Tsk&co

Project

report on

cultivation of agro cash-crops

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2011 chennai

index page no

executive summary….. 3project outlay….. 4strategy of productive cultivation… 5

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Details of Project implementation … 6

Analysis of cultivation capacity….. 7 Sales and profitability projections.. 8Promoters details… 9Success stories…. 10-16Conclusion… 17

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executive summarytsk&co four year old trading company based atchennai is managed by TSK venkatasubbarrao (amechanical engineer with managementqualification(MBA)in finance & marketing withover25yrs of industrial experience…).He hasidentified cultivationof agricultural cash cropslike turmeric-sesame-organicrice-grapes-pomogranates-mango-red banana-teakwood-bamboo-selective vegetables etc are giving very highprofitable returns to the owners if….controlled and required seed quality,nutritivefertilizers irrigation,crop protection, pestcontrol etc are made available to crops throughbio technology-enabled farmingtechniques,precisionfarming,landdevelopment,soil enrichment,rainwater harvesting,drip&sprinkler irrigation….etc techniques .with a project cost of Rs55mn(equity:12.5mn-pref.shares:15.0mn-debt:27.5mn) and a set ofcash-crops cultivation plan in about 100 acresof land in karur district of tamilnadu over aperiod of 7years….4 | P a g e

Tsk venkatasubbarrao, is confident of managingthis successfully and registering veryattractive return of over30%for equity holdersas dividend..and take this company to next levelas listed company.considering listing gain ofvery modest 300%..in seventh year …the totalaverage return would be more than70% for equityinvestors in seven year period…

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project outlay

Source of funds Application of fundsEquity…. 12.5mn

Regdoff/admn bldg 7.50mn

Pref.shares… 15.0mn

Prel/precultvn exp… 5.00mn

Debt 27.50mn

Fin.chrg (during proj.prd 2yrs) 3.50mnLand&land devpt (100acres) 30.00mnFarm.eqpt/tools/misc 2.50mnContingency 2.50mnWorking cap.margin 3.50mn

Total 55.00mn

Total 55.00mn

Note: gestation period of 2yrs planned towards land purchase/devpt/cultivation….

Preference shares are paid max12% fixed dividend&fully redeemed in7yrs

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Debt is repayable in 10yrs with max int.rate of12%pa

Working capital of 10mn will be arranged with available margin by2ndyear..

Equity&pre.sh are issued in pair @1:2 ratio forthe new investors

Promoter brings in 5mn equity as cash cum assets

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Strategy of productive cultivation

Tsk&co..chennai based four year old trading company has identified certain cash crops if scientifically cultivated usingproven technology available in india has given impressive yields of 75-100% more productivity/tonnage besides excellent quality than the conservative practices adapted by majority of farmers. On detailed analysis poor-seed quality-irregular/rain-dependent irrigation-crop damage due to deseases/improper pest control-lackof capital for timely action –poor marketing &hence unattractive prices for their produce…etc..are the main reasons for low yields

Land development-enrichment of soil-rain water harvesting –dripirrigation-precision farming-biotech enabled molecular levelseedquality enhancing practices-organic fertilizers-organic-farming –scientific crop rotation strategies for all season-cultivation (through out the year)-export oriented cropcultivation plan etc strategies will overcome all the abovehurdles and lead to enhanced productivity. It is heartening toobserve these strategies are already in place and a section offarmers successfully practising with the research /agriinstitutes support &guidance through out india includingtamilnadu. We have included certain success stories/innovationsat the end of this report.we need to simply follow them andsucceed…

Agricultural professionals with relevant experience will beappointed at various levels in cultivation areas (coveringsowing to harvesting stages) so that correct agriculturalpractices are in place for the targeted yield

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Details of Project implementation

@ equity &preference share investors to be formallytied up.

@ long term Debt to be finalised& tied up fromexisting offers..

