Sample Project Proposal

1. Model Bankable Scheme
on
Moringa Cultivation for Goat Feed
March 2017
National Bank for Agriculture and Rural Development,
Mumbai

2. 2
Model Bankable Scheme on
Moringa Cultivation for Goat Feed
1. Introduction
1.1 Regular supply of adequate and nutritious feed and fodder is essential for the
development of livestock sector. Fodder crops are the main and cheapest source of roughage
feed for livestock. However, shortage of quality fodder, particularly during lean periods is
major factor contributing to lower livestock productivity. Currently, the country faces a net
deficit of 35.6% green fodder, 10.95% dry fodder and 44% concentrate feed ingredients. The
demand for green and dry fodder will reach to 1012 and 631 million MT by 2050. Therefore, to
meet out this deficit, fodder supply has to grow at 1.69% annually to sustain livestock
husbandry. Since last two decades, the area under cultivated fodder is only 8.4 m ha (less than
5%). About 2% reduction in fodder area in each decade along-with two important fodder
scarcity periods, one in winter months (November to January) and other in summer (May-
June) further worsening the situation. As the livestock population is increasing at the rate of
4.2% per year and accordingly its feed requirements are also increasing.
1.2 Characteristic of Ideal Fodder Crop
Major characteristics of an ideal fodder are:
 It is nutritious, easily palatable and digestible.
 Not injurious at the stage at which it is fed to animal.
 It should be quick growing and early maturing.
 It should give high yield of green fodder.
 It should give maximum number of cuttings and biomass.
 It should grow well with little tillage and care.
 It should be capable of preserving as hay or silage.
1.3 Major Fodder Crops
Forages have an important role to play in ruminant nutrition in providing energy, protein and
minerals and fiber for chewing. Tree fodders could be a good option to meet the fodder demand
of livestock in areas having a perennial shortage of green fodder. Research efforts have
confirmed the potentiality of browsing plants to provide alternate source of nutrition for
ruminants in tropics. There is a huge list of such browse trees and shrubs with potential use as
fodder, which may go even up to more than 300 species. Major fodder crops grown include
berseem, lucerne, oats, barley, mustard, maize, sorghum and Moringa.

3. 3
2. Moringa – Miracle Tree
2.1 One such ideal fodder tree for ruminants is Moringa (Moringa oleifera L.), popularly
known as “drumstick tree” for its pods. This fast-growing tree native to Indian subcontinent is
grown throughout the tropics for multi-purpose use viz. human food, livestock forage,
medicine values, dye, water purification, and for its wide adaptability and ease of
establishment. It is a hardy tree which is drought tolerant and can withstand diverse
temperature range, grows in different types of soil and has fast and vigorous growth. The leaves
have high protein content with various essential amino acids. In addition to various essential
minerals present in the tree, healing properties and health benefits are also associated with this
tree. These qualities packaged into a single tree may justify Moringa being termed as 'Miracle
tree'. Besides being used for human consumption the leaves of this tree have been reported to
be used as major component in animal feed/fodder.
2.2 Biomass Production: Moringa vis-à-vis Other Fodder Crops
Moringa is a fast growing tree and produces huge biomass per unit area in comparison with
any other fodder crop/ tree. A comparative analysis is presented in table – 1 below:
Table – 1: Biomass Production: Moringa vs Other Fodder Crops
Sr. No. Crop Biomass Production MT/ha/ Year
1 Moringa 650
2 Napier grass 350
3 Cereals in rotation 200
4 Berseem 100
5 Sorghum 55
6 Cowpea 45
Moringa outperforms all other crops in biomass production and single planting lasts for 8-9
years. It can be grown as hedge, fence, and multi-cut forage, etc. From one ha land under
Moringa, the nutrients harvested shall include the following (Source: CIRG, Mathura):
 650 MT of green mass, equivalent to 130(20%) MT of dry mass.
 17.5 MT of pure protein.
 7 MT of lipids, with 65% being omega-3 fatty acids.
 10 MT of fermentable sugars.
 Approximately 8 MT of starch.
 Approximately 45 MT of hemicellulose and cellulose.
All these factors may make Moringa leaves and green stems very attractive and inexpensive as
a source of animal feed.

