A

Project Report
on
IN PLANT TRAINING PROGRAMME: 2019-20
Submitted to the
MAHATMA PHULE KRISHI VIDYAPEETH, RAHURI
District – Ahmednagar, Maharashtra, India - 413 722
BACHELOR OF BUSINESS ADMINISTRATION
In
AGRICULTURE
by
MISS. JADHAV SNEHAL SAMPATRAO
Reg. No. – SAMP-2016/009

SHRIRAM SHIKSHAN SANSTHA’S

SHRIRAM COLLEGE OF AGRICULTURE BUSINESS MANAGEMENT
(Affiliated to M.P.K.V.Rahuri)
Tal: Malshiras Dist: Solapur
2020

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 SHRIRAM COLLEGE OF AGRICUTURE BUSINESS MANAGEMENT
PANIV.
(AFFILIATEDTO MAHATMA PHULE KRISHI VIDYAPEETH, RAHURI)

-: CERFTIFICATE: -
This is to certify that the project on “IN-PLANT TRAINING PROGRAMME 2019-20” of original
work carried out by Jadhav Snehal Sampatrao and being submitted for academic fulfilment for this In-Plant
Training Programme 2019-20. Shriram College of Agriculture Business Management, Paniv, Dist-Solapur.
No part of the report has been submitted for any other degree or diploma. This assistance and help received
during the course of this investigation has been duly acknowledged.

Place : Paniv Date : / / 2020

DI’s Nominee Chairman

Dr. J.S.Kumbhar Dr. S.T.Gore

Assistant Professor of Agril. Principal, Shriram College of
Economics, A.C.,Pune ABM, Paniv

Co-ordinator Agri Business Specialist

Prof. S.B. Indalkar Prof. S.B. Aglawe

Asst. Prof. Department of Agril. Asst. Prof. Department of ABM

Marketing, SCABM, Paniv SCABM, Paniv

SMS, Agril. Processing SMS, Agril. Marketing

Prof. S.S. Kale Prof. S.B.Indalkar

Asst. Prof. Department of ABM, Asst. Prof. Department of Agril.
SCABM, Paniv Marketing, SCABM, Paniv

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 Candidates Declaration
I hereby declare that this project report entitled “In-Plant Training Programme 2019-20”
submitted to College of Agriculture Business Management, Paniv (Affiliated to M.P.K.V. Rahuri). In partial
fulfilment of the award of degree of Bachelor of Business Management in Agriculture, embodies the result of
a piece of Bonafide project work carried out by myself and No part of the project report has been submitted
by me or any other person to any other University or Institute for a degree or diploma.

Jadhav Snehal Sampatrao

Reg.No. SAMP/2016-009

Place : Paniv

Date : / / 2020

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 ACKNOWLEDGEMENT
I am very thankful to Shri. Prakash (Bapu) Patil, Chairman of Shriram Shikshan Sanstha’s,
Paniv, Sau. Shrilekha Prakash Patil, Secretory of Shriram Shikshan Sanstha’s, Paniv and Mr. Karan
Prakash Patil, Joint Seceratory of Shriram Shikshan Sanstha’s, Paniv. Tal:-Malshiras, Dist: Solapur,
for opening the door of ABM education and inspiring us to explore the scientific knowledge in the todays
competitive world.

I have been extremely lucky and thankful to have Dr. J. S. Kumbhar, DI Nominee and Dean’s
Representative from the College of Agriculture, (MPKV) Pune, whose comments, corrections,
suggestions and encouragement have enormously enriched my project.

I indeed very thankful to Dr. S. T. Gore, Department of Agricultural Economics, Principal, College
of ABM, Paniv for providing me an opportunity to work in the organisation and his valuable guidance.

I would like to thank Prof. S. B. Indalakar, Department of Agricultural Marketing, Coordinator of

Experiential Learning Programme for taking interest in the project work and ensuring at each stage that the
targets are achieved as per schedule, played a major role in checking out the project outline. I would also like
to thank Prof. S. B. Agalawe, Department of Agri Business Management, SMS for providing necessary
guidance about the Agricultural Production Management. I would also thanks Prof. V. T. Tarange,
Department of Agricultural Economics and Prof. Mrs. Sonali Kale, Department of ABM, for providing
necessary guidance about the Agricultural Processing Management. I would also thank you Prof. U.V.
Vidhate, Department of Agril. Marketing for providing necessary guidence.

I also very thankful to Prof. S.D. Raut, Department of Agricultural Economics, and prof V. T.
Tarange, Department of Agriculture Economics, Prof. S.N.Shinde , Department of Soil Science, Prof. Miss.
Reshma Kamate, Department of ASDS, Dr. Kavita Deshmukh, Department of Agriculture Extension and
Prof. D. P. Dorkar, Department of Agriculture Extension, Prof U. A. Vidhate, Department of Agricultural
Marketing, Prof. Miss. Bhagyashri Shelake, Department of Language, Prof. M. S. Narale and Prof. D. M.
Sawant Department of Agronomy Shriram College of Agriculture Business Management, Paniv for their
invaluable inspiration, guidance throughout doing research work.

I owe special thanks to Mr. Sachin Mangalge who offered valuable insights of my project work,
Agricultural Processing Management from time to time.

I express my heartfelt gratitude towards my beloved father Shri. Sampatrao Jagannath Jadhav, my
beloved mother Sau. Sangita Sampatrao Jadhav, my beloved brother Suyog, my beloved sister’s
Aishwarya and Abhilasha for their love, support, encouragement and sacrifice made by them to shape my

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career and whose long cherished dreams are turning into reality in the form of dissertation. Their love and
affection has been guiding path of my life.

I express my sincere thanks to staff members, Librarian, and Non-teaching Staff of my college for
their help.

I express my heartfelt thanks to all my Group Members Pooja, Madhavi, Nikita, Sejal, Rutuja, Neha,
Priyanka, Varsha, Dipali, Shital, Anjali & for providing a great help and moral support during my work.

Lastly, I would like to express to my sincere thanks to COLLEGE OF AGRICULTURE BUSINESS

MANAGEMENT, PANIV and the MAHATMA PHULE KRISHI VIDYAPEETH, RAHURI, Dist.
Ahmednagar for providing me an opportunity to undertake my graduate studies.

Place: Paniv Miss. Jadhav Snehal Sampatrao

Date:

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 INDEX
Sr. No. Particulars Page No.

I CHAPTER I 1-47

Agricultural Production Management

1.1 Introduction of Agricultural Production Management 2

1.2 Objectives of Study 3

1.3 Research & Methodology 3

1.4 Result & Discussion 6

1.4.1 General Information of Khandali Village 6

1.5 Information of Host Farmer 8

1.5.1 Profile of the Host Farmer 8

1.5.2 Farm Map 10

1.5.3 Existing Cropping Pattern 10

1.5.4 Crop wise Overhead Cost 11

1.5.5 Crop wise Input utilisation & Cost of Cultivation 16

1.5.6 Alternative Farm Plan 36

1.5.7 Problems Faced by Farmers & Suggestions 41

1.6 Study of Multipurpose Co-operative Credit Society 42

1.7 Bank Loan Proposal 45

1.8 Experience gained 47

II. CHAPTER II 48-63

Agricultural Processing Management

2.1 Introduction 49

2.2 Research & Methodology 50

2.3 Result & Discussion 52

2.3.1 General Information of Selected Processing Unit 52

2.3.2 Selected Product – Vermicelli 52

2.3.3 Process of Vermicelli 53

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2.3.4 Capital Investment of Processing Unit 54

2.3.5 Working Season 54

2.3.6 Raw Material Purchased 55

2.3.7 Quantity processed in a year 55

2.3.8 Operating Cost 55

2.3.9 Fixed Cost 56

2.3.10 Variable Cost 57

2.3.11 Total Cost of Processing 58

2.3.12 Production / Income 58

2.3.13 Benefit Cost Ratio 58

2.3.14 Break Even Point 59

2.3.15 Margin of Safety 60

2.3.16 Marketing Channels for Vermicelli 60

2.3.17 SWOT Analysis 62

2.3.18 Problems & Suggestions 62

2.3.19 Experience Gained 63

III CHAPTER III 64-92

Agricultural Marketing Management

3.1 Introduction 65

3.2 Result & Discussion 67

3.2.1 Study of APMC 67

3.2.2 Visit to APMC, Akluj 67

3.3 Marketing of Dry Chilly 72

3.4 Channel wise Marketing Cost of Dry Chilly 72

3.5 Study Tour & Visits 82

3.5.1 Study of Multipurpose Co-operative Marketing Society 82

3.5.2 Study of Export Unit: MAHAGRAPE 84

3.5.3 Study of IIHR, Bangalore 86

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 3.5.4 Study of NRCP-Solapur 88

3.5.5 Study of Agro-Service Centre 90

3.5.6 Study of SWC, Akluj 91

3.5.7 Study of Poultry Unit 92

IV APPENDIX 93

4.1 Bibliography 93

4.2 Websites 93

4.3 Photo Gallery 94

V CURRICULUM VITAE 98

LIST OF TABLES
Sr. No. Title of Table Page No.

