ON

BETEL NUT (SUPARI) PLANTATION

FOR

PMMY

Submitted By
NAME : SRI OYAIHA REANG
FATHER’S NAME : SRI DEBROY REANG
ADDRESS : PATIRAI PARA, KARNAMONIPARA V/C
PO : GANGANAGAR, SUBDIVISION-AMBASSA
PS :GANGANAGAR, DHALAI
DISTRICT : DHALAI, TRIPURA, PIN NO- 799289
CONTACT NO : 9863126987

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Introduction
Betel nut is a combination of three ingredients. People roll small pieces
of the nut from Areca catechu, more commonly called betel palm, in a leaf
from the Piper betel vine, then add powdered slaked lime or limestone paste,
and chew it. The substance is popular in certain parts of the world, primarily
Asia and Africa, Some components of betel nut have pharmacological
properties, but little evidence supports its use for any therapeutic purpose.
Areca nut is widely used mainly in the Asian and South East Asian population.
It is normal that after having food in India people use areca nut along with
the betel leaves as a digester in small quantities.

Uses & Application Supari 1. It can be used as one of the ingredients in

the domestic life for the preparation of pan. 2. It is one of the most important
ingredients in the manufacturing of Pan Masala. 3. It can be used in the
preparation of scented supari as well as coated supari.

Tannin 1. It can be used for the preparation of dye fixing agent. 2. It can
be used in the manufacturing of ink. Rope or Brushes 1. Rope can be used for
spinning. 2. Brushes can be used for painting. Pan Masala 1. It can be used
for relaxing food ingredients. It may make users fresh impetus. 2. It may
change the taste of human. It may create temporarily enjoyment and energy.

Betel nut's medical use is limited, and long-term negative reactions to

betel quid chewing are well known. A decrease in positive symptoms among
men with schizophrenia was attributed to betel nut consumption. India is the
major producer and consumer of arecanut in the world. Production is
concentrated in six states, namely Karnataka, Kerala, Assam, Meghalaya,
Tamil Nadu and West Bengal. Arecanut is the major plantation crop of
coastal and southern districts of the country under assured irrigation facility.

The ever increasing demand for areca products like paan, supari and
gutkha has led to continuous increase in arecanut prices worldwide. The
processing methods, maturity and consumer preferences influence the types
of arecanut products prepared. Area and production shares show that
Karnataka leads with 46 per cent of area and 47 per cent of production,
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followed by Kerala with 24 and 23 per cent, respectively. Globally it is
primarily grown in India, Bangladesh, China, Indonesia and Myanmar. India
leads the production followed by China and Bangladesh.

tonnes and a total acreage under cultivation of 2.64 lakh hectares, with
Karnataka and Kerala accounting for nearly 72 per cent of the total
production. Over six million people are engaged in arecanut cultivation,
processing and trade. More than 85 per cent of the area under cultivation is
made up of small and marginal holdings. Among the two varieties white nuts
have a share of 60 per cent. India is also the largest consumer with around
3.2 lakh tonnes.

Areca nut is majorly influenced by weather conditions in the production

area, government policies, the growth of consumer industries, government
policies for consumer industries and a few others. The regular consumption of
areca nut causes severe diseases such as throat cancer and mouth cancer.
Due to a significant number of people affected by the consumption of areca
nut, the Indian and several governments have posed various regulations over
the areca nut production and consumer industries. This fact has restrained
the market for areca nut. Also, the increasing awareness among people
regarding healthy life style and severe effects of areca nut have resulted into
a barrier for areca nut marke

As the pre-bearing age of the palm trees is between 5 to 8 years, and

only 5% of them result into seed set, the cultivation of areca nut consumes a
lot of time. The time required for cultivation of areca nut and required
environmental conditions such as minimum 70% humidity restrains the
market at the supplier end. The demand for areca nut and its products has
been increasing steadily in India.

