Business Opportunities in Agriculture: 150 Field Interviews (Book)

V.V. Dhananjayan - provides consultancy services for neem extraction projects

Register

Click Here!

editorialteam

New Member
Draws attention to export potential of neem products. Provides consultancy services for neem extraction projects

Neem oil and neem cake produced in India have good demand in countries like USA, UK, Europe, Japan and Southeast Asian countries. “Our country has vast area of wastelands and dry lands that are yet to be utilized properly. These are suitable for neem plantation. 10 years from the day of plantation, the neem trees mature to be used for extraction. Neem oil is extracted from neem seeds while the residue obtained after the process is sold as neem cake (organic manure),” asserts Mr. V.V. Dhananjayan, Salem, Tamil Nadu based neem agronomist and consultant.
Mr. V. V . Dhananjayan 1.jpg
Mr. Dhananjayan had his own small scale industry for neem oil extraction from neem seeds in Salem. Using cold process and expeller method the oil was extracted. He used to sell neem oil, neem cake, castor oil and castor cake to various bio-fertilizer manufacturers. Presently he shares his expertise on neem cultivation with other farmers and agripreneurs. His last project was completed in Cambodia and Vietnam for setting up neem oil extraction projects. He shares the details on neem cultivation, extraction and export prospects. Excerpts:

Neem tree grows 40m high and has a life span close to 200 years. It is a terrestrial drought resistant tree that grows in arid and semi – arid areas. It is a gifted tree with medicinal properties like anti-fungal, anti-bacterial, anti-feedant, insect repellant, and sterilization to insects. It makes an excellent natural insecticide in organic farming practices. Neem plantation can be done for Community Capacity Building.
Mr. V V Dhananjayan 3.jpg
At the moment price of neem oil and neem cake in domestic markets has gone up by 10 times. It is because of increase in exports quantities. The Indian farmers are not able to get good quality neem oil and neem cake at a reasonable rate. Due to low availability they go for adulterated material for a cheaper price, available in the market. Neem plantation has a promising future as because the demand of neem based products shall be on the constant rise in domestic and international market. Besides, the farmland soil in the neem plantation improves magnificently thereby the monetary value of the land also increases by many folds.

Cultivation
In one acre area 80 neem saplings can be transplanted maintaining the distance of 25'x 20'. The neem variety I recommend for commercial plantation is Azadiracta Indica. It can be easily raised in nurseries using fresh neem seeds or vegetative propagation or tissue culture technique. Even the saplings can be procured from any state forest department.

It is hassle free process for neem cultivation. Initially for first six months water is required once a week precisely if planted in summer. There after it can thrive well in rains. Stagnation of water should be avoided. Fruiting takes place from 7th year however optimum yield is be obtained from the 10th year onwards. Each tree bears approximately 50 kg neem fruits per year. So per acre the production is close to 5 tons neem fruits.
Mr. Dhananjayan 2.jpg
Intercrop
Castor plants (4 months crop) can be grown as an inter crops in neem plantations. Castor oil and castor meal too has good export potential. Currently it is being exported in huge quantities from Gujarat (India). It is advised to opt for castor crop as intercrop with neem because both have similar farming requirements. Castor is a dry land crop that implies it does not need much water for irrigation).

Extraction Process
Neem fruits should be sun dried for 2 weeks for beginning the extraction process. The procedure used for producing neem oil is ‘Rotary’ method. It is also referred as cold press extraction procedure. Azadiractin recovery percentage will be more in former process compared to expeller method (heat process). Investment required for the extraction unit is -

  1. a) Rotary machine -- One ton c.c : 8 hours shift : Rs 2 lakh
  2. b) Oil expeller machine : 500 kg per hour crushing capacity: Rs 40 lakh
  3. c) Solvent extraction :200 tons c.c. per day : Rs 6 crore

Quantity of neem seeds required is 8 tons/day( 2 shifts x 8 hours) for oil expeller machinery. In one month around 200 tons and per year (10 months) 2000 tons of neem seeds are required. Quantity of neem seeds required for neem oil extraction by solvent method is 200 tons/day (24 hours) and for a month 6000 tons and for a year (10 months) around 60,000 tons. 2 months is break for off season and overhauling of machinery.

Azadiractin
Neem oil contains azadiractin. It needs different process and machinery to produce azadiractin from neemoil. Neem oil should be extracted by cold process method to have a good recovery percentage of azadiractin. Organic pesticides are manufactured using azadiractin powder obtained from neem oil.

Organic Manure
Neem seed meal comes out as a bye product while extracting oil from neem seeds. It can be packed in 50 kg packing and can be exported to be used in organic farms as natural manure. It contains 5 % organic nitrogen. Neem oil recovery percentage is around 20 % from 100 kg neem seeds, can be obtained and 10 % will go as wastage due to moisture loss. Balance 70 % is available in the form of neem seed meal (organic manure).

Price
As of now price of neem fruit is Rs. 15-20 per kg depending upon moisture percentage. Neem cake is sold at Rs. 20-30 per kg (export quality). Neem oil at Rs. 250-300 per liter. This year neem cake and neem oil exports is on rise but the availability of neem fruits is less in India. Therefore India needs neem plantations on large scale to meet the growing demand for neem products.

Contact details:
Mr. V.V. Dhananjayan
Door no.448/A, 2 nd Cross Street,
Water Board Colony, Alagapuram,
Salem-636016. India
Mobile: 91 98941 42883
Email: hananjay999@gmail.com
 

Business Opportunities in Agriculture: 150 Field Interviews (Book)

zkdwz4m1

New Member
sir, now the price of neem fruit is more than 30 rupees.
cold press 100 % good quality Neem oil price Rs. 425 per litre for retail. and Rs.375 per litre for wholesale minimum 100 litre. Long shelf live. 100 % purity. more azadirachtin content in neem oil. 919566071688. deivamtraders@gmail.com
 

Business Opportunities in Agriculture: 150 Field Interviews (Book)

Top