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Model Bankable Projects

   
   
 

Medicinal & Aromatic Plants

 
Patchouli (Pogostemon cablin)
 

1. Introduction
Patchouli (Pogostemon cablin ) also patchouly or pachouli is a bushy herb of the mint family. The name / word patchouli is derived from the Tamilword patchai (green), ellai (leaf). In Assamese it is known as xukloti. Pogostemon cablin, P.commosum, P.hortensis, P.heyneasus and P.plectranthoides are all cultivated for their oils and all are known as 'patchouli' oil, but P. cablin is considered superior.

Patchouli is an erect branched herb to under-shrub growing 1 to 1.2 m tall. It grows well under partial shade conditions. Since it is a short-day plant, it flowers occasionally in South India. The flowers are small, borne in spikes at the end of branches.

Patchouli is native to tropical regions of Asia and is now extensively cultivated in Caribbean countries, China, India, Indonesia, Malaysia, Vietnam etc., In India it is cultivated for its highly fragrant leaves which contain a very sweet smelling oil of lasting sticky odour. The scent of patchouli is heavy and strong. It has been used in perfumes for centuries and is continued till date.

There are several cultivars introduced into cultivation but Johore and Malaysian cultivars produce superior oil.

2. Importance of Patchouli
Patchouli is one of the important aromatic plants cultivated for its oil. Consumption of patchouli oil in the world is about 1,000 t per annum.  Consumption of this oil in our country is about 70 to 80 MT per annum. Patchouli oil has a very characteristic aroma and blends well with other essential oils. The oil is used in scenting of soaps, cosmetics, after-shave lotions, detergents and many fancy products. In very low concentration (2 ppm), the oil is used to flavour foods, beverages, candy and baked products. In combination with sandal wood oil, it is used in blending of tobacco and making of incense sticks. Indonesia is the major producer and exporter of its oil, whereas Malaysia, China and Brazil are also large producers.  India has considerable scope to enter the world market.   

3. Package of Practices
3.1 Agro Climatic requirements
Humid climate with plenty of sunlight is suitable for this crop.  The plant grows well as an inter crop in partial shade, but complete shade should be avoided. For good growth of the plant, temperature between 25oC to 35oC is found to be ideal. 

3.2 Soil
Most soils with good drainage are suitable for patchouli cultivation.  Water logged soils are found to be detrimental for the crop and must be avoided because they are susceptible to nematode attack.

3.3 Selection of Location
As patchouli thrives well under humid conditions, coastal areas (Maharashtra, Goa, Karnataka & Kerala) are suitable for this crop. It is possible to cultivate patchouli commercially in various locations of the country having congenial climate. Factors such as number of farmers ready to take up the crop for better supervision, availability of perennial irrigation source and marketing arrangements should be taken into account for site selection and commercial promotion of patchouli.  It can also be cultivated as inter crop with other perennial crops such as coconut, arecanut etc. where light intensity is 25–50% lower. It is a good catch crop.

3.4 Variety 
There are no established varieties of Patchouli under cultivation. In the model  project, the cultivar/strain  selected from natural flora by Kelkar Scientific Research Center (KSRC), Mumbai is recommended.  This selection is reported to be suitable for production of best quality patchouli essential oil.

3.5 Crop Cultivation
Patchouli can be cultivated as pure crop and also as intercrop under the following two methods :

  • Standard practice using conventional method of irrigation.
  • Drip irrigation method using fertigation for providing nutrients. 

3.6 Planting Material
Quality planting material of a chosen cultivar / strain suitable for superior grade essential oil is a prerequisite for successful patchouli cultivation. Two types of planting material are available viz., (a) Rooted cuttings (b) Rooted and hardened tissue culture plants. For better biomass yield and quality oil, tissue culture plants can be used. In this model, rooted cuttings have been considered. Around 5% mortality during establishment in the field is assumed.

Patchouli nursery is raised in shade by planting 10–12 cm long terminal shoot-cuttings at 10cm × 10cm spacing during rainy season. The nursery beds are kept under moist conditions. It gives 85–90% sprouting in a fortnight. These are ready for planting in about 6 to 8 weeks.

