PROJECT REPORT ON

AGRI TOURISM

SUBMITTED BY

Saumik Krishna Deb

Howrah
Mobile No.: 9830077347

NODAL TRAINING INSTITUTE

IID

SUBMITTED UNDER

Agri Clinics & Agri Business Center Scheme

Sponsored by-
Ministry of Agriculture & Farmers Welfare, Government of India
National Institute of Agricultural Extension Management
(MANAGE), Hyderabad & NABARD
www.agriclinics.net

PREPARED BY

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2020 - 21
Project Report on Agri Tourism by Saumik Krishna Deb under 'Agri Clinics & Agri Business Centers (MANAGE)' Page 2 of 16

CONTENTS

CHAPTER NO. PARTICULARS PAGE NO.

I. HIGHLIGHTS OF THE PROJECT REPORT

A. About the Promoter 3

B. Project Profile 4

II. PROJECT DESCRIPTION 5

III. MARKET POTENTIAL 6

IV. EXTENSION ACTIVITIES 7

V. SWOT ANALYSIS 8

VI. ECONOMICS OF THE PROJECT

A. Basis & Presumptions 9

B. Total Cost of Project 10

C. Means of Finance 11

D. Working Capital 12

E. Projected Profitability 13

Income Expenditure Statement 14

F. Financial Analysis 15

G. Term Loan Repayment 16

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CHAPTER - I

HIGHLIGHTS OF THE PROJECT REPORT

A. ABOUT THE PROMOTER

PARTICULARS ABOUT THE PROMOTER

1. Name : Saumik Krishna Deb

2. Address : Howrah

3. Contact number : 9830077347

4. Date of birth : 09-02-1970

5. Educational qualification : Graduate, Professional Qualifications

6. Project location : Uluberia, Howrah

7. Professional Experience : 27 Years

8. Constitution : Proprietorship
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B. PROJECT PROFILE (FINANCIAL)

PARAMETERS VALUES

1. Project size in acre 10

2. Product Agri Tourisum

3. Cost of the project 6,213,338

4. Bank loan 4,660,003

5. Margin money 1,553,334

6. Financial Indicators

BCR at 15% DF 1.90:1

NPW 15% DF(Rs.) 11,198,166

IRR (%) 65.89

DSCR 2.79

7. Interest rate (% per annum) 12

8. Repayment period 5 years

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CHAPTER - II

PROJECT DESCRIPTION

Introduction

Agri-Tourism is the practice of attracting visitors to an area used primarily for agricultural purposes. It also associated
directly with agricultural activity on a farm with the idea of offering products for sale that are produced as a direct
result of the activity. This may include food and lodging as well as on farm activities. It is an all-encompassing idea
that places any tourism activity in a rural setting under the same umbrella.

The Agri Tourism Service Provider is supposed to provide home cooked food, stay facilities and show the visitor the
agricultural practices such as floriculture, harvesting, bee keeping, dairying etc. and introduce to him the village way
of life through various participatory activities.The visitors can enjoy the natural surroundings in fresh air. The visitor
gets an exposure of local community life.

Many agri-tourism activities require only a small farm crew in order to be successful. For instance, farm tours, bed
and breakfasts, tractor / bullock card rides, grapes, mangoes, and other horticulture farms, by product farms, birds /
animal zoos, and many other activities may be operated with little additional investment in labor.

Agri-Tourism farm can aim at developing a unique selling point some are specializing in organic farming, others is in
floriculture, natural health management etc. The opportunities for uniqueness and customization are limitless.

It is one of the main sub segments of tourism which has a high potential for growth. It is gaining popularity on the
global scale &it needs to give due importance it deserves in India.
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CHAPTER - III

MARKET POTENTIAL

The scope for Agri tourism as follows:

1. An inexpensive gateway - The cost of food, accommodation, recreation and travel is least in Agri-Tourism. This
widens the tourist base. Present concept of travel and tourism is limited to urban and rich class which constitutes only
a small portion of the population. However, the concept of Agri-Tourism takes travel and tourism to the larger
population, widening the scope of tourism due to its cost effectiveness.

