Vermicompost Production Cost, Income, Project Report

Introduction: Hello freinds, are you looking to set up a Vermicompost unit? would like to kow the Vermicompost Production Cost, and Income, well, we are here to help with these details. Vermicomposting is a process of Earthworms digesting the organic matter to a material that is essential for improving the growth and yield of different fields. This material is called Vermicompost which contains nutrients, plant growth hormones and helps to improve soil structure by increasing the water-holding capacity of the soil. This process is called Bio-oxidation and stabilization of the organic material, where the organic materials pass through the earthworm gut and produce the compost hence called Vermicompost.

As the earthworms plough the field making the soil fertile by releasing nutrients and other useful substances, they are popularly known as “Farmers Friends”. Vermicomposting is a profitable business as many of them in recent times are fond of organic vegetables, fruits, and other products as they are not produced by using harmful chemical substances i.e., organic farms where they use these naturally produced composts and manures from the waste of animal and plant. These results in eco-friendly without disturbing the natural process of the environment. What are we waiting for? let us find out the production cost of Vermicompost along with net income, and profits.

Vermicompost Production Cost, Income, Project Report

By using proper species of earthworm vermicomposting can be done in compost pits. This can be organized into a production unit as the vermicompost has high demand in the market for the production of organic food products. This is a good profitable business where the costs involve less than Rs. 2.0 per Kg where the vermicompost can be sold for Rs. 4.00 to Rs. 4.50 per Kg.

Vermicomposting Project Report.
Vermicomposting Project Report.

Process of vermicomposting

This process starts with the collection of crop residues, agri-waste, vegetable waste, cow dung, few animal wastes, and all the organic waste. The pits are kept shallow to avoid heat built-up that is harmful to earthworms. Earthworms transform the material in a faster process if the temperature is maintained around 30°C. To do all these processes first we need to construct brick-lined beds containing 0.9-1.5 m width and 0.25-0.3 m height and this should be constructed inside a shed open from all the sides. For commercial purposes, the beds are prepared with 15 m length, 1.5 m width and 0.6 m height. These dimensions cannot be changed as the increase in the width affects the ease of operation and the increased height during conversion the heat will be built-up. Cow dung farm waste is placed in layers up to a height of 0.6-0.9 m and the earthworms are introduced in between the layers at a rate of 350 worms per m3 of bed volume that weighs nearly 1 Kg. The beds are maintained at about 40-50% moisture content and a temperature of 20-30°C by sprinkling water over the beds.

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In commercial-scale production, a considerable amount of Rs. 5,000 – Rs. 6,000 for every ton of vermicompost has to be invested initially on capital items. This high unit capital cost is due to the considerable expenditure on the preparation of vermi beds, sheds to provide shelter to these beds and other machinery, but these costs are incurred only once. Transportation of raw materials as they are the source of organic wastes and dung are away from the production facility and the finished product involves operational costs as they have to be marketed to far off places and get the organic wastes from the other places. Hence, these operational costs would increase based on the availability of organic waste and the transportation of finished products based on the demand. The following are the items required to set up a unit for the production of vermicompost-

About Earthworms

There are nearly 350 species of earthworms having various food and burrowing habits. Eiseniafetida, Eudriluseugeniae, and Perionyx excavates are some of the species that effectively converts the organic wastes into manure. The species which form the deep burrows throughout the deeper layers have to be considered for commercial vermicomposting. An earthworm takes 6 weeks to lay one egg capsule, 3-7 worms emerge out of each capsule and hence the worms take very little time to multiply and grow under optimum conditions in a faster manner. The worms live for about 2 years, fully grown worms can be separated and dried in an oven to prepare worm meal which is a rich source of protein of 70% which is used as animal feed.

The preferred location for Vemicomposting

Areas with a predominance of agriculture, suburbs of cities and peri-urban villages are ideal for the vermicomposting units for larger and commercial purpose. This is based on the availability of raw materials and marketing the finished product. These places might minimize transportation charges. These units can also be located in the areas where the fruit and vegetable, floriculture units or farms are established. Establishing these units near the dairy farms will have an added advantage to get the cheap raw material i.e., cow dung.

Components of a Vermicompost commercial unit 

These commercial units have to be developed based on the availability of cow dung locally. The basic requirements for setting up a commercial unit includes the following:


This is an essential unit for vermicomposting. This can be prepared by using roofing materials or the HDPE sheet and the poles by bamboo rafters and purlins, wooden or steel trusses and stone or RCC pillars. This is essential because to prevent the bed wetting due to rain. Space should be left around the beds for the easy movement of the laborers attending to the filling and harvesting the beds.

Vermi beds

The beds should be 0.3-0.6 m height based on the provision of drainage of excess water. A uniform height should be maintained over the entire width to avoid low production due to the low volume of beds. The bed width should not be more than 1.5 m so that the worms can have easy access to the center of the bed and during the process of conversion the layers should be mixed up after half of the conversion so that every waste will be converted into the final product.

