DR.D.Y.

PATIL COLLEGE OF AGRICULTURE

BUSINESS MANAGEMENT,AKURDI, PUNE-44
(AFFILIATED TO MAHATMA PHULE KRISHI VIDYAPEETH, RAHURI)

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Name: Shivam Ashok Unde
Reg. No.: ABMP 2017/75
Credit:
Project Title: Rural development and Consultancy services
Agri-Business Specialist: Prof. M.B.Nichit
Coordinator: Dr .S .N. Patil
DI’s Nominees: Dr. Tai deokate

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1.Introduction
The students will identify the farmers or farmers' collectives
through the local self-governments, good practices of local
governments in agricultural development, in liaison with the
Institutes of Local Administration and prepare the reports on
good practices of integrated/homestead farming. Further, the
economics of various farming systems like mixed farming,
terrace farming. precision farming, open and protected
farming/contract farming joint farming can also be studied. By
virtue of this exercise, the students will report the cropping
system, cost and returns, sourcing and use of inputs, harvesting
and marketing, cost reduction mechanism, quality up gradation
practices, mapping of value chain, convergence to parastatals and
other rural development institutions and civil society.

Shivam Unde consultancy service

 2.Importance of different rural consultancy services

• Rural consultancy services helps in providing training to the farmers and also to guide
while selecting the crop.

• Economic upliftment of farmers is carried out through making them known about the
importance of Agril Allied activities like Goat farming, Bee keeping, Dairy farming.

• Information about climatic conditions and market rates for agricultural produce is
provided by Consultancy services.

• Consultancy services also helps in knowing about various schemes for farmers and
also helps in providing credit to them at lower interest rates.

Shivam Unde consultancy service

 3.Present scenario of Maharashtra and India

• Rural consultancy services helps in providing training to the farmers and also to guide
while selecting the crop.

• Economic upliftment of farmers is carried out through making them known about the
importance of Agril Allied activities like Goat farming, Bee keeping, Dairy farming.

• Information about climatic conditions and market rates for agricultural produce is
provided by Consultancy services.

• Consultancy services also helps in knowing about various schemes for farmers and
also helps in providing credit to them at lower interest rates.

Shivam Unde consultancy service

4.Data analysis
– Capital Investment: The fixed investment on a Agro Service Center comprised

of investment on Shop, Furniture fencing etc.

– Total Cost : Total Fixed Cost + Total Variable Cost

– Total Fixed Cost: Depreciation + Interest on Fixed Cost

– Total Variable Cost: Input cost + Labour Cost + License Renewal + Electricity

+ Transportation Cost + Maintenance Cost etc.

– In addition to this, BCR, IRR and NPW were calculated for selected study unit.

– Net Present Worth = Present Worth of Benefit – Present Worth of Cost

Present Worth of Benefit
Benefit Cost Ratio = --------------------------------
Present Worth of Cost

Internal Rate of Return = By trial and error method

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5.General information of selected rural consultancy service
Demographic Profile of Entrepreneur

Name of Agro Service Center : Pavana Agro Mart

Name of Owner : Ravindra Nighojkar

Age : 38

Address: Somatne Phata, taluka : Maval , district :Pune

Education : Diploma (Agriculture)

Est.: 2007

Products : Fertilizers, seeds, Plant protection chemicals,

Buckets, plough

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6. Documents required for starting Rural consultancy service

• 1. N0C of Gram Panchayat.

• 2. Principle certificate of different of companies.
• 3. Agreement of rent.
• 4. Licenses is provided by panchayat samiti.
• Under ‘1968 central insecticide board and registration committee’.

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 7.Estimated cost selected unit

• Cost and Return Structure

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7.1.Initial capital Investment
Sr. No Particulars Present value
1 Shop deposit 5,00,000
2 Construction of Storage structure 2,25,000
3 Transport Vehicle 1,50,000
4 Computer 50,000
5 Printer 3,000
6 Calculator 300
7 Generator -
8 Machinery and equipment's 3,00,000
9 Vehicles -
10 Office equipment's 5000
11 Laboratory equipment 4000
12 Furniture 80,000

Total 13,17,300
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 7.2. Operational Cost
Sr. No Particulars Amount
1 ASC License Renewal fee 9,000
2 Input Cost
Seed 2 ton.
Fertilizers 10 ton. 9,80,000
Pesticides 4on.
Insecticides
3 Repair and Maintenance 5000
4 Insurance 13000
5 Labour Charges 40,000
6 Telephone Charges 400
7 Electricity Charges 6,000
8 Advertisement Charges 10,000
9 Stationary cost 8000
Total 10,71,400