4. 4
2.3 Nutritional Profile
Moringa offers a good alternative source of protein with over 20% crude protein in leaves to
humans and ruminants wherever they thrive (Nouala et al., 2006). There has been an
increasing interest in the use of Moringa as a protein source for livestock (Asaolu et al., 2009;
2010). Laboratory analysis (Makkar & Becker 1997; Asaolu, 2009) showed negligible amounts
of tannins (1 to23 g/kg) in all fractions of the Moringa oleifera plant and high levels of sulphur-
containing amino acids. Macronutrients like P, K, Ca, and Mg play key roles in balancing the
physiological, metabolic, and biochemical processes of livestock. Moringa leaves contain high
amount of macronutrients Mg and K, and can be effectively used to fulfill the dietary and
nutritional requirements of livestock animals by mixing of Moringa leaves. Moringa leaves
contain a good amount of beta-carotene, vitamin C, calcium, magnesium and iron. Nutritional
profile is presented in Table – 2.
Table - 2: Nutritional Profile of Moringa oleifera
(Source: Gebregiorgis et.al. 2012)
Particulars Content
Metabolizable energy (MJ/kg DM) 9.30
Organic matter digestibility (%) 72.0
Ash(%) 13.2
Crude fiber (%) 10.0
Crude protein (%) 28.9
Fat (%) 6.73
Nitrogen Free Extracts (NFE) (%) 45.0
Neutral detergent fiber (NDF) (%) 16.7
Non fiber carbohydrate (NFC) (%) 38.4
Acid detergent lignin (%) 6.49
Cellulose (%) 5.59
Hemicelluloses (%) 4.66
Calcium (%) 2.62
Phosphorus (%) 0.43
Magnesium (%) 0.56
Potassium (%) 2.0
Sodium(%) 0.03
Since Moringa leaves are rich in protein, so can be used as a fodder for milch animals and other
animals like goats. 92% of protein found in Moringa is digestible. Rather, its leaves contain
much higher protein than conventional protein supplements like coconut meal, cotton seed
cake, ground nut cake, sesame cake, sunflower cake etc. Leaves also contain 8-9% lipids which
are rich in Omega-3 fatty acids. Besides these, the leaves possess antioxidant and antimicrobial
properties against several fungal species such as E. coli, S. arous, P. aeruginosa, and B. cereus.
2.4 There is growing interest/awareness among the Moringa growers across the globe
including India for adoption of latest techniques for commercial cultivation of Moringa and