3.7 Spacing and Plant Population
The recommended spacing is 30 cm x 30 cm for open cultivation under both drip and conventional irrigation.  Number of plants accommodated would be around 35000 per acre leaving allowance for irrigation channels, bunds and working area. In some parts, it is also grown at 60 cm x 60 cm spacing.

For intercropping in partial shade, 45 cm x 45 cm spacing is recommended accommodating 14000 plants per acre. In the present model 30 cm x 30 cm spacing with a plant population of 35000 per acre has been considered.

3.8 Land Preparation
After land clearing, ploughing for four times is recommended, considering the long crop duration and repeated crop harvesting. Farmyard manure (12 t/acre) is to be mixed well with the soil at the time of last ploughing.  Application of Neem or pongamia  cake along with FYM is recommended for control of soil borne pathogens, nematode etc., 

3.9 Planting Time
Planting can be done at any time of the year except during hot months like April, May or October. Once planted, patchouli can be maintained for three years. Under well managed conditions good leaf yield is obtained for three years.

3.10 Irrigation schedule
Patchouli can be cultivated in two ways depending on the method of irrigation followed. Under conventional method, irrigation is to be provided at least twice a week. Water logging must be avoided. Number of irrigations per year will be around 60 (no watering during monsoon) with each irrigation lasting for 3 hours.

Under drip system of irrigation, drippers are spaced at a distance of 45 cm from each other with a discharge rate of 2 litres of water/hour.  Irrigation for 30 minutes per day is adequate.  In hot and dry season it should be up to a maximum of 60 minutes in two installments.

3.11 Manures and Fertilizers
The fertiliser dose has to be decided based on the soil fertility status. At the time of land preparation 12 t of farm yard manure (FYM)/acre is to be applied. For control of nematodes, 0.4 t/acre of Neem cake or 8 kg/acre of Furadon or 60 kg/acre of Dasanit is broadcast in the field and mixed well with the soil, a few days before planting. Along with FYM, 8, 20 and 20 kg of N, P and K per acre is recommended as basal application during land preparation. The crop is a heavy feeder of nitrogenous fertilizer. A dose of Nitrogen @ 10–15 kg/acre is given 8 weeks after planting. Thereafter, Nitrogen @ 20–25 kg/acre in 2 split doses is given after each harvesting annually. Foliar spraying of urea (0.2%) is ideal; sometimes Zn and Mn deficiency are noticed in certain soils for which 20 and 10 kg each of ZnSO4 and MnSO4 are given. As the bio mass production is more under drip irrigation, a higher dose (generally 1.5 times) of manures and fertilizers may be required than under flood irrigation.

3.12 Intercultural operations
Regular weeding and intercultural operations, nutrient application, plant protection and harvesting are the major activities involved in the crop cultivation.

3.13 Plant Protection Measures
Apart from nematodes, problems of aphids and caterpillars have been observed in patchouli which can be controlled by use of malathion or endosulphan. For control of nematodes and Fusarium wilt, good drainage coupled with soil application of neem cake @ 0.4 MT/acre at the time of planting is recommended.

3.14 Harvesting
The first harvest is possible after six months of planting, when the plants are about 1m tall.  With the use of tissue cultured plants, the crop maturity is quick and the first harvest can be taken three months after planting. 

The plant is harvested with a sharp knife/cutter at 6-8 nodes from the apex.  The new shoots emerge from the nodes and if the cutting is done too low, the subsequent harvest will be affected.  After the first harvest, cutting can be taken every 3 months.  During rainy season, fungicides should be sprayed after harvesting.  The harvested material is dried in shade in the drying shed. Harvesting is preferably done during drier months.

3.15  Extraction of Oil
Generally, dry leaves stored for 4–6 months produce more oil with superior aroma. The steam distillation of dry leaves is carried for 16–24 hours at 1.4 – 3.5kg/cm2 pressure and periodic alternating high and low pressure gives better oil recovery. The oil yield is 3.5% on dry weight basis. The oil is dark orange to brown coloured viscous liquid, rich in patchouli alcohols and develops its characteristic odour on aging. All traces of moisture need to be removed from the oil by adding anhydrous sodium sulphate @ 20–30 g/litre and keeping the distillate mixture for 4–5 hours, after which the oil is filtered; moisture can induce polymerization of oil leading to loss in quality. The oil is filled in air-tight aluminium containers up to the brim and stored in cool dry place, away from light. On an average, 60 kg of oil/ha is obtained in a year.