1.1 Members of Village Council 6

1.2 Demography of the Village 6

1.3 Major Crops grown in Village 7

1.4 Community Buildings in Village 7

1.5 Personal Information of Host Farmer 8

1.6 Family Members of Host Farmer 8

1.7 Assets of Host Farmer 8

1.8 Sources of Irrigation & Area Irrigated 8

1.9 Buildings 9

1.10 Livestock 9

1.11 Implements & Machinery 9

1.12 Existing Cropping Pattern 10

1.13 Cropping Intensity 11

1.14 Depreciation Charges on Implements & Machineries 11

1.15 Depreciation on Irrigation System 12

1.16 Crop wise Depreciation Charges 12

1.17 Crop wise Land Revenue 13

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1.18 Crop wise Interest on Fixed Capital 13

1.19 Crop wise Incidental Charges 14

1.20 Irrigation Charges 15

1.21 Crop wise Overhead Cost of Existing Crops 15

1.22 Input Utilized for Jowar 16

1.23 Cost of Cultivation of Jowar 17

1.24 Yield of Jowar 18

1.25 Input Utilized for Maize 19

1.26 Cost of Cultivation of Maize 20

1.27 Yield of Maize 21

1.28 Input Utilized for Onion 22

1.29 Cost of Cultivation of Onion 23

1.30 Yield of Onion 24

1.31 Input Utilized for Wheat 25

1.32 Cost of Cultivation of Wheat 26

1.33 Yield of Wheat 27

1.34 Input Utilized for Groundnut 28

1.35 Cost of Cultivation of Groundnut 29

1.36 Yield of Groundnut 30

1.37 Input Utilized for Sugarcane 31

1.38 Cost of Cultivation of Sugarcane 32

1.39 Yield of Sugarcane 34

1.40 Alternative Cropping Pattern 36

1.41 Cropping Intensity 37

1.42 Crop wise Overhead Cost of Alternative Crops 37

1.43 Input Utilized for Sweet Corn 37

1.44 Cost of Cultivation of Sweet Corn 38

1.45 Yield of Sweet Corn 39

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1.46 Comparison between Existing & Alternative Farm Plan 41

1.47 Problems faced by farmers & Suggestions to overcome them 41

1.48 Information of Management Committee 42

1.49 Other information of the Society 42

1.50 Share Capital of Society 43

1.51 Borrowings of the Society 43

1.52 Credit Advance – Short Term Loan 43

1.53 Credit Advance- Medium Term Loan 44

1.54 Progress of the Society 44

1.55 Information of Expenditure of the Society 44

1.56 Borrowings of Loan for Purchase of Tractor 45

2.1 Survey of Processing Units 51

2.2 General Information of Guruprasad Processing Unit 52

2.3 Capital Investment of Processing Unit 54

2.4 Working Season 54

2.5 Raw Material Purchased 55

2.6 Quantity Processed 55

2.7 Operating Cost Per Year 55

2.8 Fixed Cost with Depreciation 56

2.9 Variable Cost 57

2.10 Total Income 58

2.11 Cost Incurred by Producer 60

2.12 Cost Incurred by Retailer 60

2.13 Price Spread 61

2.14 Problems & Suggestions 62

3.1 General Information of APMC 67

3.2 Composition of Akluj APMC 68

3.3 Management Body of Akluj APMC 68

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 3.4 Staff of Akluj APMC 69

3.5 Market Functionaries of Akluj APMC 69

3.6 Amenities Provided by Market Committee 70

3.7 Number of Members 71

3.8 Cost Incurred by Producer 72

3.9 Cost Incurred by Wholesaler 72

3.10 Cost Incurred by Retailer 73

3.11 Price Spread 74

3.12 Result of Channel I 74

3.13 Cost Incurred by Producer 75

3.14 Cost Incurred by Retailer 75

3.15 Price Spread 76

3.16 Result of Channel II 76

3.17 Cost Incurred by Producer 77

3.18 Cost Incurred by Village Trader 77

3.19 Cost Incurred by Wholesaler 77

3.20 Cost Incurred by Retailer 78

3.21 Price Spread 79

3.22 Result of Channel II 79

3.23 Price Spread 80

3.24 Result of Channel IV 80

LIST OF FIGURES
Sr. No. Name of Figure Page No.

1.1 Demography of the Village 7

1.2 Farm Map 10

2.1 Selected Product – Vermicelli 52

2.2 Flow Chart of Vermicelli Processing 53

3.1 Sub-yards of Akluj APMC 68

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 LIST OF ABBREVIATIONS
1. % - Percent
2. / - Per
3. MT - Million Tonnes
4. IPTP - In-Plant Training Programme
5. FYM - Farm Yard Manure
0
6. C - Degree Celsius
7. Gm - Gram
8. Kg - Kilo Gram
9. Ha - Hectare
10. BEP - Break Even Point
11. FC - Fixed Cost
12. VC - Variable Cost
13. BCR - Benefit Cost Ratio
14. APMC - Agriculture Produce Market Committee
15. FPO - Food Product Order
16. SWC - State Warehousing Corporation
17. i.e. - That is
18. Qty - Quantity
19. No. - Number
20. Etc - Et cetera
21. Rs - Rupees
22. Hr - Hour
23. Appro. - Approximately
24. NRCP - National Research Centre on Pomegranate
25. Temp. - Temperature
26. IIHR - Indian Institute of Horticulture Research
27. N.A - Not Allowed

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 ⸙ INTRODUCTION OF IPTP ⸙
Agriculture is a backbone of Indian Economy, but now farmers facing the challenges related to
Agribusiness & Agriculture Marketing. Therefore, Agribusiness Management have assumed prime position
in welfare of the farming community, so, for exposing & getting acquainted with the Farmer, Institution,
Organization & Agro-based Industries we are expected to get depth practical knowledge. In order to acquire
this knowledge we undergo In-Plant Training Programme. In this practical knowledge we cover following
points:

❖ Agriculture Production Management

❖ Agriculture Processing Management
❖ Agriculture Marketing Management

* OBJECTIVES OF IPTP *

i. To familiarize the students with Socio-Economic conditions of Agri Entrepreneurs & problems come
across in Agri Business & Marketing of Agri. Products.
ii. To provide an opportunity to the students to study the organizational structure, functions/roles, &
responsibilities of marketing, processing co-operative & financial organizations in agricultural
development.
iii. To provide an opportunity to students to acquire practical management skills through working with
different marketing, processing, co-operative & financial organizations to develop entrepreneurship.
iv. To develop confidence & competence in students for solving problems related to Agri Business
Management.

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 CHAPTER I
AGRICULTURE PRODUCTION
MANAGEMENT

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1.1 INTRODUCTION OF AGRICULTURE PRODUCTION MANAGEMENT:
Agriculture Production Management includes the detail information of the cost of cultivation of
different crops cultivated by a particular farmer of selected area. The data is collected with the help of survey
of host farmer. The data is collection approach in these surveys is enquiry based which includes the
information from pre-sowing practices to yield obtained from the different crops cultivated by the selected
host farmer. It also includes the information about the different types of inputs used for crop cultivation. The
data in collected on time to time in different rounds so, the farmer is visited repeatedly to collect proper and
accurate information from the farmer. The visits are given to the farmer in different stages during growth
stage of crops during inter tillage operations such as weeding, spraying, fertilizer application etc. so, that
proper knowledge of different types of farm activity can gain. As the data which is require to collect is huge
so, it should be done carefully, correctly and with patience. The data is collected to work out the per unit cost
of cultivation of particular cost. So, that we can calculate the profit and loss of the host farmer.

Cost of cultivation surveys are an important mechanism for data generation on cost structure of crops.
These are very intensive surveys wherein data are collected on the various inputs which are used for the
cultivation of crop. The data collection approach in these surveys is inquiry based which implies that the
information on the input use is obtained by inquiry from the farmer. Use of input is a continuous process
which goes on from beginning to end. In order that no information on input use is missed, data collection
under these surveys is generally carried out in multiple rounds. Thus the farmer is visited repeatedly during
the growth stage of the crop and during the time of harvest so that the information on input use is correctly
and properly recorded. As a result a huge volume of data is generated through these surveys. The data so
collected is generally used to work out cost per unit area or cost per unit weight.

The administrators and policy makers are the prime users of cost of cultivation data for policy
formation. Many other organizations use this data for micro level decision making while the individuals use
the data for research purpose. In view of the utility of this data it is desirable that the cost of cultivation survey
is statistically well planned so that the required information can be obtained efficiently and precisely. It is
appropriate to mention that due to the changes taking place at the global level the importance of cost of
cultivation data has increased manifold. This is attributable to the phenomenon of global competitiveness
which implies that those who are efficient and can produce at competitive prices will survive. In this changing
scenario cross country comparison of cost of production data is a practical necessity. The cross country
comparisons are meaningful only if the system of data collection is based on uniform methodology. This
particular aspect of cost of cultivation surveys is a problem area. Despite the fact that these surveys have been
carried out for long across countries there is still no uniform methodology followed in carrying out these
surveys. The details on cost of cultivation surveys and some of the issues are discussed in this manual.

