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Blue Green Algae Biofertilizer

Production Capacity : Rs. 30 lakh
Uploaded on : June 2009

1.0 Product and its applications

Blue Green Algae (BGA) find a favourable abode in the waterlogged conditions of rice fields. These cyanobacteria provide inexpensive nitrogen to plants besides increasing crop yield by making the soil fertile and productive. BGA biofertilizer in rice popularly known as ‘Algalization' helps in creating an environment – friendly agroecosystem that ensures economic viability in paddy cultivation while saving energy intensive inputs. Under favourable conditions, BGA have been found to contribute up to 25- 30 kg N per hectare per season and increase the crop yield by 10-15%. These have also been recognized as important agents in the stabilization of soil, add organic matter, release growth promoting substances, improve soil physico-chemical properties and solubilize the insoluble phosphates. The technology can be easily adopted by farmers for multiplication at their own level.

The improved production technology developed by Indian scientists includes a) indoor production of algal biomass under near pure state and in semi-controlled conditions b) a suitable and inexpensive growth medium for faster growth of the organisms and c) mixing with a suitable carrier material in desired quantities

2.0 Advantages of BGA

On an average, BGA contribute 20-30 kg N / ha / season which means that chemical nitrogen fertilizer to that extent could be saved through these organisms. Application of BGA biofertilizer leads to increased productivity of rice by 10-15%. BGA improve soil health and maintain a continuous supply of crop nutrients. It improves water holding capacity of soil and increases soil aggregation. BGA leads to population build up and enhances the microbial activity. Algalization induces early grain setting and maturity. It checks weeds proliferation by blocking nutrient supply and light. It is economical and easily adaptable by small and marginal farmers. BGA biofertilizer is eco-friendly and non-polluting to the environment.

3.0 Basis and Presumptions

a) The unit proposes to work at least 300 days per annum on single shift basis.

b) The unit can achieve its full capacity utilization during the 2nd year of operation.

c) The wages for skilled workers are taken as per prevailing rates in this type of industry.

d) Interest rate for total capital investment is calculated @ 12% per annum.

e) The entrepreneur is expected to raise 20-25% of the capital as margin money.

. f) The yields depend on proper implementation of package of practices.

g) Economics of cultivation greatly improves on scale of operation.

h) This activity provides tax-free high returns. Additionally a number of government support schemes are  available. Latest provisions need to be checked up

Implementation schedule

Project implementation will take a period of 8 months. Break-up of the activities and relative time for each activity is shown below:

Scheme preparation and approval

01 month

SSI provisional registration

1-2 months

Sanction of financial supports etc

2-5 months

Installation of machinery and power connection

6-8 months

Trial run and production

05 months

5.0 TECHNICAL ASPECTS
5.1 Location  

Indoor production can be undertaken in polyhouse or glass house. The dimensions and number of such production units are variable depending on the turnover. The production unit should be located (North- South) in an open area away from shade so as to receive maximum sunlight during the day throughout the year.

5.2 Salient Features of Process / Technology

The BGA multiplication units can be made of RCC, brick and mortar or polythene lined pits.. The life of polythene lined shallow pit on ground is about 6 months, whereas other structures are permanent. The smallest recommended size of pits of RCC or brick and mortar is 1.7m x 0.9m x 0.3m (l x b x d). The dimensions of length and breadth may vary so as to utilize the maximum available space with operational management and convenience. The multiplication units are filled with suitable medium to provide essential nutrients like potassium, phosphorus and magnesium in an economical manner. The pH should be near neutral.

Each pit is inoculated with actively growing culture (12 – 15 days old) equivalent to 20 - 25 g fresh biomass per unit. BGA is allowed to grow for 5-8 days depending upon the ambient temperature, light intensity and humidity till enough biomass is produced so as to cover the surface of medium. The algal culture is agitated manually 2-3 times a day during its multiplication. Once fully grown, the culture is harvested, mixed with carrier (presoaked clay or Multani mitti) and sun dried. The sun dried material is finely ground to 200 mesh and packed in 500 g capacity polythene bags and sealed, Store at a cool dry place in the room and do not mix with any chemical fertilizers or pesticides.

Method of Application : One packet (500 g) of ready to use multani mitti based BGA biofertilizer is recommended for one acre of rice growing area. The packet is opened and mixed with 4 kg dried and sieved farm soil. The mixture is broadcast on standing water 3-6 days after transplantation. Use of excess algal material is not harmful; instead it accelerates the multiplication and establishment in the field. The field should be kept waterlogged for about 10-12 days after inoculation to allow good growth of BGA.

If the farmer is using self produced soil based BGA biofertilizer, 12-15 kg/ha is used by broadcasting the mixture on standing water 3-6 days after transplantation. Similarly, the field should be kept waterlogged for 10-12 days after inoculation to allow good growth of BGA. When nitrogenous fertilizers are used, reduce the dose by one-third and supplement with BGA. Normal pest control measures and other management practices do not interfere with the establishment and activity of BGA in the field. Apply BGA for at least four consecutive seasons to have cumulative effect. One may not need to apply BGA further as these will establish in the field and reappear as and when the condition becomes favourable.

Precautions: When fertilizer or pesticides (e.g. weedicides.) are applied in the field; the algal application should be followed after a gap of 3-4 days. Application of a small dose of phosphate fertilizer after BGA inoculation accelerates BGA multiplication. However, this quantity should be considered in the total application dose for rice corp.

