total

poverty
BPL
per year
subsidy
total cost

26500000 popolation
36 %
9540000 popolation
1908000 coverage
1500 primium
2862000000 per year
28620

26500000
569750
27069750
9745110

Business Plan

Off-season vegetable cultivation under plas

Main product: Tomato

Subsidiary products: Spinach, coriander, Green Onion
XYZ Company /Person
Introduction:
I am an agriculturist and professionally I have intens interests to establish a co
National demand of tomato has not yet been supplied by incountry production
Tomato is a popular crop and posesses comparetively higher return to the grow
than the national demands. Those crops are coriander, spinach and green onio
Similarly, more than 5% of national demand of coriander, green onion and spin
and demand, and such gap in the market can be fulfilled by the commercial ve
employment creation locallly. The farm manly aims to produce and sell: tomato
and spinach production and sell.

Production Process:
Tomato:
Variety: Srijana, Crop layout: Single row system (70*50 cm), 300 plants per pla
Total number of plastic house: 12
Area of one plastic house: 105 sq. m, and Total farm area needed: 3 ropani (15
Transplanting of the plants after 30 DAT, staking on 4 plants interval, 2 cane sy
Irrigation: daily up to 10 DAT, and at 15 days interval after 10 DAT
Hormones application: Miraculan, Atonic gold, Karishma, PPM: Cow milk, Catt
Top dressing: 3 times
Coriander+Green Onion
variety: OP Green, and Red Creol, spacing: 25*15 sq.cm, and 10*25 sq. cm,

Spinach: OP Leafy variety

Spacing: 25*8 sq. cm, cultivated after harvesting of onion. The leafy veg. is ba
Harvested after 5 times irrigarion and 3 times weeding and other intercultural
Production time (Gantt Chart)
Item/Month
Baishakh
Tomato
Coriander
Green Onion
Spinach
Production plan for 4 year
Tomato
Green Onion
Coriander
Spinach
Total

unit
kg
bunch
bunch
bunch

1 plst hse
2580
1400
960
900

monthly
daily

Production area:
Market area focused:

Kailali district, Sahajpur VDC, Sahajpur town, n

Kailai and Kanchanpur district. Vegetabl
Mahendranagar and Gulariya area

Market demand:
Daily demand in the focused market areas
SN
Item
shop 3
shop 4
1 Totato Kg
18
22
2 Coriander (Bnchs)
31
21
3 Green Onion(Bnchs)
25
30
4 Spinach (Bnchs)
18
22
Note: D: Total Demand of market
Sells plan vs. demand of the market
SN

Item
1 Totato Kg
2 Coriander (Bnchs)
3 Green Onion(Bnchs)
4 Spinach (Bnchs)
Total

Demand
Monthly
Annually
31050
372600
35100
421200
32400
388800
22950
275400
121500 1458000

Fixed cost
SN
item
unit
number
A
Plastic house
1 bamboo
no.
14
2 metal pin, rope, wire
kg
2
3 Plastic
kg
18
4 paint, charcoal
LS
1
5 skilled labor
prsn
6
sub-total
B
Rose cane,bocket,jug
LS
1
C
Electric motor
no.
1
D
Garden pipe
meter
50
E
Pump sprayer
no.
1
F
Crates
no.
10
G
Other tools/implmnt
LS
set
Total
d rate: depreciation rate, dprn: amount depreciated
Operational cost

SN
A

Item
Tomato cultivation
1 seed
2 Urea
3 DAP
4 MOP
5 intercultural ops.
6 tillage and soil prepn
7 Seedling raising
8 FYM
9 hormns and urin spray
10 Staking bamboo
11 Top dressing (NP)
12 Micro nutrients
13 irrigation
Sub-total

unit

No.

