Groundnut

Economics

Introduction

Major input cost components in groundnut cultivation in India are seed cost and labour component.
Seed is the major item of input cost varying from 35.20% to 46.88% for irrigated crop and 26.23% to 37.47% for rainfed crop.
Human labour occupies the second place in the cost structure which will vary from 23% to 25%.
Bullock labour is another important item costing about 15-20%.
The total labour cost vary any where betwwen 44-50% in India.

Cost of Cultivation of Groundnut on average basis

Description	Cost/ha (Rs.)
A. Variable cost
1. Land preparation
4-ploughing 1-pare of black and 1-labour for 12-days	1800.00
2. Compost and Chemical fertilizers
a. 25 bulluck carts load compost	1250.00
b. Fertilizers	-
c. Transportation of compost 1 pare of bullock for 2days	300.00
d. Spreading of compost 3 labors	150.00
3. Seed & Sowing
a. 72 kgs Seed @ 12Rs.perkg	864.00
b. Sowing 3 pare of bullocks 6 labour	600.00
4. Insecticides
5. Irrigation	300.00
6. Intercultural 20 labour weeding 15labour earthling	1750.00
7. Harvesting or Digging 40 labours	2000.00
8. Transportation and separation of pods
9. Maintenance of Implements	72.00
10. Interest on Working capital	244.12
Total	9258.12
B. Fixed Costs
Land revenue or Rental value of the land	3000.00
Depreciation	72.00
interest on fixed capital	153.50
Total	3225.50
C. Risk and uncertainties	1388.71
Total cost of production (A+B+C)	13872.33
1. Groundnut 40qt. @ Rs.1300per/qt.	18200.00
2. Total income	18200.00
3. Net income	4327.67
4. Cost of production/qt.	990.88

Total human labour 816hours per hectare and total bullock labour 144hours per hectare.

Note :

The cost of production factors is given below :

1. Human labour	Rs. 50 per day
2. Bullock labour	Rs. 100 per day
3. Compost	Rs. 50 per cart load
4. Chemical fertilizers nitrogen	Rs. 10 perkg.
5. Irrigation charges (Tube well)	Rs. 250 per irrigation
6. Implement maintenance	Rs. 0.50 per hour of bullock labour
7. Interest on working capital	13% of the cost of production half duration
8. Depreciation	Rs. 0.50 per bullock labour hour
9. Interest on fixed capital	10% of fixed cost for half year
10. Risk and uncertainties	15% of variable cost

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Uttar Pradesh

Groundnut

About Groundnut

History

Morphology and Growth

Groundnut Management

Services Overview

The key services offered by Ikisan are:

System study, design and development of IT enabled solutions and services for the agri sector.

Execution of rural IT enabled projects on BOT/BOOT/Turnkey basis.

Development, Customization and Deployment of Ikisan's IPR protected software applications.

Providing support services and best management practices for augmenting the marketing development efforts of the groups agricultural input companies (NFCL and NACL).

Development and Dissemination of best practice and information though a unique multi lingual knowledge website for the agri sector.

Some of the key customers/partners that benefit significantly from our work include are Electronics Corporation of India Ltd, State Agricultural Marketing Boards, Central Research Institute for Dryland Agriculture, Tamil Nadu, Centre for Development of Advanced Computing, Motorola Mobility (GOOGLE) etc.

As highlighted earlier Ikisan provides significant support to the market development and marketing efforts of NFCL and NACL by providing best practices and information across the agricultural input value chain - weather, soil, seeds, fertilizers, water, pesticides, output prices etc. that have enabled the companies to develop deep customer relationships and in turn enable them to grow above market growth rates. Recently example in fertilizers includes the development of Customized Fertilizer Grades (for NFCL across India that are crop and location specific have not only reduced the current consumption of fertilizers of farmers but have significantly enhanced crop yields and farmer incomes) that are expected to add significant revenues to the company.

Currently, agriculture value chain is driven by technical expertise. However, there is a lack of adequate Management knowledge and skills amongst the professionals. Therefore, Ikisan and XLRI, Jamshedpur have jointly developed an Agri Business Management Program for Agri-professionals and students. Ikisan provides the domain expertise while XLRI provides pedagogy. This program is a combination of virtual learning and campus based module at XLRI, Jamshedpur. This program has been highly appreciated.

Intellectual Property Rights for many software applications such as Field Manager, Vyapar, Mandi, Quick Solutions Systems, Management Time Table, Agri Information System and Agrecommerz belong to Ikisan. A significant recent development in this area is the introduction of Weather Based Crop Insurance. This entails setting up of Automatic Weather Stations, which provide dynamic village-level data essential for settlement of weather based insurance claims.