5. 5
technologies for preparing animal feed from Moringa. The Central Institute for Research on
Goats (CIRG), Mathura (UP) has undertaken extensive research on Moringa both for its
commercial cultivation and using it as animal feed, particularly for goats. This bankable model
scheme explores the possibilities for use of Moringa as a major component of animal feed. In
the present bankable model, recommendations of the CIRG, Mathura for Moringa and the
views of the Moringa growers and entrepreneurs using Moringa leaves for animal feed
preparation has been taken into consideration.
3. Technical Requirements
3.1 Climate
Moringa enjoys the climate of tropical and sub- tropical region. Temperature ranges are 25O-
35oC, but it can tolerate up to 48oC and it can survive a light frost as well. It is hardy and tolerant
to drought and cold due to presence of a long taproot system. It grows best in direct sunlight
under 2000 meters altitude. Minimum annual rainfall requirements are estimated at 250 mm
with maximum at over 3,000 mm. Irrigation is needed for leaf production if rainfall is less than
800 mm. In areas with heavy rainfall, trees can be planted on small hills to encourage water
run-off.
3.2 Soil
It tolerates a wide range of soil conditions, but prefers a neutral to slightly acidic (pH. 6.3-7.0),
well-drained sandy or loamy soil for optimal growth. The clay soils that become sticky when
wet and very hard when dry may be avoided. Avoid termite-infested soils as much as possible.
It can tolerate poor soils including coastal soils.
3.3 Varieties
There is exclusive variety developed for fodder purpose in Moringa. The varieties suitable for
fodder purpose are P.K.M - 1 and P.K.M - 2 developed by Tamil Nadu Agricultural University.
At Central Institute for Research on Goats (CIRG), Mathura, local selections from Chhattisgarh
were also tried and found suitable for fodder purpose.
3.4 Planting Material
Moringa can be propagated either by (i) Seed or (ii) Stem cuttings. Plants produced with
cuttings will not have a deep root system and will be more sensitive to wind and drought.
Cuttings are also more sensitive to termite attacks. For fodder purpose, propagation by seed is
preferred as requirement is large in view of narrow spacing followed. Seeds can be sown
directly in- situ or raised in polybags in nursery for further transplantation. A good seed should
be viable, clean and disease free. Seeds should not be stored over long periods as they lose
viability after about one year. There are around 4000 Moringa seeds (with their shell) in a kilo.
Direct sowing is preferred for fodder purpose. Seeds are required to be soaked in water for 10-

6. 6
12 hours before sowing. Availability of quality planting material is of utmost importance in
Moringa cultivation.
Seeds must be sown at a maximum depth of 2 cm. Deeper seeding will greatly reduce the
germination rate. One or two seeds per pit can be sown. When seeds are expensive or difficult
to acquire, a better option is to plant one seed only and to wait two weeks for germination to
occur. Then, the empty spaces are refilled. When the seed quality is more uncertain or the
seeding period not optimal, use two seeds per pit is advocated. If the two seeds germinate, the
weaker plant can be removed. Moringa seeds germinate 12 to 15 days after seeding. It is better
to get the seed testing done or get the seeds from reliable source for better germination.
The seed requirement is 40 kg per ha. The best quality of seed (PKM1) is available from Tamil
Nadu Agriculture University, Coimbatore costing around Rs.3000 per kg. This variety (PKM1)
is prolific and having high germination percentage. Also seeds of local selections are reported
to be sold in the market, but with less potential for intensive cultivation of Moringa.
3.5 Land Preparation
Generally plain land (without waterlogging) in tropical areas is suitable for Moringa
cultivation. The selected site may be cleaned where necessary and all unwanted materials removed
from the field. Land needs to be thoroughly ploughed and levelled. In hilly areas, planting is
done on terraces against the slopes. The soil preparation involves fertilization and irrigation so
as to keep the soil moist and ready before sowing is done. It is recommended that soil testing
is done for deciding the proper fertilizer dosage.
3.6 Planting Distance
The recommended spacing for Moringa for the purpose of fodder by CIRG, Mathura is 30 cm
x 30 cm (row to row, plant to plant), which accommodates around 1.11 lakh plants per ha. The
seed rate for this design of plantation is 40 kg per ha.
3.7 Planting Season
Moringa seeds can be sown during June-July at the onset of Monsoon. However, in moderate
climates, with availability of irrigation, Moringa can be sown any time during the year.
3.8 Irrigation
Moringa can germinate and grow without irrigation if it is sown during the rainy season. Its tuberous
root develops in twenty days and allows young plants to endure drought. However, for optimal growth,
it is essential to irrigate regularly depending upon the climate. Irrigation is also necessary to produce
leaves all year long, including during dry seasons. In North India, during winter (15 December 15
March), Moringa sheds leaves and no cutting is taken up. Irrigation may not be required during these
periods. Any suitable irrigation system can be used – flood, drip or sprinkler irrigation. Drip irrigation
is recommended for saving water and also to get higher yields. If water is scarce, mulching or a very
superficial weeding will also decrease evaporation. In case of temperature remaining less than 25OC,

