Model Bankable Project on Bamboo based agroforestry (Useful for IBPS AFO, NABARD Exam)

Model Bankable Project on Bamboo based agroforestry 

Source: National Bank for Agriculture and Rural Development 

Useful for : IBPS AFO Mains Exam (Agriculture Knowledge), NABARD Asst. Manager Exam

 

1. Introduction 

• Bamboo is a versatile, strong, renewable and environment-friendly material. ★★★

• It is a member of the grass family, Gramineae and the fastest growing woody plant on earth. ★★★

• Most bamboo species produce mature fibre in 3 years, sooner than any tree species. ★★★

• Some bamboo grow up to 1 metre a day, with many reaching culm lengths of 25 metre or more.

• Bamboo can be grown quickly and easily, and sustainably harvested in 3 to 5 years cycles. ★★★

• Bamboo grows on marginal and degraded land, elevated ground, along field bunds and river banks.

• Bamboo adapts to most climatic conditions and soil types, acting as a soil stabilizer, an effective carbon sink and helping to counter the greenhouse effect. ★★★

• In many areas, bamboo resources have dwindled due to over exploitation and poor management.

• This issue needs to be addressed through well-organised cultivation, on the lines of homestead, small-holder and plantation-based cultivation.

• The role of bamboo in community agroforestry as a means of generating income for the rural poor is very important.

• Production of bamboo is only the starting point.

• The real benefits accrue from value added products.

• Handicrafts (mats, baskets, tools, toys and utensils) and furniture are established possibilities, produced in finished form or supplied as components to small enterprises for further processing (for example, supply of mats for production of bamboo mat board).

• There are emerging industrial and large-scale applications too in the manufacture of wood substitutes and composites, energy, charcoal and activated carbon.

• Building and structural components represent vast possibilities for enterprise, value addition, income and employment.

 

2. Bamboo flowering 

• Most bamboo flowers only bloom once in their lifetime, and die soon after.★★★

• Bamboo flowering is a mystery to scientists. ★★

• Probably they have an in-built alarm clock set to go off at a particular time with all populations of a species raised from a single seed source flowering simultaneously no matter where situated.

• The flowering cycle generally varies from 7-120 years and in some the interval is 3 years and a few may even flower annually.★★★

• Some bamboo however have never been observed to flower e.g. B.vulgaris.

• B.nutans having the longest flowering cycle of 120 years need promotion for planting.★★★

 

Cultivation practices of Bamboo 

3. Propagation 

• Bamboo are generally propagated vegetatively, although they are best raised through seeds.★★★

• Seedlings are raised in nursery beds and allowed to develop for a year in poly pots after which they are transplanted in the field.

• As bamboo seeds are rarely available, they are propagated through rhizomes or culm cuttings.

• In rhizome planting, one year old culms with roots are dug up, cut to about a metre high and planted during rainy seasons.

• Vegetative propagation of bamboo is an age old method and is practised everywhere.

• Irrigation is necessary after planting.

 

4. Tissue culture bamboo 

• Buds with 1.0-1.5 cm nodal segments can be used to initiate and establish in vitro culture.

• Clumps of donor bamboo should be young.★★★

• Explants of nodal buds may be collected in late February or in March.★★★

• Nodal buds should be green and generally buds of upper nodes should be initiated to sprout.

• Collected buds should be clean, sized and washed under running water.

• HgCl₂ and a few drops Tween 20 (Polyoxyethylene sorbitan Monolaurate) can be used to surface sterilized explants.

• The sterilized nodal buds may be cultured in semi-solid gel of MS and supplemented with BAP (1.0 mg/l).

• Selected buds should sprout within three-four weeks.

• The sprouted buds should culture in liquid MS supplemented with BAP(1.0 mg/l) for two - three weeks.

• By this time sprouted buds will be elongated and developed into a number of multiple shoots.

• The latter shoots will be used as explants either as a single or a cluster of two - three shoots for production of additional multiple shoots and root induction.

• Macro- and micronutrients of MS medium and vitamins and other organics of B5 medium should be used in the transfer cultures.

• In the second phase also BAP (1-5 mg/l) should be added to semi-solid gel or liquid media for induction of multiple shoots.

• For induction of roots in the excised shoots, NAA (1-3 mg/l) and IBA (1-3 mg/l) were used.

• Prior to final transfer into soil, plantlets which were already in soil with well-developed roots were cultured for one - two weeks in water.

• Within a period of three - four months the plantlets transferred to the propagation bed produced mini-clumps of shoots in abundance.

• Roots grew on the shoot bases of minichamps.

• The rooted shoots of mini-clumps proliferated further when individual Micro-cloning in Commercially Important Six Bamboo species 105 mini-clumps were separated and planted in the specially prepared planting beds.

