Scribd
Upload
7 views7 pages

Rice Stack Project

The Detailed Project Report (DPR) outlines the formation of a Farmer Producer Organization (FPO) in Andhra Pradesh for the collection, baling, and supply of paddy straw and biomass to a pellet manufacturing unit. The project aims to reduce stubble burning, provide additional income for farmers, and create rural employment, with an initial membership of 300-500 farmers expected to grow over three years. Key components include procurement operations, field baling, logistics, and a financial model projecting significant revenue and social/environmental benefits.

Uploaded by

vicky
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
7 views7 pages

Rice Stack Project

The Detailed Project Report (DPR) outlines the formation of a Farmer Producer Organization (FPO) in Andhra Pradesh for the collection, baling, and supply of paddy straw and biomass to a pellet manufacturing unit. The project aims to reduce stubble burning, provide additional income for farmers, and create rural employment, with an initial membership of 300-500 farmers expected to grow over three years. Key components include procurement operations, field baling, logistics, and a financial model projecting significant revenue and social/environmental benefits.

Uploaded by

vicky
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

DETAILED PROJECT REPORT (DPR)

FPO for Biomass & Paddy Straw Collection,


Baling and Supply to Biomass Pellet
Manufacturing Unit

Andhra Pradesh

1. EXECUTIVE SUMMARY
This DPR proposes the formation of a Farmer Producer Organization (FPO) focused on the
aggregation, baling, and supply of paddy straw (pareli) and other biomass residues in Andhra
Pradesh. The FPO will work with paddy farmers across selected mandals to collect biomass at
the field level, bale it to reduce transportation costs, and supply the material to a biomass pellet
manufacturing plant.
The project aims to:
 Reduce stubble burning.
 Provide farmers an additional income stream.
 Lower feedstock costs for pellet manufacturing.
 Enable rural employment through baling, logistics, and processing.
The FPO will operate with 300–500 farmer members in Phase 1 and expand to 1,000+ members
over 3 years.

2. OBJECTIVES OF THE PROJECT


 Organize farmers into a structured FPO for biomass collection.
 Procure paddy straw from member farmers at fair and transparent prices.
 Deploy balers at field level to pack and transport biomass efficiently.
 Supply quality-controlled biomass to a pellet plant.
 Establish village-level collection hubs and central storage yards.
 Create sustainable income opportunities for rural youth.
 Reduce environmental damage caused by stubble burning.

3. PROJECT COMPONENTS
1. Formation of FPO (Producer Company registration)
2. Farmer onboarding & agreements
3. Procurement operations
4. Field baling system
5. Transport & consolidation hubs
6. Pre-processing (shredding, drying if needed)
7. Supply to pellet plant
8. Accounting, payment, MIS system

4. LOCATION OF THE PROJECT


 State: Andhra Pradesh
 District: (To be finalized – East Godavari / West Godavari / Konaseema / Krishna /
Nellore or as required)
 Villages Covered: 15–25 villages in Phase 1
 Crops: Predominantly paddy; other biomass sources include sugarcane trash, pulses
residue, groundnut shell.

5. FPO STRUCTURE & REGISTRATION


 Type: Producer Company under Companies Act, 2013
 Minimum members: 10 farmers for registration; 300–500 farmers for phase 1 operations
 Board of Directors: 5–7
 Authorized capital: ₹10–25 lakh
 Paid-up capital: ₹5–10 lakh
Documents Required:
 Aadhaar, PAN of directors
 Farmer land records
 Registered office address
 MOA & AOA specifying biomass aggregation & processing

6. PROCUREMENT MODEL
6.1 Procurement Method
 FPO will procure paddy straw directly from member farmers.
 Procurement price will be based on bale weight or per-ton rate.
 The FPO will operate field baling service to convert loose straw into 25–30 kg bales.
6.2 Proposed Procurement Price
 Loose straw: ₹1,200–1,800/tonne
 Field-baled: ₹1,600–2,500/tonne
 High-quality dried bales (≤15% moisture): ₹2,000–3,000/tonne
6.3 Payment Terms
 Digital payments within 48 hours
 Transparent weighing/bale counting

7. FARMER AGREEMENT MODEL


Key points included:
 Season-long commitment to supply paddy straw
 Agreed moisture level (≤18%)
 FPO responsibility for baling & loading
 Price fixation formula
 Village-level delivery/collection point
 Payment terms
 Dispute resolution mechanism