@ an unlisted plc will be formed and share certificateswill be issued with in Six weeks against receipt ofinvestment funds to all the investors. Tsk&co willcontribute their current office cum residence buildingin chennai as part of their share capital for the newcompany Which will become the regd office of the newagro company with Certain additional civil work

@Land identification and purchase will be commencedsimultaneously in karurDistrict area suitable forcultivating the proposed cash crops

@seasoned agro consultants/professionals will beappointed for land selection-development etcactivities.with the cooperation of friends andrelatives the topManagement wants to complete this100acre purchase activity with minimum delayatreasonable price (karur district area being the nativedistrict of tsk venkatasubbarrao)

@a planning dept will go in to complete crop selection–cultivation analysis in Consultation with topmanagement so that sales targets are well conceived byCultivation team in the beginning stage it self

@planning export-and best local marketing sources willbe identified by forming separate marketing divn.this

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division will bridge market demand and cultivation Planfor better price for the produce

@with in permitted gestation period land devptcultivation trials will be completed.Additional manpower will be recruited as cultivation activity coverstotal100 acres in stages..

@TNAUC…and other knowledge centres will be tied up formarketing & technical guidances

@working capital funding to be tied up at thecommencement of regular cultivation after successfultrials and tests

It is estimated about two years time will be requiredfor bringing about 60%

Of 100acres of land under regular cultivation process

Analysis of cultivation capacity ( sales-variable cost)

We have analysed annual yields/sales of various crops including inter crops..the following pattern emerged…

Pomegranates…yield=15-10ton/peracre

Sales=Rs15.5-10.0lakhs;

operating exp=2.0lakhs

Turmeric..sales/acre=Rs6.0lakhs

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Grapes(seedless)=Rs5.6lakhs/acre

Tomato=Rs4.0lakhs/acre sales(half yr)

Organic rice(kichili samba) =3.7t/acre..sales=1.1lakh/half year

Wehavefound Rs4.0lakhs/acre /perannum is the min.average sale we can expect (from the crops we have planned) and the same is taken for sales&profitability analysis

Similarly the variable cost /operating cost varied from10% to25% of sales and we have taken20% as average variable cost(for the crops in terms of sales) for analysis

The base rateRs4.0lakhs is adjusted for inflation annually in the analysis

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Sales& profitability projections

details yr-1 Yr-2 Yr-3 Yr-4 Yr-5 Yr-6 Yr-7 totalcapacityutilisation

--- 25.0%

60.0%

75% 80.0%

90.0%

90.0%

--

Acres under cultvn

--- 25.0 60.0 75.0 80.0 90.0 90.0 90.0

Sales(base4lac/pa/pA)

nil 100.0

264.0

330.0

400.0

450.0

495.0

2039.0

Variable cost(@20%of sales)

nil 20.0 53.0 66.0 80.0 90.0 99.0 408.0

o/H&otherFC 15.0 24.0 36.0 40.0 44.0 48.0 52.0 259.0Fin.charges 18.0 42.0 57.0 52.0 46.0 39.0 20.0 274.0PBDT -- 08.0 118.

0172.0

230.0

273.0

324.0

1125.0

Allocation forDebt repay/pref.sh.redmptn

--- --- 40.0 55.0 75.0 75.0 75.0 320.0(170.0+150.0)

Allocation fordividendPayment for equity holders

-- --- 40.0 55.0 60.0 60.0 60.0 275.0(39.3%pa)

Note : fig.are in lakhs

: preference shares will be redeemed with in seven years as shown above

: Equity holders’ enjoy average 39.3% dividend asshown

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: Retained earnings at the end of 7thyear will facilitate good

premium for the listing in 8thyr

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Promoters

details

Name :

Tsk&co

Year established :

2007

Current nature of activities : engg

consultancy-equity trading

Legal status :

partnership firm

Details partners : 1)TSK Venkatasubbarrao,BE,MBA(mobile:9884240600)

: 2)VS padmavvathi,Mcom.,MA.B.Ed

Address(office cum Resi) : plotNo21,second

cross street,venkateswara nagar

Thirumullaivoyal,CHENNAI-600062

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Telephone :

044-26376632

Email :

tsk500@gmail.com

Pancard-regtrn certificate-partnership deed –IT

returns-balance sheets are available for the company

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Success stories….

case studies…

innovations….