Cost of cultivation surveys are an important data source for decision making at the macro as well as
micro level. Accuracy of information generated out of these surveys is, therefore, of paramount importance.
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This can be ensured by proper planning of the survey, so that the sampling as well as non-sampling errors are
minimized. Of equal importance is the question of how efficiently the cost of cultivation data can be collected.
Proper designing of the survey by judiciously making use of the information available from other surveys and
censuses will go a long way in collecting the data needed in an efficient manner.

1.2 OBJECTIVES OF STUDY:

1. To study the cropping pattern of the host farmer.

2. To study the Socio-economic status of host farmer.

3. To study estimate cost of cultivation, returns and profitability of different crop.

4. To study the problems faced by the farmer.

5. To give suggestions to overcome the problems.

6. To suggest the alternate cropping pattern.

7. To suggest the loan proposal to the farmer.

1.3 RESEARCH & METHODOLOGY:

1.3.1 Introduction of Research:

Research is activity of solving the problems which adds new knowledge and develops the theory as
well as gathered evidence to test generalization. In order to arrive at proper conclusion, it is necessary for
investigator to adopt appropriate methods and procedures. The success of any project depends on
methodology which is adopted during data collection and various types of analysis on scientific lines.
1.3.2 Selection of the Village:

To fulfil the purpose of study, survey was conducted in Solapur district in which Khandali village of
Malshiras Tahsil was identified. In the Khandali village, it had been observed that farmers have more than 5
acres land with multiple cropping patterns.

1.3.3 Selection of the Crop:

The cropping Pattern of selected farmer includes the crops like Jowar, Maize, Onion, Wheat, Groundnut,
& Sugarcane on total cultivable Area 3.2 Ha in Khandali Village.
1.3.4 Collection of Data:
i. Primary Data:
It was collected from the Host Farmers, Sarpanch of the village with the help of schedule for the year
2018-19. The data collected was related to the farm operations, farmers general information, his assets,
economy, input management, cropping pattern etc.

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 ii. Secondary Data:
It was collected from Talathi Office, Gram panchayat, Internet, Agriculture Books etc. The data was
related to the general information of the village, land information of the farmer, Land Revenue for various
crops, recommended input management practices for various crops.
1.3.5 Data Analysis Techniques:
Data were analysed in accordance with the specific points laid down at the time of preparing research plan
& interpreted using Tabular & Graphical method.

Data were also analysed by using following formulae,

Gross Cropped Area

1. Cropping Intensity = × 100
Net Cultivated Area

Present Value - Junk Value

2. Depreciation =
Expected Life

Original Amount × 10
3. Junk Value = 100

Total Depreciation Charges

4. Crop wise Depreciation Charges = × Area under Crop
Gross Cropped Area

Total Fixed Capital × 10

5. Interest on Fixed Capital =
100

Interest on Fixed Capital

6. Crop wise Interest on Fixed Capital = × Area under Crop
Gross Cropped Area

Total Incidental Charges

7. Crop wise Incidental Charges = × Area under Crop
Gross Cropped Area

Electricity Bill + Minor Repairs

8. Machine Maintenance Charges =
Total Running of Electric Motor

9. Crop wise Irrigation Charges = Machine Irrigation Interest on Area

Maintenance × Hours + Irrigation Charges × Under
Charges Gross Cropped Area Crop

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10. Rental Value of Land = 1/6th of the Gross Produce – Land Revenue & other cesses

11. Cost A1 = Total W.C + Interest on W.C + Depreciation on Implements & Machinery + Land Revenue

12. Cost B1 = Interest on F.C excluding land + Rental Value of Land + Amortization Value in case of Fruit

13. Cost C1 = Cost B1 + Imputed Value of Family Labour + Supervision Charges (10% of Cost A1)

14. Farm Business Income (F.B.I.) = Gross Income - Cost A1

15. Family Labour Income (F.L.I.) = Gross Income - Cost B1

16. Net Income (N.I.) = Gross Income - Cost C1

17. Farm Investment Income (F.I.I) = F.B.I - Imputed Value of Family Labour

18. Benefit Cost Ratio = Gross income

Cost C1

19. Per quintal cost of cultivation = Cost C1 - Value of by Product

Quantity of main produce (qtls)

20. Per hectare cost of cultivation = Cost C1 - Value of by product

Area (ha)

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 1.4 RESULT & DISCUSSION:
1.4.1 General Information of Khandali Village:

Khandali is a Village in Malshiras Tehsil in Solapur District of Maharashtra State, India. It belongs to
West Maharashtra region. It is located 110 km towards North from District Headquarters Solapur, 10 km from
Paniv.
1.4.1.1 Gram Panchayat Information:
• Name of Gram panchayat – Gram panchayat, Khandali
• Address – At. Post Khandali, Tal-Malshiras, Dist-Solapur
• Year of Establishment – 1952
• Members of Village Council – 11
• Time Period – 2015-2020
1.4.1.2 Members of Village Council:
Table No. 1.1 Members of Village Council
Sr. No. Name of Members Designation
1. Shri. Baburao Shivaji Patale Sarpanch
2. Shri. Subhash Shripati Patale Deputy Sarpanch
3. Shri. Mohan B. Mitakal Gramsevak
4. Shri. Bandu Ankush Bhosale Member
5. Shri. Narayan Bhau Patale Member
6. Shri. Prakash Ganapat Patale Member
7. Shri. Rahul Bhusaheb Jadhav Member
8. Shri. Tukaram Hanumant Gaikwad Member
9. Shri. Kailas Balaso Bhosale Member
10. Shri. Vitthal Limbraj Bhosale Member
11. Srimati. Vishrantibai Shrirang Pawar Member
12. Sau. Kusum Ashok Patale Member
13. Shri. Shabbir Sharfuddin Tamboli Member
1.4.1.2 Demography of the Village:
Table no 1.2 Demography of the Village
Sr. No. Total Population of the Village Population
1 Male 3,221
2 Female 4,488
Total 7,709

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 Fig No.1.1 Demography of the Village

0%

42%
Male
58%
Female
Total

1.4.1.3 Major Crops grown in Village:

Table No. 1.3. Major Crops grown in Village
Sr. No Types of Crops Name of Crops
1. Cereals Wheat, Bajara, Maize, Jowar.
2. Pulses Gram, Pea.
3. Oilseeds Groundnut, Soybean.
4. Vegetables Onion, Tomato.
5. Cash Crops Sugarcane.
6. Fruits Banana, Pomegranate.
1.4.1.4 Community Buildings in Village:
Table No. 1.4. Community Buildings in Village
Sr. No. Particulars Numbers
1. Village Panchayat 1
2. Anganwadi 2
3. Z.P. Primary School 1
4. Government I.T.I College 1
5. Government Hospital 1
6. Veterinary Clinic 1

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 1.5 INFORMATION OF THE HOST FARMER

1.5.1 Profile of Host Farmer

Table No: 1.5 Personal Information of Host Farmer
Sr. No. Particulars Details
1. Name of the Host Farmer Mr. Shahurao Govind Patale
2. Gender Male
3. Age 35
4. Education 10th
5. Total Land Holding 3.2 Ha
6. Category of host farmer Medium Farmer
7. Address A/P-Khandali, Tal - Malshiras, Dist.- Solapur
8. Contact No. +91 9922297296
1.5.1.1 Family Members of Host Farmer
Table No. 1.6 - Family Members of Host Farmer
Sr. No. Name Sex Relation with head of Age Education Occupation
Family
1. Shahurao Govind Male Host Farmer 35 10th Farmer
Patale
2. Swaranjali Female Wife 30 12th Housewife
Shahurao Patale
3. Soham Shahurao Male Son 12 6th Student
Patale
4. Siddhi Shahurao Female Daughter 10 4th Student
Patale
1.5.1.2 Assets of Host Farmer:

A. Land
Table No. 1.7 - Assets of Host Farmer
Sr. No. Plot Number Area Irrigated (ha)
a. 53/3 1.2
b. 55/1 1.2
c. 56/2 0.8
B. Sources of irrigation and Area irrigated
Table No. 1.8 Sources of irrigation and Area irrigated
Sr. No. Source Area Irrigated (ha)
1. Bore Well 1.2
2. Canal 2

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C. Buildings
Table No. 1.9 – Buildings
Sr. No. Category Type of Construction Year Present Value
1. Residential House Pakka House 2008 10,00,000
2. Cattle byre Kaccha House 2008 80,000
D. Livestock
Table No. 1.10 Livestock
Present Vaiue
Sr. No. Category Breed No of Animals
(₹)
1 Buffaloes
a) In Milk Local 1 35,000
2 Cow heifers
a) Cross Breed Jerssy 1 40,000
E. Implements and Machinery:
Table No.1.11 Implements and Machinery:
Sr. No. Particular Quantity (No) Rate per Item Present Value (₹)
A) Equipment
1. Spraying Pump 1 5,000 5,000
2. Trolly 1 90,000 90,000
3. Iron Plough 1 65,000 65,000
4. Seed Drill 1 35,000 35,000
B) Machinery
5. Tractor 1 6,35,000 6,35,000
6. Electric Motor 5 HP 1 16,000 16,000
7. Electric Motor 7.5 HP 1 30,000 30,000
C) Hand Tools
8. Weeding Hook 2 70 280
9. Sickle 4 130 520
10. Koyata 2 150 300
11. Spade 2 250 500
12. Plastic Tubs 4 250 1,000
13. Khurpi 5 40 200

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1.5.2 Farm Map:

Fig No. 1.2 Farm Map

1.5.3 Existing Cropping Pattern:

Table No.1.12 Existing Cropping Pattern

Season Crops Variety Area (ha) Yield (qtl) Gross Value (₹)

Main Produce By Produce

Kharif Jowar Maldandi 0.8 24 79,200 16,000

Maize Decalp 1941 1.2 114 2,22,300 12,000

Rabi Onion Puna-fursungi 0.2 38 91,200 -

Wheat Tapowan 1.8 81 2,14,650 -

Summer Groundnut Phule Unnati 0.2 6 25,200 -

Annual Sugarcane Co-265 1.2 210 ton 5,46,000 12,000

Total 5.4

Table 1.12 Shows that the Existing Cropping Pattern of Host Farmer which include Various types of
Crops grown in Various Seasons. The Total Gross Cropped Area is 5.4 ha.

