Economics of tamarind seed powder processing unit in Karnataka

Tamarind seed is an underutilized by-product of the tamarind pulp industry. Only a small portion of the seed, in the form of tamarind kernel powder and it used as a sizing material in the textile, paper and jute industries. Though many applications of this seed are possible, there have been hardly any other uses for it including using it as an additive in food formulations. The excellent gelling cum adhesive characteristics of the decorticated seed powder can lead to several applications in food and pharmaceutical industries which are evident by the number of research papers as well as patent applications. In this perspective an analysis has been made to know the cost and returns of tamarind seed processing units. The analytical tools such as NPV, IRR, Payback period and B : C ratio were used to analyze the data. The study was based on the primary source and it was used to analyze the financial feasibility of tamarind processing units in study area. Results showed that processing of 1kg of tamarind seed will give 0.70 kg (70 %) of tamarind kernel seed powder and 0.30 kg (30%) of hard brown testa. Here main product was tamarind kernel seed powder and by-product was hard brown testa. It was observed that the tamarind seed processing unit was found to be financially sound and economically feasibility in terms of net present value with Rs. 15,526.68, IRR 37.00 per cent, B : C ratio of 3.80 and payback period was 2.30 years. The total variable cost was Rs. 24,354.30 (60.25 %), total fixed cost was Rs. 16,080.97 (39.78 %) and total processing cost was Rs. 40,421.32 (100%). The derived Gross return was Rs. 55,948 and net return was Rs. 15,526.68.