Cost of Cultivation

Labour Requirement

Labour utilisation per hectare of cotton according to farm size and operation


Operations	Small farms		Medium Farms		Large Farms		Pooled farms
	CPD	MD	CPD	MD	CPD	MD	CPD	MD
Prepara tory cultivation	9.86 (45. 47)	9.86 (12. 07)	9.66 (49. 03)	9.66 (11 .71)	6.98 (48.27)	6.98 (9.09)	7.9 (48.12)	7.96 (10.49)
Sowing		9.47 (11. 59)		9.36 (11 .34)		8.36 (10.89)		8.70 (11.46)
Manure's and fertilizer application	2.23 (10. 28)	4.87 (5. 96)	2.23 (11 .31)	5.83 (7. 07)	1.37 (9.4)	5.42 (7.06)	1.68 (10.57)	5.36 (7.06)
Intercult ivation	8.93 (41. 19)	13.39 (16. 40)	7.81 (39 .64)	12.23 (14. 94)	6.11 (42.25)	16.94 (14.25)	6.90 (41.7)	11.60 (15.28)
Plant protection		34.35 (42. 06)		35.66 (43. 23)		35.58 (46.35)		34.6 (45.6)
Picking		9.71 (11. 89)		9.64 (11. 68)		9.48 (12.53)		7.65 (10.08)
Total	21.68 (100 .00)	81.65 (100. 00)	19.7 (100 .00)	82.18 (100 .00)	14.46 (100.00)	76.76 (100.00)	16.54 (100.00)	75.87 (100.00)

Note: Figures in parenthesis indicate per cent to total

• CPD = Cattle pair days
• MD = Man days.
Small Farms
• A farm having < 2.5 acres of wet land (or) > 5 acres of dry land
Medium farms
• A farm having < 5 acre of wet land (or) < 10 acres of dry land
Large farms
• A farm having > 5 acres of wet land (or) > 10 acres of dry land
Pooled farms
• Average of the small farms & medium farms.

Cost of cultivation according to cost items: Cost of cultivation of cotton per hectare according to farm size and cost items (Rs/hectare)

Pariculars	Small farms	% to total	Medium Farms	% to Total	Large Farms	% to total	Pooled farms	% to total
Variable Costs	34		26		26		80
Human labour
Hired	530 .23	2.99	772.69	4.28	950 .37	5.12	714 .06	3.95
Family	848 .69	4.78	696.37	3.86	185 .42	1.00	633 .37	3.51
Total	1378 .92	7.77	14698 .06	8.14	1135 .79	6.12	1347 .43	7.46
Cattle Labour
Hired	339.36	1.91	200.78	1.11	171 .912	0.93	252 .46	1.40
Family	138.14	0.78	199.39	1.10	167 .23	0.90	165 .32	0.91
Total	477.50	2.69	400.17	2.21	339 .14	1.83	417 .78	2.31
Machine Labour
Hired	538.10	3.03	607.96	3.37	967. 25	5.20	668 .09	3.70
Family	-	-	-	-	-	-	-	-
Total	538.10	3.03	607.96	3.37	967 25	5.20	668 .09	3.70
Seed	478.73	2.70	617.09	3.42	791 .74	4.26	601 .95	3.33
Manure's and Fertilizers	3387 .43	19.08	3288 .26	18 21	3308 .04	17.81	3335 .35	18.47
Plant protection chemicals	7637 .46	43.03	7705 .41	42 .68	7965 .42	427 .88	7741 .53	42.88
Interest on working capital	425.97	2.40	439.08	2.43	463 .59	2.50	439 .64	2.43
Total variable costs	14324 .10	80.70	14527 .03	80 .46	14970 .97	80.60	14551 .77	80.60
Fixed Costs
Rental value of own land	3080 .60	17.36	3152 .62	17 .46	3200 .20	17.23	3133 .91	17.36
Land revenue	-	-	-	-	-	-	-	-
Depreci ation	278.39	1.57	291 .43	1. 61	305 .94	1.64	289 .51	1.60
Interest on fixed capital	65.78	0.37	83.85	0. 47	97 .74	0.53	79 .64	0.44
Total fixed costs	3424 .77	19.30	3527 .90	19 .54	3603. 38	19.40	350 3.06	19.40
Total culti vation costs	17748 .87	100.00	18054 .93	100 .00	18574 .85	100 .00	1805 4.83	100.00

• The costs incurred towards pesticides was the major cost which consisted of about 43 per cent of total cost in all the size group of farms.
• Next in the order of importance was manure's and fertilisers which consisted of about 17 per cent to 19 per cent of the total cost among the size group of farms.
• The actual order of importance followed by manures and fertilizers was human labor, machine labor, seed, cattle labor and lastly interest on working capital in the descending order.

Cost of cultivation according to cost concepts



Pariculars	TVC	TFC	COST A	COST B	COST C	Prime Cost	% to Total
Small	14324.1	3424.77	13753.8	16900.18	17748.87	14602.49	82.27
Medium	14527.03	3527.9	14122.09	17358.56	18054.93	14818.46	82.07
Large	14970.97	3603.88	15091.49	18389.43	18574.85	15276.91	82.24
Pooled	14551.77	3503.06	14207.92	17421.47	18054.83	14841.29	82.20




Cost Concepts

Cost A₁

• Value of hired human labor
• Value of hired & owned animal labor
• Value of hired & owned machinery labor
• Value of seeds (if non seeds) Pesticides.
• Fertilzers, manners (if un manure's also)
• Depreciation of machinery & form building
• Irrigation changes
• Land revenue & taxes
• Intrest on working capital.
• Miscellaneous Charges.
Cost A₂
• Cost A₁ + rent paid for leased land
• Cost A = (A₁ + A₂)
Cost B₁
• Cost A₁ + intrest on owned fixed capital (Excluding land)
Cost B₂
• Cost B₁ + rental value of own land + rent paid for leased land
• Cost B = Cost (B₁ + B₂)
Cost C₁
• Cost B₁ + imputed value of family labor
Cost C₂
• Cost B₂ + imputed value of family labor
Cost C₃
• Cost C₂ + 10% of the cost C₂ to account for the value of management
• input Cost C = Cost (C₁ + C₂ + C₃)

Cost of production per quintal of cotton
• It would be better to take unit into consideration rather than going by the average costs alone. The unit costs will be useful for decision making at micro level and to sort out the policy implications at macro level.
• Hence, the costs per quintal were also worked out for cotton and presented.
• From the analytical figures it is clear that the total cost of production of cotton per quintal ranged from Rs. 2246.69 on small farms to Rs. 2068.87 on large farms. On small farms, it was Rs. 2028.64 and for pooled farms it was Rs. 2124.10 per hectare.
• This did not indicate any perceptible relationship with the farm size.
Cost of production of cotton per quintal according to cost concepts and farm size (in rupees)


Pariculars	TVC	TFC	COST A	COST B	COST C	Prime Cost
Small	1813.17	433.5	1740.98	2139.26	2246.69	1848.41
Medium	1632.25	396.39	1586.75	1950.4	2028.64	1664.99
Large	1663.44	400.43	1676.83	2043.27	2063.87	1697.43
Pooled	1711.97	412.12	1671.52	2049.56	2124.10	1746.03