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1.5.3.1 Cropping Intensity:
Table No. 1.13 Cropping Intensity
Sr. No Particulars Area (ha)
1. Total Land 3.2
2. Net Cultivated Area 3.2
3. Gross Cropped Area 5.4
Table No. 3.13 Shows the Information of Total Land, Net Cultivated Land & Gross Cropped Area of
Host Farmer which is require to Calculate Cropping Intensity.
Gross Cropped Area
➢ Cropping Intensity = × 100
Net Cultivated Area
= 5.4 / 3.2 × 100
= 169 %
Interpretation: The Cropping Intensity is Greater than 100 % which shows that land is fully utilized.
1.5.4 CROP WISE OVERHEAD COST:

1.5.4.1 Depreciation Charges of Implements and Machinery:

Table No. 1.14 Depreciation Charges on Implements & Machineries (₹)
Sr. Particulars Quantity Present Value Life Span Junk Value Depreciation
No. (₹) (10%)
1. Tractor 1 6,35,000 20 63,500 28,575
2. Trolley 1 90,000 12 9,000 6,750
3. Iron Plough 1 65,000 12 6,500 4,875
4. Seed Drill 1 35,000 10 3,500 3,150
5. Spraying Pump 1 5,000 5 500 900
6. Weeding Hook 2 140 4 14 32
7. Sickle 4 520 4 52 117
8. Koyata 2 300 4 30 68
9. Spade 2 500 3 50 150
10. Plastic Tub 4 1,000 2 100 450
11. Khurpi 5 200 5 20 36
Total 8,32,660 45,103
Table No. 1.14 Shows the Implements and Machinery used by the Host Farmer. Also, it indicates the
Depreciation of each Implement & Machinery.

24
1.5.4.2 Depreciation on Irrigation System:

Table No. 1.15 Depreciation on Irrigation System

Sr. Particulars Quantity Present Life Span Junk Value Depreciation
No. Value (₹) (10%) (₹)
1. Electric Motor 5 1 16,000 10 1,600 1,440
HP
2. Electric Motor 7.5 1 30,000 10 3,000 2,700
HP
3. Other Equipment 1 1,20,000 10 12,000 10,800
(Drip, Pipeline)
Total 1,66,000 14,940
Table No. 1.15 shows the Depreciation on Irrigation System. The Total Depreciation on Irrigation
System is ₹. 14,940.
• Total Depreciation Charges = Depreciation on Machinery + Depreciation on Irrigation
& Equipment System
= 45,103 + 14,940
= ₹. 60,043
1.5.4.3 Crop wise Depreciation Charges = Total Depreciation Charges × Plot Area
Gross Cropped Area
• Allocation of Depreciation = Total Depreciation Charges
Gross Cropped Area
= 60,043
5.4
= ₹. 11,119
Table No. 1.16. Crop Wise Depreciation Charges
Sr. No. Name of Crops Total Depreciation Plot Area Crop wise Depreciation
1. Jowar 60,043 0.8 8,895
2. Maize 60,043 1.2 13,343
3. Onion 60,043 0.2 2,224
4. Wheat 60,043 1.8 20,014
5. Groundnut 60,043 0.2 2,224
6. Sugarcane 60,043 1.2 13,343
In above Table No. 1.16, I calculate the Crop wise Depreciation Charges which is required to calculate
Cost of Cultivation.

25
1.5.4.4 Crop wise Land Revenue
Table No. 1.17 Crop Wise Land Revenue
Sr. No Name of Crop Area (ha) Land Revenue/ha (₹) Crop wise Land Revenue (₹)
1. Jowar 0.8 25 20
2. Maize 1.2 25 30
3. Onion 0.2 - -
4. Wheat 1.8 25 45
5. Groundnut 0.2 40 8
6. Sugarcane 1.2 190 228
Total 331
Farmer also pays Land Revenue for each crop in every year. Thus, Table No. 1.17 shows the Crop
wise Land Revenue Paid by Host Farmer. Total Land Revenue Paid by Host Farmer is ₹. 331.
1.5.4.5 Fixed Capital:
• Total Fixed Capital = Machineries + Equipment + Handtools + Irrigation System
= 6,35,000 + 1,95,000 + 2,660 + 1,66,000
= ₹ 9,98,660
• Interest on Fixed Capital-
Interest on Fixed Capital @ 10 % of Total Fixed Capital = 9,98,660 × 10/100
= ₹ 99,866
➢ Crop wise Interest on Fixed Capital :
• Crop wise Interest on Fixed Capital = Interest on Fixed Capital × Plot Area
Gross Cropped Area
Table No. 1.18 Crop Wise Interest on Fixed Capital
Sr. No Name of Crop Area (ha) Crop wise Interest Rate (₹)
1. Jowar 0.8 14,795
2. Maize 1.2 22,193
3. Onion 0.2 3,699
4. Wheat 1.8 33,289
5. Groundnut 0.2 3,699
6. Sugarcane 1.2 22,193
Total 99,868
The Interest on Fixed Capital is ₹. 99,868. In Table No. 1.18, Total Interest Rate on Fixed Capital is
divided into all Crops. Thus, above Table shows the Crop wise Interest Rate on Fixed Capital.

26
1.5.4.6 Crop Wise Incidental Charges:
• Total Incidental charges = ₹. 9,200
• Crop wise Incidental Charges = Total Incidental Charges × Plot Area
Gross Cropped Area
Table No. 1.19 Crop Wise Incidental charges
Sr. No Name of Crop Area (ha) Incidental Charges (₹)
1. Jowar 0.8 1,363
2. Maize 1.2 2,045
3. Onion 0.2 340
4. Wheat 1.8 3,067
5. Groundnut 0.2 340
6. Sugarcane 1.2 2,045
Total 9,200
Total Incidental Charges used by Host Framer is ₹. 10,600. Thus, in above Table No. 1.19, Incidental
Charges are divided for each Crop.

1.5.4.7 Irrigation Charges

• Crop Wise Irrigation Charges = Machine Irrigation Interest on Irrigation Plot
Maintenance × Hours + Charges × Area
Charges Gross Cropped Area

• Electricity Bill = 16,000 + 22,500 = 38,500

• Minor Repairs = 1,500

• Total Running of Electric Motor = 696

• Machine Maintenance Charges = Electricity Bill + Minor Repairs

Total Running of Electric Motor
= 38,500 + 1,500
696
= 57

27
 Table No. 1.20 Irrigation Charges
Sr. Name of Crop Area of Irrigation Hours Required Total Crop wise
No Plot (ha) Numbers for 1 Irrigation Irrigation Irrigation
Hours Charges
1. Jowar 0.8 2 6 12 3,143
2. Maize 1.2 4 18 72 7,793
3. Onion 0.2 12 3 36 2,667
4. Wheat 1.8 10 18 180 15,793
5. Groundnut 0.2 12 3 36 2,667
6. Sugarcane 1.2 20 18 360 24,209
Total 696
Each Crop require irrigation for its growth. But each crop requires different Irrigation Numbers. The
Table No. 1.20 shows the Crop wise irrigation Charges.

1.5.4.8 Crop Wise Overhead Cost

Table No. 1.21 Crop Wise Overhead Cost of existing crops
Sr. No. Crops Area of Crop wise Interest Irrigation Incidental Land
Plot (Ha) Depreciation on Fixed Charges charges Revenue
Capital
1. Jowar 0.8 8,895 14,795 3,143 1,363 20
2. Maize 1.2 13,343 22,193 7,793 2,045 30
3. Onion 0.2 2,224 3,699 2,667 340 -
4. Wheat 1.8 20,014 33,289 15,793 3,067 45
5. Groundnut 0.2 2,224 3,699 2,667 340 8
6. Sugarcane 1.2 13,343 22,193 24,209 2,045 228
Total 60,043 99,868 56,272 9,200 331
Table No. 1.21 shows the Overhead Cost of Existing Crops. It mainly includes Depreciation, Interest
on Fixed Capital, Irrigation Charges, Land Revenue etc.

