BOOSTING THE POMEGRANATE FRUIT INDUSTRY IN BHUTAN FOR RURAL LIVELIHOOD AND REVENUE GENERATION
CHAPTER ONE
1.Introduction
Pomegranate, (Punica granatum L), belongs to the smallest botanical family Punicaceae (ITIS, 2006). It is native to Iran to the Himalayas in northern India (Morton, 1987) and it has been cultivated and naturalized over the whole Mediterranean region since ancient times (Holland et al., 2009). It is widely cultivated throughout India and the drier parts of Southeast Asia, the East Indies and tropical Africa (Varmudy, 2011). It is considered one of the most important fruits of the tropical and subtropical areas because of low maintenance cost, good yields, good keeping quality, and ability to thrive with limited moisture (Indian Council of Agricultural Research, 2005) and also considered as good source of Calcium, Iron and antioxidant compounds (Asrey et al., 2008).
According to National Research Centre on Pomegranate (NRCP) 2015, India is one of the largest producers of pomegranate in the world. During 2013-14, pomegranate was cultivated over 1.31 lakh hectare (ha) with an annual production of 13.46 lakh metric tonnes (MT) and productivity of 10.27 MT/ ha in India. At present, Maharashtra is the leading state in acreage covering about 68.7 per cent of the area under pomegranate. Similarly around 70.2 percent of total production comes from Maharashtra. India is the only country in the world where pomegranate is available throughout the year (January – December). At the global level, India produces 743.1 thousand MT followed by Iran 650 thousand MT, Turkey 218 thousand MT, USA 100 thousand MT , Afghanistan and Spain 60 thousand MT each.
A total collection of 345 varieties of pomegranate-germplasm both exotic and indigenous, besides commercial varieties of pomegranate such as Ganesh, Mridula, G137 and Bhagwa/Shendari are present across the World (Asrey et al., 2008). As per the information given in NPR-Vision, 2050, Bhagawa is the most preferred commercial variety in India. Nath et al. (2007) states, in Bhutan, Pomegranate is grown usually in backyard farm by farmers. The statement written in the protocol of Research and Development Center (RDC) Bajo, based on the personal communication from Jigmi (2015), Bhutan lack formally released pomegranate variety prior to 2004. To get most prominent and adaptable varieties, the extensive variety evaluation trials was initiated with introduction of five varieties (Beedana, P5 75, Amar shurin, Chawla and Khanduri kaldi) from Solan, HP, India in 1994 during IHDP-II project at RDC Bajo. Finally they land up with the Khandhari as Bajotsendu-1 and released for general cultivation in the year 2009.
According to the Agriculture Statistics (2014); Chukha, Dagana, Mongar, Pemagatshel, Samdrup Jongkhar, Samtse, Sarpang, Tashigang, Trongsa, Tsirang and Zhemgang Dzongkhags produced 245 MT of pomegranate. And Punakha and Wangdue Dzongkhag accounted 52 MT of pomegranate production as per Agriculture Statistic (2014) but the production data for 2015 is not available as the crop is very minor and does not contribute significantly to GDP. The initial cost of establishing one acre of pomegranate orchard in Bhutan is projected amounting to Nu.5,36,436/-(five lakhs thirty six thousand and four hundred thirty six) and after fifth year of plantation it is projected to get the net income of Nu. 8,20,829.55/- (eight lakhs twenty thousand eight hundred twenty nine and fifty five chetrums) per year. The income is calculated based on the average yield of 21 kilograms per tree in Bhutan based on the data of last five years from 2010 to 2014 and selling rate at Nu. 250 per kilogram. Assumed that the farmer or any entrepreneur do not have cash in hand and availed loan of Nu. 5,36,436.00 (Ngultrum five hundred thirty six thousand four hundred thirty six only) at an interest rate of Nu. 10.55% per annum, the loan can be liquidated by paying monthly installment of Nu.8,922.27/-(eight thousand nine hundred twenty two and chetrum twenty seven) in sixty installment for five years. The suitability study of pomegranate production in Bhutan for one Dzongkhag was done using the Bhutan Land use data 2010, Digital Elevation model, interpolated data for temperature, slope, aspect and precipitation and all the results generated using the ArcGIS 10.2.2 and the budgets calculated farm budgeting methods using local quoted rates for input materials.
