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    Detailed Project Report on Cultivation of Rice & Wheat Commercial & Mechanised Development

    Detailed Project Report on Cultivation of Rice & Wheat Commercial & Mechanised Development
    Detailed Project Report on Cultivation of Rice & Wheat Commercial & Mechanised Development
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      CULTIVATION OF RICE & WHEAT COMMERCIAL & MECHANISED DEVELOPMENT

      [EIRI/EDPR/1373] J.C. 146


      INTRODUCTION

      The Federal Democratic Republic of Ethiopia is located in the north-eastern part of Africa commonly known as the Horn of Africa. It is strategically proximate to the Middle East and Europe, together with its easy access to the major ports of the region, enhances its international trade. It is bordered by the Sudan in the west, Somalia and Djibouti in the east, Eritrea in the north and Kenya in the south. The country covers 1,112,000 square kilometres (472,000 sq. miles) making it roughly as large as France and Spain combined and is five times the size of the UK.

      From the north and running down the centre are the Abyssinian highlands. To the west of the chain the land drops to the grasslands of Sudan, to the east to the deserts of the Afar. South of Addis Ababa, the land is dominated by the Rift Valley Lakes.

      Ethiopia's central plateau varies in height between 2,000 and 3,000 metres. In the north and centre of the country there are some 25 mountains whose peaks rise over 4,000 metres (13,200 ft), the highest being Ras Dashen at 4,543 metres (14,538ft).

      Ethiopian economy is mainly based on agriculture; and has vast agricultural land, fertile soil and moderate climatic condition, which is suitable for agricultural production. Realizing the fact, the Ethiopian Government has currently given due consideration to the agricultural development through its agricultural led industrialization development strategy of economic policy. Since 1992, Ethiopia has embarked on structural reform program aimed at reorienting the economy from command to market led economy, rationalizing the role of the state, creating legal, institutional and policy environment to enhance the private sector development.

      Moreover, to bring about economic and social development with respect to rural and agricultural led strategy, the government gives special emphasis to the promotion of export agricultural products in kind, quality and quantity. In order to encourage private investments and promote the inflow of foreign capital and technology into Ethiopia, packages of incentives are granted to investors (both domestic and foreign) engaged in new enterprises and expansion in areas qualified for investment incentives. One of these investment incentives is hundred percent duty-free from imported machinery and equipment and vehicles plus spare parts. Export-oriented products (except coffee) are exempted from the payment of any export tax. The investors would also have the right to be exempted from income tax for 1 to 5 years depending on investment type and its location. The aforementioned conducive investment policy and an overall liberalized economic policy would be great assets to potential investors to set up business based on their interests. Capital repatriation and remittance of dividends and interest is guaranteed to foreign investors under the Ethiopian Investment Proclamations and Regulations Code.


      COST ESTIMATION

      Plant Capacity            4000 Hectare /Season

      Land & Building (10,000 Hectare)    US$ 42.84 Lac

      Plant & Machinery                    US$ 16.79 Lac

      Working Capital for 1 Month    US$ 9.79 Lac

      Total Capital Investment          US$ 83.39 Lac

      Rate of Return                          11%

      Break Even Point                      82%


      CONTENTS

      INTRODUCTION

      DEMAND FOR RICE/WHEAT/CEREALS – GLOBALLY

      PROSPECTIVE BULK BUYERS GLOBALLY

      CLIMATIC CONDITIONS FAVORABLE FOR CULTIVATION

      RAINFALL

      TEMPERATURE

      LIGHT PERIOD

      SOIL TYPE

      LAND CONTOURING/PREPARATION

      CROP VARIETIES (WHEAT/RICE/CEREALS)

      CROPPING PATERN

      CALENDAR OF OPERATIONS

      NO. OF CROP CYCLES IN A YEAR

      NURSERY – RAISING

      LAND PREPARATION (FROM VIRGIN TO CULTIVABLE LAND)

      LAND PREPARATION (FROM CYCLE TO CYCLE)

      SPACING

      SOWING – TIME, METHORD (MECHANISED) TRANSPALANTING, WATER REQ. WATER STORAGE, ELECTRICITY, ALTERNATE SOURCES OF ENERGY, IRRIGATION/FERTIGATION PESTICIDE/INSECTISIDE

      WEED CONTROL

      HARVESTING

      STORAGE & WAREHOUSING

      WATER RESOURVIOURING & STORAGE

      SOCIAL FACTOUS AND EMPLOYMENT

      TECHNICAL

      NON TECHNICAL


      APPENDIX – A:

      01. PLANT ECONOMICS

      02. LAND & BUILDING

      03. PLANT AND MACHINERY

      04. OTHER FIXED ASSESTS

      05. FIXED CAPITAL

      06. RAW MATERIAL

      07. SALARY AND WAGES

      08. UTILITIES AND OVERHEADS

      09. TOTAL WORKING CAPITAL

      10. TOTAL CAPITAL INVESTMENT

      11. COST OF PRODUCTION

      12. TURN OVER/ANNUM

      13. BREAK EVEN POINT

      14. RESOURCES FOR FINANCE

      15. INSTALMENT PAYABLE IN 5 YEARS

      16. DEPRECIATION CHART FOR 5 YEARS

      17. PROFIT ANALYSIS FOR 5 YEARS

      18. PROJECTED BALANCE SHEET FOR (5 YEARS)

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