Analysing Moringa Value Chain

Project work Report

POST GRADUATE DEGREE IN

{RURAL MANAGEMENT}

BY
JOEL WILLIAM BISWAS
(04 RM 09)
RAVI SINGH
(04 RM 13)

Under the guidance of Under the Co-guidance of

P.K.
Dr. C. Kathiresan Dr. P.K. Ghosh
Head Incharge Asst. Director
(CIAT & SJ, NIRD&PR) (CIAT & SJ, NIRD&PR)

Centre for PG Education & Distance Education (CPGS & DE)

National Institute of Rural Development & Panchayati Raj
Rajendra Nagar, Hyderabad – 500030
2022

INDEX

1
 Particular Page No.

List Of Table 3

List Of Figure 4

Introduction 5

Scope of Value chain study of moringa crop 6

Objectives 7

Area of work 7

Sampling Design 7

Methodology 8

Analysis 8

➢ Moringa Cultivation Patterns 8-14

• Agro- climatic condition
• Soil Requiremnts
• Nursery
• Land Preparation
• Manure and Fertilizer used
• Pest & Diseases
• Harvesting 15- 22
➢ Income And Expenditure
• For Farmers
• For Entrepreneurs

Sustainable Growth based on 5 years 23- 25

Suggested Marketing Strategies 26- 29

Conclusion 30

Photo Session 31-32

2
 Reference 33

Appendix 34-38

List of tables
Table No Table Topic
Table 1 Area of Moringa Cultivation
Table-1.1 Total cost based on 1 acr
Table: 1.2 Total cost of moringa cultivation for 2 acrs
of land

Table-1.3 Total Income from Drumstick farming

Table-1.4 Net profit from Moringa Drumstick

Cultivation

Table-2 Total area taken for moringa leaf cultivation

Table-2.1 Total cost form 1 acr of moringa leaf

cultivation
Table-2.2 Total cost of moringa leaf cultivation for 2
acrs of land
Table-2.3 Total Income from moringa leaf cultivation

Table-2.4 Total net Income from moringa leaf

cultivation

Table-3 Total cost of moringa leaf powder value

addition

Table-3.1: Total net cost of moringa leaf powder value

addition

Table- 3.2: Income from Moringa leaf powder to

enterprise

Table-3.3 Net income from moringa leaf powder

Table-4; Total cost of moringa seeds oil value

addition
Table- 4.1: Net cost of moringa seeds oil value addition

3
 Table-4.2 Income from moringa seeds oil value
addition to enterprise

Table- 4.3: Net Profit from moringa seeds oil value

addition

Table-5 Five year analysis for cost of cultivation in

one acrs of land
Table-5.1 Five-year net profit calculation of
cultivation in 1 Acr
Table-6: Five year analysis for cost of cultivation in
1 Acr of land
Table-6.1 Five-year net profit calculation of
cultivation in 1 Acr

List Of Figures:-
Figure No Figure Topic
Fig 1 Steps to prepare Moringa leaf Powder
Fig 2 Steps to prepare Moringa seed oil
Figure-3 percentage representation of profit and
investment in drumstick
Figure 4 Percentage representation of profit and
investment in Leaf cultivation
Figure-5 Percentage representation of profit and
investment in moringa Leaf powder value
addition

Figure-6 Percentage representation of profit and

investment in moringa seeds oil value
addition

Figure-7 Sustainable growth model representation of

moringa drumstick & leaf cultivation

4
Introduction

Moringa oleifera, sometimes known as the Miracle Tree, is a tropical plant native to North
West India that is cultivated for its nutritious leafy greens, flower buds, and mineral-rich
green fruit pods. Andhra Pradesh has the biggest acreage and output of Moringa in India,
followed by Karnataka and Tamil Nadu. Moringa is widely grown in several states, where the
land and climate are favourable to the crop. Moringa's recent increase in value-added goods
needs an examination of its value chain for future industry advancements.
Moringa was grown as a single tree in homesteads, in cow barns, on farm borders, as solitary
plants in fences, and in groups on village wastelands in Tamil Nadu. People in southern
Tamil Nadu began cultivating perennial moringa kinds – Moolanur as an intercrop on a field
size in the early 1990s, with vegetables and sorghum as allies. Moringa provided some cover
for alley crops from drying winds throughout the summer, and it also supplied some extra
money. The demand for moringa has increased as people migrate from south to north India
and other parts of the globe. Farmers discovered that planting moringa crops throughout the
summer proved profitable. As a result, moringa has established itself as a popular summer
vegetable. Raised urban developments and movement of people to urban colonies also
increased demand for moringa pod.
Moringa is one crop which is still not commercially exploited fully. Commercially there are
no machines available for oil extraction. A tree which practically requires no expense for its
care, and gives back multifield returns in terms of leaves, pods, stem, bark etc. needs to be
popularized among farmers to make them take up its cultivation on a large scale based on its
significance. lt is an imperative to trace the value chain of moringa which portends the future
of business logistics and supply management, it needs to have improved methods of
cultivation, harvesting and post-harvest management, value addition, marketing and export
promotion.
This study goes all around the area from farming, transporting to Entrepreneur, value addition
on drumstick or processing, selling the product and till the final consumption of the product.
broad focus is to identify how to increase the income of farmer through the moringa orchard.
And to make their cropping more sustainable which help to generate extra incomes from by-
product of moringa.

5
Scope of Value chain study of moringa crop

➢ As an analytical tool, value chain research will aid in understanding broad trends in
industrial restructuring and identifying change agents and leverage points for policy
and technological interventions.