28
1.5.5 CROPWISE INPUT UTILIZATION AND COST OF CULTIVATION BY HOST FARMER
1.5.5.1 Input Utilization for Jowar by Host Farmer
Crop - Jowar Variety – Maldandi
Area - 0.8 Ha Season – Kharif

Table No. 1.22 Input Utilized for Jowar

Sr. Item of Cost Unit Per Hector Per Plot
No. Qty Rate Value Qty Rate (₹) Value
(₹) (₹) (₹)
1. Hired Human Labour
i. Male Days 5 300 1500 4 300 1200
ii. Female Days 10 150 1500 8 150 1200
2. Owned Machinery Used
(Diesel charges)
i. Ploughing Lit. 15 67 1005 12 67 804
ii. Harrowing Lit. 15 67 1005 12 67 804
3. Hired Machinery Used Ha 1 5000 5000 0.8 4000 4000
(Harvesting)
4. Seed Purchased Kg 10 20 200 8 20 160
5. Manure Trolley 2.5 4000 10,000 2 4000 8000
6. Fertilizers
i. Azotobacter Gm 250 0.36 90 200 0.36 72
ii. N (100) Kg 217 6 1302 174 6 1044
iii. P (50) Kg 83 7 581 66 7 462
iv. K (50) Kg 313 19 5947 250 19 4750
7. Insecticide & Weedicide - - - - - - -
8. Irrigation Charges ₹ - - 3928 - - 3143
9. Incidental Charges ₹ - - 1704 - - 1363
10. Total W.C ₹ - - 33,767 - - 27,006

The Table No. 1.22 Shows that the various Inputs such as seeds, Fertilizers etc. are utilized by the
Host Farmer for Jowar Crop. Total Working Capital required to Jowar Crop for 0.8 ha Land is ₹ 27,006.

29
1.5.5.2 COST OF CULTIVATION OF JOWAR
Table No. 1.23 Cost of Cultivation for Jowar
Sr. No Item of Cost Per Hector Value (₹) Per Plot (₹)
1. Hired Human Labour 3000 2400
2. Owned Machinery Used 2010 1608
3. Hired Machinery Used 5000 4000
4. Seed Purchased 200 160
5. Manure 10,000 8000
6. Fertilizers 7920 6328
7. Insecticide - -
8. Irrigation Charges 3928 3143
9. Incidental Charges 1704 1363
10. Total W.C (1 to 9) 33,767 27,006
11. Interest On W.C @ 6 % 2026 1620
12. Total Operational Cost (10+11) 35,782 28,626
13. Land Revenue & other Cesses 25 20
14. Depreciation on Implements Machinery & 11,118 8895
Building
15. Rental Value of Land 19,808 15,847
16. Interest on Fixed Capital @ 10 % 18,494 14,795
17. Total Fixed Cost (13+14+15+16) 49,445 39,557
18. Total Cost (12+17) 85,229 68,183
19. Total Operational Cost 35,782 28,626
20. Land Revenue 25 20
21. Depreciation on Implements & Machinery 11,118 8895
22. Cost A1 (19+20+21) 46,926 37,541
23. Interest on Fixed Capital @ 10 % 18,494 14,795
24. Rental Value 19,808 15,847
25. Cost B1 (22+23+24) 85,229 68,183
26. Imputed Value of Family Labor 7500 6000
27. Supervision Charges (10% of Cost A1) 4693 3754
28. Cost C1 (25+26+27) 97,422 77,937
It is observed from the Table No. 1.23 that Cost Concepts of Jowar Crop including Cost A1 is ₹. 37,541,
Cost B1 is ₹. 68,183 & Cost C1 is ₹. 77,937 respectively.

30
• Rental Value of Land = 1/6 of the Gross Produce – Land Revenue
For 1 Hector = 1/6 × 1,19,000 - 25
= 19,833 – 25
= ₹ 19,808
For 0.8 Hector = 1/6 × 95,200 - 20
= 15,867 – 20
= ₹ 15,847
1.5.5.3 Yield of Jowar-
Table No. 1.24 Yield of Jowar
Sr. No Item Unit Per Plot Per Ha
Quantity (qtl) Rate (₹) Value (₹)
1. Main Product Quintal 24 3300 79,200 99,000
2. By Product - - - 16,000 20,000
Total 95,200 1,19,000
The Table No. 1.24 indicates that, Gross Income of the Jowar Crop. The Gross Income of Jowar is ₹.
95,200 by producing 24 quintal Jowar & per quintal rate is ₹. 3300
1.5.5.4 Estimate Income Measures of Jowar
a) Farm Business Income (F.B.I.) = Gross Income - Cost A1
= 95,200 – 37,541
= ₹. 57,659
b) Family Labour Income (F.L.I.) = Gross Income - Cost B1
= 95,200 – 65,149
= ₹. 30,051
c) Net Income (N.I.) = Gross Income - Cost C1
= 95,200 – 77,937
= ₹. 17,263
d) Farm Investment Income (F.I.I) = F.B.I - Imputed Value of Family Labour
= 57,659 – 6000
= ₹. 51,659
e) Benefit Cost Ratio = Gross income
Cost C1
= 95,200
77,937
= ₹. 1.22

31
f) Per quintal cost of cultivation = Cost C1 - Value of by Product
Quantity of main produce (qtls)

= 77,937 - 16,000
24
= ₹. 2581

g) Per hectare cost of cultivation = Cost C1 - Value of by product

Area (ha)
= 77,937 - 16,000 / 0.8
= ₹. 77,421
1.5.5.5 Input Utilization for Maize by Host Farmer
Crop - Maize Variety – Decalp 1941
Area - 1.2 Ha Season - Kharif
Table No. 1.25 Input Utilized for Maize
Sr. Item of Cost Unit Per Hector Per Plot
No. Qty Rate(₹) Value (₹) Qty Rate (₹) Value(₹)
1. Hired Human Labour
i. Male Days 5 300 1500 6 300 1800
ii. Female Days 25 150 3750 30 150 4500
2. Owned Machinery Used
(Diesel charges)
i. Ploughing Lit. 15 67 1005 18 67 1206
ii. Harrowing Lit. 15 67 1005 18 67 1206
iii. Ridges Lit 22 67 1474 27 67 1809
3. Hired Machinery Used Qtl 95 60 5700 114 60 6840
(Harvesting)
4. Seed Purchased Kg 25 260 6500 30 260 7800
5. Manure Trolley 2.5 4000 10,000 3 4000 12,000
6. Fertilizers
i. N (100) Kg 217 6 1302 260 6 1560
ii. P (50) Kg 83 7 581 100 7 700
iii. K (50) Kg 313 19 5947 376 19 7144
iv. Zinc Kg 10 55 550 12 55 660
7. a. Weedicide
i. Tynzer ml 30 50 1500 36 50 1800

32
 ii. Ultratop Kg 2.5 300 750 3 300 900
b. Insecticide (Delegate) ml 250 11 2750 300 11 3300
8. Irrigation Charges ₹ - - 6494 - - 7793
9. Incidental Charges ₹ - - 1704 - - 2045
10. Total W.C. ₹ - - 52,512 - - 63,063
The Table No. 1.25 Shows that the various Inputs such as seeds, Fertilizers etc. are utilized by the
Host Farmer for Maize Crop. Total Working Capital required to Maize Crop for 1.2 ha Land is ₹. 63,063.
1.5.5.6 Cost of Cultivation of Maize
Table No. 1.26 Cost of Cultivation for Maize
Sr. No Item of Cost Per Hector Value (₹) Per Plot (₹)
1. Hired Human Labour 5250 6300
2. Owned Machinery Used 3484 4221
3. Hired Machinery Used 5700 6840
4. Seed Purchased 6500 7800
5. Manure 10,000 12,000
6. Fertilizers 8380 10,064
7. Weedicide & Insecticide 5000 6000
8. Irrigation Charges 6494 7793
9. Incidental Charges 1704 2045
10. Total W.C (1 to 9) 52,512 63,063
11. Interest On W.C @ 6 % 3153 3783
12. Total Operational Cost (10+11) 55,705 66,846
13. Land Revenue & other Cesses 25 30
14. Depreciation on Implements Machinery & 11,119 13,343
Building
15. Rental Value of Land 32,517 39,020
16. Interest on Fixed Capital @ 10 % 18,494 22,193
17. Total Fixed Cost (13+14+15+16) 62,155 74,586
18. Total Cost 1,16,860 1,40,232
19. Total Operational Cost 55,705 66,846
20. Land Revenue 25 30
21. Depreciation on Implements & Machinery 11,119 13,343
22. Cost A1 (19+20+21) 66,849 80,219
23. Interest on Fixed Capital @ 10 % 18,494 22,193
24. Rental Value 32,517 39,020

33
 25. Cost B1 (22+23+24) 1,17,860 1,41,432
26. Imputed Value of Family Labour 4000 4800
27. Supervision Charges (10% of Cost A1) 6796 8155
28. Cost C1 (25+26+27) 1,28,655 1,54,387
It is observed from the Table No. 1.26 that Cost Concepts of Maize Crop including Cost A1 is ₹. 80,219,
Cost B1 is ₹. 1,41,432 & Cost C1 is ₹. 1,54,387 respectively.