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1. Eco-friendly technologies for rice cultivation

A sound package of eco-friendly technologies to grow rice is beingsuccessfully adopted by a few progressive farmers in Puliangudi village inTirunelveli district of Tamil Nadu. "The technologies work well withindigenous rice varieties such as Kitchili Samba. The cost of cultivation issubstantially reduced and the organic rice fetches a premium price in themarket," says Mr. P. Gomathinayagam, a pioneer in organic farming inPuliangudi.

"I grew a medium-duration (140 days) Kitchili Samba rice in about 1.6hectares. The seeds were treated withPanchakavya, and the nursery was treatedwith plenty of tank silt and a host of organic amendments. Liberal quantitiesof tank silt were applied and green leaf manure was incorporated a few daysahead of the final ploughing. Biogas slurry was applied through irrigationwhen the seedlings were just establishing in the main field," he explained.

One round of spray with 3 per cent solution of Panchakavya was given 20 daysafter transplanting. On the 30th day, a combination of coconut milk and buttermilk, mixed in equal volume, in ten times their volume of water was sprayed onthe crop to promote active plant growth and tillering. On the 40th day,another round of spray with Panchakavya (3 per cent solution in high volumespray) was given. A bio-insect repellent was sprayed on the 45th day oftransplantation.

The crop was regularly irrigated, and a grain yield of about 6 tonnes wasexpected from the 1.6 hectare plot. He also was assured of high quality strawfor his cattle. The cost of cultivation worked out to Rs. 14,000 for 1.6hectares. "I sell the output as organic rice at a rate of Rs. 30 per kg, andit makes organic rice cultivation more rewarding economically as wellenvironmentally," pointed out Mr. Gomathinayagam. He is championing the causeof organic farming in the southern districts of Tamil Nadu. Several farmersare following his advice.

"I adopted the organic rice farming technologies and harvested about 9.25tonnes of paddy a hectare from the bold grained Trichi-1 variety. I dumpedliberal quantities of daincha in the field and allowed it to decompose well inthe field ahead of planting. There was no need for any plant protection also.The cost of cultivation worked out to Rs. 12,500 per hectare. I also harvestedplenty of healthy straw for our animals," said Mr. V. Antonysamy, aprogressive farmer of Puliangudi village.

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Marketing: The farmers in Tamilnadu never had to searchmarkets for their produce. Kerela is theirbiggest market. More than 50% of their produceare sent to Kochi market. The best quality goesto safal market in Bangalore where it fetchesmore prices. The remaining finds place inTamilnadu markets. Marketing is by collectivebargaining by the associations. .

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3. Ginger garlic extract: A Bio-pesticide for organic cultivation

Organic practices avoid investment on costly chemicals Ms. Rajareega at herfarm in Sivaganga district, Tamil Nadu seen manufacturing the botanicalpesticides.

There is a growing body of evidence to suggest that in the past 4-5 decadesthere has been an excessive dumping of chemical toxins on the soil. As aresult the soil has become barren and ground water toxic, in many places.Contrast this with organic inputs that are safe, non toxic, and cost muchless. For example, if using chemical pesticides and fertilizers for growing acrop in a hectare works out to about Rs.6,000-7,000 the cost of growing thesame crop using organic inputs may come to only about Rs.500 - Rs. 1,000,according to Ms. Rajareega of Raasi organic farms at Muthupatti village inSivaganga district, Tamil Nadu.

4. Organic farming in banana a profitable venture

Organic farming is the in-thing now in Thanjavur district- the rice bowl ofTamil Nadu. Having used chemical fertilisers for some years, farmers are nowreverting to organic farming.

Nearly one hundred farmers of Thanjavur district were given a first hand ideaof how successful is organic farming by the Central Bank of India recently.They were taken to TARI high-tech horticulture farm at Marunkulam, wherebanana, maize and paddy were raised using organic farming.