3.16 Yield
Under conventional irrigation, in a pure crop of patchouli, 10 t of fresh leaves / biomass per acre is possible every year. Under drip system of irrigation, the annual yield can go up to 20 t per acre.

Harvested biomass is dried under shade for 4-5 days. The average dry biomass availability per acre will be 2 to 5 t during the first year of planting, under different systems of irrigation. 

4. Requirements of the Project
The major components of Patchouli cultivation project are as under :

4.1 Land
There is no minimum economic size for patchouli cultivation. Land is required for nursery, cultivation and drying the harvested biomass.  The model project envisages cultivation of patchouli in one acre area which can be easily managed by the farmer and get sufficient income. It is however desirable to adopt a cluster approach where more farmers join to take up cultivation in a contiguous area. It is assumed that the land is having permanent irrigation source such as well/ tube well owned by the farmer or a suitable community irrigation source is available to the farmer.  
   
4.2 Civil Works
Drying shed with thatched roof and mud floor is considered with a drying area of 1000 sq. ft. for drying the biomass under shade for 4 to 5 days. A pump house is to be constructed for installation of some of the irrigation equipments.

4.3 Fencing
For protecting the crop and drip lines from stray animal damage and theft, a live fencing has been provided in the model.  A low cost permanent live fencing with thorny shrubs like lantana, agave, bamboo etc., is preferred over a costly barbed wire fencing.

4.4 Irrigation
Assured irrigation is essential for successful cultivation of patchouli. It is assumed that only those farmers having an irrigation source will take up the cultivation. For drip system,  a 5 HP motor with accessories and a pump house has been provided for the conventional model. In addition, drip system is provided for the other model.

In the model, the average cost of drip irrigation system has been worked at Rs.40,000 for one acre.

4.5 Planting Material, manures and fertilizers
Two types of planting material can be used for planting. They are (i) rooted cuttings (ii) hardened tissue culture plants.  The planting materials have to be sourced from a reputed nursery or research institute or user industry supplying planting materials.  Other inputs such as manure and fertilizers, agro chemicals are locally available.

4.6 Manpower
Cultivation of patchouli will be taken up by individual entrepreneurs and farmers.  Technical tie-up with research institutes like KSRC, Mumbai; local Agriculture Universities; Krishi Vigyan Kendras (KVKs); User Industries with suitable marketing tie-up is desirable for viable patchouli farming. As the cultivation of patchouli is innovative in nature, promoters having relevant technical experience will have additional advantage.  Training and field guidance can be sourced from local extension departments, research institutes, KVKs or user industry.

4.7 Linkages
Keeping in view the scope available for patchouli, Kelkar Scientific Research Center (KSRC), Mumbai, a trust promoted by M/s S.H. Kelkar & Co. Ltd. has encouraged its cultivation. They have standardized the agrotechnique and are providing the planting material of patchouli selections yielding high quality oil.   Besides, it also provides training and technical guidance on cultivation aspects of the crop and also provides technical consultancy to private entrepreneurs for setting up of commercial units for production and processing.  In order to increase patchouli cultivation in collaboration with user industry and financial support from banks, the present model is prepared by NABARD.

5.  Financial details
5.1 Sale Price & Income
The average price is assumed at Rs.30 per kg of quality dry bio mass. The price may vary as per quality of the bio mass, market situations and the market arrangements made by the farmers. The estimated total benefits per acre as per the average price assumed is as under:
                                                                                               (Amount in Rs.)        

 

Year 1

Year 2 & 3

Total

i)  Under flood irrigation

60,000

90,000

105,000

ii)  Under drip irrigation system

90,000

135,000

150,000


5.2 Project Cost

The cost of patchouli cultivation in one acre under the two different models are given below :
i)  Cultivation under flood irrigation               : Rs. 126800
ii) Cultivation under drip irrigation system     : Rs. 167100

The above costs are average indicative costs. Banks may adopt realistic costs depending on local conditions and viability of the units. The cost of cultivation of patchouli under the various models and techno economic parameters are given in Annexure I & II respectively.

