Resource Book on Horticulture Nursery Management

Break Even Point: The break-even point is the point of activity where all costs like
variable as well as fixed costs are recovered from the sales values.
Capital expenditure: Major component of expenditure incurred for establishment.
Credit: A loan raised from bank or debtors or contributors that is required to be paid
back over a period of time at a specified cost that is interest
Debt Service Credit Ratio: A financial ratio, which measures enterprise capacity to
meet term-loan-cum-interest and other long-term payment obligations.
Demand Survey: A survey conducted in an area prior to supply to ascertain sales.
Fixed Capital: Expenditure on major structures like shade net house, polyhouse,
irrigation, fencing, etc to be incurred once during establishment phase.
Hardening Nursery: A nursery where secondary hardening of plants is done before sale
Internal Rate of Return: The rate at which the net present value of costs (negative cash
flows) of the investment equal the net present value of the benefits (positive cash
flows) of the investment.
License: An authorization granted by Government to produce and sell fruit plants to the
farmers.
Maharashtra Fruit Nursery Act 1969: An act governing the rules and regulations for
operation of fruit nursery in the state of Maharashtra
Mist Chamber: A structure where misting and fogging is done for propagation.
National Horticulture Mission: A Union Government mission-based assistance
program for development of horticulture in different states.
Plant Library: A nursery production house supplying plants on rental basis
Polyhouse: A structure for rearing plants in controlled environment.
Polytunnel: A low cost tunnel type structure for growing seedlings.
Retail Nursery: A nursery selling plants directly to customers
Return on Investment: The total surplus generated by the project over its entire life
calculated on total investment when averaged to find out yearly return is the return
on investment.
Risk Bearing Ability: An ability to invest on an economic activity based on assumption
that the activity will generate adequate income.
Sales Agent: A person selling plants on commission basis
Standards: Minimum quality parameters which are required to be adhered for
production and supply of fruit plants
Under Utilization of Capacity: Production of plants in a nursery lower than its
stipulated capacity.
Working Capital: Expenditure to be incurred on raw material like soil, media, manure,
plastics, moss, labour, etc required for day to day production of plants.
10.4 Points To Remember
� Capital investment component of nursery includes the cost of land, infrastructure,
building construction, irrigation system and raw material.
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