gm
kg
kg

6
4
6
5
2
2
340
300
4
22
20
2
4

prsn
prsn
seedling
plant
times
bamboo
kg
kg
times

Green Onion + Coriander

1 Fertilizer(Urea,DAP,MOP)kg
2 weeding, intercuture
LS
3 tillage, soil preparation LS
4 seed
gm
5 top dressing (Urea)
kg
6 Irrigation
times
7 Plant protection
times
8 FYM
kg
Sub-total

24
3
1
200
15
5
3
100

Spinach
1 Fertilizer(Urea+DAP+MOkg
2 FYM
kg
3 Seed
gm
4 Irrigation
times
5 Plant protection
times
6 weeding
times
7 hormones, vitamins
times
Sub-totle
Total cultivation cost
Overhead
Items
Area
Land rent (annual)
Ropani
Worker/laborer
person
Farm manager Salary
person
electricity, phone, other month

15
100
250
4
2
1
1

No.
3
3
1
12

Sub-total
Items
Units
Indirect Overhead total NRs.
Direct Direct (Operational cost) N
Total Operational cost NRs.
Cost before production NRs.
Stock during production
working days/month
per unit cost of production
NRs.
Sold on due
Cash (on hand for laborer and othLS
Total Capital Need (NRs.)
Source of Fund:
Own
Interest

Interest
of 1 year

Loan (NUBL)
Total Interest

Depretiation:
Total annual depretioation of fixed cost
Selling Price (SP):
SP= (Interest+Depretioation)/Production units NRs.
Final Price:
Price = per unit (cost of production + SP)
Profit per unit product
(according to market price)

B-C calculation (benefit cost on 1st

income from annual selling:
Direct cost total
Contribution margin (Approx. profit)
Indirect Cost:
indirect labor
NRs.
overhead
NRs.
depretiation
NRs.
Interest
NRs.
Total (Annual fixed cost) NRs.

18.7161

year):
NRs.
NRs.
NRs.

0
621000
41462.5
62395.2
724858

Annual Profit before tNRs.

335102

Break even Point (BEP)

BEP = (fixed cost per annuam/annual income - direct cost)
Therefore, BEP is

68.38538247

Return on investment
35.8085
(Benefit before tax)*100/(total capital)
Total capital
Income from annual sell
benefit before tax

Conclusion:
(To be edited after a few ch
I, since, many months back was thinking about about establishing a p
And, I therefore visited many of the plastic house farms, consulted wit
comparative advantage of the location. On finalizing the business pla
It takes a total capital of 10, 27, 228 rupees whereby income from tot
, Green onio + Coriander (intercrop), and spinach as spring summer c
rupees from where we can get 23 percent return on investment. The e
in this plan has lured me enough for starting the enterprise when I fin

Business Plan

le cultivation under plastic house

n Onion

ens interests to establish a commercial agricultural farm. Since I have workes in offseason vegetable production
pplied by incountry production. specially on rainy to winter season tomato production under plastic house. veget
ively higher return to the growers. Likewise, some other vegetable are there whose demands are quite higher
ander, spinach and green onion. According to VDD (2012) 10 % of the tomato demand has been fulfilled by imp
oriander, green onion and spinach are still unmet from our production. Hence, there huge gap between supply
fulfilled by the commercial vegetable farms. At the same time, higher return can be obtained along with the
ms to produce and sell: tomato from Shrawan to Mangsir at higher price (premium price), Green onion, coriande

70*50 cm), 300 plants per plastic house.

arm area needed: 3 ropani (1500 sq. m)

on 4 plants interval, 2 cane system of training and pruning
erval after 10 DAT
rishma, PPM: Cow milk, Cattle urin spray, Bevistin, 2,4-D, 2,4,5-T

*15 sq.cm, and 10*25 sq. cm, coriander is in between the rows of onion

of onion. The leafy veg. is bassly fertilized and side dressed once.
eeding and other intercultural operation.
Jesth

total yield

Ashad

Shrawn

Bhadra

Markt. Yld
year 1
yr
30960
30000
30000
16800
16280
16280
11520
11160
11160
10800
10465
10465
67905
67905

