Financial Scheme Proposal for Agro-Based Industries Development in Sivasagar

1. Introduction

This proposal aims to provide a financial plan for unemployed individuals and aspiring entrepreneurs in Sivasagar to establish agro-processing units. The focus is on processing mustard oil, rice milling, and spices. In addition, the scheme includes training on organic farming, value-added products, and sustainable agricultural practices. The project is designed to offer financial viability and generate long-term profits while promoting local employment.

2. Fixed Costs

The fixed costs for establishing agro-processing units will include the purchase of machinery, equipment, and furniture. Below is an estimate:

Item	Cost (INR)
Mustard Oil Processing Machine	₹5,00,000
Rice Milling Machine	₹7,00,000
Spice Grinding Machine	₹3,00,000
Furniture and Office Setup	₹2,00,000
Total Fixed Cost	₹17,00,000

3. Variable Costs

Variable costs will include raw materials, labor, utilities, and other operational expenses. These costs are estimated as follows:

Item	Cost (INR/Month)
Raw Materials (Mustard Seeds, Paddy, Spices)	₹2,50,000
Labor Wages	₹1,00,000
Electricity & Water	₹50,000
Packaging & Marketing	₹75,000
Total Variable Cost	₹4,75,000

4. Working Capital

The working capital required for the first 3 months of operation will be approximately ₹14,25,000, which includes the variable costs for three months.

5. Profitability

Based on market demand, the expected monthly revenue is as follows:

Product	Estimated Monthly Sales (INR)
Mustard Oil	₹5,00,000
Rice	₹6,00,000
Spices	₹4,00,000
Total Monthly Revenue	₹15,00,000

With monthly operational costs estimated at ₹4,75,000, the projected monthly profit is approximately ₹10,25,000.

6. Repayment Schedule

Assuming a loan of ₹30,00,000 with an interest rate of 8% per annum, the repayment schedule is proposed as follows:

Year	EMI (INR)	Total Payment (INR)	Outstanding Loan (INR)
1	₹60,000	₹7,20,000	₹22,80,000
2	₹60,000	₹7,20,000	₹15,60,000
3	₹60,000	₹7,20,000	₹8,40,000
4	₹60,000	₹7,20,000	₹0

7. Conclusion

This proposal provides a comprehensive financial plan for the development of agro-based industries in Sivasagar. With proper support and training on organic farming and value-added products, this project can contribute to the local economy by creating employment and generating profits. The loan is expected to be repaid over 4 years, with healthy profit margins ensuring smooth repayment.