• Rental Value of Land = 1/6 of the Gross Produce – Land Revenue

For 1 Hector = 1/6 × 1,95,000 - 25
= 35,542 – 25
= ₹ 32,517
For 1.2 Hector = 1/6 × 2,34,300 - 30
= 39,050 – 30 = ₹ 39,020
1.5.5.7 Yield of Maize-
Table No. 3.27 Yield of Maize
Sr. No Item Unit Per Plot Per Ha
Quantity (qtl) Rate (₹) Value (₹)
1. Main Product Quintal 114 1950 2,22,300 1,85,250
2. By Product - - - 12,000 10,000
Total 2,34,300 1,95,250
The Table No. 3.27 indicates that, Gross Income of the Maize Crop. The Gross Income of Maize is ₹.
2,34,300 by producing 114 quintal Maize & per quintal rate is ₹. 1950.
1.5.5.8 Estimate Income Measures of Maize-
a) Farm Business Income (F.B.I.) = Gross Income - Cost A1
= 2,34,300 – 80,219
= ₹. 1,54,081
b) Family Labour Income (F.L.I.) = Gross Income - Cost B1
= 2,34,300 – 1,41,432
= ₹. 92,868
c) Net Income (N.I.) = Gross Income - Cost C1
= 2,34,300 – 1,54,387
= ₹. 79,913
d) Farm Investment Income (F.I.I) = F.B.I - Imputed Value of Family Labour
= 1,54,081 – 4800

34
 = ₹. 1,49,281
e) Benefit Cost Ratio = Gross income
Cost C1
= 2,34,300
1,54,387
= ₹. 1.51

f) Per quintal cost of cultivation = Cost C1 - Value of by Product

Quantity of main produce (qtls)

= 1,54,387 - 12,000
114
= ₹. 1249

g) Per hectare cost of cultivation = Cost C1 - Value of by product

Area (ha)
= 1,54,387 - 12,000
1.2
= ₹. 1,18,655
1.5.5.9 Input Utilization for Onion by Host Farmer
Crop - Onion Variety – Puna Fursungi
Area - 0.2 Ha Season - Rabi
Table No. 1.28 Input Utilized for Onion
Sr. Item of Cost Unit Per Hector Per Plot
No. Qty Rate (₹) Value(₹) Qty Rate (₹) Value(₹)
1. Hired Human Labour
i. Female Days 20 150 3000 4 150 600
2. Owned Machinery Used
(Diesel charges)
i. Ploughing Lit. 15 67 1005 3 67 201
ii. Harrowing Lit. 15 67 1005 3 67 201
3. Seed Purchased Kg 10 400 4000 2 400 800
4. Manure - - - - - - -
5. Fertilizers
i. Azospirillum Gm 250 0.40 100 50 0.40 20
ii. N (100) Kg 217 6 1302 43 6 258
iii. P (50) Kg 83 7 581 17 7 119

35
 iv. K (50) Kg 313 19 5947 63 19 1197
6. Insecticide
Profex Super ml 750 1.04 780 150 1.04 156
Hamala Lit 1 870 870 0.2 870 174
7. Weedicide (Targa Super) Lit 1 1620 1620 0.2 1620 324
8. Irrigation Charges ₹ - - 13,335 - - 2667
9. Incidental Charges ₹ - - 1700 - - 340
10. Total W.C. ₹ - - 35,245 - - 7057
The Table No. 1.28 Shows that the various Inputs such as seeds, Fertilizers etc. are utilized by the
Host Farmer for Onion Crop. Total Working Capital required to Onion Crop for 0.2 ha Land is ₹. 7057.
1.5.5.10 Cost of Cultivation of Onion
Table No. 1.29 Cost of Cultivation for Onion
Sr. No Item of Cost Per Hector Value (₹) Per Plot (₹)
1. Hired Human Labour 3000 600
2. Owned Machinery Used 2010 402
3. Hired Machinery Used - -
4. Seed Purchased 4000 800
5. Manure - -
6. Fertilizers 7930 1594
7. Weedicide & Insecticide 3270 654
8. Irrigation Charges 13,335 2667
9. Incidental Charges 1700 340
10. Total W.C (1 to 9) 35,245 7057
11. Interest On W.C @ 6 % 2115 423
12. Total Operational Cost (10+11) 37,400 7480
13. Land Revenue & other Cesses - -
14. Depreciation on Implements Machinery & 11,120 2224
Building
15. Rental Value of Land 76,000 15,200
16. Interest on Fixed Capital @ 10 % 18,495 3699
17. Total Fixed Cost (13+14+15+16) 1,05,615 21,123
18. Total Cost 1,43,015 28,603
19. Total Operational Cost 37,400 7480
20. Land Revenue - -
21. Depreciation on Implements & Machinery 11,120 2224

36
 22. Cost A1 (19+20+21) 48,520 9704
23. Interest on Fixed Capital @ 10 % 18,495 3699
24. Rental Value 76,000 15,200
25. Cost B1 (22+23+24) 1,43,015 28,603
26. Imputed Value of Family Labor 9000 1800
27. Supervision Charges (10% of Cost A1) 4852 970
28. Cost C1 (25+26+27) 1,56,865 31,373
It is observed from the Table No. 1.29 that Cost Concepts of Onion Crop including Cost A1 is ₹. 9704,
Cost B1 is ₹. 28,603 & Cost C1 is ₹. 31,373 respectively.
• Rental Value of Land = 1/6 of the Gross Produce – Land Revenue
For 1 Hector = 1/6 × 4,56,000 - 0
= 76,000 – 0
= ₹. 76,000
For 0.2 Hector = 1/6 × 91,200 - 0
= ₹. 15,200
1.5.5.11 Yield of Onion-
Table No. 1.30 Yield of Onion
Sr. No Item Unit Per Plot Per Ha
Quantity (qtl) Rate (₹) Value (₹)
1. Main Product Quintal 38 2400 91,200 4,56,000
Total 91,200 4,56,000
The Table No. 1.30 indicates that, Gross Income of the Onion Crop. The Gross Income of Onion is ₹.
91,200 by producing 38 quintal Onion & per quintal rate is ₹. 2400.
1.5.5.12 Estimate Income Measures of Onion-
a) Farm Business Income (F.B.I.) = Gross Income - Cost A1
= 91,200 – 9704
= ₹. 81,496
b) Family Labour Income (F.L.I.) = Gross Income - Cost B1
= 91,200 – 28,603
= ₹. 62,597
c) Net Income (N.I.) = Gross Income - Cost C1
= 91,200 – 31,373
= ₹. 59,827
d) Farm Investment Income (F.I.I) = F.B.I - Imputed Value of Family Labour

37
 = 81,496 – 970
= ₹. 80,526
e) Benefit Cost Ratio = Gross income
Cost C1

= 91,200
31,373
= ₹. 2.90

f) Per quintal cost of cultivation = Cost C1 - Value of by Product

Quantity of main produce (qtls)
= 31,373 - 0
38
= ₹. 826

g) Per hectare cost of cultivation = Cost C1 - Value of by product

Area (ha)

= 31,373 - 0
0.2
= ₹. 1,56,865
1.5.5.13 Input Utilization for Wheat by Host Farmer
Crop - Wheat Variety – Tapovan
Area - 1.8 Ha Season - Rabi
Table No. 1.31 Input Utilized for Wheat
Sr. Item of Cost Unit Per Hector Per Plot
No. Qty Rate(₹) Value (₹) Qty Rate (₹) Value(₹)
1. Hired Human Labour
i. Male Days 5 300 1500 9 300 2700
ii. Female Days 20 150 3000 36 150 5400
2. Owned Machinery Used
(Diesel charges)
i. Ploughing Lit. 15 67 1005 27 67 1809
ii. Harrowing Lit. 15 67 1005 27 67 1809
3. Hired Machinery Used Ha 1 5000 5000 1.8 5000 9000
(Harvesting)
4. Seed Purchased Kg 50 70 3500 90 70 6300
5. Manure - - - - - - -