7. 7
irrigation can be done even at an interval of 30-40 days. If the temperature remains above 40OC, surface
irrigation is recommended every 20 days. In the present model, drip irrigation is considered.
3.9 Manures & Fertilizers
The compost/ FYM @1o MT per ha may be added and mixed with the soil at the time of planting
for better growth and soil health. It is also advisable to apply FYM every year. The vermi
compost, if applied in required quantity will provide the nutrients in addition to keeping the
soil health intact for long time. The dosage for NPK may be decided on the basis of soil test
results. Generally 100 kg/ ha each of nitrogen, phosphorus and potash is recommended. The
fertilizer is generally applied in three split doses during the year.
3.10 Inter culture
Weed growth is observed during the initial period after sowing which may be controlled with
1-2 manual weedings. Thereafter, due to close planting, weed growth is very much limited.
Weedicides are not recommended and only intercultural operations involving manual removal
of weed in the initial phases of the plant is sufficient.
3.11 Pests and Diseases Management
Moringa is a hardy plant and resistant to most of the pests and diseases. As such no major
pests and diseases are reported. If it is cultivated for fodder, army caterpillar is the major pest
and can be controlled by localized fire. Cattle, sheep, etc. eat the Moringa leaves, pods, seeds.
Protection of the plants from livestock grazing is very essential by putting proper fence or live
fence along the border.
3.12 Harvesting
First harvesting in Moringa for fodder is done 90 days after sowing. Subsequent harvests will
be undertaken every 45 days. In North India, in winter season (between 15 December to 15
March), no harvesting is undertaken as leaf shedding takes place. Six cuttings/ harvest are
possible in North India, whereas, in other parts with mild winter production through the year,
8 cuttings are possible. Once planted, the green biomass can be harvested from Moringa plant
up to 8-10 years. In the present model economic life assumed is 8 years.
The leaves and stems are easily harvested by cutting the plant at around 30 cm above ground
level though manual cutting. These leaves and stems, which are generally tender at the time of
harvest are cut into small sizes through chaff cutter before drying and the same is used as a
component of animal feed.

8. 8
3.13 Yield
Normally, a green biomass of 650 MT/ ha per year for 8-10 years can be harvested through 6
cuttings during a year under North Indian conditions. However, this yield can be much higher
if more number of cuttings are undertaken as possible in South India.
3.14 Post-Harvest Management/ Processing - Moringa as a Goat Feed
The Moringa green biomass is harvested in 6-8 cuttings. This green fodder is to be preserved
for feeding the goats throughout the year. The steps involved for preserving are as under:
Fig.1: Preparation of Moringa Feed Pellets
The green biomass is dried for making pelleted animal feed. Before drying the green biomass
is chaffed into small pieces of approx. 1 inch using chaff cutter. Direct sunlight takes 7-8 hours
for converting green into dry biomass. Generally sun-drying is being practiced at present. Since
one or two harvest may be required to be undertaken in rainy/ winter seasons an alternate
source of drying (machine drying) without nutrient losses could be explored. CIRG reported
Harvesting of leaves along with twigs
Chaffed through chaff cutter
Sun drying
Mixing with maize & salt
80:19:1 ratio
Preparation of feed pellets (80:20)
Stored in gunny /plastic bags
Shelf life of the pellets - > 6 months

