for Indian sesame are
  • Germany
  • Turkey
  • Netherlands
  • United States of America
  • Greece
  • Hong Kong
  • Israel
  • China
  • United Kingdom
  • United Arab Emirates
In India the seeds are valued on the basis of their colour. The seeds having whitish colour are considered to be of good quality and having high oil content and the seeds of different colour are considered to be of inferior quality.
The major trading centre in India where sesame seed is traded is the Saurashtra region of Gujarat. The major states where sesame seed oil is traded are Tamil Nadu and Kerala.

Sesame seed is traded in the Indian Commodity exchanges namely
11.      Multi Commodity Exchange of India ltd
22.   National Commodity & Derivatives Exchange ltd
33.     National Multi Commodity Exchange of India ltd.


Monday, July 30, 2012

SEASAME SEED CULTIVATION IN INDIA


Sesame cultivation:

Sesame is an East Indian flowering plant that comes from the family of Pedalliaceae and the genus Sesamum. The plant is a tropical annual herb having white and purple flowers. It is renowned for its seeds, which are a source of very useful sesame oil and are also used as a flavouring agent. It is an erect herb that bears tiny, flat, nutty flavoured seeds that are oval in shape. Moreover, the seeds come in several colours like red, white, black, yellow etc depending upon the variety of the seeds. As a condiment, the seeds had added a slight crunchy flavour to the preparations since ages, as it was one of the earliest flavouring agents known to man.
Sesame seed is one of the oldest condiments the human race has ever known. The sesame plant had been grown since ages in various tropical areas of the world since prehistoric times and had been used as a flavouring agent. Though the origination of the sesame is a topic that is subject to controversy, some of the historians believe that the plant originated on the lands of Indian subcontinent as the earliest references regarding this plant and the flavouring agent are given in the early Hindu legends. Also, some legends also describe the origination of sesame in their own way. One of those legends mentions that when the world was to be created, the gods consumed wine prepared from sesame seeds.
Initially sesame seeds were only known for the use of condiments and for oil and wine. Its other uses as medicine or perfumes were discovered much later with time. The sesame travelled to the Middle East from India with the help of ancient traders and wanderers. It still forms a significant part of their culture and cuisine. The earliest use of sesame oil was traced back to around 3000 BC in the Middle East. The Europeans encountered the seed when it was imported from India in the 1st century AD. The use of sesame seeds in baked foods was started by the early Egyptians. It became popular world over even before the beginning of the 16th century and the Africans introduced it into America in the 17th century.
Sesame plant is one of those plants that thrives in the tropical conditions and are easily adaptable to the environment. That is why it is mostly found in the countries lying in the tropical belt of the world. Sesame is a drought resistant annual plant and yields maximum when grown at temperatures 25 to 27 degree Celsius. Sandy loam, well-drained soil type with alkalinity ranging from 5.5 to 8 is required for the efficient performance of the plant but the crop can be grown on the various other soil types also. Many a varieties of the plant are multi branched and the other less branched and it gains a height of 20 to 60 inches. White to pale-rose, bell shaped flowers begin to occur in 6 to 8 weeks of plantation and the leaves are generally variable in size. The sesame seeds are derived from the fruit of the plant, one fruit containing 50 to 100 seeds. Most of the harvesting is done manually making it basically a commercial crop the cost being quite nominal.
The plant does not survive water logging or wet conditions. In India, sesame is available throughout the year as it is grown both in the winter as well as summer season, most of it cultivated as kharif crop. Northern part of the country produces its entire sesame yield as kharif crop while the southern part of the country produces the same as both kharif and rabi. 

