ECONOMICS: JATROPHA FUEL FARMING

FUTUREFUELFRUITS

 

Of course the interest in the Jatropha plantation primarily focuses on Biodiesel. Here, the key question is: Will it be possible to establish the right cultivation and processing methods so that the Jatropha plant can produce a high-quality fuel which can compete with petrochemical diesel in terms of price? After all, one key element that makes all the difference between success and failure is the cost factor — in other words, the potential returns.

We are not in favor of the implementation of a high-tech agrarian concept that warrants for maximum input and delivers bumper crops. Contrary, we are looking for a practicable type of cultivation that is compatible with the routines and possibilities of local farmers, so that the Jatropha plantations can be profitable for the rural cultivators with a minimum input of men, money and materials.

The CJP experts working on the Jatropha plantation have developed the best method of cultivating these plants, which require the lowest possible investment of money, labor and materials.

Yield is a function of light, water, nutrients and the age of the Plant. Good planning, quality planting material, standardized agronomy practices and good crop management may handsomely increase the yields

 

ASSUMPTIONS FOR COST/BENEFIT ANALYSIS 

  • Though Jatropha starts yielding from very first year, we have taken no yield for 1st and 2nd year just to ensure proper pruning and development of the plant
  • Crop density with 2mx2m pattern shall be 2500 plants per ha
  • Seeds tonnage per ha has been taken 0, 0, 2.5, 5.0, 6.25, 9.6 for 1, 2,3,4,5, and 6th year respectively
  • Intercropping has been presumed for 30% of plantation area
  • CDM calculation has been taken as minimum for +1000 ha plantation
  • Sale price of seeds has been taken on lowest side
  • Rate of interest has been taken as 9% per annum for 5 years

 

MODEL 1: 20 ha JATROPHA - PLANTATION

 

OUTPUT

 

Crop yield

$ 21000

INPUTS

 

CAPITAL

 

Crop Cultivation cost

$ 13000

OPERATING COST

 

Crop harvest cost

$ 3200

MAINTENANCE COST

 

Crop care cost

$ 3080

REVENUE

$ 14720**

*(in 5th year)

 

 

MODEL 2: 100 HA PLANTATION

 

US$ ‘January, 2016

 

Year

2016

2017

2018

2019

2020

2021

2022

TOTAL HECTARES

100

100

100

100

100

100

100

Total no. of Jatropha Plants

 

 

250000

250000

250000

250000

250000

Production of Jatropha seeds (in ton)

 

 

250

500

625

962.5

962.5

PRICES

 

 

 

 

 

 

 

Price per TON of Jatropha Seeds (in US$)

 

 

140

140

140

140

140

SALES

 

 

 

 

 

 

 

Jatropha Seeds

 

 

35000

70000

87500

134750

134750

INTERCROP

 

3000

3000

3000

3000

3000

3000

Total Sales

0

3000

38000

73000

90500

137750

137750

Cost of Sales

 

 

 

 

 

 

 

CAPITAL COST

68000

 

 

 

 

 

 

Operative Expenses

30000

9600

24550

32300

36175

46637.5

46637.5

Maintenance Expenses

 

4000

4100

4200

4400

4600

4600

Total cost of Sales

98000

13600

28650

36500

40575

51237.5

51237.5

PBT

-98000

-10600

9350

36500

49925

86512.5

86512.5

Depreciation

 

 

 

 

 

 

 

Interest Expenses

 

 

 

 

 

 

 

NET PROFIT

-98000

-10600

9350

36500

49925

86512.5

86512.5

 

MODEL 3: 1000 HA PLANTATION

 

US$ ‘January, 2016

 

Year

2016

2017

2018

2019

2020

2021

2022

TOTAL HECTARES

1000

1000

1000

1000

1000

1000

1000

Total no. of Jatropha Plants

 

 

2500000

2500000

2500000

2500000

2500000

Production of Jatropha seeds (in ton)