• This procedure was found most suitable for large scale shoots multiplication or for their storage in bags until field planting.

 

5. Soil 

• Most Bamboos are found in sandy loam to loam clay soil, derived from river alluvium or underlying rock.

• Although bamboos prefer a well-drained soil, it is observed to grow even in swampy soils.

• The soils of Barak valley vary from clay to clay loam to sandy loam and soil reaction is acidic with pH of 4.5 to 6.0 a luxurious growth of bamboo is a common feature and therefore, the soil and climatic conditions are best suited for cultivation of bamboo.

 

6. Land Preparation 

• Before planting bamboo seedlings, test the condition of soil, particularly for acidity.

• Bamboos grow best in slightly acidic soil.

• It may be that you would need to put in lime to adjust its pH level to a degree most suitable for bamboo growing.

 

7. Planting 

• The planting will be taken up with the onset of monsoon.

• Pits of 60 cm x 60 cm will be dug and the seedlings will be planted at a spacing of 4m x 4m.★★★

• The number of plants per acre is 200.★★★

• A provision has been made for casualty replacement to the extent of 20%.

 

8. Spacing 

• For most species a spacing of from 3m to 8m between clump centres is usual.

• Spacing and no of plantation for bamboo plantation shown in the annexure I.

• A plot with poorer soils should be planted at 8 metre centres and richer soils at 3 metre intervals.

• The proper number of plants is about 400 to 800 per hectare.★★★

• Bamboo can be grown and get its first harvest from the third year or fourth year or from the fifth year as per the number of plants planted in one acre.

• All the above densities of bamboo yield 30 tons/acre during 1st harvest, 35 tons/acre during 2nd harvest, 40 tons/acre from 3rd harvest onwards.

• Once the bamboo is ready for harvest, it can be harvested on an annual basis adapting manual harvest, wherein poles which are over one year are selectively harvested leaving behind poles which are less than one year, which could be ready for harvest in the next year.

• There is no need to replant bamboo at least for the next 50 years.

 

9. Fertilization 

• The application of fertilizer is most important during transplantation from nursery to main field.

• Bamboo is a heavy feeder and therefore, even a rich soil might become depleted after a few years if no fertilizer is added.

• The fertilizers although may be applied at any time in a year, it is preferred to apply after harvest and before irrigation.

• It should be noted that rhizomes continue to be active (growing) except in the coldest part of the year.

• It is therefore proper to apply small quantities of fertilizers round the year rather than one/two large doses.

• Bamboo responds well to nitrogen and potassium which are found in compost, green manure, wood ash and chemical fertilizers.

• Lime is often applied to neutralise soil acidity.

 

10. Harvesting and yield 

• The annual yield of a bamboo clump depends on the number of new culms produced each year.

• Culms become mature after 2 to 3 years.★★★

• To maximise shoot output some shoots must be left each year to develop into leafy young culms.

• It is reported that bamboo clumps on an average produce 10 culms in a year under good growing conditions.

• There will be 6 clumps from 5th year and will increase to 8, 10 and 12 in 6th, 7th and 8th year respectively.

• Considering a 30 year life cycle one clump may produce 300 culms on the whole.

• The harvesting can be done from sixth year onwards for commercial production.★★★

• The annual yield in tonnes/ ha depends on the environment as well as the species.

• The annual yield of bamboo is generally 3-4 tons/ha as understory in forest and 5-12 tons/ ha from plantations.★★★

• In the drier parts of India, well managed and technology based D. strictus plantations give yield of 10 tons/ha.★★★

 

11. Unit cost and Economics 

• For model 4x4, the unit cost (capitalised for 4 years) for raising bamboo in a hectare through tissue culture material with drip irrigation has been come out as Rs.1,85,000/-, considering rotation of 4 yrs with and farm gate price of poles in the range of Rs. 50-75 per culm of bamboo.

• The IRR comes out to be 21.34% for eight years.

• The project is financially viable at the above expenditure and income levels.

• The financial indicators for one hectare bamboo plantation are given in the Annexure.

• For model 6x4, the unit cost (capitalised for 4 years) for raising bamboo in a hectare through tissue culture material with drip irrigation has been come out as Rs. 1,55,000/-, considering rotation of 4 yrs with and farm gate price of poles in the range of Rs.50-75 per culm of bamboo.

• The IRR comes out to be 21.34% for eight years.

• The project is financially viable at the above expenditure and income levels.

• The financial indicators for one hectare bamboo plantation are given in Annexure II.

 

12. Lending Terms 

• Margin Money The beneficiaries may contribute towards down payment ranging from 10% depending upon their category, i.e., small and other farmers.

• Beneficiary’s own labour can also be taken as his contribution towards the margin money requirement.

• In the current model scheme margin money of 10 % has been considered.