Sunday, July 29, 2012

SESAME SEED SCENARIO IN WORLD


Sesame seed export and import scenario:

Sesame seed has ever been known for the various uses it offers. The seeds of the sesame plant have been used as a flavouring agent since the ancient times. Sesame seeds are rich in proteins, fats, carbohydrates, fibers and other minerals and vitamins. In many of the cuisines over the world especially in Middle Eastern countries, it plays a quite significant role as many of the dishes are totally based on its crunchy flavour. Sesame seeds offer a high level of oil i.e. around 55% of its total mass. The oil derived is needed for a number of purposes, some of the domestic purposes are cooking purposes, preparation of salads, and the other industrial applications may be listed as in the production of margarine, soaps, pharmaceuticals, paints and lubricants. The residue left after the crushing of the seeds to obtain oil is known as the oil seed cake and that forms part of the feed for livestock.
The total global production of sesame seed sums up to around 30 lakh tons annually, China being the highest seed producer. The production of the seeds is somewhat concentrated in the Asian and African continents and the topmost five countries indulged in the production of sesame accounts for the majority of share in the total production. The production as well as consumption of sesame seeds has been in the up trend since the last decade and both the figures are rising steadily.
World trade figures in sesame seeds are 5 to 6 lakh tons annually. As already mentioned that the production of this condiment is concentrated in a few countries, it has resulted in for the concentrated exports also. Only the major producing countries dominate sesame seed exports and the major exporters are listed below
  • India
  • China
  • Mexico
A large number of countries import sesame seeds to fulfil their domestic consumption demand. Japan leads the list with an importing figure of around 165000 tons of seeds every year followed by Egypt with around 86000 tons. The list of the major sesame importing nations is
  • Japan
  • Egypt
  • South Korea
  • United States of America
  • Netherlands
  • China
  • Syria
  • Saudi Arabia
  • Greece
  • Israel
  • Mexico
  • Germany
Sesame is produced in around 65 countries of the world. The production of sesame seeds in the world is dominated by a few countries that lie in the African and Asian continents. All the major producers of the seed produce a total of around 30 lakh tons annually. China produces the maximum out of them all sharing approximately 25% share in the total world’s production. The 5 topmost producing countries contribute to around 70% of the total production done in the world. The production level has grown steadily over the last decade and is still rising the same way. The list depicting the most important sesame producing countries with their production figures in the year 2005 is mentioned below
  • China (725470 metric tons)
  • India (680000 metric tons)
  • Myanmar (550000 metric tons)
  • Sudan (300000 metric tons)
  • Uganda (110000 metric tons)
  • Nigeria (75000 metric tons)
  • Pakistan (68000 metric tons)
  • Ethiopia (65000 metric tons)
  • Bangladesh (50000 metric tons)
  • Central African Republic (42800 metric tons)
  • Thailand (42000 metric tons)
  • Tanzania (41000 metric tons)
  • Egypt (37000 metric tons)
  • Guatemala (35049 metric tons)
  • Chad (35000 metric tons)
  • Paraguay (33300 metric tons)
  • Iran (28000 metric tons)
  • Senegal (24130 metric tons)
  • Turkey (23000 metric tons)
  • Mexico (22593 metric tons)
Some time ago, India was enjoying the topmost position in the list but china’s improvement in the production and India’s slow steady growth allowed china to take over the lead from India.

Wednesday, July 18, 2012

GOVERNMENT SUBSIDY SCHEME ON COLD STORAGE PROJECTS


Capital Investment Subsidy Scheme for construction/ expansion/ modernization of Cold Storages and Storages for Horticultural Produce.

Objectives:
       Construction/expansion /modernization of cold storages and storages for horticultural produce to minimize post harvest losses

Eligibility:

       Cooperatives, Companies, Corporations, Partnership and Proprietary firms,

       Agricultural Produce Marketing Committees/Boards,
       Agro-Industries Corporations and Growers' Associations.

Subsidy:
Subsidy is back-ended capital subsidy

The subsidy will be available @ 40% of the Capital cost of project in general areas and 55% in case of Hilly & Scheduled Areas.
However, the subsidy will be available for maximum storage capacity of 5000 MT and the rate will vary from Rs 1000/- to Rs 32000/- per MT depending upon the type of Storages.