According to Kulandaisamy, a progressive farmer and owner of TARI high-techhorticulture farm, organic farming helps to increase the yield and nutritivevalue. In his farm at Marunkulam he has raised banana crop using organicfertilisers. He found that the yield and quality of the crop was good.

He has raised Rasthali and robust variety of bananas on 1.5 acres and threeacres respectively in his farm adopting organic farming methods. With respectto Rasthali, a bunch has five to six hands (hands means seeppu in Tamil),instead of three to four hands, which are normally seen in ordinarycultivation.

The bunch has adequate space between hands and hence the fruit is big, saysMr. Kulandaisamy pointing to the big bunch of bananas in his farm. A bunchweighs 20 kgs and fetches Rs. 200.In the case of Robust variety (green banana)he has resorted to a high density cultivation with 1600 plants in an acre. Inthe case of Rasthali he has gone for 1000 plants in an acre.

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Robust variety of banana has 12 to 15 hands in a bunch and the bunch weighs 30to 35 kgs. Fertiliser used by Kulandaisamy was composed organic matters, neem,pancha kavya prepared using cow's urine and cow dung, etc. As a farmer who is practising integrated farming, he has a dairy farm fromwhere he produces panchakavya and uses the cowdung generated in the dairy fororganic farming.

What about marketing of bananas produced under organic farming? They fetch a premium price and already a shop in Chennai selling organicproduce has booked for bananas. He is also selling the bananas to Tiruchimarket.

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5. Organic practices for increasing mango yield

Mango trees respond well to organic manure applications. Organic manures suchas vermicompost, panchagavyaand vermiwash are used for promoting healthy treegrowth and fruit formation.

Essential nutrients

From the initial planting stages to caring of full-grown trees, Panchagavyaand vermicompost can be effectively used to supply essential nutrients to thetrees and prevent pest infestations, according to Dr. S. Sundaravadivel,Vermitechnologist and Environmentalist based in Chennai. Vermicompost isprepared by using earthworms. Vermiwash is the liquid collected after thepassage of water through a column of activated earthworms. It is very usefulas an organic spray for all crops.

Pest repellent

Panchagavya is an organic growth promoter, which is prepared by mixing cowdung, cow urine, cow's milk, curd and ghee in suitable proportions, and issprayed on the plants. It contains several macro, micronutrients, beneficialbacteria and fungi, which aid in growth promotion and act as effective pestrepellents.

It can be prepared by thoroughly mixing five kilos of fresh cow dung and onelitre of cow's ghee in a plastic or cement tank or earthen pot. The mixture isstirred daily for three to four days."About three litres of cow's milk, twolitres of cow's curd, three litres of sugarcane juice, three litres of tendercoconut water and 10 to12 bananas are mixed well and added to the mixture. Theentire concoction is allowed to ferment for fifteen days," said Dr. S.Sundaravadivel.

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The container should be covered with a net (or) cotton cloth to allow aerationof the fermenting unit, according to him. The concoction is stirred two orthree times a day for about fifteen days and then used. For mango trees ofabout 6-7 years age, vermicompost may be applied at the rate of 10 kilogramsper tree and one litre of panchagavya diluted in 30 litres of water may besprayed over the foliage (crown) and at the base of the tree. SprayingPanchagavya over the crown and at the base of the tree must be done four tofive times, according to Dr. Sundaravadivel. The first spraying must be donebefore the flowering season (January-March) to increase flower formation.

A second spraying must be done after 15-20 days. The process must be repeatedtill the flowers turn into small sized buds. Once the buds start forming thenthe application can be done once a month, according to him. Use of Panchagavyaand vermicompost has been found to increase the size, number and enhance thecolour of the fruits.