 

 

2500

5000

6250

9625

9625

PRICES

 

 

 

 

 

 

 

Price per TON of Jatropha Seeds (in US$)

 

 

140

140

140

140

140

SALES

 

 

 

 

 

 

 

Jatropha Seeds

 

 

350000

700000

875000

1347500

1347500

Carbon Trading (in US$)

 

20000

20000

20000

20000

20000

20000

INTERCROP

30000

30000

30000

30000

30000

30000

30000

Total Sales

30000

50000

400000

750000

925000

1397500

1397500

Cost of Sales

 

 

 

 

 

 

 

CAPITAL COST

681250

 

 

 

 

 

 

Operative Expenses

177600

62400

180900

258400

297150

374650

374650

Maintenance Expenses

 

40000

41000

42000

44000

46000

46000

Administrative+ OH Expenses

10000

10000

10000

10000

10000

10000

10000

Total cost of Sales

868850

112400

231900

310400

351150

430650

430650

PBT

-838850

-62400

168100

439600

573850

966850

966850

Depreciation

 

2500

2500

2500

2500

2500

2500

Interest Expenses

 

90000

90000

90000

90000

 

 

NET PROFIT

-838850

-154900

75600

347100

481350

964350

964350

 

 

MODEL 4: 10000 HA PLANTATION

 

 

US$ ‘January, 2016

 

Year

2016

2017

2018

2019

2020

2021

2022

TOTAL HECTARES

10000

10000

10000

10000

10000

10000

10000

Total no. of Jatropha Plants

25000000

25000000

25000000

25000000

25000000

25000000

25000000

Production of Jatropha seeds (in ton)

 

 

25000

50000

70000

96250

96250

PRICES

 

 

 

 

 

 

 

Price per TON of Jatropha Seeds (in US$)

 

 

$140

$140

$140

$140

$140

SALES

 

 

 

 

 

 

 

Jatropha Seeds

 

 

$3,500,000

$7,000,000

$9,800,000

$13,475,000

$13,475,000

Carbon Trading (in US$)

 

$200,000

$200,000

$200,000

$200,000

$200,000

$200,000

INTERCROP

 

$1,050,000

$1,050,000

$1,050,000

$1,050,000

$1,050,000

$1,050,000

Total Sales

 

$1,250,000

$4,750,140

$8,250,140

$11,050,140

$14,725,140

$14,725,140

Cost of Sales

 

 

 

 

 

 

 

CAPITAL COST

$7,162,500

 

 

 

 

 

 

Operative Expenses

$442,400

$81,600

$720,600

$1,220,600

$1,620,600

$2,145,600

$2,145,600

Maintenance Expenses

 

$800,000

$800,000

$800,000

$800,000

$800,000

$800,000

Administrative+ OH Expenses

$100,000

$100,000

$100,000

$100,000

$100,000

$100,000

$100,000

Total cost of Sales

$7,704,900

$981,600

$1,620,600

$2,120,600

$2,520,600

$3,045,600

$3,045,600

PBT

($7,704,900)

$268,400

$3,129,540

$6,129,540

$8,529,540

$11,679,540

$11,679,540

Depreciation

 

$6,000

$6,000

$6,000

$6,000

$6,000

$6,000

Interest Expenses

 

$764,000

$764,000

$764,000

$764,000

$764,000

$764,000

NET PROFIT

($7,704,900)

($501,600)

$2,359,540

$5,359,540

$7,759,540

$10,909,540

$10,909,540

 

 

 

 

 

 

 

 

 

 

For Detailed Financial Analysis Kindly Obtain Our JATROPHA FARMING BUSINESS PLAN  for  20 ha, 100 ha, 1000 ha, 5000 ha, 10000 ha, 100,000 ha etc.

 

For further enquiry kindly contact:

 

Director

Business Development, C J P

jatrophacurcas@gmail.com

+91 9829423333

 


 

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