In 2016 Government Proposed changes in Cold Storage Subsidy:


In 2016 changes in GOVERNMENT SUBSIDY ON COLD STORAGE MODERNIZATION

In 2016 changes in GOVERNMENT SUBSIDY ON COLD STORAGE TECHNOLOGY ADDING

 For Government Subsidy, Model Project Report of 5000 MT Cold Storage




Monday, July 16, 2012

GOVERNMENT SUBSIDY SCHEME ON AGRI-MARKETING INFRASTRUCTURE PROJECTS


Scheme for Strengthening of Agricultural Marketing infrastructure, grading and standardization

Nodal Agency: Directorate of Marketing and Inspection


Objectives:
       To provide additional agricultural marketing infrastructure
       To promote competitive alternative agricultural marketing infrastructure by inducement of private and coop. sector investments
       To strengthen existing agril marketing infrastructure to enhance efficiency
       To promote direct marketing so as to increase market efficiency
       To provide infrastructure facilities for grading, standardization and quality certification of agricultural produce.
       To promote grading, standardization and quality certification system for giving a major thrust for promotion of pledge financing and marketing, credit, introduction of negotiable warehousing receipt system and promotion of forward and future markets
       To promote direct integration of processing units with producers.
       To create general awareness and provide education and training to farmers, entrepreneurs and market functionaries

Eligibility:
          Individuals, Group of farmers/ growers/ consumers, Partnership/Proprietary firms, Non-Government Organizations (NGOs), Self Help Groups (SHGs).
       Companies, Corporations, Autonomous Bodies of the Government, Cooperatives, Cooperative Marketing Federations, Local Bodies, Agricultural Produce Market Committees &  Marketing Boards.

Subsidy:
          33% for NE States, States of Uttarakhand, Himachal Pradesh, Jammu & Kashmir, Hilly and Tribal areas/ SC & STs and their cooperatives.
          25% for others.
       Maximum amount of subsidy shall be restricted to Rs.50 lakh for each project.  In the case of North Eastern States, hilly and tribal areas, in the States of Uttarakhand, Himachal Pradesh, Jammu & Kashmir and to entrepreneurs belonging to SC/ST and their cooperatives, maximum amount of subsidy shall be Rs.60 lakh for each project.
       In respect of infrastructure projects of State Agencies, there will be no upper ceiling on subsidy to be provided under the scheme.

Subsidy is back ended. 

Sunday, July 15, 2012

GOVERNMENT SUBSIDY SCHEME ON SEEDS PRODUCTION AND DISTRIBUTION PROJECTS


Scheme for providing credit for projects for Development and Strengthening of Infrastructure Facilities for Production and Distribution of seeds

Nodal Agency: National Seeds Corporation (NSC) 

Objectives:
       To provide credit for projects for development creation of infrastructure for seed production, i.e, seed cleaning / grading / processing / treating / packaging, seed storage units, seed testing labs, etc.

Eligibility:
       Individuals, Private Companies, Corporates, Self Help Groups (SHGs) and Seed Cooperatives.

Subsidy:
       25% with a maximum of Rs.25 lakh per unit. 
Subsidy is back ended.

Saturday, July 14, 2012

GOVERNMENT SUBSIDY SCHEME ON RURAL GODOWN OR AGRI-WARE HOUSE


Capital Investment subsidy Scheme for construction/ renovation/ expansion of rural godown 

Nodal Agency: Directorate of Marketing and Inspection

Objectives:
          Creation of scientific storage capacity with allied facilities in rural areas for storing farm produce, processed farm produce  and agricultural inputs;
          promotion of grading, standardization and quality control of agricultural produce to improve their marketability;
          prevention of distress sale immediately after harvest by providing the facility of pledge financing and marketing credit; 
          strengthen agricultural marketing infrastructure.

