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) Parti culars 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 Parti culars TVC TFC COST A COST B COST C Prime cost % to total cost 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) Particulars 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

Top