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Ikisan - Cost of Banana Cultivation

Cost of cultivation

Details of operations
(Expenditure in Rs.)

Main crop

I Ratoon

II Crop

Land preparation (Deep ploughing & harrowing)

1000

-

-

Digging pits

6000

-

-

Mannures and chemicals

4500

-

-

Fertilisers and transport

22,000

11,000

11,000

Planting cost

2,000

-

2,000

Irrigation expenses

500

300

300

Chemicals for foliar spray+Transportation

3,000

1,500

1,500

Plant protection chemicals

2,500

1,250

1,250

Stakes and staking

6,000

-

-

Intercultivation

2,000

1,500

1,500

Labour charges for 365 man days (Rs 30/labour)

10,950

6,500

6,500

Harvestin, Loading & unloading + Transportation

5,000

4,500

5,000

Sub Total

86,450

26,550

50,050

Misc. expenses at 5% of A

4,322

1,328

2,503

Cost of cultivation

90,772

27,878

52,553

Crop insurance @5%

4,538

1,394

2,628

Total cost

95,310

29,272

55,181

Bank interest for main crop@ 12% flat which is equivalent to 18% P.A on reducing interest basis

11,437

-

-

Total Investment

1,06,747

29,272

55,181

Fixed investments

Fencing

10,000

Borewell

25,000

Drip irrigation (about Rs 10,000 as subsidy)

30,000

Management & Administration expenditure for big farms more than 50 acres)

15,000

Total

75,000

Note

  1. Bank interest was not calculated for ratoon and III crop because the expenditures can be managed fro revenue from first crop
  2. Variation may be there in total costa which may depend generally on locality, labourwages and trasportation charges.

Crop returns

Assumptions Average yields

1) Main crop - 40 kgs
2) I Ratoon - 30 kgs
3) II Crop - 40 kgs

Particulars

Main crop

I ratoon

II crop

Crop returns per acre

2003 x 20 x 4.00

plants x yield/plant x cost

= Rs. 1,60,240

2003 x 15 x 4.00

plants x yield/plant x cost

=Rs.1,20,180

2003 x 20x 4.00

plants x yield/plant x cost

= Rs. 1,60,240

Deducting 10% amount in crop returns keeping in account mortality, yield variation, improper management

1,60,240

- 32,048

---------------

1,28,192

1,44,216

- 24,036

-------------

96,144

1,60,240

- 32,048

-----------

1,28,192

  • Total returns per acre/two years

= Rs.1,28,192+96,144+ 1,28,192

= 3,52,528 - P

  • Total cost = Rs 1,06,747+29,272+55,181

=1,91,200 - C

  • Profit (P-C) = 3,52,528-1,91,200 =1,61,328

Economics :

  • Most important and interesting part for the growers, corporate farming companies and big investors.
  • The banana crop cycle comprises of 3 crops in 2 years i.e. main crop of about 12 months duration 2nd and 3rd crops at 18 and 24th month respectively(ratoon).
  • The cost of cultivation for main crop per acre is about 90,772 and 2nd and 3rd crop @Rs.40,000 each.
  • Expected return from all the three crops is about Rs. 3.6 Lakhs. So by deducting all these, the total profit out of all the three crop will be about Rs.1.61 lakhs per acre which walks out 0.5 lakhs per crop or Rs.0.80 lakhs per acre per year.

 
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