CHAPTER TWO
1.Literature Review
1.1. Global Scenario on Pomegranate
Pomegranates consists of two species Punica granatum L and Punica protopunica (Shilikina, 1973), under genus, Punica in the family Punicaceae (ITIS, 2006). They are originated from central Asia (Morton, 1987; Holland et al., 2009) and are adaptable to a wide range of soil and climates under different geographical places including the Mediterranean basin, California and Asia. Some scientists declared that the pomegranate is the “apple” of the biblical Garden of Eden, but this idea is rejected in recent studies (McDonald, 2002).
The pomegranate is widely considered native to Iran and northern India (Morton, 1987). It is also reported that the pomegranate is gradually spread other areas due to human movement (Mars, 2000). As stated by Varmudy (2011) it is widely cultivated throughout India and the drier parts of Southeast Asia, the East Indies and tropical Africa.
Pomegranates are mysterious fruits with mythical associations of ancient times and nowadays, the fruit and juice have gained commercial significance since 2000 with proven scientific evidences all over the world. This is because the fruit, flowers, bark and leaves contain bioactive photo-chemicals which are antimicrobial, reduce blood pressure and act against serious diseases such as diabetes and cancer (Gil et al., 2000; Lansky et al., 2005; Jurenka, 2008; Turk et al., 2008; Haidari et al., 2009). The juice is useful for patients suffering from leprosy, sodium citrate and citric acid is manufactured in Azerbaijan. The barks and rinds are commonly used against diarrhea and dysentery and the natural color from the rind is used as dye for cloth Amar Singh (2012).
In total more than 500 cultivars of pomegranate have been named (IPGRI, 2001), but Wonderful variety which is originated fin Florida (California Rare Fruit Growers, 1997) is most popular due to its deeply colored fruit with best-taste, good quality juice and resistance to fruit cracking (Karp, 2006), followed by varieties such as Mollar de Elche, Hicaznar, Bhagwa and Valenciana (Costa & Melgarejo, 2000).
According to Mercure (2007) Food and Agriculture Organization of the United Nations (FAO) did not include pomegranates into its database where the United States department of Agriculture (USDA) stopped collecting pomegranate data, since 1989. Moreover, European Union was presenting data about the trade of pomegranates until 2013, but they also stopped data presentation. However, the USAID report (2008) states that total production was around 2.5 million MT in 2008. India (900.000 MT) is the world’s largest producer of pomegranates, followed by Iran (800.000 MT), Turkey (376.00 MT in 2014 by Turkish Statistical Institute, 2015), USA (110.00 MT), Spain, Iraq, Afghanistan, Azerbaijan, Uzbekistan, Israel, Tunisia, Morocco, China, Cyprus, Egypt, Peru, Chile, Argentine and South Africa also produces pomegranate.
1.2.Pomegranate Status in Bhutan
According to the Agriculture Statistics (2014), our country had produced 111 MT of pomegranate fruits from 5,355 bearing trees with an average yield per tree of 21 kg, from in total number of 10,370 trees. Wangdue Dzongkhag is the leading producer of pomegranates 17Mt, followed by Tashigang and Tsirang Dzongkhag with 15 MT and 14 MT respectively.
Figure 2.2.1: Production trend of pomegranate for the last five years 2010-2014
2.Major Constraint and Challenges faced by Bhutanese Farmer in producing Pomegranate
Commercial production of persimmon in Bhutan has failed due to the following reasons;
- Less market
- Producers and consumers unaware of its nutritional values
- Lack of technical supports
- Lack of planting materials and varieties of pomegranate
- Unable to compete in the market with the produce from India
- Small land holding for the full time farming
- Lack of technology in value addition and processing
- Pest and diseases.
Owing to these aforementioned major constraints and challenges, the following objective is realized.
2.1.Objective
- To promote pomegranate fruit industry in Bhutan for rural livelihood and revenue generation
- To find out the suitable areas for pomegranate production in Bhutan and
- To document the forecasting of financial feasibility in Pemagatshel Dzongkhag
CHAPTER THREE
1.Practical Interventions and Strategies to Boost the Production
1.1. Technical feasibility and Requirements by Pomegranate
1.1.1.Site Selection
According to Martin (2009), the plantation of new orchard is a long term investment and requires careful planning from the beginning. The common practices of planting fruit trees on any available land results in poor performance of orchard in the country. Fruit plants are most productive if carefully match them with the proper planting site. Very few sites are naturally ideal.