➢ The dynamic flow of economic, organisational, and coercive activity involving

participants in the moringa farming industry is also shown through value chain
analysis. It depicts power relationships to explain how entry barriers are constructed,
as well as how profit and risk are divided across the supply chain.

➢ By revealing strengths and weaknesses of value chain study by participating actors to

develop a shared vision of how the chain should perform and to identify collaborative
relationships that will allow them to keep improving, value chain study can be used
by donors and development assistance agencies to better target their support and
investments in various areas such as trade capacity, enterprise competitiveness,
income distribution, and equity among value chain participants.

➢ Identifying chain actors at each stage and determining their functions and
relationships; determining chain governance, or leadership, to facilitate chain
formation and strengthening; and identifying value adding activities in the chain and
assigning costs and added value to each of those activities are all things that a value
chain study can help with.

➢ The scope of the value chain is to understand the flows of products, information, and
money through the different phases of the chain and to analyse them in order to
uncover issues or opportunities to enhance the contribution of individual players and
the chain's overall performance.

➢ Value chain analysis examines interactions and synergies among players as well as
between them and the business and regulatory environment, expanding beyond the
conventional restricted emphasis on production.

➢ It addresses numerous significant flaws in conventional sector evaluations, which tend

to overlook dynamic links with and among productive activities that take place
outside of the sector under consideration or include informal operations.

6
Objectives

1. Exploring the Moringa Cultivation pattern among farmers.

2. Studying the entrepreneurs involved in Moringa Value Addition.

3. Arriving a Value Chain model for Moringa.

4. To validate that farming of Moringa over 1 Acr is remunerative.

Area of work:

The area of this research is restricted to the RTP (Rural Technology Park), in National
Institutes of Rural Development & Panchayati Raj , Hyderabad for helping initiating value
addition for the Moringa crop.

Sampling Design

A sample design is a specific strategy for selecting a sample from a specified population. It
refers to the method or approach used by the researcher to pick things for the sample.
The sample methods employed in this study include convenience and purposive sampling
strategies.
A convenience sample is made up of persons who are conveniently accessible to the
researcher.
This sort of sampling, also known as judgement sampling, entails the researcher utilising
their experience to pick a sample that is most relevant to the research's objectives.
It is frequently employed in qualitative research, when the researcher wishes to gather precise
knowledge about a specific phenomena rather than making statistical judgments, or when the
population is very tiny and specific. An successful purposive sample must have clear
inclusion criteria and reasons.
These methodologies were used as there were no concrete data or list of farmers indulged in
Moringa farming in Telangana and the names which were collected were from own personal
contacts and resources. And same was the case while collecting data for the Entrepreneurs in
Value Addition of Moringa.
Sample design was with 5 farmers situated in Warangal district. And for the Entrepreneurs
two agencies were considered situated in Hyderabad namely – Bliss Green Farms,
Medikonda Industries.

7
Methodology
To fulfil the objectives of the study, both quantitative and qualitative analysis methods would be
employed to provide strong evidence of achievements against the key review questions.
The value chain study would be carried out through primary data collection by:
• Qualitative interviews of value chain participants.
• Quantitative data through structured questionnaire.

Questionnaire was designed on the basis of following scope of work:

• On-farm moringa production constraints.

• Availability of infrastructure facility.
• Non-farm constraints.
• Cost of production and margin distribution among stakeholders.
• Different market linkages and constraints.
• Post-harvest operations and constraints.
• Value addition.
• Processor/commercial manufacturing unit.

Analysis

The Moringa Cultivation Pattern Among Farmers.

Drumsticks have their roots in India, but since they are used medicinally, they have spread to
other nations as well. The drumstick tree, or Moringa, is renowned for its flexibility,
versatility, and simplicity of establishment. Its flowers, pods, and leaves are all nutrient-rich
for both people and animals. The plant is edible in almost all of its parts. Foliage is consumed
in vegetable curries and green salads. The seeds produce 38–40% of Ben Oil, a non-drying
oil used to lubricate timepieces. The oil is used to make fragrances since it is transparent,
sweet, and odourless and never goes rancid.

Famous varieties of drumsticks (Moringa):

1. Rohit 1.
The initial harvest begins four to six months after planting and lasts up to ten years for
a commercial harvest. Two seasons each year. Bears are 45 to 60 cm long, with a dark
green hue, soft and testy pulp, and excellent storing qualities. 40–135 drumsticks,
weighing between 3 and 10 kg, may be obtained from a single plant. The temperature,
soil type, irrigation system, and spacing all affect the production and quality of
drumsticks, while market rates are influenced by market quality and demand.

2. Coimbatore 2
The stick's length ranges from 25 to 35 cm. The stick has a lovely dark green tint.
250–375 sticks are produced by each plant. Every stick is large. For three to four

8
 years, each plant produces. The market value of the product is lost if it is not removed
from the plant sooner.

3. PKM-1
After planting, the plant produces blooms, and after 8 to 9 months, you may harvest
the crop. The production is available twice a year. Each plant has a 200–350 stick
output and may produce for four to five years. Since one stick is longer than the
others, the product is more in demand in major cities than in small ones, and it costs
less as a result.

4. PKM-2
This variety's uncooked sticks have a greenish hue and have a pleasant flavour. Each
stick is between 45 and 75 centimetres long. 300–400 sticks may be produced per
plant. Although it takes more water, this type produces a nice crop.