8. FIELD BALING & LOGISTICS PLAN


8.1 Machinery Deployment
 Round baler (25–30 kg bales) – 2 units
 Tractors with trailers – 2 units
 Moisture meters – 10 units
 Tarpaulins for drying – as required
8.2 Baling Capacity
 One round baler output: 8–12 tonnes/day
 Two balers: 16–24 tonnes/day
 Annual season (90 days): ~1,500–2,000 tonnes
8.3 Transport
 Bales loaded into tractor trailers
 Consolidation hubs at mandal level
 Bulk transport via 10–16 tyre lorries if long-distance
9. MACHINERY & EQUIPMENT LIST
9.1 Field Machinery
Qt Cost/ Total
Item
y Unit Cost

Round baler (tractor- ₹3,00,00 ₹6,00,00


2
operated) 0 0

₹7,50,00 ₹15,00,0
Tractors (50–60 HP) 2
0 00

₹2,00,00 ₹4,00,00
Tractor-trailers 2
0 0

Moisture meters 10 ₹2,000 ₹20,000

Tarpaulins 20 ₹1,000 ₹20,000

9.2 Pre-processing Machinery (Hub)


Item Cost

Hammer mill / ₹3,00,00


shredder 0

Storage shed (10,000 ₹7,00,00


sq ft) 0

Weighing scale ₹1,00,00


(platform) 0

Miscellaneous tools ₹50,000

9.3 Total Machinery Cost


₹36,90,000 (approx.)

10. MANPOWER REQUIREMENT


No Salary/ Annual
Role
. Month Cost

CEO / FPO Manager 1 ₹30,000 ₹3,60,000


No Salary/ Annual
Role
. Month Cost

Field Supervisors 2 ₹20,000 ₹4,80,000

Machine Operators 4 ₹18,000 ₹8,64,000

Accountant 1 ₹18,000 ₹2,16,000

Helpers 4 ₹12,000 ₹5,76,000

Total Annual ₹24,96,00


— —
Manpower Cost 0

11. FINANCIAL ESTIMATES


11.1 CAPEX
 Machinery: ₹36,90,000
 Registration & legal: ₹1,00,000
 Office setup: ₹1,00,000
 Working capital margin: ₹5,00,000
Total CAPEX: ₹43,90,000
11.2 OPEX (Annual)
 Salaries: ₹24,96,000
 Fuel & diesel: ₹6,00,000
 Repairs & maintenance: ₹2,00,000
 Bale twine/consumables: ₹1,50,000
 Transport & loading: ₹6,00,000
 Procurement cost (2,000 tonnes @ ₹2,000/t): ₹40,00,000
Total OPEX: ₹80,46,000

12. REVENUE MODEL


Assuming sale of:
 2,000 tonnes biomass/year at
 Selling price: ₹3,000 per tonne (to pellet plant)
Gross Revenue: ₹60,00,000 per annum
Gross Margin = ₹60,00,000 – ₹40,00,000 (raw material cost) = ₹20,00,000
Contribution margin used to pay OPEX.
Pellet plant integration can significantly improve profitability.
13. RISKS & MITIGATION
Risk Mitigation

High moisture in straw Sun drying, moisture meters

Transport cost fluctuations Field baling, local hubs

Delay by farmers Scheduling village-wise collection

Weather issues Covered storage, speed operations

Competition from other Better payment terms, FPO loyalty


buyers programs

14. SOCIAL & ENVIRONMENTAL IMPACT


 Reduction of stubble burning
 Reduction of CO2 & PM2.5 pollution
 Extra annual income of ₹3,000–₹10,000 per farmer
 Rural youth employment
 Clean energy generation through biomass pellets

15. IMPLEMENTATION TIMELINE


Activity Timeline

FPO Registration Month 1

Member
Month 1–2
mobilization

Machinery
Month 2–3
procurement

Training & demo Month 3

Pilot operation Month 4

Month 5
Full-scale operation
onward
16. CONCLUSION
This DPR demonstrates that a biomass-focused FPO is financially viable, socially impactful, and
directly supports clean energy production. By organizing farmers into a structured model,
deploying baling equipment in the field, and ensuring quality supply to a biomass pellet facility,
the FPO will generate reliable income and reduce stubble burning in Andhra Pradesh.

END OF DPR

You might also like