Once plants are in the ground, it is very difficult to relocate the site because of its high expenditure and also may face difficulty in reducing soil pest populations or correct nutrient deficiencies (Cornell University, 2003).
1.1.2. Soil
Pomegranates thrive best on deep loamy soils. It also does fairly well in sandy and clay soils. Plants are moderately tolerant to acidic and high resistance to salinity (Melgarejo, 2003). It grows best in soil pH range of 5.5 to 7.2. If happen to find defect in soil of the orchard, lime of 0.5 kg per square meter and organic matter such as well rotted manure or compost should be incorporated into the top 20-25 cm of soil before planting. The tree can tolerate short periods of standing water but prolonged periods of excessive moisture will harm the trees. Hence, it prefers well-drained soil (Aronson, 2015).
1.1.3.Climate
Pomegranate thrives well in the tropics, subtropics and sub-temperate regions. Cool winters and hot dry summers produce best quality fruits (Indian Council of Agricultural Research, 2005; Kahramanoglu & Usanmaz, 2016), Amar Singh (2012). It is considerably more cold hardy plant, and can tolerate frost, alkaline and wet soils but is injured by temperatures below -11 degrees Celsius. The fruit quality deteriorates in humid climates.
1.1.4.Aspects and altitudes
The pomegranate should be protected from strong winds if the site is a windy place and has a sunny aspect. It performs well within altitude range of 400 to 1800 meter above sea level (Lacey et al., 2009).
1.1.5.Temperature
Pomegranates are extremely heat tolerant, and perform best when temperatures are above 29.440C for at least 120 days a year. The trees are also drought-tolerant; however, supplemental irrigation is necessary during tree establishment and is critical for commercial fruit production. Without irrigation during prolonged periods of drought, fruit production will be lost, and substantial injury to young trees is likely.
1.1.6. Light
Pomegranates require full sun to grow and thrive. As far as possible try to avoid shade and plant the tree in the sunniest and warmest field. In suitable climates, pomegranate trees will tolerate partial shade, but the sunnier conditions are better (Aronson, 2015).
1.1.7.Land preparation
According to Tashi (2013), for the land preparation of pomegranate sapling plantation, the pit should be dug and filled with about 20 kg farmyard manure, mixed with fine soil prior to rainy season and before arrival of saplings from nursery.
1.1.8.Planting season and Planting
The sapling consisting with a ball of earth, pruned leaves and side shoots should be transplanted in pre-fertilized pits of 60 cm deed in the main field from April to July but monsoon is the best time. Light irrigation should be given immediately after planting. Air-layers can also be planted in similar manner (Tashi, 2013).
1.1.9. Irrigation
Though pomegranates are very drought tolerant, ensuring adequate soil moisture will result in a substantial improvement in plant vigor and fruit yield. Furthermore, providing adequate water throughout drought periods will help minimize the amount of fruit splitting when the rain returns (La Rue, 1980). Daily irrigation is practices in newly transplanted saplings and after six months watering can be done at an interval of two to four weeks (Singh, 2012).
Further, La Rue (1980) added that the drip irrigation is the preferred method. Whereas, the overhead irrigation is not advisable as it will increase the spread of field pathogens and result in reduced fruit set as the flowers are highly sensitive to humidity and moisture. Excessive soil moisture in the summer can lead to an abundance of vegetative growth, but the fruit produced will tend to be softer, resulting in poor postharvest quality. Avoid excessive irrigation in the fall as it may contribute to fruit splitting that increases the rates of infection from field-borne diseases.
In pomegranates the flowering is regulated by withholding irrigation two months before normal flowering time, at the end of imposed drought period fertilizers are applied followed by light irrigation and after four to five days heavy irrigation is done and thereafter normal irrigation schedule is followed, by doing this it induces early flowering and fruit set, the fruits become ready to harvest by November and December (Singh, 2012).
1.1.10.Fertilization
In the orchard, pomegranates may be (I) double flowering ornamental type (II) white flowered type, and for both the types and one year old plant has the specific dosage, 11kg of FYM, 1kg of cake and 125gm of Nitrogen (N), 62.5gm phosphorous (P) and 62.5gm potash (K) for five years and thereafter the dosage maybe determined as per need of the plant. The fertilizers and manures must be applied to bearer orchards in split dosages one meter away from trunk.