Agro-Climatic Conditions for Drumstick Plantation:

The beautiful thing about drumsticks is that they need very little water to thrive in dry
environments. They are also able to grow on subpar soils. The dry temperature is ideal for
blossoming while the hot, humid climate is good for growth. The drumstick may blossom at a
temperature of 25 to 30 degrees Celsius.

Soil requirement for Drumstick Plantation:

The Moringa/Drumstick plant thrives in sandy or loamy soil that drains well and has a pH
range of 6.2 to neutral 7.0. Even in coastal places with weak soil, it may survive.

Nursery Raising of Seedlings:

Employ poly bags with dimensions of around 18 cm in height and 12 cm in diameter if you
wish to use nursery-raised plants in drumstick farming. For the bags, a light soil combination
of 3 parts soil to 1 part and should be used. Place two or three seeds, one to two millimetres
deep, in each bag. Keep damp but not drenched. Depending on the age of the seed and the
pre-treatment technique utilised, germination will take place in 5 to 12 days. Keep one
seedling in each bag and remove any extras. When seedlings reach a height of 60 to 90 cm,
they may be outplanted. Cut a hole in the bottom of the bag large enough to enable the roots
to emerge for out-planting. Keep the dirt surrounding the seedling's roots in place.
To encourage rapid germination, one of three pre-seeding treatments can be carried out in
drumstick farming
• Before planting, soak the seeds in water for a whole night.
• Before planting, crack the shells.
• Simply plant the kernels without the shells.

9
Preparing the Land for Drumstick Plantation:
Initially till the ground before planting a sizable patch. Digging a planting trench that is the
same width as the seed or seedling and is approximately 50 cm deep. This planting hole helps
to loosen the soil and maintain moisture in the root zone, promoting quick root development
in the seedlings. Fresh dirt surrounding the pit may be combined with compost or manure at a
rate of 5 kg per pit to fill the pit. The dirt removed from the pit should not be used for this
purpose: Beneficial bacteria may facilitate more efficient root development in new topsoil.
Water the filled trenches the day before we plant, or hold off until it has rained heavily before
replanting seedlings. Before transferring the seedling, plug the hole. To promote drainage in
locations with a lot of rain, the soil might be formed into a mound. For the first several days,
don't water deeply. Tie the seedlings to a support 40 cm high if they topple over.

Direct seeding of Drumstick Crop:

Trees may be directly sown and grown at any time of the year if water is available for
irrigation (for example, in a backyard garden). Before planting seeds, prepare a planting hole,
filling it with water, and topsoil that has been mixed with compost or manure. At the start of
the rainy season, trees may be immediately sown in a big area.

How to grow Drumsticks from Cuttings:

For cuts, hardwood be using rather than green wood. Cuttings is to be 10 cm thick and 45 to
1.5 m long. Cuttings may be planted in the nursery either directly or in sacks. Plant the
cuttings in light, sandy soil when planting them immediately. Third of the length should be
planted in the ground (i.e., if the cutting is 1.5m long, plant it 50cm deep). watering should
be controlled since the roots may rot in thick or moist soil. The root system takes a while to
establish when the cuttings are placed in the nursery. Adding phosphate to the soil to promote
root growth. After two or three months, cuttings sown in a nursery may be transplanted.

The Drumstick Plant Spacing:

The tree planting in rows spaced 3 metres apart, every 3 metres, for maximum Drumstick or
Moringa yield. It is also advised to place the trees in an east-west orientation to guarantee
enough sunshine and ventilation. There is 10 m between the rows of trees in an alley-
cropping arrangement. Weeds shouldn't grow in the space between trees.

Manures and Fertilizers in Drumstick Farming:

10
In general, moringa trees may grow effectively without using a lot of fertilisers. In drumstick
cultivation, farmyard manure (FMY) must be placed to the planting pit 8–10 days before to
the planting of seedlings. Additionally, 50 kg of each nitrogen, phosphorus, and potash must
be applied per hectare during planting, and the same quantity must be reapplied every six
months for the crop.

Irrigation supply for Drumstick Plants:

Plants like drumsticks and moringa don't need much irrigation. For the first two months under
very dry circumstances, use water frequently; after that, watering only when the tree is clearly
in distress. Anytime there is enough water, moringa trees will bloom and produce pods. The
output of moringa trees will be almost constant if there is constant rainfall throughout the
year. Irrigation may be used to force blooming in dry circumstances. This crop is highly
robust and only needs watering once every two weeks during the dry season. Drip irrigation
may be used for commercial cultivation with a daily application rate of 12 to 16 litres of
water per tree during the summer and half this rate during other seasons. The crop will be
maintained in areas with limited water supplies by life-saving irrigation or pot watering every
two weeks during a dry spell.

Pruning of Drumstick Plants:

Plants be pruned after one and a half years of growth, over the winter, at a height of
approximately 3 feet, with 4–5 branches per tree allowed to grow 2 feet above the ground.

Pests and Diseases of Drumstick:

The majority of pests don't bother drumstick. Diplodia root rot may happen when there is a
lot of standing water. Seedlings be placed in mounds to help drain excess water when the
weather is very rainy. The seedlings, pods, and leaves of Moringa are edible to cattle, sheep,
pigs, and goats. Install a fence around the plantation or plant a living fence to keep cattle
away from Moringa seedlings. Numerous caterpillars are said to cause defoliation in India if
they are not sprayed to control them.