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Nearly half of an acre is needed to set up a commercial unit which can have 6-8 sheds for convenience. The land should have a bore well or a pump or water facility. The electrical facility is also required for setting up the vermicompost units.

Seed stock

Even though the worms multiply faster but it is not wise to wait till the worms get multiplied as the investment is huge on infrastructure the worms 1 Kg per m3 of bed volume is sufficient to start the unit and will be built the required population in 2-3 cycles without taking much time.


The site needs to be fencing to prevent trespass by animals or other unwanted elements this is based on the length of the periphery of the farm. The costs of fencing should be kept low as these are essential but would not affect the increase in production.

Water supply system

Drippers with round clock flow arrangements would be easy for a continuous supply of water. This system also saves water. The cost of these items depends upon the unit and the type of water supply chosen.


Machinery is required for cutting and shredding the raw materials into small pieces, spreading the raw material to the vermi sheds, loading, unloading, collection of composts, loosening of compost beds for aeration, air drying of compost before packing, automatic packing, etc.

Financial aspects and Project report of Vermicomposting Business

Generally, it is estimated that 2-3 cycles of production in the first year and the subsequent years it is increased to 5-6 cycles with a duration of 65-70 days for each cycle. Taking various limitations and operations problems into account it is estimated that the production would be 50% in the first year and 90% in the subsequent years. Benefits include the income for the sale of compost is Rs. 3,500 per MT and the worm cost is Rs. 200 per Kg. The net income from the second year can be expected around Rs. 6,00,000 annually.

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The production cost of Vermicompost 

Leveling of the land and vermicompost sheds – Rs. 7,500

Fencing and gate – Rs. 25,000.

Vermicompost beds (8) – Rs. 70,000

For organic waste – Rs. 30,000

Packaging material – Rs. 30,000

Storage costs – Rs. 20,000

Water provision – Rs.75,000

Electrical installation– Rs. 30,000

Earthworms cost – Rs. 25,000

Transportation cost – Rs. 30,000

Labor Charges – Rs. 50,000

Miscellaneous charges – Rs. 39,250

Total costs involved – Rs. 4,31,750.

Profit calculation in Worm farming

Sale of vermicompost 200 empty as the production will be 60% in the first year and 90% in the subsequent years.

1 MT price is Rs. 4,500.

The sale of vermicompost 200 MT in first year = 200 x 3,500 = Rs. 7,00,000

Sale of worms = Rs. 200 per Kg = Rs. 90,000 on the overall units

Sale of worm meal = Rs. 150 per Kg = Rs. 30, 000 on the overall units

Note: These prices are mentioned for the first year but going on to the 2nd year the costs involved will be reduced and the sale prices will be increased as the production will go up to 90%.

The total income on vermicomposting = Rs. 8,20,000

Profits of Vemicompost production

Profits = Total income – Total costs involved = Rs. 8,20,000- Rs. 4,31,750 = Rs. 3,88,250 for 1st year later the profits will be increased as the production will be increased to 90%. That’s all folks about the production cost of Vermicompost and production income of vermicoposting.

Note: Care should be taken while the water supply as the excess water may cause the death of earthworms. Hard substances should not be added in the compost as this may harm the earthworms. The proper drainage system should be maintained to prevent waterlogging conditions.

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    • Hi. I am Manpreet Singh from Virk Farming. The cost of Vermicompost is very less if you produce it on your own farm. If you buy online then it is costly. We also produce Vermicompost and Vermiwash which we are selling at Rs 20per Kg and If you need them in bulk then rates are very attractive. We even support providing Worms which are Rs 350 per Kg(800-900Nos). Please reply here.

  1. Thanks for all the information that was really helpful. I also wanted to know if its possible to take a training if the field to have a exposure.

  2. I am not farmer but doing kitchin gardening since many years can i officislly start vermicomosting in Gujarat

    • Yes Definitely you can. If you are a kitchen gardener you can use it in your garden other than inorganic manures this vermi compost is 8 times more nutrition value to your land. And your products are organic and hence have best quality and price.

  3. Hello sir. I have a land in radhakund Mathura, I am interested in this, in the starting can I start it in open area. Can I get financial support as a loan from government of Uttar Pradesh. My contact number is 9634113665. Village name is khushipura near Mathura. Kindly Reply to me thanx.

  4. Where to sell after production cycle completed… If the demand of vermi is not not in my city then where we have to sell?

  5. its very good I am very impressed I want to start this please provide some agency details in Agra & Mathura UP I have agriculture land there

  6. Hi,

    I am looking to setup the Vermicompost plant and looking for the espert advice and guidelines.
    Need to know the exect budget guidelines and the required land to setup the plant and after setttingup how we can sell into the market.


  7. I request any Gentleman here to throw light on marketing aspect of vermi compost. I wish to start on unit in BERHAMPUR, Odisha. Is there any training facility for these works? If so where.

  8. hello sir, I’m a college student and I’m doing a project report on “Vermicompost” (for 5 years plan). Do you’ve depreciation calculation of your business? If you’ve, can you please share with me.


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