It is very important to note that excessive nitrogen in the late summer to early fall will have a detrimental impact on fruit color and size, and may also increase the susceptibility of the tree to early chilling temperatures. As for other macronutrients, phosphorus and potassium need only be applied if soil tests or leaf analysis indicate a deficiency. One of the few common deficiencies found in pomegranate is zinc, which appears as unusual yellowing of the leaves. If required, a foliar zinc application in the spring after fruit set is recommended (Aronson, 2015).
Therefore to improve the production, spraying of zinc sulphate (ZnSO4) and copper sulphate CuSO4) mixed with borax mixture in the respective concentration of 0.6%, 0.4% and 0.2% twice, one spray at flowering and another during fruit setting yields a very good response as it corrects the deficiency of micronutrients zinc, copper and boron which is very important for pomegranates.
Table 4.1.10.1: Recommended Rate of macro fertilizers per plant
|
Manures and Fertilizers |
|
1st year |
|
2nd to 5th year |
|
6th year onwards |
|
|
|
|
|
|
|
|
|
FYM |
|
10 Kg |
|
20 Kg |
|
30 Kg |
|
|
|
|
|
|
|
|
|
N |
|
N 200 |
|
400 g |
|
600 g |
|
|
|
|
|
|
|
|
|
P |
|
100 g |
|
250 g |
|
500 g |
|
|
|
|
|
|
|
|
|
K |
|
400 g |
|
800 g |
|
1200 g |
Based on above table, Korlapati et al. (2014), recommends the following method of applications;
- Nitrogen should be applied in the form of FYM and oil cakes each at 25% and the remaining 50% with chemical fertilizers. While P2O5 in the form of super phosphate and K2O in the form of sulphate of potash.
- Manures are applied in 2 to 3 equal doses i.e. first dose in December-January, 2nd dose in June-July, 3rd dose in September, Potash application can be reduced if the soil is rich in potash.
- Nitrogen containing fertilizers should be applied in three equal splits in January, July and November months; phosphorus containing fertilizers in two splits in January and July months and Potassium containing fertilizers may be applied as single dose in January.
- Adopt ring method of fertilizer application
1.1.11.Planting
According to the Aronson (2015), pomegranate trees should be planted in late winter or early spring, but after the date of the last frost. They should be planted in moist but not very saturated soil. Container-grown trees should be planted at the same depth they were originally grown. If you are planting pomegranate trees for hedges, space them at least 1.82 – 2.74 m apart. For orchards, plant individual trees 4.57 – 5.48 m apart.
1.1.12. Varieties
At the moment, Bajotsendu-1 is the only officially released pomegranate variety available in Bhutan for cultivation. It was released in 2009 after rigorous evaluation at RDC, Bajo for general cultivation. The parent agency that pioneered in releasing the variety is mandated to maintain mother plants. The limited variety offer for the pomegranate cultivation is one area to be focusing (RDC- Bajo, 2014).
1.1.13.Propagation
The pomegranate plant is not a difficult to propagate. It can be propagated either from seeds as well as through vegetative cuttings (Hartmann et al., 2009). Each of the propagation methods is described herein. The plants propagated from seeds are not desirable Amar Singh (2012).
1.1.13.1.Sexual propagation
1.1.13.1.1.Seed
Hartmann et al. (2009) and Amar Singh (2012) had further explained that the seed is an easy and common method of propagation. The seed will germinate in about 6 weeks having sprinkled on the top of the soil. Usually it has little problem with dormancy as the tree is native to warm climates. But propagation through seeds is of economical than other methods. However, it is not true to type, and can lose some of the good qualities of the established cultivars. Hence, seed propagation is not used in large-scale production. The juvenility of plant is longer than that are propagated through seeds.
1.1.13.2.Asexual Propagation
1.1.13.2.1. Air layering
It is also known as Gootee, Marcottage and Circumposition. Air layering is prepared in the spring and summer or the stem of the previous season’s growth (Hartmann et al, 2009). Inducing roots on a stem while it is still attached to the plant and detaching it after rooting for transplanting. This method is used for propagation of litchi, pomegranate, guava, mango and persimmon. However, only pomegranate is commercially propagated by air layering. While doing this propagation, healthy, disease and pest free mother plant from high yielding and desired variety shoots are selected (Corrigan, 2013).
