COST OF CULTIVATION


COST OF CULTIVATION

COST OF CULTIVATION OF ROOT CROPS PER HECTARE
RADISH
1. Variable Input/Cost
I. Labour Cost
A) Seed treatment
B) Land preparation=
Ploughing=
Planting=
Preparation of beds/ridges and channels=
C) Manures and fertilizers application=
D) Intercultural operation/gap filling=
E) Irrigation=
F) Plant Protection=
G) Harvesting =
a) Picking =
b) Grading =
c) Packing =
d) Transportation=
Total labour charges=
I. Bullock labour=
II. Seed cost =
III. Manures and fertilizers=
IV. Pesticides/Plant Protection=
V. Miscellaneous (2% of total Cost)=
VI. Interest on working capital (6%) =
II. Fixed cost
A) Land revenue, Rental value of land, Management cost, Risk margin, Depreciation,
B) Interest on fixed capital = 6% of (Rental value+ Depreciation + Land revenue)
Total expenditure on cultivation of root crops/ha= Variable cost+ fixed cost
1. Total cost of cultivation =Total variable Cost + Total fixed cost
2. Total income = Yield (kg) × Market price of the crop (Rs. /kg)
3. Net profit = Total income - Total cost of cultivation
4. Benefit:cost Ratio = Cost of total benefit / Cost of production
SOLVED EXAMPLE
RADISH
Sr. No.
Particulars
Cost (Rs.)
A.
Cost of variable Resources:

1. Seed cost for 12 kg @ Rs 400/kg
4800

2. Fertilizers cost:


a. FYM 250000kg @ Rs 0.5/kg
12500

b. Urea 3.72q @ Rs 482/q
1793

c. SSP 3.75q @ Rs 630/q
2363

d. MOP 0.9q @ Rs 445/q
405

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 @ 190 Rs/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 36011

6. Miscellaneous(2% of total cost)
720

7. Interest on working capital (5%)
1800

Total Variable cost 38531
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
42031

Average Yield of Lettuce
1750 q/ha

Sale Rate (Rs /kg)
10

Total Income/Cost of production/ha 1,75,000

Net Return = Total Income - Cost of cultivation
132969


Benefit Cost Ratio = NET RETURN/ COST OF CULTIVATION

3.16:1

CARROT

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

1. Seed cost for 10 kg @ Rs 260/kg
2600

2. Fertilizers cost:


a. FYM 2000kg @ Rs 0.5/kg
12500

b. Urea 2.60q @ Rs 482/q
1254

c. SSP 3.75q @ Rs 630/q
2362

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 @ 190 Rs/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 33057

6.Miscellaneous(2% of total cost)
661

7. Interest on working capital (5%)
1653

Total Variable cost 35371
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
38871

Average Yield of Lettuce
150 q/ha

Sale Rate (Rs /kg)
10

Total Income/Cost of production/ha 1,50,000

Net Return = Total Income - Cost of cultivation
111129


Benefit Cost Ratio = NET RETURN/ COST OF CULTIVATION

2.85:1

COST OF CUTIVATION OF BULB CROPS PER HECTARE
ONION
I. Variable cost
A) Soil fumigation =
B) Land Preparation =
i. Bullock /Tractor- 3 Ploughings =
3 Plankings =
ii. Bed and channel preparation =
iii. Transplanting and mulching =
iv. Interculture =
v. Irrigation at seedling level and crop growth =
vi. Fertilizers and manures =
vii. Plant protection =
viii. Harvesting =
ix. Transportation =
C) Seed Cost =
D) Fertilizers and manures =
E) Pesticides/plant protection =
F) Miscellaneous (2% of working Capital) =
G) Interest on working capital (6% of working capital) =

II. Fixed cost
A) Land revenue(52 paisa/bigha) =
B) Rental value of land (1000/bigha) =
C) Management cost (10% of working capital) =
D) Risk margin (10% of working capital) =
E) Depreciation cost (Rs 200/bigha) =
F) Interest on fixed capital (6% of working capital) =

Total cost=Total variable cost +Total fixed cost
1. Total cost of cultivation =Total variable cost + Total fixed cost
2. Total income = Yield (kg) × Market price of the crop (Rs. /kg)
3. Net Profit = Total Income - Total cost of cultivation
4. Benefit cost Ratio = Cost of total benefit / Cost of production

Last modified: Thursday, 21 June 2012, 11:34 AM