Recommended practice

The recommended practice for one hectare of mango trees is about 25 litres ofpanchagavya (mixed in 750-800 litres of water) and four to five tonnes ofvermicompost. Spraying panchagavya has been found effective in the control offruit fly menace, a common infestation in all fruit bearing trees, accordingto Dr. Sundaravadivel. According to him, trees treated with organic manuresbore large sized leaves and formed a dense canopy with profuse rootingsystems. The taste and shelf life of the fruits were also found to be moresatisfactory.

Nitrogen-fixing bacteria

"The interaction of the root hairs of these trees with the organic manuresalso increased the activity of the nitrogen-fixing bacteria in the soil.

"The organic manures also act as a carrier medium for the development ofseveral beneficial micro organisms such as azospirillum, azotobacter, rhizobium andphosphobacteria," he said. Dr. S. Sundaravadivel can be reached by mobile at98843-90104 ,and email: sundaravadivel66@hotmail.com.

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Description of innovationMr. H.B. Gajare started pomegranate farming from the year2001 in 2.80 ha of land, which is shallow rainfed land. Previously he

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was cultivating Cereals and Vegetables but not getting more incomefrom these crops, then he tried fruit cultivation i.e. Plantation ofPomegranate. Due to shortage of water for irrigation, he changedthe cropping pattern and now only Phule Bhagwa Pomegranate forexport purpose is grown by him. Every year there is increasingtrend of income and specially during January, 2009, 60 tonns ofPomegranate @ Rs. 62 per kg. has been sold. Out of total production70% produce has been exported to the European country. The totalexpenditure for 1.2 ha was Rs 300000 while the total income of Rs3720000 has been obtained by him. Mr. Gajre developed goodagricultural practices for pomegranate like refilling of Borewell withrainwater harvesting every year, use of Azotobactor, Rhizobium andPSB. He used Dashparni ark to control insects and pests in orderto have minimum level of pesticidal residues. To increase fruit weight,improve colour and quality of fruits the Biological products i.e.Madhulexin @ 7 ml. / litre of water is sprayed at 21 days beforeharvesting. The special pruning practices, integrated nutrientmanagement and integrated pest & disease management practicesare followed. Presently these practices are followed on 700 to 750acre by the farmers of Aran cluster.Practical utility of innovationHe is giving knowledge about Pomegranate cultivation andgroup dynamics to other farmers through Shri Babanrao ShindeKrishi Phalotpadak Sahakari sanstha, Aran which was establishedduring 2006. Through this co-operative sanstha they purchasedfertilizers, pesticides and marketing activities were implemented.During 2001, the area under pomegranate was only 1.7 ha while in2010 it is about 280 to 300 ha which gave 150 to 175 % more yieldand Benefit Cost Ratio is 11.4. He formed pomegranate growersgroup with 40-50 members and marketing is being done

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More yield: The farmer Mr. C. Boopathy of Dharmaputi district in Tamil Nadu has harvested about 45 tonnes of fruit from an hectare.

Muskmelon is a fruit crop cultivated widely by farmers in our country particularly during the summer season. The fruit is used for making sherbets and desserts which have a cooling effect on the body. Though it is mainly a summer crop it is now being cultivated throughout the

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year in Tamil Nadu, thanks to the Precision Farming technology from the Tamil Nadu Agricultural University (TNAU), Coimbatore, Tamil Nadu.

Mr. C. Boopathy, a beneficiary farmer of the precision farming technology (PFT) in Morappur village of Dharmapuri district in Tamil Nadu has grown musk melon in his one hectare farm. 

Net profit “I had spent about Rs. 90,000 as cultivation cost and was able to get a gross income of Rs. 3,60,000. Deducting the expense I have earned a net profit of Rs. 2,70,000 solely from musk melon,” he says.The seedlings are raised in protrays which are filled with cocopeat and grown in a shade net nursery under protected condition. They are ready for transplanting in the main field on 12th day of sowing, according to him. 