Ashwin

2
yr
28800
15630
10715
10050
65195

Kartik

3
yr
27650
15000
10285
9650
62585

4
26540
15030
10300
9660
61530

MangsiPaush

5658.75 5432.917 5215.417

5127.5
188.625 181.097 173.847 170.917

ahajpur VDC, Sahajpur town, near highway

nchanpur district. Vegetable markets of Dhangadhi, Attariya, Lamki, Tikapur,
and Gulariya area

n the focused market areas

shop 5
5 Shop Avg.
Shops
30
23
45
26
26
45
20
24
45
20
17
45

D (daily)
1035
1170
1080
765

Farm supply
monthly
annually
% supply
2500
30000
8.05
930
11160
2.65
1356.6666666667
16280
4.19
872.0833333333
10465
3.80
5658.75
67905
Total

rate

times

Total

225
250
290
500
500

12
12
12
12
12

37800
6000
62640
6000
36000
148440
1600
7000
1750
8000
6000
1500
174290

1600
7000
35
8000
600
1500

1
1
1
1
1
1

Income Rs.
990000
66960
130240
83720
1270920

d rate

25
15
15
25
15
20
15

D(monthly)
31050
35100
32400
22950

dprn

37110
240
1050
437.5
1200
1200
225
41462.5

Times

Rate

Total (NRs.)

5
12
12
12
3
3
12
12
12
12
12
3
12

500
28
38
42
300
350
3
2
500
225
35
500
50

15000
1344
2736
2520
1800
2100
12240
7200
24000
59400
8400
3000
2400
142140

12
12
12
12
12
12
12
12

35
300
100
3
28
50
100
3

10080
10800
1200
7200
5040
3000
3600
3600
44520

12
12
12
12
12
12
12

35
3
1
50
100
50
500

6300
3600
3000
2400
2400
600
6000
24300
210960

NRs.

Times

Rate
1
12
12
1

Amt (NRs.)
3000
9000
9000
324000
20000
240000
4000
48000

621000
No.

Annually
Monthly
621000
51750
210960
17580
831960
69330
6000
500
0
30
1
12.72
12000
1000
30000
2500
879960
73330

NRs.
%
NRs.
12 %

NRs.

360000
0
519960
62395.2
62395.2

41462.5

n units NRs.

1.529455857

NRs.

14.24945586

1270920
210960
1059960

come - direct cost)

NRs.
NRs.
NRs.

935817.7
1270920
335102.3

To be edited after a few changes into the data).

g about about establishing a plastic house farm in mid hill area of Nepal (100masl).
tic house farms, consulted with vegetable expert and studied the
On finalizing the business plan of the enterprise, it has been found quite rummenerative.
ees whereby income from total sell of offseason tomato (Srijana Variety, under plastic house, single row system
d spinach as spring summer crop has been found 12,70,920 rupees in first year. The net benefit before tax is 2.
nt return on investment. The enterprise comes on break even by selling only 76% of the total production. The fi
rting the enterprise when I find suitable time, and now I am looking for the capital needed to start.

egetable production,
plastic house. vegetable
s are quite higher
een fulfilled by imports.
p between supply
d along with the
een onion, coriander

Paush

Magh

Falgun

Chaitra

e, single row system)

efit before tax is 2.43,70
al production. The figurs

SN
A

item
Plastic house
1 bamboo
2 metal pin, rope, wire
3 Plastic
4 paint, charcoal
5 skilled labor
sub-total

unit
no.
kg
kg
LS
prsn

Note: Total: cost for one plastic ho

Grs total: cost for 14 plastic house cons
d rate: depretiation rate
dprn: amount depreciated

number

rate

14
2
18
1
6

225
250
290
500
500

st for one plastic house

4 plastic house construction

Total

times

Grs Total

12
12
12
12
12

37800
6000
62640
6000
36000
148440

d rate

dprn