COST OF CULTIVATION

COST OF CULTIVATION


COST OF CULTIVATION OF COLE CROPS PER HECTARE

COST OF CULTIVATION OF CABBAGE PER HECTARE
I. Variable Cost
1. Nursery management =
2. Land preparation
a) Ploughing =
b) Harrowing =
c) Preparation of beds and channels =
3. Transplanting =
4. Manures and fertilizers application =
5. Interculture operations =
6. Irrigation =
7. Plant protection =
8. Harvesting
a) Picking =
b) Grading =
c) Packing =
d) Transportation =
9. Seed =
10. Manures and fertilizers =
11. Plant Protection =
12. Miscellaneous =
13. Interest on working capital =

II. Fixed Cost
Land revenue, Rental value of land, Management cost, Risk margin, Depreciation cost, Plough, Harrow, Ridges, Buckets, Pump, Sprayer, Total Fixed Capital, Interest on Fixed Capital
Total Fixed Cost =
Therefore,
1. Total cost of cultivation =Total variable cost +Total fixed cost
2. Total income = Yield (kg) × Market price of the produce (Rs./kg)
3. Net Profit = Total Income - Total cost of cultivation
4. Benefit cost Ratio = Cost of total benefit / Cost of production

SOLVED EXAMPLE


CABBAGE
Sr. No.
Particulars
Cost (Rs.)
A.
Cost of variable Resources:

1. Seed cost for 500 g @ Rs 2000/kg
1000

2. Fertilizers cost:


a. FYM 15000kg @ Rs 0.5/kg
7500

b. Urea 2.71q @ Rs 482/q
1306

c. SSP 8.43q @ Rs 630/q
5310

d. MOP 2.25q @ Rs 445/q
1023

3. Plant protection cost:


(a.) Pesticides/insecticides:
Malathion 500ml @Rs 80/250 ml
Metasystox 1L@450Rs./L

160
450

(b.) Fungicide:
Dithane M-45 500g @Rs 80/125 g
Bavistin 200g @ Rs 60/100 g
Blitox 500g @ 190Rs/500g

500
120
190

4. Labour cost:


(a) Seed treatment
500

(b) Land preparation


(b1) Ploughing
750

(b2) Planting
750

(b3) Preparation of ridges and furrows
1000

(c.) Manures and Fertilizers application
500

(d.) Interculture operations
1000

(e.) Irrigation
1000

(f.) Plant protection
1000

(g.) Harvesting
3000

(h.) Trasportation
1500

(i.) Packing/electricity charges
1000

(j.) Nursery cost
1000

5. Bullock/Tractor cost
1000

TOTAL COST 31559

6.Miscellaneous(2% of total cost)
631

7. Interest on working capital (5%)
1577

Total Variable cost 33767
B.
Fixed Cost:

1. Land Ravenue (Rs.12/ha)
12

2. Rental Value of Land
1000

3. Depriciation


No Junk Value
100

With Junk Value
180

4. Management Cost (5% of working capital)
2000

5. Interest on Fixed Capital (5%)
165

TOTAL FIXED COST
3500

Cost of Cultivation = Total Fixed Cost +Total Variable Cost
37224

Average Yield of cabbage
250 q/ha

Sale Rate (Rs /kg)
10

Total Income/Cost of production/ha 2,50,000

Net Return = Total Income - Cost of cultivation
212776


Benefit Cost Ratio = NET RETURN/ COST OF CULTIVATION

5.71:1

COST OF CULTIVATION OF LETTUCE (HEAD CROP) PER HECTARE
Variable cost
Labour Cost
a) Seed treatment =
b) Nursery =
c) Land preparation
i. Ploughing =
ii. Planting =
iii. Preparation of beds/ridges and channels =
d) Transplanting =
e) Manures and fertilizers application =
f) Intercultural operations/gap filling =
g) Irrigation =
h) Plant Protection
i. Harvesting =
ii. Picking =
iii. Grading =
iv. Packing =
v. Transportation =
Total labour Charges =

II. Bullock Labour =

I. For ploughing =
II. For planting =
Total Bullock Labour=
III. Seed Cost =
IV. Manures and fertilizers
i. FYM =
ii. CAN =
iii. SSP =
iv. MOP =
v. Pesticides/plant protection =
vi. Miscellaneous =
vii. Interest on working capital =
II. Fixed Cost =Land revenue, Rental value, Management cost, Risk margin, Interest on fixed capital =
1. Total cost of cultivation =Total variable cost + Total fixed cost
2. Total income = Yield (kg) × Market price of the produce (Rs./kg)
3. Net Profit = Total Income - Total cost of cultivation
4. Benefit cost Ratio = Cost of total benefit divided by Cost of production
SOLVED EXAMPLE
Sr. No.
Particulars
Cost (Rs.)
A.
Cost of variable Resources:

1. Seed cost for 500g @ Rs 40000/kg
20000

2. Fertilizers cost:


a. FYM 150000kg @ Rs 0.5/kg
7500

b. Urea 2.17q @ Rs 482/q
1046

c. SSP 3.75q @ Rs 630/q
2363

d. MOP 1.00q @ Rs 445/q
445

3. Plant protection cost:


(a). Pesticides/insecticides:
Malathion 500ml @ Rs 80/250 ml
Metasystox 1L @ 450Rs./L

160
450

(b.) Fungicide:
Dithane M-45 500g @ Rs 180/500 g
Bavistin 200g @ Rs 60/100 g Blitox 500g @ 190Rs/500g

180
120
190

4. Labour cost:


(a) Seed treatment
500

(b) Land preparation


(b1) Ploughing
750

(b2) Planting
750

(b3) Preparation of ridges and furrows
1000

(c.) Manures and Fertilizers application
500

(d.) Interculture operations
1000

(e.) Irrigation
1000

(f.) Plant protection
1000

(g.) Harvesting
3000

(h.) Trasportation
1500

(i.) Packing/electricity charges
1000

5. Bullock/Tractor cost
1000

TOTAL COST 45454

6.Miscellaneous(2% of total cost)
910

7. Interest on working capital (5%)
2273

Total Variable cost 48637
B.
Fixed Cost:

1. Land Ravenue (12Rs./ha)
12

2. Rental Value of Land
1000

3. Depriciation


No Junk Value
100

With Junk Value
180

4. Management Cost (5% of working capital)
2000

5. Interest on Fixed Capital (5%)
165

TOTAL FIXED COST
3500

Cost of Cultivation = Total Fixed Cost +Total Variable Cost
52137

Average Yield of Lettuce
100 q/ha

Sale Rate (Rs /kg)
10

Total Income/Cost of production/ha 300000

Net Return = Total Income - Cost of cultivation
247863


Benefit Cost Ratio = NET RETURN/ COST OF CULTIVATION
4.80:1


Last modified: Thursday, 21 June 2012, 11:30 AM