Tips: Growth of BGA can be periodically examined using a micro-scope. The iodine test can also be used to differentiate between green and blue-green algae. The green algae turn dark violet or black with iodine. Alkaline conditions with pH around 8.0 prevent contamination with green algae to an appreciable extent. For commercial purpose, the tank dimensions can be increased or decreased to make maximum use of the space available. Provide enough space between the tanks for operational convenience. Production units should be constructed in such a way to have maximum light and allow more surface area for algal growth. Addition of superphosphate should be split into two or three doses. Under ideal conditions, the algal biomass production reaches 100 g/m 2 /day. Since the wet algal biomass contains more than 90 per cent water and it is mixed with equal amount of clay.

6.0 Production Capacity

Quantity of finished product (clay based dry biofertilizer)

37.125 tpa

Ponds (60 No ) size 10m x 2.5mx.

1500 sq.m surface area

Installed capacity

45 tpa or 100 g /sq m/day fresh wet algae

Optimum capacity utilization

75%

Working days

300/annum

Production at optimum capacity

33.75 tpa wet algae or 3.375 tpa dry algae

Production of finished product (Dry BGA:clay:: 1:10 )

3.375 + 33.750 t +37.125 tpa

Manpower

11

Motive Power

3 kW

7.0 Financial Aspects
7.1 Fixed Capital

7.1.1 Land & Building Amount (Rs. lakh)

Particulars

Amount

Land 4000 m 2

04.00

Covered area (Building, shed)

03..00

Construction of 60 ponds and water pipes @ 0.2 lakh /

12.00

Total cost of land, ponds and building

19.00

7.1.2 Machinery and Equipment Amount (Rs. lakh)

Description

Amount

Weighing scales, pump, bag sealer, sifter, farm implements, pulveriser, etc.

01.50

R&D lab

04.00

Computer & accessories

00.50

Erection & electrification of equipment @10% cost

00.60

Office furniture & fixtures

00.40

Total

07.00

7.1.3 Pre-operative Expenses Amount (Rs. lakh)

Consultancy fee, project report, deposits, training

01.00

7.1.4 Total Fixed Capital Amount (Rs. lakh)

(7.1.1+7.1.2+7.1.3)

27.00

7.2 Recurring expenses per annum

7.2.1 Personnel Amount (Rs. lakh)

Designation

No.

Salary Per month

Amount

Plant Manager

1

8,000

0.96

Supervisory staff

1

6,000

0.72

Office Assistant

1

5,000

0.60

Lab Technician

1

5,000

0.60

Skilled workers

2

3,500

0.84

Unskilled workers

5

3,000

1.80

 

 

 

5.52

Perquisites @15 %

 

 

0.83

Total

13

6.35

7.2.2 Raw Material including packaging materials Amount (Rs. lakh)

Particulars

Qty (t)

Rate/t (Rs.)

Amount

Multani mitti

33.75

10,000

3.375

Inoculam

-

LS}

2.175

Polythene bags

-

LS}

 

Chemicals

-

LS|

 

Total

5.50

7.2.3 Utilities Amount (Rs. lakh)

Particulars

Amount

Power & fuel

0.04

Water

0.11

Total

0.15

7.2.4 Other Contingent Expenses Amount (Rs. lakh)

Particulars

Amount

Repairs and maintenance

0.30

Consumables & spares

0.20

Transport & travel

0.55

Publicity, postage, telephone

0.90

Insurance @1%

0.05

Total

2,00

7.2.5 Total Recurring Expenditure Amount (Rs. lakh)

(7.2.1 + 7.2.2 + 7.2.3 + 7.2.4)

14.00

7.3 Working Capital Amount (Rs. lakh)

Recurring expenses for 75 days

3.00

7.4 Total Capital Investment Amount (Rs. lakh)

Fixed capital (Refer 7.1.4)

27.00

Working capital (Refer 7.3)

03.00

Total

30.00

8.0 Financial Analysis
8.1 Cost of Production (per annum) Amount (Rs. lakh)

Recurring expenses (Refer 7.2.5)

14.00

Depreciation on building @ 5%

00.15

Depreciation on machinery @10%

00.17

Depreciation on furniture @ 20%

00.08

Interest on Capital Investment @ 12%

03.60

Total

18.00

8.2 Sale Proceeds (Turnover) per year Amount (Rs. lakh)

Item

Qty (t)

Rate/t

Amount

Clay based dry BGA biofertilizer

37.125

0.80

29.70



8.3 Net Profit per year

=

Sales – Cost of production

=

29.70- 18.00

=

Rs. 11.70 lakh

8.4 Net Profit Ratio

=

Net profit X 100
---------------------------
Sales

 

=

11.7 0X 100
----------------
28.70

 

=

38.4 %

8.5 Rate of Return on Investment

=

Net profit X 100
--------------------------
Capital Investment

 

=

11.70 X 100
-----------------
30

 

=

39 %

8.6 Annual Fixed Cost Amount (Rs. lakh)

All depreciations

0.40

Interest

3.60

40% of salary, wages, utility, contingency

3.40

Insurance

0.05

Total

7.45


8.7 Break even Point

=

Annual Fixed Cost X 100
-----------------------------------
Annual Fixed Cost + Profit

=

7.45+100
---------------------
7.45+11.70

 
=
39%


Contact for more information:

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com

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