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Ikisan - Economic Analysis of Sugarcane

Economic analysis

  1. Total operational cost or total variable cost (TVC) : TVC includes cost on all the inputs used (seeds, fertilizers, pesticides, weedicides, machinery charges, transportation, labour etc) and interest on working capital.
  2. Total cost (TC) : TVC + fixed costs. In working out total costs, the TVC is equated to 70% of the TC.
  3. Gross returns (GR) = cane yield (t/ha) x cane price (Rs/torne)
  4. (a) Net returns (on TVC) = Gross returns - TVC
    (b) Net returns (on TC) = Gross returns - TC
  5. Cost of production per tonne of cane based on TVC = TVC(Rs/ha)
    Cane yield (t/ha)
  6. Cost of produciton pertoune of cane based on TC =
    TC (Rs/ha)
    Cane yield (t/ha)
  7. Benefit / cost ratio = Gross returns = GR
    Total variable costs = TVS
  8. Return per rupee invested onlabour = GR-(TVC-Cost of labour)
    Cost oflabour
  9. Return per rupee invested on fertilisers = GR-(TVC-cost of fertilizers)
    Cost of fertilizers

Economics of Sugarcane cultivation

  • Now-a-days every farmer has to work out the economics of crop cultivation because of increased cost of inputs and variable demands for the produce in the markets.
  • Similar in the case with sugarcane is also because its input-cost is very high.
  • Cost of cultivation of sugarcane is widely varying because the crop is grown under diversified conditions with lot of variation in adopting management practices and input supply.
  • However, a model economics given here may be useful to work out the economics for a given regions and also help in identifying the defects due to which the economy effected.

Cost structure (Plant crop)

S.No
Input
Cost (Rs/ha)
% of TVC*
  A.Input-wise
1. Human Labour (including contract harvest labour)
21,410
45.01
2. Machine labour (includes transport)
7,950
16.71
3. Seeds
6,500
13.66
4. Manures and fertilizers
6,500
13.66
5. Pesticides including herbicides
1,971
4.14
6. Interest on working capital
3,112
6.54
 
Total
47,568
100.00
  B. Operation-Wise    
1. Land Preparation
3500
7.36
2. Seeds and Planting
7580
15.93
3. Manures and Manuring
7690
16.16
4. Weed control
3006
6.32
5. After cultivation
3605
7.58
6. Plant Protection
1325
2.79
7. Irrigation (Labour changes)
2800
5.89
8. Harvest and transport
14950
31.43
9. Interest on working capital
3112
6.54
 
Total
47,568
100.00

* TVC = Total Variable cost

Economics - Plant crop

S.No
Particulars
Values per hectare
1. Cane yield
130t$
2. Gross returns*
Rs.84,500.00
3. TVC (Cost A)
Rs.47,568.00
4. Total cost (Cost C)
Rs.67,954.00
5. Net returns (on cost A)
Rs.36,932.00
6. Net returns (on Cost C)
Rs.16,546.00
7. Cost of Production / ton of cane based on cost A
Rs.365.91
8. Cost of Production / ton of cane based on Cost C
Rs.519.58
9. Input : Output ratio (Cost A)
Rs.1.78
10. Input : Output ratio (Cost C)
Rs.1.24
11. Return per rupee invested on labour
Rs.2.72
12. Return per rupee invested on fertilizer
Rs.9.74

*Cane Price : Rs.650/- per tonne

Cost Structure (Ratoon crop)

S.No
Input
Cost (Rs/ha)
% of TVC*
  A.Input-wise
1. Human Labour (including contract harvest labour)
20,410
57.28
2. Machine labour (includes transport)
3,750
10.52
3. Seeds
975
2.75
4. Manures and fertilizers
6625
18.59
5. Pesticides including herbicides
1540
4.32
6. Interest on working capital
2331
6.54
 
Total
35,631
100.00
  B. Operation-Wise    
1. Ratooning
3205
8.99
2. Weed control
2790
7.83
3. Manures and Manuring
7690
21.58
4. After cultivation
8405
9.56
5. Plant protection
1000
2.81
6. Irrigation
2560
7.18
7. Harvest and Transport
12650
35.50
8. Interest on working capital
2331
6.54
 
Total
35631
100.00

Economics - Ratoon crop

S.No
Particulars
Values per hectare
1. Cane yield
110 tonnes
2. Gross returns*
Rs.71,500.00
3. TVC (Cost A)
Rs.35,631.00
4. Total cost (Cost C)
Rs.50,901.00
5. Net returns (on cost A)
Rs.35,869.00
6. Net returns (on Cost C)
Rs.20,599.00
7. Cost of Production / ton of cane based on cost A
Rs.323.92
8. Cost of Production / ton of cane based on Cost C
Rs.462.74
9. Input : Output ratio (on Cost A)
Rs.2.01
10. Input : Output ratio (on Cost C)
Rs.1.40
11. Return per rupee invested on labour
Rs.2.76
12. Return per rupee invested on fertilizer
Rs.9.11

 


 
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Ikisan - Low Cost technology in sugarcane cultivation

Low Cost technology in sugarcane cultivation

  • Cost of cultivation of sugar is very high and increased costs of inputs every year, the profit margins obtained by farmers are reduced year after year.
  • The only alternative is reducing the cost of cultivation by adopting the following low cost and no cost cultural practices.

1. Deep tillage
2. Tillage at optimum time and at optimum moisture level
3. Preparation of ridges and furrows using tractor drawn ridges.
4. Optimum time of planting.
5. Reduce the seed cost by following

(a) single bud direct planting
(b) spaced transplanting using seedlings raised in nursery beds.
(c) spaced transplanting using polybag seedlings,
(d) chip bud direct planting,
(e) chip bud seedling raised in polythene bags and transplanting.

6. Planting quality setts
7. Soil test and nutrient application
8. Right time and method of application
9. Use of organic sources like FYM, press mud, trash etc.
10. Use of neem or tar coated ureas
11. Use of slow-release N-fertilizers
12. Use of biofertilizers
13. Foliar application of fertilizers.
14. Green manuring
15. Use of rock phosphate and phosphobacteria
16. Economise the labour by using

(a) sugarcane sett cutting machine
(b) bullock-drawn sugarcane planter
(c) semi-automatic tractor drawn sugarcane planter
(d) tractor-drawn automatic sugarcane planter
(e) tractor mounted pit digger
(f) bullock-drawn weed mulcher
(g) wide swath spray boom
(h) sugarcane detrasher
(i) sugarcane harvester
(j) tractor mounted stubble shaver with off barring and fertilizer application attachments wherever available and possible.

17. Weed control through herbicides.
18. Timely herbicide application, weeding and cultural operations
19. Use resistant varieties as per the need
20. Need-based pest and disease control measures.
21. Proper quality and time of application
22. Avoid excess N application and irrigation
23. Appropriate time of harvesting and ratooning
24. Use proper implement for harvesting and ratooning.


 
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