Department of Agriculture and cooperation Ministry of Agriculture
www.agricoop.nic.in

National Bank for Agriculture & Rural Development
www.nabard.org

 Small Farmers' Agri-Business Consortium

National Institute of Agricultural
Extension Management
www.manage.gov.in

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Agroservice Centre - Farm Machinery and Primary Processing

1. Objective :

• To provide custom hire services facilities to farmers.

• To improve timeliness in agricultural operations.

• To improve production and productivity of Indian Agriculture.

• To improve post harvest processing facilities and profitability of farmers.

• To provide a regular source of income to agriculture graduates.

2. Location & Area of operation :

The project may be located in rural areas having sizable number of farmers/area under farm land where cereals, pulses, oilseeds, spices and condiments, etc., are cultivated. The area of operation could be all the villages under a taluka or the villages adjacent to a bigger Panchayat head quarters.

3. Project Components :

Tractor, trailer and implements, Power Tiller, Pumpset with accessories, Power thresher, Winnower, Self Propelled Reaper, Sprayers, Tools for repairing of machines, Primary Proecessing Unit like flaking machine, dal mill, etc., Workshop Shed.

4. Project Cost :

A. Capital Cost :

(i) Tractor, Mould Board Plough, Trailer, Cultivator, Cage wheel,

Disc wheel, Seed Drill and accessories 3,55,500

(ii) Power tiller 1,00,000

(iii) Pumpset with accessories 20,000

(iv) Power thresher and winnower 16,000

(v) Self propelled reaper and Sprayers 68,500

(vi) Primary processing machine like dalmill etc. 50,000

(vii) Tools for repairing 10,000

(viii) Insurance @ 2% of cost of machinery) 12,400

(ix) Shed for machinery 75,000

Total 7,07,400

Say Rs 7.08 lakhs

B. Recurring Cost

Recurring cost may vary from Rs. 2.12 lakh (75% utilisation) to Rs. 2.62 lakh (100% utilisation)

5. Margin Money (15%) : 1.06 lakh

6. Bank Loan : 6.02 lakh

7. Rate of Interest : 14% p.a.

8. Repayment period : 10 years including 1 year's grace

9. Income

Amount in Rupees

Sr.No. Item Income @ 75% capacity Income @ 100% capacity utilisation during I year utilisation thereafter

1. Tractor 135,000 180,000

2. Power tiller 46,875 62,500

3. Pumpset 26,250 35,000

4. Power thresher 3,375 4,500

5. Winnower 1,688 2,250

6. Reaper 30,000 40,000

7. Sprayers 3,825 5,100

8. Repairing of machinery 54,000 72,000

9. Processing machinery 37,500 50,000

Total Income 338,513 451,350

10. Economics of the Project :

NPW 2.96 Lakhs

BCR 1.16 : 1

IRR 30%

11. Other Information :

The project may include almost all the basic equipment necessary for crop production, right from tillage upto transportation of the produce to farmer's house / market place depending on the agro climatic conditions and demand of individual centre.

Note :

• Combination of power source and implements may vary as per the potential.

• Margin of 15% is assumed, but the financing bank may make changes at its discretion on case by case basis.

• The Rate of Interest is taken at 14%. However, the same will be as per the banks' discretion.

• Similarly, the other economic / financial parameters such as the repayment period, DSCR, IRR, etc., may also vary depending upon the margin, interest rate, etc., taken into account by the bank.