1.1.13.2.2. Hardwood cuttings
It is prepared during dormant season, late fall, winter or early spring usually of woods of previous season’s growth (Hartmann et al., 2009). Pomegranates can be easily propagated from softwood or hardwood cuttings. But hardwood cuttings are the preferred means of propagation. A tree from a hardwood cutting will bear fruit in year two after planting, while it will take at least three years from seed. Trees will reach maturity in five to seven years, and can live up to 200 years (Lean et al., 2011). As per Singh (2012), fruits of uniformly high quality are obtained from the plants propagated from hard wood cuttings of one year old shoot or from root suckers. After planting the cuttings, increasing the moisture level and use of IAA and IBA improves rooting.
In Bhutanese context, hardwood cutting is the most common method practiced, cuttings are carried out during December – January month when plant are about to break dormancy in RDC, Bajo condition. The cuttings should be kept for at least 1 year for its stability and in the following year we can easily transplant (Mr. Pasang Dorji, Personal communication, 2016).
1.1.14.Orchard Layout
Pomegranate orchards are usually designed either in hexagonal or square method with the spacing of 2 X 6 m for dwarf variety and for the grafted plants 4 X 6 m accommodating 120 – 300 plants per acre with pollinizers planted in every after 9th tree (Tashi, 2014 [not published]).
1.1.15.Pruning and training
There are two common approaches for training a pomegranate plant: single or multi-trunked. The single-trunk plant has a short (12-18") trunk with five to six major branches diverging to form a vase-shaped structure. The multi-trunk plant has three to six of the strong branches developed directly from the ground. The single-trunk approach has the advantages of easier orchard floor maintenance and reduced costs associated with pruning suckers.
One major advantage of the multi-trunk approach is that if a freeze event occurs and damages a portion of branches, we can simply remove them and train a vigorous sucker to take their place without a significant loss in production. In the single-trunk system, we would have to replace the entire tree. The single-trunk system requires more labor while establishing the canopy architecture and placing supporting wires, but requires less labor after the orchard is established relative to the perpetual removal of suckers required in the multi-trunk system. However, the multi-trunk system will not require as many supporting wires.
For single-trunk production, remove all but the strongest sucker and select branches off this sucker. For a multi-trunk system, select five or six vigorous suckers and allow them to grow.
Pomegranates require pruning each year, and unwanted growth and suckers should be removed regularly. Short fruiting spurs appear primarily on two- or three-year-old wood, and are found growing mostly on the outer perimeter of the canopy. Light annual pruning encourages growth of new fruit spurs, while more aggressive pruning will significantly impact yield. Therefore, pruning must be performed on an annual or semi-annual basis in order to minimize the onerous task of aggressive pruning, and to reduce the likelihood of removing excessive amounts of fruit-bearing (older) wood.
Major pruning should be done in winter months prior to bud break, with minor pruning for sucker removal in mid-summer. Major pruning is where the tree architecture is established. Efforts should be made to maintain an open, vase-shaped tree with enough lateral branches to support the tree (including the weight of the fruit) without excessively inhibiting airflow, sunlight penetration or excessive fruit rub on windy days.
1.1.16.Harvesting
Harvest maturity is determined by sugar and acid contents, sugar and acid ratio and the color development of the fruit. With experience, proper harvest maturity can also be determined by tapping the fruit and listening for a metallic "ting" sound (Maclean. 2015). In general, the acids should be lower than 1.85 percent, soluble sugar content greater than 16 to 17 percent and the sugar: acid ratio greater than 18.5
Compared to other similar crops, pomegranates are easy to harvest and require minimal ladder work (assuming proper pruning and training of the tree). Fruit are harvested by clipping them with shears. Cut as close to the fruit as possible to prevent a sharp point of wood from piercing and rubbing against other fruit in the bin. Fruit are placed either directly into bins located in the orchard, or into shoulder harness baskets (identical to those used in the apple industry) while working around the tree. Either way, fruit should be handled with care in order to minimize scuffing or cracking (a strong bump may cause the fruit to split open).
Cracking of fruits due to hardening of skin is common but can be prevented by regular irrigation or picking the fruits prematurely. Application of GA3 15ppm and boron 0.2% can reduce fruit cracking and color. The other physiological disorder known as internal breakdown leading to blocking of arils is greatly minimized by harvesting the fruits 120 to 135 days after fruit set.
1.1.17.Pests and diseases
Aphids (Aphis punicae, Aphis pomi) are among the most important and widespread pests in pomegranate orchards. They generally feed on the young leaves which are highly susceptible to aphid attacks. They are yellowish-green, green, yellow, brown or black depending on the species. Some species of aphids can have a waxy coating over their bodies which make it difficult to control them (UCIPM, 2015).