Eligibility:

 Individuals, farmers, Group of farmers/growers, Partnership/ Proprietary firms, Non-Government Organizations (NGO’s), Self Help Groups (SHGs).
          Companies, Corporations, Co-operatives, Local Bodies other than Municipal CorporationsFederations, Agricultural Produce Marketing Committees, Marketing Boards and Agro Processing Corporations.
    Assistance for renovation of rural godowns will be restricted to godowns constructed by cooperatives only.

Subsidy:

    33.33% of the capital cost of the project in case of projects located in North – Eastern States,  hilly areas and those belonging to Women Farmers/ their self help groups / co-operatives and SC/ST entrepreneurs & their self-help groups/ Co-operatives subject to a maximum ceiling on subsidy of Rs.62.50 lakh
   25% of the capital cost of the project  to all categories of farmers (Other than Women Farmers), agriculture graduates, cooperatives and State/ Central Warehousing Corporations subject to a maximum ceiling on subsidy of Rs. 46.87 lakh. 
 15% of the capital cost of the project to all other categories subject to a maximum ceiling on subsidy of Rs. 28.12 lakh; and
  25% of the capital cost of the project for renovation of godowns of cooperatives with assistance from NCDC.


Subsidy is back ended.

Friday, July 13, 2012

PROJECT ON MINI FLOUR MILL


Flour Mill Project

There are 812 roller flour mills in our  country producing  approximate 25 million tonnes,  of
milled cereal products worth Rs. 1200 crores. Flour Mills can be installed with minimum capacity of 30
TPD  of raw material crushing  capacity per day to maximum 1000 TPD.  The capacity  suggested in this
report is for mini flour mill i.e. 30 tonnes  of raw  material crushing capacity per day.  As per CII mckinsey
survey it is estimated that by 2005 the market for branded Atta has grown to Rs. 15000 crore.

B. MARKET POTENTIAL

Whole wheat flour is used  in making Chapaties, Puries, Parotha and other
roasted cereal based products. Wheat flour or Maida is a basic raw material for making
Bread, Biscuits Cakes and other bakery products.  Sooji / Rava is used in many
sweetmeat products. Bran separated on milling is used as cattle feed. The products
sold under brand names are very few. The concept for branded cereal flour products is
now increasing. The big giants like Hindustan Lever, NEPC Agro, Nirma etc. have
jumped in to this lucrative industry.

C. BASIS AND PRESUMPTIONS
1. It is presumed that the unit will run three  shift per day and 300  working days per
annum.
2. The following extraction rates are presumed :
Maida  50 %
Sooji    12 %
Atta      20 %
Bran     18 %
Extraction rates are only suggested. Miller can change according to demand,
Wheat quality & climatic conditions.
3. Labour wages have been taken as per mar

Different varieties of wheat may be blended for producing desired end product.
5. The rate of interest has been taken 14% on an average both for fixed investment
and working capital.
6. The rates quoted in respect of Machinery/equipment raw materials are those
prevailing at the time of preparation of report and are likely to vary from place to
place and supplier to supplier and necessary changes are to be made as and
when required.

FINANCIAL ASPECTS.

1. Land  & Building

Land – 2000 sq. mtr. @ Rs. 350/- per sq. mtr. 7,00,000/-4
Built up area for the plant and Machinery including,Storage binns for wheat conditioning up with 3 stories
(ground +2) having 36” height, 750 sq. mtrs. @ Rs. 1500/ sq. mtr.,  11,25,000/-
150 sq. mtr. other construction for office, laboratory etc. @ 1500/- sq. mtr. 2,25,000/-