38
 6. Fertilizers
i. Thiram gm 125 0.4 50 225 0.4 90
ii. N (120) Kg 260 6 1560 468 6 2808
iii. P (60) Kg 100 7 700 180 7 1260
iv. K (40) Kg 250 19 4750 450 19 8550
v. Hy-Zyme Kg 20 45 900 36 45 1620
7. a. Weedicide
i. Vesta gm 400 3.5 1400 720 3.5 2520
ii. 2,4-D Kg 1.5 270 405 2.7 270 729
b. Fungicide ( M-45 ) gm 500 0.44 220 900 0.44 396
8. Irrigation Charges ₹ - - 8774 - - 15,793
9. Incidental Charges ₹ - - 1704 - - 3067
10. Total W.C. ₹ - - 35,473 - - 63,851
The Table No. 1.31 Shows that the various Inputs such as seeds, Fertilizers etc. are utilized by the
Host Farmer for Wheat Crop. Total Working Capital required to Wheat Crop for 1.8 ha Land is ₹. 63,851.
1.5.5.14 Cost of Cultivation of Wheat
Table No. 1.32 Cost of Cultivation for Wheat
Sr. No Item of Cost Per Hector Value (₹) Per Plot (₹)
1. Hired Human Labour 4500 8100
2. Owned Machinery Used 2010 3618
3. Hired Machinery Used 5000 9000
4. Seed Purchased 3500 6300
5. Manure - -
6. Fertilizers 7960 14,328
7. Weedicide & Fungicide 2025 3645
8. Irrigation Charges 8774 15,793
9. Incidental Charges 1704 3067
10. Total W.C (1 to 9) 35,473 63,851
11. Interest On W.C @ 6 % 2128 3831
12. Total Operational Cost (10+11) 37,601 67,682
13. Land Revenue & other Cesses 25 45
14. Depreciation on Implements Machinery & 11,119 20,014
Building
15. Rental Value of Land 19,850 35,730
16. Interest on Fixed Capital @ 10 % 18,494 33,289

39
 17. Total Fixed Cost (13+14+15+16) 49,488 89,078
18. Total Cost 87,089 1,56,760
19. Total Operational Cost 37,601 67,682
20. Land Revenue 25 45
21. Depreciation on Implements & Machinery 11,119 20,014
22. Cost A1 (19+20+21) 48,745 87,741
23. Interest on Fixed Capital @ 10 % 18,464 33,289
24. Rental Value 19,850 35,730
25. Cost B1 (22+23+24) 87,089 1,56,760
26. Imputed Value of Family Labor 5000 9000
27. Supervision Charges (10% of Cost A1) 4756 8560
28. Cost C1 (25+26+27) 98,844 1,74,320
It is observed from the Table No. 1.32 that Cost Concepts of Wheat Crop including Cost A1 is ₹. 87,741,
Cost B1 is ₹. 1,56,760 & Cost C1 is ₹. 1,74,320 respectively.
• Rental Value of Land = 1/6 of the Gross Produce – Land Revenue
For 1 Hector = 1/6 × 1,19,250 - 25
= 19,875 – 25
= ₹ 19,850
For 1.8 Hector = 1/6 × 2,14,650 - 45
= 35,775 – 45
= ₹ 35,730

1.5.5.15 Yield of Wheat-

Table No. 1.33 Yield of Wheat
Sr. No Item Unit Per Plot Per Ha
Quantity (qtl) Rate (₹) Value (₹)
1. Main Product Quintal 81 2650 2,14,650 1,19,250
Total 2,14,650 1,19,250
The Table No. 1.33 indicates that, Gross Income of the Wheat Crop. The Gross Income of Wheat is
₹. 2,14,650 by producing 81 quintal Wheat & per quintal rate is ₹. 2650.
1.5.5.16 Estimate Income Measures of Wheat-
a) Farm Business Income (F.B.I.) = Gross Income - Cost A1
= 2,14,650 – 87,741
= ₹. 1,26,909
b) Family Labour Income (F.L.I.) = Gross Income - Cost B1
40
 = 2,14,650 – 1,56,760
= ₹. 57,890
c) Net Income (N.I.) = Gross Income - Cost C1
= 2,14,650 – 1,74,320
= ₹. 40,330
d) Farm Investment Income (F.I.I) = F.B.I - Imputed Value of Family Labour
= 1,26,909 – 9000
= ₹. 1,17,909
e) Benefit Cost Ratio = Gross income
Cost C1
= 2,14,650
1,74,320
= ₹. 1.23

f) Per quintal cost of cultivation = Cost C1 - Value of by Product

Quantity of main produce (qtls)

= 1,74,320 - 0
72
= ₹. 2421

g) Per hectare cost of cultivation = Cost C1 – Value of by product

Area (ha)
= 1,74,320 – 0
1.8
= ₹. 96,844
1.5.5.17 Input Utilization for Groundnut by Host Farmer
Crop - Groundnut Variety – Phule Unnati
Area - 0.2 Ha Season - Summer
Table No. 1.34 Input Utilized for Groundnut
Sr. Item of Cost Unit Per Hector Per Plot
No. Qty Rate(₹) Value (₹) Qty Rate (₹) Value(₹)
1. Hired Human Labour
i. Male Days 5 300 1500 1 300 300
ii. Female Days 20 150 3000 4 150 600
2. Owned Machinery Used
(Diesel charges)
41
 i. Ploughing Lit. 30 67 2010 6 67 402
ii. Rotavator Lit. 15 67 1005 3 67 201
3. Hired Machinery Used - - - - - - -
(Harvesting)
4. Seed Purchased Kg 120 120 14,400 24 120 2880
5. Manure - - - - - - -
6. Fertilizers
i. Thiram Gm 600 0.4 240 120 0.4 48
ii. N (25) Kg 54 6 324 11 6 66
iii. P (50) Kg 63 7 441 13 7 91
iv. Gyspum Kg 400 4 1600 80 4 320
7. Weedicide
i. Pendimethalin Lit 1 300 300 0.2 300 60
ii. Targa Super Ml 750 1.62 1215 150 1.62 243
8. Irrigation Charges ₹ - - 13,335 - - 2667
9. Incidental Charges ₹ - - 1700 - - 340
10. Total W.C. ₹ - - 41,070 - - 8218
The Table No. 1.34 Shows that the various Inputs such as seeds, Fertilizers etc. are utilized by the
Host Farmer for Groundnut Crop. Total Working Capital required to Groundnut Crop for 0.2 ha Land is ₹.
8218.
1.5.5.18 Cost of Cultivation of Groundnut
Table No. 1.35 Cost of Cultivation for Groundnut
Sr. No Item of Cost Per Hector Value (₹) Per Plot (₹)
1. Hired Human Labour 4500 900
2. Owned Machinery Used 3015 603
3. Hired Machinery Used - -
4. Seed Purchased 14,400 2880
5. Manure - -
6. Fertilizers 2605 525
7. Weedicide & Fungicide 1515 303
8. Irrigation Charges 13,335 2667
9. Incidental Charges 1700 340
10. Total W.C (1 to 9) 41,070 8218
11. Interest On W.C @ 6 % 2465 493
12. Total Operational Cost (10+11) 43,555 8711

42
 13. Land Revenue & other Cesses 40 8
14. Depreciation on Implements Machinery & 11,120 2224
Building
15. Rental Value of Land 20,960 4192
16. Interest on Fixed Capital @ 10 % 18,495 3699
17. Total Fixed Cost (13+14+15+16) 50,615 10,123
18. Total Cost 94,170 18,834
19. Total Operational Cost 43,555 8711
20. Land Revenue 40 8
21. Depreciation on Implements & Machinery 11,120 2224
22. Cost A1 (19+20+21) 54,715 10,943
23. Interest on Fixed Capital @ 10 % 18,495 3699
24. Rental Value 20,960 4192
25. Cost B1 (22+23+24) 94,170 18,834
26. Imputed Value of Family Labour 5000 1000
27. Supervision Charges (10% of Cost A1) 5472 1094
28. Cost C1 (25+26+27) 1,04,642 20,928
It is observed from the Table No. 1.35 that Cost Concepts of Groundnut Crop including Cost A1 is ₹.
10,943, Cost B1 is ₹. 18,834 & Cost C1 is ₹. 20,928 respectively.
• Rental Value of Land = 1/6 of the Gross Produce – Land Revenue
For 1 Hector = 1/6 × 1,26,000 - 40
= 21,000 – 40
= ₹. 20,960
For 0.2 Hector = 1/6 × 25,200 - 8
= 4200 – 8
= ₹. 4192
1.5.5.19 Yield of Groundnut-
Table No. 1.36 Yield of Groundnut
Sr. No Item Unit Per Plot Per Ha
Quantity (qtl) Rate (₹) Value (₹)
1. Main Product Quintal 30 4200 25,200 1,26,000
Total 25,200 1,26,000
The Table No. 1.36 indicates that, Gross Income of the Groundnut Crop. The Gross Income of
Groundnut is ₹. 25,200 by producing 30 quintal Groundnut & per quintal rate is ₹. 4200.
1.5.5.20 Estimate Income Measures of Groundnut-

43
a) Farm Business Income (F.B.I.) = Gross Income - Cost A1
= 25,200 – 10,943
= ₹. 14,257
b) Family Labour Income (F.L.I.) = Gross Income - Cost B1
= 25,200 – 18,834
= ₹. 6,336
c) Net Income (N.I.) = Gross Income - Cost C1
= 25,200 – 20,928
= ₹. 4272
d) Farm Investment Income (F.I.I) = F.B.I - Imputed Value of Family Labour
= 14,257 – 1000
= ₹. 13,257
e) Benefit Cost Ratio = Gross income
Cost C1

