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    Clearing___Grading_Agril__produce_Final

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    Damu Daran

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    Clearing___Grading_Agril__produce_Final

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    Damu Daran
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    3 views6 pages

    Clearing___Grading_Agril__produce_Final

    Uploaded by

    Damu Daran

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    © All Rights Reserved
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    BANKABLE PROJECT PROPOSAL

    ON
    CLEARING AND GRADING OF AGRICULTURAL
    PRODUCE

    FOR
    APICOL (Agricultural Promotion and Investment
    Corporation of Odisha Ltd.)

    Prepared by:

     Dr. Nihar Ranjan Sahoo, Assoc. Professor, CAE&T, Bhubaneswar


     Dr. Sarba Narayan Mishra (Team leader and Principal Investigator) ACSSC, OUAT
     Prof. Bibudha Parasar (Director, ACSSC, OUAT)

    Submitted by
    Agriculture Consultancy Support Service Cell
    Orissa University of Agriculture and Technology
    Bhubaneswar

    ACSSC,OUAT,Bhubaneswar Page 1
    BANKABLE PROJECT REPORT

    ON

    CLEANING AND GRADING OF AGRICULTURAL PRODUCE


    Present scenario
    The cereal, pulses, oil seeds and spices produced by the farmers are sold as such at
    low price to traders. As a result farmers are deprived of the actual price. Cleaning and
    grading of raw agricultural produce improve its storability and quality. The cleaned and
    graded produce meeting the standard grade can be traded at higher price. The handling and
    transportation cost of unprocessed produce is higher. Primary processing of food grains at
    production point will reduce post harvest loss and will add value to the commodity. The
    cleaned and graded produce can be marketed to wholesale market and processing industries.
    Technical parameters
    The agricultural produce are procured from framers and traders and stored in cool,
    dry and well ventilated area. The grains are cleaned from lighter particles, stalks, sand and
    stones. The under sized and over sized grains are also separated out. The food grains can be
    graded for higher market price. The graded product is packed in HDPE oven sack for
    marketing.
    Product profile and capacity
    Capacity – 1000 kg/day (8 h shift)
    Motive power requirement – 5 kW
    Essential components of the project
     The plant will operate in single shift of 8 hour duration per day for 300 days in a year.
     The prices of equipments are tentative.
     Depreciation on machinery are assumed to be 10%.
     The unit is proposed to be operated in own shed/house and the cost has not been
    included.
     Interest on total capital investment is assumed to be 12%.
     Breakeven point has been calculated on full capacity utilization.
     There is 10 % loss during cleaning and grading.

    ACSSC,OUAT,Bhubaneswar Page 2
    Implementation schedule
    Sl. Activity Completion time
    No.
    1 Arrangement of land, approval of loan and 2 months
    company formation
    2 Machinery procurement 2 month
    3 Erection and commissioning 1 month
    4 Commercial production 1 month
    Total 6 months
    Unit cost
    Land 4000 sq ft Own
    Building 1600 sq ft Own
    Capital Investment
    Equipment
    Sr Rate Qty TOTAL
    Description
    No. Rs.
    Bucket Elevator
    1 1 70000/-
    Basic Machine with 0.5 hp geared motor
    Screen Grader, Model 18 x 36 III deck type with
    2 aspiration system 1 200000/-
    Basic machine with 1 hp motor
    De-stoner – G-2
    3 1 100000/-
    Basic Machine with 1 hp motor
    Precision Air Classifier – 309
    4 1 70000/-
    Basic Machine with 1 hp motor
    5 Bagging machine 1 30000/-
    6 Office furniture 10,000/-
    7 Electrification and installation 1 20000/-
    500000/-
    Recurring Expenditure (per month)
    Working capital
    I. Personnel
    Manager 1 7000
    Skilled labour 2 10000

    ACSSC,OUAT,Bhubaneswar Page 3
    Unskilled labour 2@4000/- 8000
    Total 25000/-
    II Raw material and packing material
    1 Paddy 15 MT @ 13000/- 1,95,000/-
    2. Pulses, oil seed and spices 10 MT @ 35000/- 3,50,000/-
    3 Gunny bags 500 no @14/- 7,000/-
    5,52,000
    III Utilities
    Electricity 1000 kWh 6/- 6000/-
    Water 200/-
    Total 6,200/-
    IV Other contingency expenses
    Repair and maintaenace 4000/-
    Transport charges 10000/-
    Advertisement and publicity 2000/-
    Insurance, Taxes, Telephone bill 2000/-
    Other unforeseen expenditure 2000/-
    Total 20,000
    Total recurring expenditure per month 6,03,200/-
    Total capital investment 11,03,200/-
    Or say 11,00,000/-
    Turnover per month
    Paddy 13.5 MT 17000/- 2,29,500/-
    Pulses 9 MT 45000/- 4,05,000/-
    Chaff 2 MT 5000/- 10,000/-
    6,44,500/-
    Financial analysis
    Cost of production
    Recurring expenditure 6,03,200/-
    Depriciation of machinery @10% 4,000/-

    ACSSC,OUAT,Bhubaneswar Page 4
    Interest on investment @12% 11,000/-
    Total 6,18,200/-
    Net profit per month of production 26,300/-
    Net profit per annum 3,15,600/-
    Net profit ratio 4%
    Rate of return 28.7 %
    Pay back period 3.5 years
    Breakeven analysis
    Fixed cost per annum
    Depriciation of machinery @10% 48,000/-
    Interest on investment @12% 1,32,000/-
    40% salary 1,20,000/-
    40% of other expenses 96000/-
    Total 3,96,000/-
    Break even point 55.6%
    DSCR 2.05

    Repayment Schedule for total capital of Rs 11 lacs


    Year Principal (Rs in lacs) Interest Total Loan Amount
    (Rs in lacs) Instalment outstanding (Rs
    (Rs in lacs) in lacs)

    1st year 109316.3 132000 241316.3 990683.7


    2nd year 122434.3 118882 241316.3 868249.4
    3rd year 137126.4 104189.9 241316.3 731123.1
    4th year 153581.5 87734.77 241316.3 577541.5
    5th year 172011.3 69304.99 241316.3 405530.2
    6th year 192652.7 48663.63 241316.3 212877.56
    7th year 212877.56 25545.31 241316.3 0

    ACSSC,OUAT,Bhubaneswar Page 5
    Conclusion
    The proposed cleaning and grading unit can process paddy, pulses, oil seeds, spices
    and seed in the production catchment for value addition and better utilization of the
    commodity which in turn generate income and employment. The pay back period of the
    proposed project is 3.5 years indicating a successful venture.

    List of machinery supplier


    Bharat Heavy Machines, 123/280, sick line Factory Area, Fazal ganj, Kanpur UP,
    Goldin (India0 Equipment Pvt Ltd, F-29, BIDC Estate, Gorwa, Vadodara
    Avity Agrotech and Industries, 123, Gide Estate, Makarpora, vadodara
    Forsberg Agritech(I) Pvt Ltd, 123, GIDC Estate, Makapora, Vadodara
    Orissa Machinery and Mill Store, Jatni, Khurda

    ACSSC,OUAT,Bhubaneswar Page 6

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