2. Curiosity about the farming industry and life style - The urban population having roots in villages always have had
the curiosity to learn about sources of food, plants, animals, raw materials like wood, handicrafts, languages, culture,
tradition, dresses and rural lifestyle. Agri-Tourism which revolves around farmers, villages and agriculture has the
capacity to satisfy the curiosity of this segment of population.

3. Strong demand for wholesome family oriented recreational activities - Villages provide recreational opportunities to
all age groups i.e. children young, middle and old age, male, female, in total to the whole family at a cheaper cost.
Rural games, festivals, food, dress and the nature provides variety of entertainment to the entire family.

4. Health consciousness of urban population and finding solace with nature friendly - Modern lifestyle has made life
stressful and average life span has comedown. Hence, people are in constant search of pro-nature means to make
life more peaceful. Ayurveda which is a pro-nature medical approach has roots in villages. Indigenous medical
knowledge of villagers is respected. Organic foods are in greater demand in urban areas and foreign countries. In
total, health conscious urban population is looking towards pronature villages for solutions.

5. Desire for peace and tranquility - Modern life is a desire for peace and tranquility. Every individual attempts to work
more, in different directions to earn more money to enjoy modern comforts. Hence, peace is always out of his
system. Tourism is a means for searching peaceful location. Peace and tranquility are inbuilt in Agri-Tourism as it is
away from urban areas and close to nature.

6. Interest in natural environment- Busy urban population is leaning towards nature. Because, natural environment is
always away from busy life. Birds, animals, crops, mountains, water bodies, villages provide totally different
atmosphere to urban population in which they can forget their busy urban life.
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CHAPTER - IV

EXTENSION ACTIVITIES

1. Starting a business of agrotourism requires planning and preparation. Before starting agrotourism the
entrepreneurs/ farmers are generally advised to undergo training. They can contact Department of Agriculture staffs/
Agriculture University etc. for the purpose. However availability of training facilities & resources are inadequate.
Hence I will provide training on agrotourism to farmers both onsite and off-site. During training program special thrust
on fertigation management, insect & pest management & kind of records to be kept in the farm will be also given.

2. For the farmers of nearby locality, visits will be arranged on my project & they will be educated on scientific lines
regarding various aspects of cultivation practices. It will help them to improve their knowledge and skill regarding
scientific cultivation practices so as to enable them to adopt the same.

3. Consultancy will be provided for setting up of agrotourism units.

4. I will take Initiatives to strengthen linkages between State Departments, Traders, NGO’s and farmers.

5. For farmers who have decided to avail bank for agrotourism, assistance will be provided to prepare their bankable
project report.

6. For the marketing of agrotourism, farmers will be provided necessary support & guidance.

7. Visits of farmers will be arranged to exhibitions & trade shows with the prime objective of exposing them the
technological innovations.

8. Nowadays internet has become important tool to get latest information. There are various websites available on
agrotourism, which provides useful content. This information will be shared to farmers.

9. Educational tours of farmers will be arranged to progressive farmers & research stations which will motivate them
to adapt good cultivation practices.
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CHAPTER - V

SWOT ANALYSIS

Strengths:

• Availability of attractive agricultural landscapes including unique features at the project location.

• Availability of healthy environment.

• Availability of significant level of skilled labor.

• Presence of traditional farming activities.

Availability of traditional cultural activities including various livelihoods.

Opportunities:

• Gradual increase in the demand for agritourism by the visitors

• Emphasis on sustainable rural tourism development by the government.

Weakness

• Low awareness of agritourism with people in terms of tourism and its attractiveness.

• Shortage of finances and low accessibility of external resources

Threats

• Competition from other traditional holiday destinations.

• Difficulties in environment protection due to gradual damage to the environment.

• Lack of government concern on agritourism.

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CHAPTER - VI

ECONOMICS OF THE PROJECT

A. BASIS & PRESUMPTIONS

PARTICULARS UNIT QUANTITY

I. Techno-economic parameters

Project area Acre 10

Rate of interst for bank loan % 12

Repayment period Years 5

It is assumed that income from the crops cultivated in the project area will take care of the cost of cultivation of those
crops.