Harvesting of Drumstick:
While picking pods for food, choose them when they are still tender and readily snappable (1
cm in diameter or less). The white seeds and meat of older pods become tougher on the
outside, although they are still edible up to the point of ripening. Allow the pods to dry and
become brown on the tree when making seed for planting or for oil extraction. In rare
instances, it could be required to support a branch that is loaded with pods in order to keep it
from breaking. Before the pods break apart and the seeds fall to the ground, harvest them. In
dry, shaded areas, seeds may be kept in vented bags. Harvest seedlings, developing tips, or
young leaves to make sauces from leaves. The stiff and wiry stems must be stripped of older

11
leaves. Since the stems are removed during the pounding and sifting procedure, these older
leaves are more suited for manufacturing dried leaf powder.

The yield of Drumstick:

This mostly relies on the grown seed type or variation. 50 to 55 tonnes of pods per acre might
be the harvest (220 pods per tree per year)

The entrepreneurs involved in Moringa Value Addition.

Preparation of moringa leaf powder

After harvesting leaf, were sorted to eliminate damaged ones and washed. The leaves were
given pre-treatment such as blanching and drying. The leaves were blanched in water for 5
minutes to inactivate the enzyme which causes browning and to preserve the nutritional value
of the leaves. The moringa leaf is Chamber dried by shade drying at (28-30 ℃) for 6 days or
by cabinet drying at 60 ℃ for 6 h. The Conversion Ratio is 9:20. Ultra-low temperature
drying process which is capable of retaining all nutrients and potency for the benefit of
consumers. The pack size produced are 200grams; 500 grams, 1 kg package containing
powder.

12
 Collection of moringa leafs

Cleaning

Blanching

Cabinat dry (600 C for 6 h) or Shade drying (6 Days)

Grinding

Collection of Powder
Figure-1: Steps to prepare Moringa leaf Powder.
Moringa seed oil

Moringa seeds have a high oil content and contain many nutritional compounds, including
monounsaturated fats, protein, sterols, and tocopherols. It also used as cooking oil, topical
cleanser and moisturizer, cholesterol management, antioxidant, Anti-inflammatory etc.
Moringa seed has a fairly soft kernel, so the oil can be extracted by hand using a screw press
(also known as a ‘spindle’ or ‘bridge’ press). The seed is first crushed, 10% by volume of
water is added, followed by gentle heating over a low fire for 10–15 minutes, taking care not
to burn the seed. During 2 hours of operation 52kg of seed yielded 12.5 litres of screw
pressed oil. A further processing of the oil cake yielded a further 10 litres of oil. Once the
best processing conditions are worked out, an extraction efficiency of 65% could probably be
expected.

13
low extracting process which is capable of retaining all nutrients and potency for the benefit
of consumers. The pack size produced are 200grams; 500 grams, 1 kg package containing
powder.

Collect dry moringa seeds from farmer

Seeds crushed into the oil extracting machine

Added 10% volume of water into the mash

Gentle heating for 10-15 minutes in low fire

Screwing

Collect the moringa seeds oil and oil cake

Figure-2; Steps to prepare Moringa seeds oil

14
INCOME AND EXPENDITURE ANALYSIS:-
❖ For Farmers:
The income and expenditure analysis is completely based on the data’s
collected by the 5 farmers and all of them were growing in more than 2 Acrs
and hence the income and expenditure of these farmers were calculated upon
minimum land size of 2 Acrs. The figures shown in the tables were collected by
averaging the responses of the 5 farmers.
Conditions to be followed –
(i) All the tabulated expenditure and Income are shown on Per Annum
basis.
(ii) Drumstick is to be cultivated 2 times a year.
(iii) Moringa Leaves are to be harvested 8 times a year.
➢ For Drumstick Moringa Cultivation
Table-1: Total area taken for moringa cultivation

Particular Area (acrs)

Land 2

Table-1.1: Total cost based on 1 acr

Particular Rupees (per acrs)

Seeds Purchase 500 g 600
Land preparation for 7500
farming
Labour cost 15000
Manure and fertilizer 20000
Herbicides & pesticides 3000
Irrigation charges 3500
Miscellaneous 5000
Total cost 54600

Table: 1.2 Total cost of moringa cultivation for 2 acrs of land

Total cost from 1 acrs Multiple no. of acrs Total rupees

land
54600 2 109200

15
Table-1.3: Total Income from Drumstick farming
Total trees harvested 2 acrs 274 trees

Drumstick collected 30 kg/tree 8220 kg

Total cost moringa cultivation 13.3 Rs/kg 109200 /- rupees

Sale of Drumstick 40 Rs/kg 328800 /- rupees

Table-1.4: Net profit from Moringa Drumstick Cultivation

Particular Rupees Per kg Rupees
Total Revenue 40/- 328800
Total invested 13.3/- 109200
Net Profit (2acrs) 26.7/- 219600

Investment & Profit generated based out of

Total revenue for Drumstick Cultivation

Profit

33%
Investment

67%

Figure-3: percentage representation of profit and investment in moringa drumstick

cultivation.
So, from the table 1.4 it can be squeezed out that over cultivation of drumstick will generate a
good sum of net profit of Rs 2,19,600 i.e. Rs 109,800 per acr.