Healthy plants The root growth is excellent when the seedlings are grown in protrays and the seedlings are resistant to pests and diseases. All the plants are uniform, healthy and the portrays can be easily taken to the main field for transplanting, according to Dr. E. Vadivel, Director, Extension Education, TNAU. About 20,000 seedlings are required for planting in one hectare. The field was readied using a chisel plough and disc (once) and then by cultivators, four times (with the help of a tractor). Then the seedlings were planted on raised beds of 1x4 feet (one foot height andfour feet wide beds). About 25 tonnes of farm yard manure (FYM), 2 kg of biofertilizers such as Azospirillum or Phosphobacteria and 470 kg of super phosphate were applied (for one hectare) as a basal application before the last ploughing. Water soluble fertilizers were applied through fertigation pipes (similar to drip irrigation pipes) which avoid water wastage. The fertilizer application is done based onthe time and the stage of the crop. Unlike crops grown under the conventional system, precision crops come to harvest at an earlier stage. For example, this melon was harvested on the 65th day after planting. 

Uniform fruit growth Under normal practices harvesting can be done after the 75th day afterplanting. In addition there are more number of flowers in the plant and the fruit growth is also uniform, according to Dr. R.I. Muthuvel, Assistant Professor, Horticulture. Also, the fruits can be harvested in a single harvest unlike conventional system where 3-4 harvests are

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required. Major pests affecting the crop are beetles, white flies and fruit borers. Beetles and white flies can be controlled by spraying 2gms of Carboryl or 0.5 gms of Acetamopride diluted in one litre of water. Spraying 2 ml of Trizophos or 2gm of Thiodicarb or Methomil in one litre of water is found effective for the control of fruit borers.The fruit weight is also more compared fetches a good price in the market due to higher sweet content and shelf life, according to Dr. Muthuvel.

“I was able to harvest two fruits from a single vine he said. Each fruit weighed 1.25 - 1.5 kg. About 45 tonnes of fruit was harvested from a hectare and sold at Rs. 5 to 12 a kg,” said Mr. Boopathy.

Contact details : Dr. I. Muthuvel, Assistant Professor, Horticulture, TNAU, Coimbatore: 641 003, Tamil Nadu, mobile: 94437-15948 and Mr. C. Boopathy, Morappur village, Dharmapuri district, Tamil Nadu.

Higher yield in BrinjalOur granny says more brinjal, tomato…, Tamilnadu Agricultural University gives the statistics.

S.NO CROP YIELD TONNES/HA INCREASE %        

  Nationalaverage

Precisionyield

 

      1

Tomato 17.35 150 764.55

      2

Chilli 12.02 35 191.18

      3

Brinjal 10.46 156 1334.03

      4

Ladies finger 6.28 16 154.78

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      5

Tapioca 25.52 52 103.76

      6

Turmeric 4.95 9 81.81

      7

Sugarcane 80-100 250 177.77

      8

Cotton 15-20(Quintal)

30(Quintal) 111.43

      9

Watermelon 12.71 60 372.06

     10

AshGourd 21.95 40 82.23

     11

Onion 11.32 21 85.51

     12

Banana 28.58 110 284.88

     13

Cabbage 14.38 120 734.49

     14 

Cauliflower 14.22 33 132.06

     15

Pumpkin 11.91 50 319.81

     16

Bittergourd 6.23 15 140.77

     17

Ribbedgourd 15.85 34 114.51

     18

Bottlegourd 12.21 66 440.54

     19

Cucumber 6.48 20 208.64

     20

Beans 5.8 12 106.89

     21

Beetroot 16.75 35 108.95

     22

Rose 10lk stems 25lk stems 150.00

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     23

Marigold 10 25 150.00

     24

Chrysanthemum 8-15 25 117.39

Conclusion

It is clear from the facts andanalysis furnished, cultivation ofcash-crops if done with goodagricultural practices…Involving land development-soilenrichment-irrigation management-precision farming from sowing toharvesting-right marketing etcleads to impressive profits.

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The project is technicallyfeasible& economically viableThe management team with fullinvolvement and dedication isconfident of making the analysis areality and will reward theinvestors impressively With in aperiod of seven years

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