In California, there are two widespread arthropod pests such as the flat mite Brevipalpus lewisi and leafroller Platynola stultana. Both these pests cause russeting and checking on fruit. However, a number of species have caused localized damage in some years. In some other regions, Virachola species of moths are a severe threat and require multiple sprays each year this moth bores into the fruit, causing widespread fungal infections in the arils and bruising on the fruit surface (Blumenfeld et al., 2000).
Regarding the diseases, serious disease does not routinely affect pomegranate trees in California, but Alternaria heart rot, may sometimes affect fruit (LaRue, 1980). However, as cited by Kahramanoglu and Usanmaz (2016), fruit spots is common in pomegranate, it is causes by Aternaria alternate (Alternata fruit spot) or Cercospora punicae (Cercospora fruit spot). C. punicae also may cause similar spots on leaves.
Chapter 5
1.Feasible areas for Pomegranate Production in Bhutan
In modeling vis ArcGIS software, the feasibility areas of Pomegranate production in Bhutan as given in the Figure 1, the following criteria were based as per the cited literature.
- Site should be in registered private dry land in sunniest and warmest aspect.
- Site should not be falling within the Government Reserved Forest (GRF), Biological Corridors (BC), and Protected Areas (PA) and within the water catchment areas.
- It should be 32 m away from the road point (both approached roads and high ways).
- It should be falling within the altitude range of 400 to 1800 masl.
- Pomegranates being heat tolerant, the temperatures should be above 29.440C for at least 120 days a year.
- As it thrives best in moist condition to avoid from splitting of fruits, adequate irrigation is required and the site should be near by the perennial stream and spring water (within the periphery of 200 m).
- Suitable Areas for Pomegranate Production in Bhutan.
Using the aforementioned technical criteria, in total of 20,365.8 acres of fallow land, cultivable land and dry land are resulted in suitable areas for the commercial production of pomegranate (Figure 5.1.1).
Figure 5.1.1: Suitable Areas for Pomegranate Production in Bhutan
To supplement the suitable map (Figure 5.1.1), the following graph (Figure 5.1.2) shows some of the suitable dzongkhags for the pomegranate production. Among fifteen feasible dzongkhags, Samdrup jongkhar is the most feasible dzongkhag with 4109.2 acres and Punakha rank the bottom most with 135.7 acres.
Figure 5.1.2: Suitable areas within dzongkhags
- Suitable Areas for Pomegranate under Pemagatshel Dzongkhag
Pemagatshel Dzongkhag is one of the Dzongkhags that falls within top- ten suitable Dzongkhag with acreage of 1,694.7 acres in Bhutan as shown in the Figure 5.2.1. Among 11 Gewogs under Pemagatshel Dzongkhag, Dechenling and Norbugang Gewogs are the most suitable Gewogs for Pomegranate production.
Figure 5.2.1: Suitable/ Feasible areas for pomegranate production in Pemagatshel Dzongkhag.
2.Budget (Financial Forecast)
2.1. Projected Expenses
2.1.1.Capital cost
Capital cost for establishment of one acre Pomegranate Orchard costs Nu. 3, 44,095/-
(Ngultrum three hundred forty four thousand and ninety five only). The details are given in the annexure I.
2.1.2.Operational and Pre-Operational Cost
As shown in the annexure II, the Operational Cost workout is Nu. 1, 91,241/- (Ngultrum one hundred ninety one thousand and two hundred forty one only) for the 1st year, Nu. 2, 36,761.5/- (Ngultrum two hundred thirty six thousand seven hundred sixty one and chetrum fifty only) for 2nd year, Nu. 2, 54,361.5/- (Ngultrum two hundred fifty four thousand three hundred sixty one and chetrum fifty only) for 3rd year, Nu. 2, 55,470/- (Ngultrum two hundred fifty five thousand four hundred seventy only) for 4th year and Nu. 2, 75,552/- (Ngultrum two hundred seventy five thousand five hundred fifty two only) for 5th year.
2.2.Annual Revenue
The Annual Revenue from pomegranate fruits sale for five consecutive years is forecasted and the break ups are shown in the following Table.