16
 ➢ From Drumstick Leaf cultivation
Table-2: Total area taken for moringa leaf cultivation

Particular Area (acrs)

Land 2

Table-2.1: Total cost form 1 acr of moringa leaf cultivation

Particular Rupees (per acrs)
Seeds Purchase 850 g 1020
Land preparation for 1 7500
farming
Labour cost 17500
Manure and fertilizer 25500
Herbicides & pesticides 3750
Irrigation charges 3500
Miscellaneous 5000
Total cost 63770

Table-2.2 : Total cost of moringa leaf cultivation for 2 acrs of land

Total co1st from 1 acrs Total Land involved in Total rupees

land Leaf Production. (in
Acrs)

63770 2 127540

Table-2.3: Total Income from moringa leaf cultivation

Total no of trees 2 Acr 600 trees
harvested for leaf

Leaf collected 8.4 kg/tree 5040 kg

Total cost for 25.30 Rs/kg 127540 /- rupees

moringa leaf
cultivation
Sale of Leaf 60 Rs/kg 302400 /- rupees

17
Table-2.4 Total net Income from moringa leaf cultivation
Particular Rupees Per kg Rupees
Total Revenue 60/- 302400
Total invested 25.30/- 127540
Net income (2acrs) 34.7/- 87430

Investment & Profit generated based out of

Total revenue for Leaf Cultivation

Profit
42%
58% Invested

Figure 4: Percentage representation of profit and investment in moringa Leaf cultivation.

So in this section it can be analysed that on the cultivation of Moringa Leaf in 2 Acr
the net profit would be Rs 87,430, which also shows that is a profitable farming.

18
 ❖ For Enterprise :
For the calculating the cost and expenditure and returns on investments, 2
entrepreneurs had bee selected and the responses recorded were made an
average and depicted in the tables. And the income and expenditure is
based on one time production (batch production) which is based on raw
material used.
Some Conditions to be followed-
(i) Raw material for leaf powder to be taken upto 6 tonnes
(ii) Raw material for Oil seed to be taken upto 800 kg
(iii) Transportation excluded
(iv) Packaging size of Leaf powder pkt. is 500gm sold @ Rs 260 and
for the Seed oil the packaging is @ 30 gms , 100gm and 500 gm
sold respectively @ Rs 280, Rs 615,

➢ Value Addition For Moringa Leaf Powder -

Table-3: Total cost of moringa leaf powder value addition

Particular Rupees
Raw material 6000 kg (6 tonnes) 378000
Drying Owen 2 60000
Grinder machine 1 45000
Packaging machine 2 26000
Solar plate 395watt/24v 5 (14899 each) 75000
Miscellaneous 30000
Total cost 587000

Table-3.1: Total net cost of moringa leaf powder value addition

Particular Quantity Rupees

Raw material
Drying Owen with
depreciation (5 year)
Grinder machine with
depreciation (5 year)
6000 kg 378000
2 12000
1 9000

19
 Packaging machine with 2 8670
depreciation (3 year)
Solar plate 395watt/24v 5 (14899 each) 15000
with depreciation (5
year)
Miscellaneous 30000
Total net cost of 2700 kg 452670
moringa leaf powder
Total net cost per kg 1 kg 167.65

Table- 3.2: Income from Moringa leaf powder to enterprise

Quantity Price per kg Total

Net cost of moringa leaf 2700 kg 167.65 452670

powder
Selling price 200 g of pack 540 300 324000
500 g of pack 243 260 315900
1 kg of pack 405 250 101250
Total revenue 2700kg 274.5 741150

Table-3.3: Net income from moringa leaf powder

Particular Rupees Per kg Rupees
Total Revenue 274.5/- 741150
Total invested 167.65/- 452670
Net income 106.85/- 288480

Investment & Profit generated based out of Total revenue

for Leaf powder

39% Profit
61% Investment

Figure-5; Percentage representation of profit and investment in moringa Leaf powder value
addition.

20
Hence it can be seen that a net profit of Rs 2,88,480 which is 39% of total revenue , is
achieved on investment of Rs 45,2670 which is 61% of total revenue.

➢ Value addition on moringa seed oil value addition

Table-4; Total cost of moringa seeds oil value addition

Particular Rupees
Raw material 800kg 960000
Oil extracting machine 1 115000
Miscellaneous 20000
Total cost 10,95,000

Table- 4.1: Net cost of moringa seeds oil value addition

Particular Quantity Rupees

Raw material 800kg 960000
Oil extracting machine 23000
with depreciation (5
year)
Miscellaneous 20000
Machine Maintenance 3000
Total net cost of 200 kg (Qt extracted) 1006000
moringa seeds oil
Total net cost per kg 1 kg 5030

Table-4.2: Income from moringa seeds oil value addition to enterprise

Quantity Price per Total Cost
bottle (rs) (rs)
Net cost of moringa leaf
powder
Selling price 30g of pack 2800 bottles 280 784000
100g pack 1060 bottles 615 651900
500g pack 20 bottles 2850 57000
Total revenue based on 1492900
200 kg

Table- 4.3: Net Profit from moringa seeds oil value addition
Particular Rupees Per kg Rupees

21
 Total Revenue 7464.5/- 1492900
Total invested 5030/- 1006000
Net Profit 2434.5/- 486900

Investment & Profit generated based out of Total revenue

for Seed Oil

33% Profit

67% Investment

Figure-6: Percentage representation of profit and investment in moringa seeds oil value
addition.

Hence it can be seen that a net profit of Rs 486900 which is 33% of total revenue, is achieved
on investment of Rs 10,06,000 which is 67% of total revenue. Hence proved it is a profitable
business.