9. 9
that antifungal property of the plant does not let fungal growth even if the green biomass is left
undried for 3 to 4 days.
Fig.2: Pelletizing Machine
Since Moringa is available at a
cheap rate (Rs. 300- Rs.400 per
quintal dry biomass as compared
to Rs. 1300/ quintal for maize)
hence higher ratio of Moringa in
feed would result in lower feed
cost. A ratio of 80:19:1 :: Moringa
: Maize : Common salt has been
found to be the most profitable
and suitable composition in
experimental goats. As the
preparation of Moringa based
feed(pellets) does not require
molasses, the shelf life of this feed
(pellets) kept in gunny/ plastic
bags is 6 months or more.
3.15 Feeding of Pelletized Moringa Feed
In the trials conducted by CIRG, Mathura, 1.5 to 2 kg of pelletized feed per goat is found to be
optimum for the desired live body weight of 30 kg attained in one year. With Moringa pellets,
there is no need for feeding other concentrates or green fodder. The goats are found to relish
on these pellets as compared to any other kind of feeds. The cost of feeding with Moringa
pellets is estimated at Rs. 9-10 per animal per day (assuming 2 kg per adult @ Rs.4.5-5 per kg)
as compared to Rs. 15 per animal per day in case of traditional feeding systems. Thus, use of
Moringa pellets will result in huge savings in feed cost which is the most critical aspect in
viability of stall fed goat rearing. With one ha under Moringa cultivation, a farmer can easily
rear around 150 Sirohi breed or 200 Barberi breed goats.
In research farm, Feed Conversion Ratio (FCR) of 8.76:1 has been recorded in goats fed with
Moringa based feed while FCR of 11.1:1 has been recorded in goats fed other than Moringa
based feed. The impact evaluation study conducted at the field indicated a reduction in feed
cost by 25% and increase in milk yield by 20% aptly demonstrating suitability of Moringa as
animal feed.
The techno-economic parameters for the model project are detailed in Annexure I.

10. 10
4. Financial Viability and Bankability
4.1 Project Cost
In the present model, the unit cost of development of Moringa in 1 hectare of land considering
seeds of PKM-1 variety with an economic life of 8 years has been presented. This may be
modified to as per use of other varieties of seeds/ planting material and taking into account the
local conditions, techno-economic parameters and the prevailing wage rate as per the
minimum wage act of the concerned state. The unit cost in the model works out to Rs.9,14,725/
hectare. The cost includes cost of cultivation, drip irrigation system, chaff cutter and pelletizer
unit. The details of unit cost for Moringa cultivation including feed pellet production is given
in Annexure II.
4.2 Margin Money
The margin money / down payment prescribed are 5 %, 10 % and 15% for small, medium and
other farmers respectively. The rest of the investment cost will be provided as bank loan.
However, in the present model, 10 % of the unit cost i.e. Rs. 91,473 has been considered as
margin money.
4.3 Bank Loan
Bank loan of 90% of the total cost of development shall be available from the financing
institution. Bank loan considered in the model is 90%. It works out to Rs. 8,23,253 in the
model.
4.4 Rate of Interest
The rate of interest to be charged to the ultimate borrower would be guided by RBI guidelines
issued from time to time. However, the ultimate lending rate has been considered as 13 % for
working out the bankability of the model project.
4.5 Security
Banks are guided by RBI guidelines issued from time to time in this regard.
4.6 Financial Analysis
Financial analysis was carried out for one hectare of Moringa cultivation including pellet
production. For financial analysis, the income was assessed on a conservative basis. The
detailed calculation of project’s income and expenditure has been indicated in Annexure III.
Details of NPW, BCR and IRR for the model are given in Annexure IV with a summary
presented below.

11. 11
Table – 3: Moringa Cultivation for Fodder:
Summary of Financial Analysis
NPW BCR IRR
10,16,234 1.48:1 >50%
4.7 Repayment period of loan
Based on the cash flow, the detailed repayment schedule has been worked out and furnished
in the Annexure V. The repayment period works out to five years including one year grace
period for repayment of principal.
5. Conclusion
Moringa is fast growing, produces far higher biomass than any other fodder crop and rich in
nutrients. It can be grown in diverse climatic zones, in low fertility and saline soils. It also has
tolerance for drought conditions. The stall fed goat rearing can be made possible by cultivation
of Moringa as the feed source. Moringa cultivation for fodder purpose is technically feasible,
financially viable and bankable activity in the areas identified suitable for it based on agro-
climatic conditions.
***
DISCLAIMER
The views expressed in this model project are advisory in nature. NABARD assumes
no financial liability to anyone using the report for any purpose. The actual cost and
returns of the projects will have to be taken on a case by case basis considering the
specific requirement of projects.