Total cost of Land  & Building Rs.     20,50,000/-

2. Machinery & Equipments.

1. Single bucket elevator without belt and bucket 7 Nos.@44,000/-  3,08,000/-
2. Reel machine (3 segment) 1Nos@ 34,500/- 34,500/-
3. Rotory seperator with aspiration channel 2 Nos@ 96,000/- 1,92,000/-
4. Scourer machine with aspiration channel 2 Nos@ 68,000/- 1,36,000/-
5. Intensive dampner 1nos@ 45,000/- 45,000/-
6. Rotometer 1 Nos@ 20,000/- 20,000/-
7. De-Stoner without fan & cyclone 1Nos@ 70,000/- 70,000/-
8. Indent cylinder 1nos@ 99,000/- 99,000/-
9. Screw conveyour 7 m 1500/m, 4.5 m 1500/m 40,000/-
10. Dust cyclone with airseal dia 1120 2Nos@ 19,000/- 38,000/-
11. Dust cyclone with airseal dia  960 3Nos@ 18,000/- 54,000/-
12. L.P. Fan for Ist Cleaning  1 Nos@ 28,000/- 28,000/-
13. L.P. Fan for Main Cleaning  1Nos@ 22,000/- 22,000/-
14. L.P. Fan for DE  stoner  1Nos@ 22,000/- 22,000/-
15. L.P. Fan for final Cleaning  1Nos.@ 24,000/- 24,000/-
16. Magnets 6”*12” 4Nos@ 2,000/- 8,000/-
17. Silogate  10 1Nos@,650/- 16,500/-

MILLING SECTION

18. Roller Mill body 3nos.@ 120,000/- 3,60,000/-
19. Rolls dia 250 * 1000 mm (Indian) 6nos.@  35,000/- 2,10,000/-
20. Roll Grooving & spindle cutting  6 set@ 3200/- set 19,200/-
21. Plansifter 8 feed /16 sec. 1Nos.@ 1,70,000/- 1,70,000/-
22. Purifier 1Nos.@ 55,000/- 55,000/-
23. Bran – finisher 1Nos.@ 19,000/- 19,000/-
24. Pneumatic lifts  14 set@ 17,500/- 2,45,000/-5
25. Tripple worm 8 mt. Each 3 set@ 1,800/- m 5,400/-
26. L.P. Fanpurifier 1Nos.@ 28,000/- 28,000/-
27. Dust cyclone dia 1120 1Nos.@ 19,500/- 19,5 00/-
28. H.P. Fan 1Nos.@ 49,000/- 49,000/-
29. Supper cyclone 2 set @ 27,500/- 55,000/-
30. Bolting cloth lot 66,000/- 66,000/-
31. Misc. accessories such as inspection,cover & joint range etc.1Nos.@ 14,000/-
32. Electrical motors 6,00,000/-
33. Electric pannel board fitted with starter main switches, cables, cable fittings, volts and AMP meters,  AC.B  capacitors etc. 4,50,000/-
34. Reduction gears standard make 1,60,000/-
35. V-Groove, Pulleys, Couplings, V-Belts etc. 66,000/-
36. Errection Material such as angle, Channel Sheet, Iron etc. 4,00,000/-
37. Tools and other equipment required during Errection 80,000/-
38. Consumable items such as Nut, Bolt, Gas, and Welding Rods, Namda, Fevicol etc. 38,000/-
39. Weighing scale 4 Nos.  40,000/-
40. Errection and Consultancy charges.  2,50,000/-

Grand Total    Rs.  45,93,900
CST @ 2% along with  C form  91,254
Office  furniture and equipments 50,000/-

Total Rs.    47,03,954
Say Rs. 47,04,000

3) Pre – Operative Expenses. = 1,00,000/-
Total Fixed Capital     (1 + 2 + 3 ) = 68,54,0006

4) Working Capital ( Per  Month).

i) Personnel:
S.No. Designation. No. Salary, (PM) Total (Rs.)
1. Miller–cum-Chemist. 1Nos@ 10,000/- 10,000/-
2. Plant Foreman 1Nos.@ 7000/- 7,000/-
3. Electrician 1Nos.@ 5000/- 5000/-
4. Operator  3Nos.@ 4000/- 12,000/-
5. Un-Skilled Workers. 10Nos.@ 2500/- 25,000/-
6. Accountant 1Nos.@ 6000/- 6000/-
7. Clerk / Store keeper 2Nos.@ 4000/- 4000/-
8. Sales Supervisor 1Nos.@ 6000/- 6000/-
9. Peon 1Nos.@ 2500/- 2500/-
10. Security Personal 1nos.@ 2500/- 2500/-

Total    : 84,000
Add Pre-requisites @ 10% of salary. 8,400
Total    : 92,400

ii) Raw Material. (Per Month).