5.3 Bank Loan
Bank loan of 85 - 95 % of the total cost of development shall be available from the financing institution. Bank loan considered in the model is 90%. 

5.4 Margin Money
The margin money / down payment prescribed is 5 %, 10 % and 15% for small, medium and other farmers respectively. The rest of the cost of development will be provided as bank loan. However, in the present model, 10 % of the unit cost has been considered as margin money.

5.5 Rate of Interest
Banks are free to decide the rate of interest within the overall RBI guidelines issued from time to time. However, the ultimate lending rate has been considered as 12 % for working out the bankability of the model project.

5.6 Security
Banks are guided by RBI guidelines issued from time to time in this regard.

5.7 Financial Analysis
Financial analysis is carried out for one acre of Patchouli cultivation. For financial analysis, the income is assessed on a conservative basis. The details of the financial analysis are shown as Annexure III. It may be observed therefrom that Patchouli cultivation in one acre is financially viable. The major financial indicators are given below :

Financial Indicators

Flood irrigation

Drip Irrigation

NPV at 15 % (Rs.)

33914

88001

BCR

1.26

1.54

IRR

>50%

> 50%


5.8 Repayment schedule 
Based on the cash flow the detailed repayment schedule has been worked out and furnished in Annexure IV.  The repayment period works out to three years.

6.  Conclusion
Patchouli cultivation is a technically feasible, financially viable and bankable activity if proper marketing and processing arrangements are tied up.

 

Annexure I

Cost of Cultivation - Patchouli (One acre)

 

 

 

 

 

 

 

  ( Amount in Rs.)

Sl.No

Investments

Conventional Irrigation

Drip Irrigation Method

 

 

I Year

II Year

III Year

Total

I Year

II Year

III Year

Total

 

A. Materials

 

 

 

 

 

 

 

 

1

Planting material - including 5% mortality

70000

3500

0

73500

70000

3500

 

73500

2

Manures and fertilizers

4490

4490

4490

13470

6730

6730

6730

20190

3

Pesticides and fungicides

750

1000

1000

2750

750

1000

1000

2750

4

Sprayer and implements

1500

0

 

1500

1500

0

0

1500

5

Fencing - Live fencing

1500

0

0

1500

1500

0

0

1500

6

Irrigation (electricity, repair and maintenance)

3000

3000

3000

9000

2400

2400

2400

7200

7

Drip Irrigation

0

0

0

0

40000

0

0

40000

8

Pumpset (5 hp) and pumphouse

25000

0

0

25000

25000

0

0

25000

9

Drying shed

5000

0

0

5000

5000

0

0

5000

 

B. Operations & Labour

 

 

 

 

 

 

 

 

10

Land ploughing with tractor

1600

0

0

1600

1600

0

 

1600

11

Labour for land preparation, planting and other interculture operations

14000

10500

10500

35000

12600

9450

9450

31500

 

 

 

 

 

 

 

 

 

 

 

Total

126840

22490

18990

168320

167080

23080

19580

209740

 

Say

126800

22500

19000

168300

167100

23100

19600

209800

 

 

 

 

 

 

 

 

 

 

 

Note : Unit cost capitalised upto first year

 

Annexure II

Techno economic parameters - Patchouli (One acre)

I.Technical parameters

 

 

1

Planting material

Rooted cuttings

 

2

Spacing (cm)

30 x 30

 

3

Plant population (plants/acre)

35000

 

4

Drying yard (sq.ft)

1000

 

5

Manure and fertilizer

Under Conventional Irrigation System

Under Drip Irrigation System

 

FYM (t/acre)

12

18

 

N (kg/acre)

50

75

 

P (kg/acre)

20

30

 

K (kg/acre)

20

30

6

Labour requirement (mandays)

 

 

i

Land preparation - Tractor ploughing (hours)

4

4

ii

Land preparation, planting and other intercultural operations

 

 

 

Year 1

200

180

 

Year 2

150

135

7

Yield of dry leaves (kg/acre)

 

 

 

Year 1

2000

3000

 

Year 2

3000

4500

 

Year 3

3500

5000

 

 

 

 

II. Economic parameters

 

 

1

Cost of planting material (Rs./plant)