12. 12
Annexure I
Moringa Cultivation for Fodder: Techno-Economic Parameters
1 Unit 1 ha
2 Variety PKM-1, PKM-2
3 Spacing 30 cm x 30 cm
4 Plant population/ ha 1.11 lakh
5 Planting material Seeds
6 Planting material requirement kg/ ha 40
7 Planting material cost (Rs./ha) @ Rs.3000/ kg 120000
8 Labour (Rs./manday) 250
9 Farm yard Manure (MT/ha) 10
10 Farm yard Manure (Rs./MT) 1000
11 Nitrogen (kg/ha) 100
12 Nitrogen (Rs./kg) 11.75
13 Phosphorus (kg/ha) 100
14 Phosphorus (Rs./kg) 33
15 Potash (kg/ha) 100
16 Potash (Rs./kg) 27
17 Cost of Drip Irrigation (Rs./ha) 100000
18 Cost of Pelletizer 300000
19 Maize requirement (Mt/ year) @
Moringa:Maize:Salt - 80:19:1:
24.7
20 Cost of Maize (Rs./MT) 11000
21 Salt requirement (MT/ year) @
Moringa:Maize:Salt - 80:19:1:
1.3
22 Cost of Salt (Rs./MT) 2000
23 No. of Biomass Cuttings/ year 6
24 Production of Green Biomass (MT/ha/ year) 650
25 Production of Dry Biomass (MT/ha/ year) 130
26 Production of Feed Pellets (MT/ha/ year) 156
27 Sale Price of Pellets (Rs./ MT) 4500
28 Feed/ Pellet Requirement (kg/day/goat) 1.5 to 2
29 No. of goats that can be supported by 1 ha Moringa 150 (Sirohi/ Jamnapari), 200
(Barberi)
30 Life span of Moringa for Biomass Production
(Years)
8
31 Life of drip irrigation system (Years) 5

13. 13
Annexure – II
Moringa Cultivation for Fodder: Project Cost
(Amount in Rs.)
Sr. No. Particulars Year I
I Investment Cost
1 Land preparation, Layout 8000
2 Planting material 120000
3 Planting/ Seeding 2500
4 Drip irrigation system 1,00,000
5 Cost of Chaffing machine 20,000
6 Cost of Pelletizer 3,00,000
7 Live Fencing 8000
Sub Total - I 558500
II Maintenance Cost
1 Cost of Manures/ Compost 10000
2 Cost of Fertilizers 7175
3 Manures & fertilizer application 3750
4 Plant protection chemicals 500
5 Application of plant protection 500
6 Interculture 5000
7 Harvesting and Transportation 30000
8 Cost of maize 271700
9 Cost of salt 2600
10 Chaffing & Pelletizing 15000
11 Packing & Storage 10000
Sub Total - II 356225
Total Cost (I+II) 9,14,725
Means of Financing
(Amount in Rs.)
Sr. No. Particulars Year I
1 Total Project Cost 9,14,725
2 Margin Money @ 10% of Project Cost 91473
3 Bank Loan 8,23,253