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Particulars Amount Percentage

Fixed Cost
Dep. on building and fencing 2% 4,312 0.2

Dep. On Machinery & Equipments @ 10 % 6,000 0.4

Dep. On Transport vehicles @ 20 % 6,000 0.4

Interest on Fixed Capital @ 10 % 1,31,730 16

Total Fixed Cost 1,48,042 17

Variable Cost
ASC License Renewal fee 9000 0.6

Input Cost 980000 67

Labour Charges 40000 2

Telephone Charges 400 0.002

Electricity Charges 6000 0.4

Transportation cost --

Advertisement Charges 10,000 0.6

Stationary Cost 8000 0.5

Insurance 13000 0.8

Repairs and Maintenance 5000 0.3

Interest on Working Capital @ prevailing bank rate 1,28,568 8

Total Variable Cost 11,99,968 82

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Total Cost 14,48,010 100
7.3Total fixed cost
Particulars Amount Percentage
Depreciation 16,312 6.6

Interest on Fixed Capital @ 2,31,730 93.4

10 %
Total Fixed Cost 2,48,042 100

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7.4 Variable cost
Variable cost values percent
ASC License Renewal fee 9000 0.7
Input Cost 9,80,000 81
Labor Charges 40,000 3
Telephone Charges 400 0.03
Electricity Charges 6,000 0.5

Advertisement Charges 10,000 0.8

Stationary Cost 8000 0.6
Insurance 13,000 0.10
Repairs and Maintenance 5000 0.4
Interest on Working Capital @ 1,28,568 10
12% 
Total Variable Cost 11,99,968 100
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 7.5 Financial feasibility
• Payback period
= Initial investment /Annual Net Cash Revenue

= 1317300 / 736158
Pay back period = 2.78
. Interpretation
Agro service center requires 2years and 7 months to recover their invested
Capital.

Profitability Index = NPW / INITIAL INVESTMENT

• = 14,34,966.85 /
• Profitability Index = 0.37 %

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 7.6 Net present worth(NPW)
Years Total Cost Gross Net Income D. F. (15%) NPW
Income
A B C= B-A D C×D
1. 2765310 1550000 -2015310 0.877 2452827

2. 1448610 1600000 151390 0.769 116418

3. 1453192 1850000 396808 0.674 267448.5
4. 1470542 2000000 529458 0.592 313439
5. 1463842 2200000 736158 0.519 382066
∑-3532198

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7.7 Benefit cost ratio
Years Total Cost (₹) Gross Income D. F. @ 15% Present Worth Present Worth
(₹) of cost (₹) of benefit (₹)

A B C D=A× C E=B×C
1. 2765310 1550000 0.877 2425176 1359350
2.. 1448610 1600000 0.769 1113981 1230400

3. 1453192 1850000 0.674 979451 1246900

4. 1470542 2000000 0.592 870560 1184000

5. 1463842 2200000 0.519 759733 1141800

Total ∑-6148901 ∑-6162450

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 Net Present Worth = Present Worth of Benefit – Present Worth of Cost
• Net Present Worth =6162450– 6148901

=13549
• It is considered that net present worth is positive then project is financially
feasible, the estimated NPW is Rs.13549 Hence, the Agro service center is
financially Feasible.

Present Worth of Benefit

• Benefit Cost Ratio = --------------------------------
Present Worth of Cost
BC Ratio = 1.71
=6162450/6148901

• Benefit Cost ratio =1.3

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7.9 Internal Rate Of Return(IRR)

• IRR=32%
• Interpretation: By trial and error method Internal rate of
return 32 % IRR is greater than market interest rate , Hence
project is financially feasible

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 8. SWOT Analysis
• Strength • Weakness
 Availability of wide range of inputs  Size of the shop is small and
 Wide area of market  Inadequate storage facility
 Location of the shop  Training of fish farming is not
 Good relation with farmers  provided

• Opportunity
• Threats
 New agro service centers are
 Can expand the shop by renting the
 developing in neighborhood
 neighboring shop
 There is increase in consultancy units
 Start training program for farmers in
 in area of consumers of the shop
 separate cabin
 Benefit for consultancy service by
 government

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 9. Summary And Conclusion
• The consultancy unit which was selected for study was “Pavana Agro service center” .Which is
located in Somatane , Maval , Pune .
• At overall level most of agro service center preferred seasonal purchasing.
• Agro service center play very important role in marketing of agriculture inputs.
• Good relationship with farmers helps to build loyalty
• The storage of inputs was done on the basis of expiry of product

Shivam Unde consultancy service

THANK YOU

Shivam Unde consultancy service