1. Wheat blended of different category 750 MT @ Rs.1100/-ton 82,50,000
2. Gunny Bags 8200 No. @ Rs. 15/- each. 1,23,000

Total Rs.  83,73,000

iii) Utilities (Per Month) ;-        
 
1 Power  :  300 HP x .746 x 24 X 25 x 80% = 107424 KWH @ Rs. 5.25 per unit.5,63,976
2 Water  3000 litres  per day (from bore well)

IV) Other Contingent Expenses (P.M.) (In Rupees.)
1. Postage and Stationery. 1,000/-
2. Telephone Charges 1,000/-
3. Consumable Stores 2,000/-
4. Repair & Maintenance. 2,000/-
5. Advertisement & publicity. 3,000/-
6. Transport Charges. 60,,000/-
7. Other Miscellaneous Expenses.  1,000/-

Total  70,000/-7

v.) Working Capital   (Per Month): Rs. 90,99,376
vi) Working capital for 2 months. Rs. 1,81,98,752/-

5) Total Capital Investment.
i. Fixed Capital. 68,54,000
Ii. Working capital for 2 Months 1,81,98,752,250

Total Rs. 2,50,52,752

(G) FINANCIAL ANALYSIS.
1. Cost of Production (per year).
           (Rupees.)
1. Total recurring cost per year. 10,91,92,512
2. Depreciation on building @ 5% per annum. 67,500
3. Depreciation on machinery @ 10% p.a. 4,45,400
4. Depreciation on furniture and others fixed asset  @ 20% 10,000/-
5. Interest on total investment @ 14% per annum 35,07,385/-

Total  Rs. 11,32,22,797

2. Turnover (per year).

Maida  4500 MT @ Rs. 14,500 / MT 6,52,50,000
Sooji    1080 MT @ Rs. 14,500 / MT 1,56,60,000
Atta      1800 MT @ Rs. 13,500 / MT 2,43,00,000/-
Bran     1620 MT @ Rs. 9,500 / MT 1,53,90,000/-

Total Rs. 12,06,00,000

3 Net Profit per year (before Income tax)( Figures in Rs. Lac.)
Profit    =  Sale  - Production Cost.= 12,06,00,000   -   11,32,22,797 = 73,77,203

4. Net Profit Ratio =   Net Profit   x    100

Turn over per year
              =   73,77,203   x  100  =   6.12%
                         12,06,00,000
5. Rate of return
       =   Net Profit x   100 8
            Total Investment
       =   73,77,203    X 100
                 2,50,52,752
       =   29.45 %

6. Break Even Point.
Fixed Cost (per year). (RUPEES.)
1. Depreciation on machinery @ 10% p.a 4,45,400
2. Depreciation on furniture & other fixed assets.  10,000
3. Interest on total investment. 35,07,385
4. 40% of salary & wages. 4,43,520
5. 40% of other expenses. 3,36,000
6. 40 % of utilities. 9,02,362

Total Fixed Cost. 53,08,667

BEP  =  Fixed Cost  x 100                  
    Fixed cost  + Profit
=  5308667 x 100
    53,08,667 + 73,77,203
=  41.85%




PROJECT PROFILE ON MINI FLOUR MILL

Thursday, July 12, 2012

GOVERNMENT SCHEME ON AGRIBUSINESS FINANCE


Scheme For Financing Agri-Business Projects With Venture Capital Assistance From Small Farmers' Agri-Business Consortium (SFAC) 

Nodal Agency: Small Farmers' Agri-business Consortium (SFAC)



Objectives:
       To help promote investments in agri-business projects that are dependent on agriculture and allied activities and which will lead to increased rural employment, rural income and encourage farmers to diversify into high value crops. 