II. Expenditure norms

Site development (levelling, internal roads etc.) Lumpsum 150,000

Number of cottages Nos. 10

Cost of construction of cottage Rs./sq.ft. 500

Cost of construction of dinning hall Rs./sq.ft. 350

Cost of construction of welcome centre cum office Rs./sq.ft. 350

Cost of construction of semicovered area for group events Rs./sq.ft. 150

Cost of construction of club house for sports & games Rs./sq.ft. 350

Cost of construction of lake Rs. 150,000

Cost of boat (munally operated) Rs./boat. 50,000

Cost of bullock cart Rs./B.Cart 75,000

Sport equipments (sports like Cricket, Football, Volleyball,

Lumpsum 100,000
Chess, Badminton, tennis etc.)

Cost of landscaping, garden developments & plantation Lumpsum 100,000

III. Income norms

Half day package (Non Residential) Rs./person 600

Full day plan package (Non Residential) Rs./person 800

Night Stay Rs./person 1,500

Summer camps for 3 days Rs./person 5,000

Venue for training/ conferences (2 days duration) Rs./program 10,000

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B. TOTAL COST OF PROJECT

PARTICULARS UNIT UNIT RATE QUANTITY AMOUNT

Rs. Rs.
1. Land Own
Site Development Ls. 150,000
150,000
2. Building
Dinning room Sq.ft. 350 3,000 1,050,000
Cottages (each cottage 500 sq.ft. @ Rs. 500 per sq.ft. Nos. 250,000 10 2,500,000
Welcome centre cum office Sq.ft. 350 300 105,000
Semicovered area for group events Sq.ft. 150 2,000 300,000
Club house for sports & games Sq.ft 350 2,000 700,000
Lake construction Ls. 150,000
Water storage tank (including distribution system) Ls. 25,000
4,830,000
3. Machinery & Equipments
Bullock cart Nos. 75,000 1 75,000
Sport equipments ( sports like Cricket, Football,
Ls. 100,000
Volleyball, Chess, Badminton, tennis etc.)
Boat ( munally operated) Nos. 50,000 1 50,000
Electric motor No. 25,000 1 25,000
Fencing & gate Ls. 150,000
400,000
4. Misc. Fixed Assets
Cost of landscaping, garden developments & plantation Ls. 100,000
100,000
5. Contengencies % 5 274,000
6. Prelimanary and Pre-operative Expenses
Market survey & project report preparation 25,000
Legal charges 5,000
Travelling expenses 10,000
40,000
Total Capital Cost 5,794,000
II. Working Capital (25% of first year requirement) 419,338
TOTAL COST OF PROJECT 6,213,338
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C. MEANS OF FINANCE

PARTICULARS UNIT UNIT RATE AMOUNT Rs.

1. Term loan % 75 4,660,003

2. Own contribution % 25 1,553,334

TOTAL 6,213,337
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D. WORKING CAPITAL REQUIREMENTS

(Value in Rs.)

UNIT RAT QUANTIT

PARTICULAR UNIT I YEAR II YEAR III YEAR IVYEAR V YEAR
E Y

Cost of Raw Materials

Food person/day 100 9,646 482,300 964,600 964,600 964,600 964,600

Cost of training/ conferance /program 5,000 26 65,000 130,000 130,000 130,000 130,000

Cost of Consumbles

Cottage maintainance material /month 5,000 12 60,000 60,000 60,000 60,000 60,000

Cost of utilities

Electricity & water /month 5,000 12 60,000 60,000 60,000 60,000 60,000

Cost of Manpower

Manager /annum 240,000 1 240,000 264,000 290,400 319,440 351,384

Tour guide /annum 120,000 1 120,000 132,000 145,200 159,720 175,692

Cook /annum 120,000 1 120,000 132,000 145,200 159,720 175,692

Security /annum 60,000 2 120,000 132,000 145,200 159,720 175,692

Semiskilled worker /annum 60,000 5 300,000 330,000 363,000 399,300 439,230

Overhead expenses

Office expenses /annum 5,000 12 60,000 60,000 60,000 60,000 60,000

Marketing expenses@1% of Sale /annum 50,050 60,060 70,070 80,080 80,080

TOTAL 1,677,350 2,060,661 2,407,270 2,523,540 2,640,426

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E. PROJECTED PROFITABILITY

I. PROJECTION OF INCOME

(Value in Rs.)