• With 10% margin money, banks will provide lending of Rs.1, 66, 000/-.

 

13. Repayment period/Interest rates 

• The bank loan is considered at 90% of the unit cost i.e.Rs.1, 66, 000 /- .

• Income generation from the activity commences from fifth year onwards.

• The interest accrued during the gestation period will be deferred.

• The rate of interest to the ultimate borrowers will be decided by the financing banks which is subject to revision by RBI / NABARD from time to time.

• The repayment of principal with deferred interest will start from 4th year of plantation and will be paid upto 6th year maximum.

 

14. Commercial uses of Bamboo 

• Decorative and shuttering plywood, various board products such as block board, wafer board, strip board, laminated boards, roofing sheets. ★★★ 

• Earthquake-resistant and long-lasting conventional housing and buildings. ★★★

• Two-floored rural houses. 

• Improved roads, bridges, culverts, retaining walls 

• Water-tanks, biogas plants, telephone/electricity poles 

• Furniture; fuel-wood, charcoal and briquettes, active carbon 

• Matchsticks, agarbattis, toothpicks, skewer sticks, etc.

• Schooling: pencils, rulers, blackboards 

• Pulp and paper, particle board, MDF, handicrafts 

• Prevent landslides, soil and riverbank erosion 

• Bamboo shoots as food.★★★

 

Annexure I 

• Spacing and no of plantation for bamboo plantation 

• The ideal spacing for bamboo plantation is 4x4 and 6x4 metre. ★★★

• With this much spacing the number of trees in a hectare is 625 and 400 respectively.

• The figures are given below with no. of plants according to the spacing.

• The ideal crops for intercropping with bamboo are turmeric and ginger or any shade loving medicinal plants. ★★★

 

Annexure II 

Unit Cost for Tissue Culture Bamboo cultivation with drip irrigation (One ha model -B) 

Techno-economic parameters 

• Species recommended Bambusa balcoa, Bambusa tulda, Bambusa hamiltonii (Tissue Culture)  ★★★

• Spacing (m x m) 4x4  ★★★

• No. of plants per ha. 625  ★★★

• Mortality replacement 10% 

• No. of harvestable plants per ha 100% 

• Year of harvesting (year) 4  ★★★

• Economic Life 25 - 30 years ★★★

• Avg. wage rate per MD (Rs.) 200  

• Interest on term loan 12% 

• Margin (of the total cost) for Bank Loan 10% 

 

Yield and income 

• Harvesting may be done after 4th year onwards  ★★★

 

Assumptions: 

1. Protective / pot irrigation is provided during the initial years.

2. Seedlings: It is assumed that seedlings will be purchased from govt forestry nursery or from private nursery 

3. Labour Charges: Assumed average wage rate@ Rs.200 prevailing in the state 

4. Cost of cultivation provided for 1+2 years for all the crops(1 year for establishment +2 maintenance) 

5. Though the gestation period is 8-10 years ,loan instalments provided for 4 years,the remaining years of gestation period bank may charge interest on the outstanding loan amount and the years in term may be kept separate and not to be compounded. Both the principal and interest can be recovered after the harvest. This is to say there is no income generation either from the main crop or inter crop.

6. Cost of intercropping is not covered under this structure.

 

Unit Cost for Tissue Culture Bamboo cultivation with drip irrigation (One ha model - B) 

Techno-economic parameters 

• Species recommended Bambusa balcoa, Bambusa tulda, Bambusa hamiltonii (Tissue Culture) 

• Spacing (m x m) 6x4  ★★★

• No. of plants per ha. 400  ★★★

• Mortality replacement 10% 

• No. of harvestable plants per ha 100% 

• Year of harvesting (year) 4 

• Economic Life 25 - 30 years 

• Avg. wage rate per MD (Rs.) 200 

• Interest on term loan 12% 

• Margin (of the total cost) for Bank Loan 10% 

 

Yield and Income: 

• Harvesting may be done after 4th year onwards 

ECONOMICS: 

• Cash flow has been worked out upto 8 years for the purpose of financial analysis & repayment  ★★★

 

Assumptions: 

1. Protective / pot irrigation is provided during the initial years.

2. Seedlings: It is assumed that seedlings will be purchased from govt forestry nursery or from private nursery 

3. Labour Charges: Assumed average wage rate@ Rs.200 prevailing in the state 

4. cost of cultivation provided for 1+2 years for all the crops (1 year for establishment +2 maintenance) 

5. Though the gestation period is 8-10 years, loan instalments provided for 4 years,the remaining years of gestation period bank may charge interest on the outstanding loan amount and the years in term may be kept separate and not to be compounded. Both the principal and interest can be recovered after the harvest. This is to say there is no income generation either from the main crop or inter crop.

6. Cost of intercropping is not covered under this structure.

 

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