22
5 YEAR ANALYSIS ON CULTIVATION OF DRIMSTICK AND LEAF :
This 5 year analysis is prepared to validate the that the cultivation for Moringa drumsticks
and leaf production is sustainable.
Some conditions-
(i) A regular Moringa tree Life expectancy is taken upto 5 years.
(ii) All the condition which were in one year are to remain the same upto 5 years
excluding factors such as Manure and fertilizer, Herbicides & pesticides, Labour
cost, Miscellaneous.
(iii) Expenses such as Seeds purchase and Land preparation are one time investment.
(iv) Cost such as inputs costs remain the same for 5 years.
(v) The price at which drumstick is sold is at Rs 40/kg and leaf is sold at Rs 60/kg.
(vi) Transportation excluded
• Drumstick Cultivation :-
Table-5: Five year analysis for cost of cultivation in one acrs of land:

Particular 1st Year 2nd Year 3rd Year 4th Year 5th Year
Rupees (per Rupees (per Rupees (per Rupees (per Rupees (per
acrs) acrs) acrs) acrs) acrs)
Seeds Purchase 600 -- -- -- --
Land preparation 7500 -- -- -- --
for farming
Labour cost 15000 5000 5000 5000 5000
Manure and 20000 5000 5000 5000 5000
fertilizer
Herbicides & 3000 3000 3000 3000 3000
pesticides
Irrigation charges 3500 3500 3500 3500 3500
Miscellaneous 5000 2000 2000 2000 2000
Total cost 54600 18500 18500 18500 18500

Table-5.1: Five-year net profit calculation of cultivation in 1 Acr

Particular 1st Year 2nd Year 3rd Year 4th Year 5th Year
(in Rs) (in Rs) (in Rs) (in Rs) (in Rs)
Unit Amount Unit Amount Unit Amount Unit Amount Unit Amount
Rs Rs Rs Rs Rs
Total 40 164400 40 164400 40 164400 40 164400 40 164400
Revenue
Total 13.3 54600 4.50 18500 4.50 18500 4.50 18500 4.50 18500
Investment

Net Profit 26.7 109800 35.5 145900 35.5 145900 35.5 145900 35.5 145900

23
In this table the net profits in the first year is less and the ideal year when the first harvest
starts is considered as the year one and gradually after the tree grows the investments reduce
and profit is maintained , applicable only if certain conditions are met as specified above.

• Leaf Cultivation :-
Table-6: Five year analysis for cost of cultivation in 1 Acr of land:

Particular 1st Year 2nd Year 3rd Year 4th Year 5th Year
Rupees (per Rupees (per Rupees (per Rupees (per Rupees (per
acrs) acrs) acrs) acrs) acrs)
Seeds Purchase 1020 ---- ---- ---- ----
Land 7500 ---- ---- ---- ----
preparation for
farming
Labour cost 17500 10000 10000 10000 10000
Manure and 25500 12000 12000 12000 12000
fertilizer
Herbicides & 3750 3750 3750 3750 3750
pesticides
Irrigation 3500 3500 3500 3500 3500
charges
Miscellaneous 5000 2000 2000 2000 2000
Total cost 63770 31250 31250 31250 31250

Table-6.1: Five-year net profit calculation of cultivation in 1 Acr

Particular 1st Year 2nd Year 3rd Year 4th Year 5th Year
(in Rs) (in Rs) (in Rs) (in Rs) (in Rs)
Unit Amount Unit Amount Unit Amount Unit Amount Unit Amount
Rs Rs Rs Rs Rs
Total 60 151200 60 151200 60 151200 60 151200 60 151200
Revenue
Total 25.30 63770 12.4 31250 12.4 31250 12.4 31250 12.4 31250
Investment

Net Profit 34.7 87430 47.6 119950 47.6 119950 47.6 119950 47.6 119950

Same is the case in leaf cultivation, in this table the net profits in the first year is less and the
ideal year when the first harvest starts is considered as the year one and gradually after the
tree grows the investments reduce and profit is maintained, applicable only if certain
conditions are met as specified above. This further better depicted in Fig 7 through a bar
graph.

24
 Sustainable Growth Model For Leaf And Drumstick
50
45
40
35
Rupees/ kg

30
25
20
15
10
5
0
Drumstick cultivation Leaf cultivation
Years

1st Year 2nd Year 3rd Year 4th Year 5th Year

Figure-7: Sustainable growth model representation of moringa drumstick & leaf cultivation

25
Suggested Marketing strategy :
Introduction
Our aim is to offer and define the main directions, on which Moringa Pvt. Limited should
focus on the offering, implementation and integration of the products for the target
customers/consumers. Set up a marketing strategy for us is a preliminary process to enter into
the market with our full potential. It helps us to develop a way to maintain a work flow. The
main goal is to occupy a specific market niche; we will try to implement its products in
several main directions:
• Develop, implement and monitor a strong Marketing strategy, including important
elements like market research, assessment of strong and weak sides as well as
opportunities and threats which are present and also the future condition.
• Creating a Huge advantage in the Industrial sectors
• Create and maintain direct contacts with our clients
• Preserving strong online presence, supported by the establishment of a fully
functional website.
• For direct selling we should built a strong chain.
Our strategy advocates on the emphasis on the advantages that the products themselves
possess, as well as on the specific market conditions, which have to be referred to with the
necessary professionalism and approach. Our marketing strategy is based on market research,
competitive environment analyses, current and predicted levels of market supply and
demand, client preferences, directions of market development and others, further specified
market elements, Number of corporate we will reach and also the retail condition with this
kinds of products. For considering all those facts we are going to make a strong marketing
strategy.

