Cost Estimation For Green House Construction

By TamilNadu Agricultural University on 05 May 2016 | read

A model project proposal for floriculture industry
A. Title of the project: 
Title should be brief and apt. It should be indicate clearly the main business activity. Eg. Production of Rose cut flowers for domestic and export market.

B. Introduction: 
Give a line of introduction of the proposed business. Justification for starting the business, scope and competition should be clearly stated.

C. Production technology: 
Give detailed account of the entire production process along with the scientific basis for each step.

D. Project components: For cut flower production
  1. Land
  2. Greenhouse
  3. Planting material
  4. Irrigation
  5. Fertilization system
  6. Grading and packing room
  7. Refrigerated van
  8. Office equipment
  9. Import of technology
10. Labour charge
11. Technical manpower
12. Pesticides, Fertilizers, preservatives

Give the costing for each of the major components and classify them into
A. Fixed cost –Permanent items
B. Recurring cost –planting, cultivation, maintenance, storage, packing and transportation costs.

E. Project yield
Estimate the total production expected in different years and the realization expected through sales.

F. Margin money
25% of the total cost that has to be invested by the entrepreneur.

G. Repayment
Principal and interest are to be repayable in seven years with a moratorium for the first year on interest and for 2 years on principal.

Budget requirement
For a one hectare greenhouse to produce Rose cut flowers.

A. Fixed cost

Image title

Project yield
No. of rose plants per hectare of greenhouse = 60,000
No. of flowers expected per plant = 100 to 150
No. of exportable quality flowers /plant = 60 to 100
Price per flower in international market = Rs. 6 to 11
Total exportable flowers /ha @ 100 flowers /plant = 60 lakhs flowers
Gross income through exports @ 50 flowers/plant = 300 lakhs (minimum).