Resource Book on Horticulture Nursery Management

Sl. No. Items Quantity Rate Total
11 Publicity & Advertisement -- -- 10000
12 Interest on Capital @ 12% -- -- 72960
Total 215960
Total Capital requirement for establishment and operating nursery for one year is sum
of Fixed Capital and Working Capital as stated above which works out to Rs 9,32,550.
2. Nursery Income
The nursery enterprise can have various sources of income like from sale of saplings,
grafts, vegetable seedlings, potted plants, bagged plants and ball seedlings, planting
material like seeds, corms and bullets etc. It can additionally have various other raw
material and equipments for sale like pots, bags, pruning and grafting implements etc.
However for the illustration of expenditure and income in the above example of Fruit
Plants Nursery the major income will be from the sale of seedlings and grafts. The
details of income can never be 100 per cent of its production capacity. For example if
the production capacity is 100000 plants then it is assumed that the sale of the plants
and actual realization of the income will be 60% in the first year and it will grow
further to maximum 80 to 90%. Following chart shows the realization of income from
the sale of different plants:
Sr
No
Name of
Seedlings/Graft
Production
Capacity in
No.
Rate in Rs
per plant
<strong>Resource</strong> <strong>Book</strong> on Horticulture Nursery Management : 248
I Year
Sales
Realization
(60% )
II Year
Sales
Realization
(70% )
01 Mango 20000 35 420000 490000
02 Guava 20000 25 300000 350000
03 Pomegranate 25000 15 225000 262500
04 Fig 5000 22 66000 77000
05 Aonla 5000 50 150000 175000
06 Drumstick 10000 5 30000 35000
07 Custardapple 5000 5 15000 17500
1206000 1407000
The net income from nursery enterprise during the first year will be gross income
minus total expenditure during the first year which will be Rs 2,73,450 in the above case.
The income source can be additionally extended further by production and sale of
vegetable seedlings and ornamental plants. Further the nursery enterprise can also
provide the plants in bulk to small nurseries in the distribution value chain of nursery
plants sale. Such add on activity can further help to expand the nursery business. There
are also newer concepts like sale of plants based on the age of plants. For example if the
mango plants are made available for sale during the first year then the cost would be Rs