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 HIGHLIGHT OF THE PROJECT SUMMERY

1 Name of the Activity : BETEL NUT (SUPERI) PLANTATION

2 Name of the Entrepreneur : Sri Oyaiha Reang
3 Father’s Name` : Sri Debjoy Reang
4 Address of applicant Vill-Patirai Para, Karnamoni Para, po-
(Parmanent&present) Ganganagar. Ps-ganganagar, subdivsn-Ambassa,
District-Dhalai, Tripura, Pin no-799289
5 Location of the proposed unit : patirai Para
6 Cast : ST
7 Qualification :
8 Date of birth : 01-01-1983
9 Aadhar No : 6911-7012-3705
10 Pan card No :
11 Contact No :
12 Technical qualification & other :
13 Experience : 5 years
14 Employment potential : as required
15 Proposed bank : TSCB, Ambassa Branch
16 IFSC Code :
16 Repayment Method : As per bank norms
17 Total project cost:- : Rs. 50,00.00
a) Working capital : Rs.20,000.00
b) Fixed capital : Rs.30,000.00
18 Source of fund:-
a) Own contribution (5%) : Rs. 2,500.00
b) Bank loan : Rs.47,500.00
19 Address of raw materials : Agartala, Dharmanagar, Silchar & Kolkata.
20 Cost of production (PA) :
21 Turn Over (PA) :
22 B.E.P : 25%
23 profit on sale : 20% to 30%

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 FINANCIAL ASPECT
A. Fixed Expenditure : Rs.30,000.00

1. Cost of nursery of betel nut(supari) cultivate : Rs. 20,000.00

(approx. 500, nos)
2. Miss. Expenses : Rs. 5,000.00
3. Expenses over the decoration of the land : Rs. 5,000.00
THUS THE TOTAL FIXED CAPITAL RS.30,000.00
(1+2+3 of A)

B. Working Capital

1. RAW MATERIALS : Rs. 20,000.00

(Fertilizer, packaging accessories,
Quality control processing)
2. MANPOWER (PA)
i. Manager cum Supervisor : SELF
ii. Skilled sell man 2No. @ Rs.2,500/- : Rs. 14,000.00
3. Land OWN

a) Transportation : Rs. 2,000.00

b) Insurance : Rs. 2,000.00
c) Advertisement : Rs. 1,000.00
d) Power : Rs. 5,00.00
4. Utility : Rs. 5,00.00

Total- Rs. 6,000.00

Thus, total working capital Rs.20,000.00

TOTAL EXPENDITURE OF THE PROJECT

a) NON-RECURRUNG EXPENDITURE : Rs. 30,000.00
b) RECURRING EXPENDITURE : Rs.30,000.00
Total Amount Rs.50,000.00

MEANCE OF FINANCE
a) Own Contribution 5% : Rs. 2,500.00
b) Bank Loan underP @ 95% : Rs.47,500.00
………..………………………
Total – Rs.50,000.00

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COST OF PRODUCTION (PER ANNUMN)
a) Raw materials : Rs. 2,00,000.00
b) Man power for 12 month : Rs. 36,000.00
c) Other expenses for 12 month : Rs. 12,000.00
d) Depreciation on fixed assets @ 20% : Rs. 5,000.00
e) Interest on loan @ 12% : Rs. 3,600.00
….………………………….
Total- Rs.2,56,600.00
SALE REALIZATION (PER ANNUMN)
Turnover per year Total: 4,00,000.00
PROFITABILITY ACCOUNT (P.A):

SALE REVENUE COST OF PRODUCTION OPERATING PROFIT

RS.4,00,000.00 RS.2,56,600.00 RS.1,43,400.00
*Operating profit : Rs.1,43,400.00
*IT payable : Rs.00.00
*Net Profit : Rs.1,43,400.00

% of profit on sale : profit X 100

………………………………
Sale
143400 X 100
…..……………………….
400000

= 36%
BREAKING EVEN POINT ANALYSIS

Thus, B.E.P = Fixed Cost x 100

------------------------------
Fixed Cost + Profit =25%

INTEREST CALCULATION & REPAYMENT SCHEDULE

*Rate of Interest : @ 12% P.A

*Repayment Period : 5 Years
*Moratorium : Nil
Amortization Schedule Rs.2,20,000.00

Year Repayment interest Principal Balance

1st Year 12,921.94 4,200.00 8,721.94 21,278.06
2nd Year 12,921.94 2,978.93 9,943.01 11,335.05
3rd Year 12,921.96 1,586.91 11,335.05 0.00

Note: Particulars Capacity Utilization (Rs in '000)

1. All figures mentioned above are only indicative.
2. If the investment on Building is replaced by Rental then
a. Total Cost of Project will be reduced.
b. Profitability will be increased.
c. Interest on C.E.will be reduced.
Signature Of applicant
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