Eligibility:
Individuals/ producer groups /organizations which meet the following criteria:
       Projects dependent upon agricultural or allied produce,
       Projects provide direct access to producers as assured market,
       Projects encourage farmers to diversify into high value crops to increase farm incomes,
       Bank has accepted project for grant of term loans after satisfactory techno-commercial feasibility,
       Project must be over Rs.50 lakh in size(  Rs. 25 lakh in case of NE States and other Hilly Areas).  

Venture Capital:
The amount of Venture Capital Assistance shall be the lowest of any of the following :- 
       10 per cent of the project cost  assessed by the bank OR
       26 per cent of project equity OR
       Rs.75.00 lakh.  

Wednesday, July 11, 2012

CASTOR MARKET IN INDIA


Indian market
Oils and oilseeds have played an important role in the Indian economy for a long time. India produces a large variety of oilseeds including rapeseed, groundnut, sunflower etc that earn the country huge share of foreign exchange. Castor seed is a non-edible oilseed that is produced for its very useful oil.
India is the largest producer of castor seed and oil. It contributes about 8 lakh tons of castor seed with an approximate of 65% share and 3 lakh tons of castor oil with an approximate of 51 % share in the world total production. Gujarat is India’s leading castor producing state constituting to around 86% of the country’s total produce. India nearly consumes ¼th of its total production and exports the rest but it still is the second largest consumer in the world. The major sources of demand of castor oil are the various industries like soap, lubricant and paint industries and the demand of the oil is spread all across of country. This crop is grown over 6.25 lakh hectares of the country.
As it is mentioned before, India exports 75% of its total production of castor and its derivatives. India exports around 3 lakh tons of castor oil that is worth Rs 700 crores and stands at the top position in the list of major castor oil exporting countries. India exports castor oil in two forms namely First Special grade and Castor Oil Commercial. This figure of exports from India is on a rising trend and much of the world’s requirements are fulfilled by India only. The countries that imports castor oil from India are
  • European Union
  • USA
  • Japan
  • China
  • Thailand
Though, India is a dominant player in the world market, it is just a price taker and not a price setter due to its poor infrastructure but it has the capability to improve on the exports of the derivatives of castor and overcome this limitation.
Market Influencing Factors
  • Production and acreage variations
  • Monsoon and rainfall level
  • Size of the yield level of other countries
  • Prices of other competitive oils
  • Demand of the importing countries and domestic demand
  • Seasonal price variations
  • Hoarding and black-marketing
  • Carry over stocks
  • Development of new uses of the oil
The major trading centers of castor and its derivatives in India are : -
·         Rajkot (Gujarat)
·         Ahmedabad (Gujarat)
·         Gondal (Gujarat)
·         Gadwal (Gujarat)
·         Bhabar (Gujarat)
·         Disa (Gujarat)
·         Kadi (Gujarat)
·         Jedcherla (Andhra Pradesh)
·         Yemignoor (Andhra Pradesh)

Also, castor and its derivatives like castor seed, castor oil and castor oil cake are traded in Indian commodity exchanges namely, National Commodity & Derivatives Exchange ltd, Multi Commodity Exchange of India ltd, National Multi Commodity Exchange of India ltd, The Bombay Commodity Exchange Ltd, Mumbai, The Rajkot Seeds oil & Bullion Merchants` Association Ltd and Ahmedabad Commodity Exchange Ltd