2

 

2

Manure and fertilizer (Rs/kg)

 

 

 

FYM (Rs./t)

250

 

 

N (Rs./kg)

10.87

 

 

P (Rs./kg)

39.50

 

 

K (Rs./kg)

7.67

 

3

Tractor hiring charges (Rs./hour)

400

 

4

Irrigation charges (Rs./month)

 

 

5

Labour wages (Rs/manday)

70

 

6

Cost of construction of drying yard (Rs./sq.ft)

50

 

7

Sale Price of dry leaves (Rs./kg)

30

 

8

Margin money (% )

10

 

9

Bank loan (% )

90

 

10

Rate of interest (% p.a).

12

 

 

 

 

 

Note : Input parameters considered as prevalent in the State of Madhya Pradesh

 

Annexure III

Financial analysis - Patchouli (One acre)

 

 

 

 

 

 

(Amount in Rs.)

Sl.No.

Particulars

Conventional Method of Irrigation

Drip System of Irrigation

 

 

Year 1

Year 2

Year 3

Year 1

Year 2

Year 3

 

 

 

 

 

 

 

 

 

A.WITHOUT PROJECT

 

 

 

 

 

1

Total cost

5000

5000

5000

5000

5000

5000

2

Total income

12000

12000

12000

12000

12000

12000

3

Net income

7000

7000

7000

7000

7000

7000

 

 

 

 

 

 

 

 

 

B.WITH PROJECT

 

 

 

 

 

 

4

Capital Cost

126800

 

 

167100

 

 

5

Recurring cost

 

22500

19000

 

23100

19600

6

Total cost

126800

22500

19000

167100

23100

19600

7

Gross Income

60000

90000

105000

90000

135000

150000

8

Net Income

-66800

67500

86000

-77100

111900

130400

9

Incremental income

-73800

60500

79000

-84100

104900

123400

10

Discount Factor @ 15%

0.87

0.76

0.66

0.87

0.76

0.66

11

PWC @ 15%

105966

13300

9240

141027

13756

9636

12

PWB @ 15%

41760

59280

61380

67860

93480

91080

13

NPV @ 15 %

33914

 

 

88001

 

 

14

BCR

1.26

 

 

1.54

 

 

15

IRR

>50%

 

 

>50%

 

 

 

Annexure IV

Repayment schedule - Patchouli (one acre)

A. UNDER CONVENTIONAL IRRIGATION

S.No

Particulars

Cost

 

 

 

 

 

 

1

Cost of cultivation

126800

 

 

 

 

 

 

2

Margin money (10%)

12700

 

 

 

 

 

 

3

Bank loan (rounded off)

114100

 

 

 

 

 

 

4

Rate of interest (%)

12

 

 

 

 

 

 

5

Repayment period (years)

3

 

 

 

 

 

 

 

 

 

 

 

 

(Amount in Rs.)

 

Sl.No

Loan disbursed

Loan outstanding

Interest

Surplus

Repayment of

Total

Net

 

 

 

 

 

Interest

Principal

outgo

surplus

1

114100

114100

13692

60000

13692

25308

39000

15465

2

0

88792

10655

67500

10655

33220

43875

19797

3

0

55572

6669

86000

6669

55572

62241

28471

 

 

 

 

 

 

 

 

 

B. UNDER DRIP IRRIGATION

 

 

 

 

 

 

 

 

 

S.No

Particulars

Cost

 

 

 

 

 

 

1

Cost of cultivation (including drip)

167100

 

 

 

 

 

 

2

Margin money (10%)

16700

 

 

 

 

 

 

3

Bank loan (rounded off)

150400

 

 

 

 

 

 

4

Rate of interest (%)

12

 

 

 

 

 

 

5

Repayment period (years)

3

 

 

 

 

 

 

 

 

 

 

 

 

 

(Amount in Rs.)

Sl.No

Loan disbursed

Loan outstanding

Interest

Surplus

Repayment of

Total

Net

 

 

 

 

 

Interest

Principal

outgo

surplus

1

150400

150400

18048

90000

18048

35952

54000

30937

2

0

114448

13734

111900

13734

53406

67140

51181

3

0

61042

7325

130400

7325

61042

68367

53325

 
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