Products of the company

The proposed project will initially produce
• Moringa leaf powder
• Moringa seeds oil

Competitive Advantages
• The number one selling advantage of our Moringa powder and our seed oil is its
uniqueness.
• The very first of its kind ever introduced for business in Hyderabad market.
• Number two selling point is it is already proven of its well-known multi-nutrients that no
other fruits or vegetables can ever have.

26
• Its rare powers of medicinal properties and enormous vitamins will not be compared to any
nutritious fruit or vegetable that one needs to combine all their nutrients, to equal wonders
and energy giving properties. It is like growing vitamins at your doorstep.
• The price of our products is much cheaper than other vitamins and mineral/dietary
supplemental products in Hyderabad.
• It is already proved of Nutrition that Moringa contains no harmful elements for body.
SWOT Analysis
➢ Strengths:-
• Very new but unique product that has a great demand in the market
• These products are in high demand in developed countries
• The quality of the product is world standard
• Customers are becoming brand loyal because of the quality and they are satisfied with the
positive feedback from Moringa products.
• The prices are very much within the buying range of the population at the Bottom of the
Pyramid.
• The availability of the raw material locally.
• An available and cheap as well as strong tool to combat malnutrition.
• Products in the pipe-line and future products are from well-known herbs with abandon
acceptance in the market.
➢ Weaknesses:
• Though the raw material is available the supply is still unsecure to meet a large quantity
demand because of limited production capacity.
• The volume and the quality should be significantly high to attain economy of scale since a
big amount of investment in terms of money and time has been expended for Research and
Development.
• Price is too low to be believed by the consumers as the alternative products are established
from renowned pharmaceuticals and with high price.
• A very new company with very limited resources
• The project is depended on all agricultural raw materials which can cause a low supply of
raw material due to a poor planning fitting with the cropping and harvesting season
➢ Opportunities:
• The market potential of these products, as has been assessed, is quite substantial. The
consumption and dependability on the herbal products, especially on food supplements are is
rising at a much higher rate in the country and the local market has got growth potential in
view of increasing awareness.

27
 • The huge growth potential of the agro-processing sector will create backward as well as
forward linkage.
• Community people in different regions in the country are familiar with the herb without
knowing its nutritional value. If the product is promoted rightly there will create a large
demand from every corner of the country.
• The product can be the best arm to combat the malnutrition of the country.
• The Moringa Growth Enhancer will be a locally produced unique product and has the
opportunity to be a leader in the market encouraging the farmers and producers in agriculture
sector to use the organic growth enhancers like this.
• All the existing and future products have high environmental value and they can contribute
significantly in adaptation programs of climate change impacts in the country.
• People of the country are now health conscious. Wellbeing is in everyone’s mind. Therefore
good quality herbal products attract their attention very easily.
• The people of the country are being aware of the harmful and hazardous impacts of the
chemical and synthetic food supplements, products. People are exploring for the herbal
products for their living.

➢ Threats:
• Organic Food Supplement is a new concept in the India. People know about the vitamins
and minerals from pharmaceutical companies, however, very few people are aware about the
reason of having those vitamins and minerals. This takes a long period of time to make
people aware and believe on this organic food supplements.
• In the country, many immoral products are available in the country and very few herbal
products could proof the authenticity and could make a positive impact in people’s mind.
• Most of the herbal companies are following the unethical practices in their business. It’s
really hard to create trustworthiness among the target consumers.
• The entry of new entrepreneurs is also apprehended since there is a huge and fast growing
demand for these products in the country.
• Low quality products may enter the market through unscrupulous traders and may destroy
peoples’ faith.

➢ Promotion and Distribution:

❖ Promotional Strategy:
We will go for different promotional activities during the year. Those are given
below-
• Video Documentaries, articles, case studies will be developed
• Email marketing can be a good source of promotion

28
 • We will go for social marketing by posting some links and also creating face book
advertisement in a regular basis.
• Posting our case studies and articles in different newspapers, magazines can be a
good source of promotion.
• Promotional material for super shop sells.
• Publish articles or get listed in news stories
• Arranging national and international seminars on the benefits of Moringa and
publish online press releases
• Awareness related programs in the rural area to create awareness regarding
plantation of moringa tree on their unused land.
• Advertising in different online website like- e bay, amazon.com, flipkart, reliance
marts, big bazzars etc to Promote/sell our products.
• Direct market visit, crash program.
• Participate in events, fairs and exhibitions

❖ Distribution:
A proper distribution channel should be established and it should be designed
according to the intensity of demand for fertilizer and supply of raw materials.
LalTeer Seed Limited, the largest national seed company and agrobased product
distribution channel is interested in distributing Moringa Plant Growth Enhancer
through their channel being an innovative and natural product for agriculture.
However,the following distribution channels may be introduced initially.

29
Conclusion:-
In context of Farmers -
So from the above analysis it can be concluded that if a farmer indulges in growin Moringa
crop and selling its products such as drumsticks and leaves in one acre, and cultivates the
drumstick for 2 season and for the leaf production the farmer harvest for 8 times a year and
sells at a reasonable price of Rs 40 and Rs 60 per kg respectively and all the other conditions
mentioned such as inputs price and raw material price and other miscellaneous factors such
pest attack, water etc are controlled and suitable conditions for growth is made, then in both
the cases he can have a profit around or up to 1 Lakh, and this was the soul motto of
preparing this report. And main thing that is sustainability can be ensured given the
circumstances to the conditions and favourable situation given as depicted in Fig 7.
In context to Enterprises of Value Addition -
For the enterprises too the business is remunerative there are some factors of risks involved
such as marketing or the success of the product, but apart from those, the agencies included
in this report are making a profitable business. The agency in producing Leaf powder using 6
tonnes of raw material is making a profit of Rs 2,88,480 and through production of oil seed
using 800 kgs of seeds as raw material for extraction 200 kg oil is produced which generates
a profit of Rs 5,43,900. All these profits can be achieved only if the conditions is followed as
depicted in the table 3, 3.1, 3.2, 3.3 and table 4, 4.1, 4.2, 4.3 respectively.