14. Annexure III
Moringa Cultivation for Fodder: Income - Expenditure Statement
(Amount in Rs.)
Sr.
No.
Particulars
Years
1 2 3 4 5 6 7 8
I Income
a) MT of Pellets/ ha 156 156 156 156 156 156 156 156
b) Income/ ha 702000 702000 702000 702000 702000 702000 702000 702000
II Expenditure
1 Land preparation, Layout 8000 0 0 0 0 0 0 0
2 Planting material 120000 0 0 0 0 0 0 0
3 Planting/ Seeding 2500 0 0 0 0 0 0 0
4 Drip irrigation system 100000 0 0 0 100000 0 0 0
5 Cost of Chaffing machine 20000 0 0 0 0 0 0 0
6 Cost of Pelletizer 300000 0 0 0 0 0 0 0
7 Live Fencing 8000 0 0 0 0 0 0 0
1 Cost of Manures/ Compost 10000 10000 10000 10000 10000 10000 10000 10000
2 Cost of Fertilizers 7175 7175 7175 7175 7175 7175 7175 7175
3 Manures & fertilizer application 3750 3750 3750 3750 3750 3750 3750 3750
4 Plant protection chemicals 500 500 500 500 500 500 500 500
5 Application of plant protection 500 500 500 500 500 500 500 500
6 Interculture 5000 5000 5000 5000 5000 5000 5000 5000
7 Harvesting and Transportation 30000 30000 30000 30000 30000 30000 30000 30000
8 Cost of maize 271700 271700 271700 271700 271700 271700 271700 271700
9 Cost of salt 2600 2600 2600 2600 2600 2600 2600 2600
10 Chaffing & Pelletizing 15000 15000 15000 15000 15000 15000 15000 15000
11 Packing & Storage 10000 10000 10000 10000 10000 10000 10000 10000
Total Expenditure 914725 356225 356225 356225 456225 356225 356225 356225
Surplus -212725 345775 345775 345775 245775 345775 345775 345775

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Annexure IV
Moringa Cultivation for Fodder: Financial Analysis
(Amount in Rs.)
Particulars
Years
1 2 3 4 5 6 7 8
Cost of investment 558500 0 0 0 100000 0 0 0
Maintenance cost 356225 356225 356225 356225 356225 356225 356225 356225
Total Cost 914725 356225 356225 356225 456225 356225 356225 356225
Benefits 702000 702000 702000 702000 702000 702000 702000 702000
Net Benefits -212725 345775 345775 345775 245775 345775 345775 345775
Discount Factor at 15% 0.870 0.756 0.658 0.572 0.497 0.432 0.376 0.327
Discounted costs 795413 269357 234224 203673 226824 154006 133918 116451 2133866
Discounted benefits 610435 530813 461576 401371 349018 303494 263908 229485 3150100
Net discounted benefits -184978 261456 227353 197698 122194 149488 129990 113034
NPW 1016234
BCR 1.48
IRR 127%

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Annexure V
Moringa Cultivation for Fodder: Loan Repayment Schedule
(Amount in Rs.)
Year
Loan O/s
at the
beginning
of the
year
Interest@13%
Gross
Surplus
Repayment
Total
Outgoing
Net
Surplus
Loan
O/s at
the end
of the
year
Principal Interest
1 8,23,253 1,07,023 -2,12,725 0 1,07,023 1,07,023 -3,19,748 8,23,253
2 8,23,253 1,07,023 3,45,775 2,00,000 1,07,023 3,07,023 38,752 6,23,253
3 6,23,253 81,023 3,45,775 2,00,000 81,023 2,81,023 64,752 4,23,253
4 4,23,253 55,023 3,45,775 2,20,000 55,023 2,75,023 70,752 2,03,253
5 2,03,253 26,423 2,45,775 2,03,253 26,423 2,29,675 16,100 0
Assumptions:
a) Entire feed is used for captive consumption as goat feed. It may be safely assumed that entire surplus from
sale of pellets can be utilized to pay the bank loan. As a result, repayment can be even before 5 years.
b)
With 1 ha under Moringa, 150 goats of Sirohi breed or 200 of Barberi breed can be easily reared. Assuming
sale price @ Rs. 250 per kg of live weight of 30 kg/animal will bring in a gross income of Rs. 11.25 lakh to
Rs. 15 lakh every year. This will facilitate early repayment of bank loan availed for Moringa cultivation.