PARTICULAR UNIT UNIT RATE QUANTIRY I YEAR II YEAR III YEAR IV YEAR V YEAR

Capacity utilized % 50 60 70 80 80

Half day (Non Residential) /person 600 5,200 1,560,000 1,872,000 2,184,000 2,496,000 2,496,000

Full day (Non Residential) /person 800 2,600 1,040,000 1,248,000 1,456,000 1,664,000 1,664,000

Night stay /person 1,500 1,300 975,000 1,170,000 1,365,000 1,560,000 1,560,000

Summer camps for 3 days /person 5,000 520 1,300,000 1,560,000 1,820,000 2,080,000 2,080,000

Venue for training/conferences (1-2

/program 10,000 26 130,000 156,000 182,000 208,000 208,000
days duration)

TOTAL 5,005,000 6,006,000 7,007,000 8,008,000 8,008,000

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II. INCOME EXPENDITURE STATEMENT

(Value in Rs.)

PARTICULAR I YEAR II YEAR III YEAR IV YEAR V YEAR

1. Income 5,005,000 6,006,000 7,007,000 8,008,000 8,008,000

2. Operational cost 1,677,350 2,060,661 2,407,270 2,523,540 2,640,426

3. Gross operating cost 3,327,650 3,945,339 4,599,730 5,484,460 5,367,574

4. Less interest on term Loan 559,200 447,360 335,520 223,680 111,840

Depreciated value of buildings @ 10% 483,000 434,700 391,230 352,107 316,896

Depreciation for misc. fixed assets @ 15% 60,000 51,000 43,350 36,848 31,320

Amortisation of preliminary and preoperative expenses 8,000 8,000 8,000 8,000 8,000

5. Profit before Tax 2,217,450 3,004,279 3,821,630 4,863,825 4,899,517

6. Tax at 30% 665,235 901,284 1,146,489 1,459,148 1,469,855

7. Profit after Tax 1,552,215 2,102,995 2,675,141 3,404,677 3,429,662

8. Net income available(7+4) 2,662,415 3,044,055 3,453,241 4,025,312 3,897,719

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F. FINANCIAL ANALYSIS

(Value in Rs.)

PARTICULARS I YEAR II YEAR III YEAR IV YEAR V YEAR

Capital costs 5,794,000

Recurring costs 1,677,350 2,060,661 2,407,270 2,523,540 2,640,426

TOTAL COST 7,471,350 2,060,661 2,407,270 2,523,540 2,640,426

Benefit 5,005,000 6,006,000 7,007,000 8,008,000 8,008,000

Depreciated value of building, fencing,

2,827,965
borewell etc @10%

Depreciated value of machinery &

171,400
equipments @15%

TOTAL BENEFIT 5,005,000 6,006,000 7,007,000 8,008,000 11,007,365

NET BENEFIT -2,466,350 3,945,339 4,599,730 5,484,460 8,366,939

Discounting factor@15% 0.87 0.76 0.66 0.57 0.5

NPV cost at 15% DF 6,500,075 1,566,102 1,588,798 1,438,418 1,320,213

NPV benefits at 15% DF 4,354,350 4,564,560 4,624,620 4,564,560 5,503,683

NPW at 15% DF 11,198,166

BCR at 15% DF 1.90:1

IRR% 65.89
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G. TERM LOAN REPAYMENT

Rate of interst - % per annum : 12

Opening balance of term loan : 4,660,003

(Value in Rs.)

Loan Total
Year Net Income Principal Interest Net Surplus DSCR
Outstanding Repayment

1 4,660,003 2,662,415 932,001 559,200 1,491,201 1,171,214 1.79

2 3,728,003 3,044,055 932,001 447,360 1,379,361 1,664,694 2.21

3 2,796,002 3,453,241 932,001 335,520 1,267,521 2,185,720 2.72

4 1,864,001 4,025,312 932,001 223,680 1,155,681 2,869,631 3.48

5 932,001 3,897,719 932,001 111,840 1,043,841 2,853,878 3.73

Average DSCR 2.79