Vermi-Composting
Unit
1. Objective :
• To provide cultural material of the desired
species and train farmers and entrepreneurs.
• To demonstrate practically the production
methodology on the unit that will be set up.
2. Location and area of operation :
Suburbs of cities and villages around urban centres
can be ideal locations for practice of vermicomposting on a large scale,
from the point of view of availability of raw material and marketing of
the produce. Unit may also be located in areas with concentration of
fruits and vegetables and floriculture units.
3. Project components :
i) Sheds : For a vermi-composting unit,
whether small or big, could be of thatched roof supported by bamboo
rafters and purlins, wooden trusses and stone pillars.
ii) Vermi-beds : Normally the beds are 75 cm -
90 cm thick depending on the provision of filter for drainage of excess
water. The entire bed area could be above the ground.
iii) Land : About 0.5-1 acre of land will be
needed to set up a vermiculture production cum extension centre. Even
sub marginal land also will serve the purpose.
iv) Buildings & Furniture : In the
activity on a large scale on commercial lines, considerable amount may
have to be spent on buildings to house the office, store the raw
material and finished product, provide minimum accommodation to the
personnel. A reasonable amount could also be considered for furnishing
the office-cum-stores including the storage racks and other office
equipment.
v) Seed Stock : Worms @ 350 worms per m3
of bed space should be adequate to start with and to build up the
required population in about two to three cycles.
vi) Fencing, Roads/Paths and Water Supply System :
The site area needs development for construction of structures and
development of roads and pathways for easy movement of hand-drawn
trolleys/ wheel barrows for conveying the raw material and the finished
products to and from the vermi-sheds. There is also need to plan for a
water source, lifting mechanism and a system of conveying and applying
the water to the vermi-beds.
vii) Machinery : Farm machinery and implements
are required for cutting (shredding) the raw material in small pieces,
conveying shredded raw material to the vermi-sheds, loading, unloading,
collection of compost and such related activities.
viii) Transport : For any vermi-composting
unit transport arrangement is a must. A large sized unit with about 1000
tonnes per annum capacity may require a tonne capacity mini-truck.
4. Project Cost :
A. Capital Cost
Item Cost (Rs.)
1 Construction of a temporary shed for setting up
200tpa vermi-compost unit 72,000
2 Implement and Machinery for a 200tpa unit 80,000
3 Office cum store 60,000
4 Water source 60,000
5 Two NADEP tanks 5,000
Total 277,000
B. Recurring Cost
Item Cost (Rs.)
1 Feed stock & handling cost @ Rs. 72,000 per
cycle for 5 cycle in a year 360,000
2 Rent on lease @ Rs. 8,000 per year 8,000
Total 368,000
Total Project Cost : Capital cost - Rs. 2,77,000
Recurring cost - Rs. 1,44,000
capitalised
Total Rs. 4,21,000
5. Margin (20%) : Rs. 0.85 lakhs
6. Bank loan : Rs. 3.36 lakhs
7. Rate of interest : 15% p.a.
8. Repayment period : 8 years including grace
period of one year
9. Income
Item Rs. Rs.
(I year) (II year)
1 Sale of vermi-compost @ Rs. 2500 per ton 300,000
450,000
2 Sale of worms @ 5 kg per tonne of compost and Rs.
50 per kg 45,000
3 Consultancy and extension services 10,000
Total 300,000 505000
Net Benefit 79,200 137,000
10. Economics of the Project :
a. NPW : Rs. 2.35 lakhs
b. BCR : 1.12 : 1
c. IRR : 36%
note :
• Margin of 20% is assumed, but the actual margin
will be as per the discretion of the banks.
• Interest rate of 15% is assumed, however, the
actual rate will be as per 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.
Small
Farmers' Agri-Business Consortium