CULTIVATION COST OF ARECA NUT
Annual income estimation for one acre of Areca land with inter crops
| Annual Areca yield (Red) - 4 Quintal, @30,000/- | 1,20,000 |
| Annual Areca yield(white) - 5 Quintal, @25,000/- | 1,25,000 |
|
Annual Areca yield (seconds) - 1 Quintal, @15,000/- (kole, koka, bili gotu, chali kempu) |
15,000 |
| A. TOTAL | 2,60,000 |
| Peppar 1 Quintal, @30,000 | 30,000 |
| B. TOTAL | 2,90,000 |
| Others Inter Crops | |
| Banana, cocoa, ginger, turmeric,coconut | 10,000 |
| GRAND TOTAL | 3,00,000 |
CULTIVATION COST OF ARECA NUT
The estimation of cost of cultivation of areca nut holds good in the light of following assumptions
1.The investment and expenses are ascertained for one acre of land.
2.Absence of subsidies and interest free loans.
3.A family is consisting of 4-5 members.
4.Average yield per acre is 10 quintals.
5.Over 60 members are orally interviewed to gather information.
6.Application of extra mud after every 10 years is ignored.
7.One acre consisting 600 trees and average life of tree is 25-30 years.
8.The yield commences from 8th year after planting.
9.Average yield per tree is about 1.7k.g.
10.The area under consideration are Sirsi, Siddapur and Yellapur taluks.
11.Cost of acquiring one acre plain land for cultivation is Rs 10,00,000/-.
12.Rent is calculated as own capital /land having opportunity cost.
13.Inherited lands does not require any establishment cost.
14.Presence of inter-crops.
15.The fixed elements of costs are regularly incurred till bank loan cleared.
16.Maintenance (labor) costs increase from the year farmer get yield in the field.
AVERAGE COST OF CULTIVATION PER ACRE
|
A |
Illustration showing establishment Cost |
Amount |
| I | Land leveling | |
| 1. J.C.B+Tractor | 1,00,000 | |
| 2. Fencing - Barbed Tining | 10,000 | |
| 3. Labour | 5,000 | |
| 4. Agri tools & implements (Pickaxe, Mammootty, etc,.) | 20,000 | |
| 5. Stone pillars/Columns/Compound | 25,000 | |
| TOTAL | 1,60,000 | |
| II | Irrigation | |
| 1. Single open /Bore well excavation | 1,00,000 | |
| 2. Pump set & electrification (2 HP motor) | 15,000 | |
| 3. Pump house material | 12,000 | |
| 4. Jet/sprinkler pipes | 30,000 | |
| 5. Labour | 20,000 | |
| TOTAL | 1,77,000 | |
| III | Seedlings | |
| Drainage/channel | 30,000 | |
| seeds (600*12) | 7,200 | |
| Digging of pits (RS 5*600) | 3,000 | |
| Labour (planting)(RS 5*600) | 3,000 | |
| Fertilizers | 10,000 | |
| Fertilizers application | 5,000 | |
| TOTAL | 58,200 | |
| IV | Investment Analyses (Fixed cost) | |
| 1. Land revenue | 100 | |
| 2. Power consumption (water) | 4,000 | |
| 3. Rent value (opportunity cost)(3000*12) | 36,000 | |
| 4. Interest on bank loan (10% on 10 lakh) | 1,00,000 | |
| Total establishment cost | 1,40,100 | |
| B. | maintenance cost | |
| I | Human Labour | |
| 1. Self supervision and maintenance (300 days*Per day Rs 300) | 90,000 | |
| II | Machine hired (gross cutting) | 20,000 |
| III | Material cost & labour | |
| 1. Chemical Fertilizers | 20,000 | |
| 2. Mulching organic manure | 15,000 | |
| 3. Sprayers, compost etc | 10,000 | |
| 4. Labour | 10,000 | |
| 5. Plant protection (wild animals) | 5,000 | |
| Total maintenance cost | 1,70,000 | |
| TOTAL A+B | 7,05,300 |
The 8th year when farmer receives yield labor charges of harvesting, peeling, boiling, drying, grading works and complementing materials used must be added to maintenance cost. This may vary from Rs 30000/- to 40000/- per acre per annum. If farmer plans to grow intercrops there must be an increase of 10-15% expenses proportionately.