Table 6.2.1: Annual Revenue Projection from the sale of Pomegranate fruits
|
Year |
Quantity (kg) |
Unit price (Nu) |
Total amount (Nu) |
Remarks |
|
year 1 |
0 |
0 |
0 |
|
|
Year 2 |
0 |
0 |
0 |
|
|
Year 3 |
420 |
150 |
63,000 |
average yield 2kg/tree |
|
Year 4 |
2520 |
200 |
5,04,000 |
average yield 12kg/tree |
|
Year 5 |
4410 |
250 |
11,02,500 |
average yield 21 kg/tree (RNR stat., 2014) |
|
Total Amount |
|
|
16,69,500 |
|
It is forecasted that a total of Nu. 63,000/- (Ngultrum sixty three thousand only), Nu. 5, 04,000/- (Ngultrum five hundred and four thousand only) and Nu. 11, 02,500/-(Ngultrum eleven lakhs and two thousand five hundred only) shall be generated in third, fourth and fifth year respectively. The first two years are considered as nil in production as the trees have to fully establish and complete their physiological growth processes before allowing bearing the fruits for high yield and sustainable production in long run.
2.3.Loan required
To realize this project it will cost a total of Nu. 5, 35,336/- (Five lakh thirty five thousand and three hundred thirty six only) for the first year. If the concerned applicant or farmer is without cash in hand, he/she needs to avail a total of Nu. 5, 35,336/- (Five lakh thirty five thousand and three hundred thirty six only) as loan from BDBL based on the recent revised interest. The loan repayment schedule is presented in Table 8.3.1. With the recent revised interest rate of (10.55%) for agri-business, the yearly payment amounted to Nu. 107,067.20/- (One lakh seven thousand sixty seven and chetrum twenty only). The loan will be liquidated in 60 installments within five year term as given in annexure III.
|
|
2.4.Projection for Cash Flow statement
The cash flow statement (Table 8.4.1) shows that the business could not generate any positive income for the first and second year. The net outflow for 1st and 2nd year amounted to Nu. -5, 36,436/- (Ngultrum five hundred thirty six four hundred thirty six only) and Nu. -2, 36,761.5/-(Ngultrum two hundred thirty six thousand seven hundred sixty one and chetrum fifty only) respectively. From 3rd and 4th year, the project could generate positive income.
Table 6.4.1: Cash Flow Projection
|
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
Revenue |
0 |
0 |
63000 |
504000 |
1102500 |
|
previous year revenue |
0 |
0 |
0 |
0 |
0 |
|
Total cash inflow |
0 |
0 |
63000 |
504000 |
1102500 |
|
Depreciation |
33679.5 |
33679.5 |
33679.5 |
33679.5 |
33679.5 |
|
Capital cost |
344095 |
0 |
0 |
0 |
0 |
|
Pre OC & Operational Cost (OC) |
192341 |
236761.5 |
254361.5 |
255470 |
275552 |
|
Total Cash out Flow |
536436 |
236761.5 |
254361.5 |
255470 |
275552 |
|
Net inflow/outflow |
-536436 |
-236761.5 |
-191361.5 |
248530 |
826948 |
2.5.Projected Income statement
The income statement (Figure 8.5.1) shows negative result in the first three consecutive years of production amounting to Nu. –5, 87,736.80/- (Ngultrum minus five hundred eighty seven thousand seven hundred seventy six and chetrum eighty only), Nu. -2, 76,766.71/- (Ngultrum minus two hundred seventy six thousand seven hundred sixty six and chetrum seventy one only) and Nu. -2, 20,071.12/- (Ngultrum minus two hundred twenty thousand seventy one and chetrum twelve only), respectively. Income is projected to grow from 4th and 5th year. However, the details for the income statement calculation are given in the annexure IV.
Figure 6.5.1: Projected income statement for five years
Balance sheet mainly shows the total balance of asset and Liabilities for the accounting period of the orchard farm. Total Asset must be equal to total Liabilities. If total Asset and Liabilities are not equal to each other, it indicates that the accounting work is wrong for a particular closing year. The balance sheet for one acre of pomegranate orchard is given in annexure V.
The pomegranate business shows a positive net worth in (annexure V) balance sheet as the business generates constant income and it has a fixed asset like farm fencing structures, Irrigation materials, tools and equipment. The depreciation of assets (annexure VI) is estimated using the useful life of the assets and annual percentage rates. To obtain the annual depreciation, the values of the assets are divided by the given rate to its original price and multiplied by per year. The total annual depreciation of assets for the first year is Nu. 33,679.5 /- (Ngultrum thirty three thousand six hundred seventy nine and chetrum five only).
Conclusion
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