NURSERY TECHNOLOGY

INTRODUCTION
NEED FOR RAISING NURSERIES FOR LARGE SCALE
AFFORESTATION
BENEFICIARIES
SELECTION OF SPECIES
NURSERY TECHNIQUE
COST OF CULTIVATION
UNIT COST OF FOREST NURSERY IN 0.25 HA
RETURNS
BENEFICIARIES CONTRIBUTION
QUANTUM OF REFINANCE
RATE OF INTEREST

NURSE

INTRODUCTION

Forestry as a sector plays a vital role in the socio-economic and rural development of a country apart from
its role in maintaining ecological stability particularly in a developing country like India. Forests are a
traditional source of a multitude of products particularly with regard to fuelwood, fodder, small and
constructional timber and have sustained large masses of population. The vast potential of forests to
generate employment especially in rural areas, thereby contributing to rural incomes and poverty
alleviation has remained unutilized.

The country's forests are under tremendous pressure due to the indiscriminate removal of timber,
fuelwood, fodder and other forest produce.

Though there are various afforestation and plantation programmes being implemented by the State Forest
Departments, Forest based industries, NGOs, etc., availability of quality planting material well in time and
in close proximity to areas where afforestation is to be taken up remains a major constraint in taking up
large scale afforestation of wastelands, private lands, etc.

NEED FOR RAISING NURSERIES FOR LARGE SCALE AFFORESTATION

The National Forest Policy stipulates that one third geographic area of the country should be brought under
forest/tree cover. Keeping the same in focus, the Approach Paper to the X Five Year Plan has targeted to
bring 25 percent area under forest/tree cover by the end of the Tenth Plan period and 33 percent by the
end of the Eleventh Plan period. It also emphasises on establishment of modern nurseries on a catchment
area basis to provide quality planting material. The steady depletion of forest resources and increasing
deforestation has brought into focus the realisation that the active participation of the communities is
necessary for the success of any forest regeneration programme. It is also well known that village
communities would have little incentive to participate unless they benefit directly. 
Promotion of decentralised nurseries through credit in the rural areas will lead to easy and timely
availability of planting material and in the process lead to creation of employment opportunities and income
generation in the rural areas. Forest nurseries will be one of the means for active participation of the
communities in future forest regeneration programmes. The proposed large scale afforestation will require
establishment of decentralised nurseries through credit support.

BENEFICIARIES
 

The decentralised nurseries can be established by farmers, SHGs, State Forest Development
Corporations, forest based industries, NGOs, etc.

SELECTION OF SPECIES

The nurseries should plan to produce healthy plants covering timber, fuel, fodder, fruits, non-wood forest
produce and even ornamental species having good demand in the locality. Besides this the prevailing
agro-climatic conditions in the area should also be taken into consideration while selecting the species.

NURSERY TECHNIQUE

An area of 0.25 ha. has been considered for a viable nursery wherein 1.25 lakh seedlings can be raised.
The size of the nursery may be increased according to the borrowers category, capacity and demand for
planting material. The nursery should be on a gently sloping land to ensure proper drainage. Site
preparation will be done by ploughing and hoeing the land. Initially the nursery will be raised in mother
beds and will be pricked out in polypots. It should have water as a perennial source to ensure adequate
supply in hot weather and to reduce costs. The shape will be rectangular and would measure 100m x 25
m.

Ten seed polybeds would be raised of 10m x 1m i.e. 10 sq m. The number of polybeds required at this
stage is at 1:12 ratio i.e. 12 polybeds for each of the primary/seed polybeds. The 1.25 lakh seedlings will
be raised in a total of 120 polybeds (1000 seedlings per polybed) of which 1.20 lakh seedlings would be
raised in polybags and remaining 5000 will be naked rooted seedlings.

The seedlings will be hardened in the nursery by reducing the water supply over a period of time and
exposing them to sunlight over different durations. This would make them capable of facing adverse
weather conditions once they are transplanted onto the field. The nurseries are temporary in nature and
are of five year duration. During the summer months, shading may be provided by using polythene sheets
or shading nets. Bamboo mats can also be used for providing shade. Protection measures may be taken
like fencing the area with barbed wire.