Tuesday, July 10, 2012

CASTOR SEED PRODUCTION IN INDIA


Production of castor in India

India being the largest producer of the castor contributes to around 65 % of the world’s total production. India produces around 8 lakh tons of castor seed and around 3 lakh tons of castor oil. The states in the country that are the major producers of castor are
  • Gujarat
  • Andhra Pradesh
  • Rajasthan
  • Karnataka
  • Orissa
  • Tamil Nadu
  • Maharashtra
The leading of them all is Gujarat, which contributes to 86% of the total castor seeds produced in the country. The districts in Gujarat namely Mehsana, Banaskantha, Sabarkantha, Gandhinagar, Ahmedabad and Kutch are indulged in the production of Castor and it produces around .36 million tons. Andhra Pradesh and Rajasthan follow Gujarat in the production of castor seed with .14 and .10 million tons respectively. Andhra Pradesh relies on its districts namely Nalgonda, Mehboobnagar, Prakasam, Guntur and Ranga Reddy for the production of the state. The total area on which castor is produced in India is around 6.25 lakh hectare.

Monday, July 9, 2012

WORLD SCENARIO OF CASTOR PRODUCTION


World scenario

Castor is a plant that is commercially very important to the world. Having known that how useful is the oil obtained from it, it must also be known that the castor seed oil cake is very useful manure to other crops. This crop needs a tropical type of climate to develop. That’s why the castor is largely found in the countries lying in the tropical belt of the world. To derive the oil from the seeds of the plant, the processes of expression or decoction are used to press the seeds but the seeds as a whole are also traded in the market. The seeds generally contain 48% oil content and the rest becomes the part of oil cake.
World’s average total production of Castor seed figures around 12.5 lakh tons and is cultivated in more than 30 countries of the world. India is the world’s largest producer of castor and its derivatives contributing to almost 65% share. Like wise India is also the leading producer of castor seed oil, which has it’s annual world production hovering around 5.5 lakh tons. Due to its end number of uses in various industries, castor oil has a high level of demand in the world that is still constantly rising at 3 to 5 % per annum. The major consumer countries of castor oil with their annual consumption figures are
  • European Union (110000 MT)
  • India (100000 MT)
  • China (80000 MT)
  • Brazil (40000 MT)
  • USA (40000 MT)
  • Japan (20000 MT)
  • Thailand (15000 MT)
  • Others (10000 MT)
The world production of this crop is concentrated in the hands of few countries and that is why there are just a few exporters of castor oil fulfilling a large level of demand of the world. The major exporters of castor oil are the leading producing countries of it namely India, China and Brazil from which only India has been successfully meeting the domestic and the world requirements. The country holds a share of 70% in the total exports. The other two countries have experienced an increase in their domestic demand and hence are not capable of exporting a high quantity of oil. The leading countries in the list of imports of castor oil with their importing figures are
  • European Union (110000 MT)
  • USA (40000 MT)
  • Japan (20000 MT)
  • Thailand (15000 MT)
  • Others (10000 MT)
This list shows that the consumption of major importing countries is wholly dependent on their imports. The trade of castor oil in the world is estimated at about 2.5 lakh tons 
As already mentioned, Castor is produced in about 30 countries lying in the tropical belt of the world. The production of this crop is concentrated in the hands of a fewer countries and that is why the world production of castor and its derivatives is highly fluctuating. Any change in the trend of the production of any of those countries leads to change in the level of world production. The world production of castor seed hovers around at an average of 12.5 lakh tons and of castor oil is 5.5 lakh tons. The major producer countries of castor are
  • India
  • China
  • Brazil
  • Paraguay
  • Ethiopia
  • Philippines
  • Russia
  • Thailand
The top most country in the list is India with around 65% of the share in production followed by China with 23% and Brazil with 7% of share. The world production levels observed a sharp rise in the year 2001 which took the level to 17.5 lakh tons but it again fell down due to crop failure. Since few years, the countries China and Brazil are having an increase in their domestic consumption demand and hence are consuming a greater share of their production and exporting lesser leaving India to be the dominant player in the international market