Some Suggestive Ideas-

(i) Creating a model for the rural society by linking the farmers, the SHG
women’s , and the enterprise where the raw materials and inputs are provided by
the agency to the farmers and the SHG women are hired by the agency as workers
to be involved in the process of value addition by giving them training , and the
agency buys the produce from farmers at reasonable margins, so that al;l the three
sectors are benefitted.
(ii) Another suggestion is by linking the Private value addition agencies with the
RTP in NIRDPR by using a Public Private Partnership Approach (PPP). In
RTP, there are many entrepreneur units, if any agency comes up with the Value
added Products of Moringa , they may be entertained and given priority. Here
there is a win win situation the agency gets a platforms for marketing and for RTP
it’s a point of achievement of adding one more unit and diversification of different
agencies. There are some additional benefits are also provided to the agency such
no charges for electricity for the first three years, provision of lands for setting up
units,

30
Photo sessions

Land Preparation

Moringa orchard in 2 months

Field Bunding Moringa Leaf and Flower

31
Solar Panel to run Oven Leaf Powder Machine

Oven for Drying Leaves Seed Oil Press Machine

32
Reference
• https://agritech.tnau.ac.in/horticulture/horti_vegetables_annualmoringa.html
• https://www.agrifarming.in/drumstick-farming-project-report-cost-profit
• https://www.thebetterindia.com/198892/maharashtra-farmer-earning-lakhs-moringa-
superfood-growing-organic/
• Mutiara T. T., Estiasih, E.S.W., 2013. Effect lactagogue moringa leaves (Moringa
oleifera Lam) powder in rats. Journal of Basic Applied Scientific Research 3, 430–
434.
• Nouman, W., Basra, S. M.A., Siddiqui, M.T., Yasmeen, A., Gull, T., Alcayde,
M.A.C., 2014. Potential of Moringa oleifera L. as livestock fodder crop: A review.
Turkish Journal of Agriculture And Forestry 38, 1–14.
• Palada, M.C., Changl, L.C., 2003. Suggested cultural practices for Moringa.
International Cooperators’ Guide AVRDC. AVRDC pub # 03-545. www.avrdc.org.
• Rockwood, J.L., Anderson, B.G., Casamatta, D.A., 2013. Potential uses of Moringa
oleifera and an examination of antibiotic efficacy conferred by M. oleifera seed and
leaf extracts using crude extraction techniques available to underserved indigenous
populations. International Journal of Phytotherapy Research 3, 61–71.

33
Appendix
Questionnaire for famers: -

1. District - Village –

2. Name of the farmer –

3. No. of family member –

4. Occupation -
o Agriculture
o Store keeper
o Other
5. How much land you have?

6. Do you cultivate moringa?

Yes No
7. How much area of land you use for moringa cultivation?

8. Which bread of moringa seeds you use?

o PMK-1
o PMK-2
o Rohit-1
o KDM-1
9. How many moringa seeds you plugged?

10. Which type of farming method you use-

o All seeds plug in same time.
o Plugging the seed in Phases.
11. In how many days tree will become mature for drumstick?

12. How many things you collect from moringa tree?

o Leaf
o Flower
o Drumstick
o Gum
13. How much you collect for sale per month/season-
Quantity Quantity
Leaf Drumstick
Flower Gum

34
 14. How many times you harvest in a year?

No. of times No. of times

Leaf Drumstick
Flower Gum

15. How do you sale your produce –

o Through the middle man
o Direct to the whole sale market
o Direct to the company
o Direct into the market

16. How much selling Price you received from –

Leaf (Per Flower (Per Drumstick (Per Gum (Per
KG/Quintal) KG/Quintal) KG/Quintal) KG/Quintal)
Agent/Middleman

Whole sale market

Company

Direct sale in market

17. How much you invest for moringa cultivation?

Quantity Price (optional) Overall

Seeds
Fertilizer
Pesticides

No. of person No. of days Rupee per day

Labour
Machine
Other

35
 Questionnaire for Enterprise

1. Name of Enterprise -

2. Owner of enterprise –

3. Address of head office –

4. Location of Processing Plant -

5. What type of value addition you do with Moringa’s Produce?

*Ex. - Value addition on produce – Oil, powder etc.

Row Material Value addition

Leaf

Flower

Seeds

Drumstick

6. Details about Purchases of raw materials: -

Fill the boxes on the basis of annual Purchase.
Raw material Purchase from Quantity (in kg/ Price per unit Approximate Total
(Moringa) quintal)

Leaf

Flower

Seeds

Drumstick

7. How much time it will take to become finished product?

36
 Name of Final Product Time taken into finished Product Total quantity of finished Product

8. The cost on value addition on moringa?

Labour Machine Packaging Transportation

Working time Time taken for per

unit

No. of workers

Approximate or
total real cost

9. In which season the demand of sales and produce hick?

* Mention the month below in box.
Final Product Sales Hick (in Month) High Production (in Month)

10. Details about selling final Product: -

37
Final Product Medium of sales Size of package (In Final market price
kg/l)

38