COST OF CULTIVATION

The total cost of raising a nursery with 1.25 lakh seedlings has been estimated at Rs.2.172 lakh for the first
year. The capital cost works out to Rs.0.802 lakh to be incurred in the first year. The recurring cost works
out to Rs.1.37 lakh. The detailed item wise and year wise unit cost is furnished below assuming a wage
rate of Rs.50/- per manday.

UNIT COST OF FOREST NURSERY IN 0.25 HA

1.25 lakh seedlings 

Wage Rate: Rs.50/MD
 S.No. Particulars of works Unit Cost. (Rs.)
Fixed Cost
1 Site Preparation 8 MD 400
2 Fencing with barbed wire for 150 RMT Rs.30/RMT 4500
3 Preparation of compost pit, nursery path 10 MD 500
4 Maintenance of irrigation source LS 2000
5 5 HP Diesel Pumpset LS 25000
6 Cost of pipeline for irrigation (100 mts.) Rs.15/RMT 1500
7 Cost of implements for nursery operations LS 2500
8 Cost of Water Tank LS 5000
9 Preparation of Polybeds (120) 100 MD 5000
10 Cost of Net for providing shade and installation LS 30000
11 SubTotal   76400
12 Contingency 5%   3820
13 Total   80220

Recurring Cost
S.No Cost.
Particulars of works Unit
. (Rs.)
1 Rent for land 0.25 ha. Rs.2500/yr 2500
2 Preparation of Seed beds (10) 10MD 500
3 Cost of seeds LS 5000
4 Cost of Polybags (400 Polybags/kg) Rs.40/kg 12000
5 Cost of Pot mixture including loading, unloading @ 2 kg/bag Rs.120/MT 30000
6 Cost of fertilizer @ 10 gm/polybag Rs.10/kg 12000
7 Cost of chemicals for plant protection LS 2500
Cost of diesel and lubricants for pumpsets @ 1.5 hrs for 100 1 ltr. /hr @
8 3300
days Rs.22/ltr.
9 Cost of thatching material LS 1000
10 Cost of sowing on seed beds 10 MD 500
11 Cost of weeding and hoeing 50 MD 2500
12 Cost of picking up from germi beds 50 MD 2500
13 Filling up of polybags @ 200 Polybags /MD 625 MD 31250
14 Shifting of polybags 50 MD 2500
15 Cost of labour for irrigation 100 MD 5000
16 Cost of fertilizer application 25 MD 1250
17 Cost of application of insecticides 25 MD 1250
18 Maintenance of paths 10 MD 500
19 Maintenance of pumpset LS 2500
20 Watch and ward Rs.1000/month 12000
21 Subtotal   130550
  Cost of supervision 5%   6527
22 Total   137077
23 Grand Total   217297

Yield and Income

Saleable Income @
Actual Sale @
Year No. of Saplings seedlings @ Rs.2.50 per
90%
90% sapling
1 125000 112500 101250 253125
2 125000 112500 101250 253125
3 125000 112500 101250 253125
4 125000 112500 101250 253125
5 125000 112500 101250 253125
 Economics of Forest Nursery on 0.25 ha.

Years 1 2 3 4 5
Cost 217297 137077 137077 137077 137077
Benefits 253125 253125 253125 253125 253125
Net Benefit 35828 116048 116048 116048 116048

PWC@ 15% 529259.89

PWB@ 15% 848514.26
BCR 1.60
IRR > 50%

RETURNS

Since the saplings would be ready for plantation anywhere from the 6th month to 12th month depending on
the species, returns will be generated from the first year onwards. The returns have been calculated by
taking 10% mortality and 90% of actual sale of the surviving saplings. The cost has been considered at
Rs.2.50/- per sapling.

BENEFICIARIES CONTRIBUTION

The beneficiaries may contribute towards down payment ranging from 5 to 25% depending upon their
category, i.e., small and other farmers in accordance with NABARD's norms. Beneficiaries own labour can
also be taken as his contribution towards the margin money requirement.

QUANTUM OF REFINANCE

The loans extended by the banks to individual farmers and / or groups of individuals such as co-operatives
under Wasteland development projects are eligible for refinance from NABARD to the extent of 100% of
Bank loan.

RATE OF INTEREST

The rate of interest on refinance from NABARD will be as per the circulars issued by NABARD from time to
time. The rate of interest to be charged to the ultimate borrowers would be decided by the financing banks.
However for working out the financial viability and bankability of the model project we have assumed the
rate of interest as 12%.

Reference: www.nabard.org