Elements of a National Food- Fortification Program for Bangladesh

Annex TablesAnnex C: Estimated Costs of Sugar Fortification in BangladeshCost ItemCostTKDollarAnnual CostsInvestment CostsPurchase price (mixer and feeder) 1,740,000 30,000Handling, shipping, and insurance 69,600 1,200Total cost, CIF Chittagong 1,809,600 31,200Customs duty 104,400 1,800Customs clearance and handling in Bangladesh 36,192 624Subtotal cost, delivered to mill 1,950,192 33,624Local handling, installation, and training 292,529 5,044Total investment costs 2,242,721 38,668Annual investment costs 446,867 7,705Variable CostsOperating costs of equipmentMaintenance and repair 26,100 450Electric power 52,200 900Other operating costsLabor 14,280 246Internal Testing 174,000 3,000Outside testing 38,667 667Premix 9,103,433 156,956Total variable costs 9,382,579 161,769Fortification Costs Per Metric TonAnnual capital Costs (depreciation & interest) 29.8 0.51Maintenance and repair 1.7 0.03Electric power 3.5 0.06labor 1.0 0.02Internal Testing 11.6 0.20Outside testing 2.6 0.04Premix 606.9 10.46Fortification cost 627.2 10.81Key Parameters & AssumptionsItemUnitCustoms duty on imported equipment 6%Annual plant capacity90,000 MT/yearEquipment life10 yearsInterest rate 15%Annual Maintenance as a % of equipment costs 1.5%22 MOST The USAID Micronutrient Program