= 25,200
20,928
= ₹. 1.20

f) Per quintal cost of cultivation = Cost C1 - Value of by Product

Quantity of main produce (qtls)

= 20,928 - 0
6
= ₹. 3488

g) Per hectare cost of cultivation = Cost C1 - Value of by product

Area (ha)
= 20,928 - 0
0.2
= ₹. 1,04,640
1.5.5.21 Input Utilization for Sugarcane by Host Farmer
Crop - Sugarcane Variety – Co-0265
Area - 1.2 Ha Season - Annual
Table No. 1.37 Input Utilized for Sugarcane
Sr. Item of Cost Unit Per Hector Per Plot
No. Qty Rate(₹) Value (₹) Qty Rate (₹) Value(₹)
44
 1. Hired Human Labour
i. Male Days 35 300 10,500 42 300 12,600
ii. Female Days 100 150 15,000 120 150 18,000
2. Owned Machinery Used
(Diesel charges)
i. Ploughing Lit. 20 67 1340 24 67 1608
ii. Harrowing Lit. 20 67 1340 24 67 1608
iii. Power Tiller Lit 25 67 1675 30 67 2010
iv. Ridges Lit 10 67 670 12 67 804
3. Hired Machinery Used - - - - - - -
(Harvesting)
4. Seed Purchased Set 25,000 3500 17,500 30,000 3500 21,000
5. Manure Trolley 5 4000 20,000 6 4000 24,000
6. Fertilizers
i. Malathion ml 625 0.4 250 750 0.4 300
ii. N (250) Kg 540 6 3240 648 6 3888
iii. P (115) Kg 190 7 1330 228 7 1596
iv. K (115) Kg 700 19 13,300 840 19 15,960
v. Bensulf Kg 25 35 875 30 35 1050
7. a. Weedicide
i. Atrazine Kg 2 260 520 2.4 260 624
ii. Sencor Kg 1.5 280 420 1.8 280 504
iii. 2,4-D Kg 1.5 270 405 1.8 270 486
b. Insecticide ml 625 0.92 575 750 0.92 690
(Chlorpyriphos)
8. Irrigation Charges ₹ - - 20,174 - - 24,209
9. Incidental Charges ₹ - - 1704 - - 2045
10. Total W.C. ₹ - - 1,10,818 - - 1,32,982
The Table No. 1.37 Shows that the various Inputs such as seeds, Fertilizers etc. are utilized by the
Host Farmer for Sugarcane Crop. Total Working Capital required to Sugarcane Crop for 1.2 ha Land is ₹.
1,32,982.
1.5.5.22 Cost of Cultivation of Sugarcane
Table No. 1.38 Cost of Cultivation for Sugarcane
Sr. No Item of Cost Per Hector Value (₹) Per Plot (₹)
1. Hired Human Labour 25,500 30,600

45
 2. Owned Machinery Used 5025 6030
3. Hired Machinery Used - -
4. Seed Purchased 17,500 21,000
5. Manure 20,000 24,000
6. Fertilizers 18,995 22,794
7. Weedicide & Insecticide 1920 2304
8. Irrigation Charges 20,174 24,209
9. Incidental Charges 1704 2045
10. Total W.C (1 to 9) 1,10,818 1,32,982
11. Interest On W.C @ 6 % 6649 7979
12. Total Operational Cost (10+11) 1,17,468 1,40,961
13. Land Revenue & other Cesses 190 228
14. Depreciation on Implements Machinery & 11,119 13,343
Building
15. Rental Value of Land 77,310 92,772
16. Interest on Fixed Capital @ 10 % 18,494 22,193
17. Total Fixed Cost (13+14+15+16) 1,07,113 1,28,536
18. Total Cost 2,24,580 2,69,497
19. Total Operational Cost 1,17,468 1,40,961
20. Land Revenue 190 228
21. Depreciation on Implements & Machinery 11,119 13,343
22. Cost A1 (19+20+21) 1,28,776 1,54,532
23. Interest on Fixed Capital @ 10 % 18,494 22,193
24. Rental Value 77,310 92,772
25. Cost B1 (22+23+24) 2,24,580 2,69,497
26. Imputed Value of Family Labor 7500 9000
27. Supervision Charges (10% of Cost A1) 12,877 15,453
28. Cost C1 (25+26+27) 2,44,957 2,93,950
It is observed from the Table No. 1.38 that Cost Concepts of Sugarcane Crop including Cost A1 is ₹.
1,54,532, Cost B1 is ₹. 2,69,497 & Cost C1 is ₹. 2,93,950 respectively.
• Rental Value of Land = 1/6 of the Gross Produce – Land Revenue
For 1 Hector = 1/6 × 4,65,000 - 190
= 77,500 – 190
= ₹. 77,310
For 1.2 Hector = 1/6 × 5,58,000 - 228

46
 = 93,000 – 228
= ₹. 92,772

1.5.5.23 Yield of Sugarcane-

Table No. 1.39 Yield of Sugarcane
Sr. No Item Unit Per Plot Per Ha
Quantity Rate (₹) Value (₹)
1. Main Product Tonne 210 2600 5,46,000 4,55,000
2. By Product - - - 12,000 1,000
Total 5,58,000 4,65,000
The Table No. 1.39 indicates that, Gross Income of the Sugarcane Crop. The Gross Income of
Sugarcane is ₹. 5,58,000 by producing 210 tonne Sugarcane & per tonne rate is ₹. 2600.
1.5.5.24 Estimate Income Measures of Sugarcane-
a) Farm Business Income (F.B.I.) = Gross Income - Cost A1
= 5,58,000 – 1,54,532
= ₹. 4,03,468
b) Family Labour Income (F.L.I.) = Gross Income - Cost B1
= 5,58,000 – 2,69,497
= ₹. 2,88,503
c) Net Income (N.I.) = Gross Income - Cost C1
= 5,58,000 – 2,93,950
= ₹. 2,64,050
d) Farm Investment Income (F.I.I) = F.B.I - Imputed Value of Family Labour
= 4,03,468 – 9000
= ₹. 3,94,468
e) Benefit Cost Ratio = Gross income
Cost C1
= 5,58,000
2,93,950
= ₹. 1.89

f) Per Tonne cost of cultivation = Cost C1 - Value of by Product

Quantity of main produce (tonne)

= 2,93,950 – 12,000
210
47
 = ₹. 1343

g) Per hectare cost of cultivation = Cost C1 - Value of by product

Area (ha)
= 2,93,950 – 12,000
1.2
= ₹. 2,34,958

48
1.5.6 Alternative Farm Plan
Available Resources or Facilities –
1. Land holding: 3.4 Ha.
2. Irrigation Facilities: Bore Well & Canal
3. Well drained Soil
4. Drip Irrigation
Criteria –
1. To generate more Income.
2. Efficient utilization of available Resources.
3. Fulfil the requirement of family.
Limitations –
1. Availability of Labour
2. Availability of inputs e.g. Fertilizer.
3. More prices of fertilizer

Suggestions –

1. I have suggested to farmer to utilized total land holding.

2. I have suggested to farmer taking the crop in summer season which is more profitable & which
increases annual income of the farmer.
3. I have suggested cultivating Sweet Corn on Fallow land in summer.
1.5.6.1 Alternative Cropping Pattern

Table No.1.40 Alternative Cropping Pattern

Season Crops Variety Area (ha) Yield (qtl) Gross Value (₹)
Main Produce By Produce
Kharif Jowar Maldandi 0.8 24 79,200 16,000
Maize Decalp 1941 1.2 114 2,22,300 12,000
Rabi Onion Puna-fursungi 0.2 38 91,200 -
Wheat Tapowan 1.8 81 2,14,650 -
Summer Groundnut Phule Unnati 0.2 6 25,200 -
Sweet Corn Sugar-75 0.8 40,000(Cob) 3,20,000 8,000
Annual Sugarcane Co-265 1.2 210 ton 5,46,000 12,000
Total 6.2 14,98,550 48,000

49
1.5.6.2 Cropping Intensity

Table No. 1.41 Cropping Intensity

Sr. No Particulars Area (ha)
1. Total Land 3.4
2. Net Cultivated Area 3.2
3. Gross Cropped Area 6.2

Gross Cropped Area

Cropping Intensity = × 100
Net Cultivated Area
= 6.2 / 3.2 × 100
= 193.75 %
Interpretation: The Cropping Intensity is Greater than 100 % which shows that land is fully utilized.
1.5.6.3 Crop wise Overhead Cost

Table No. 1.42 Crop Wise Overhead Cost of Alternative Crops

Sr. No. Crops Area of Crop wise Interest Irrigation Incidental Land
Plot (Ha) Depreciation on Fixed Charges charges Revenue
Capital
1. Jowar 0.8 8,895 14,795 3,143 1,363 20
2. Maize 1.2 13,343 22,193 7,793 2,045 30
3. Onion 0.2 2,224 3,699 2,667 340 -
4. Wheat 1.8 20,014 33,289 15,793 3,067 45
5. Groundnut 0.2 2,224 3,699 2,667 340 8
6. Sweet Corn 0.8 7747 12,885 5886 1187 20
7. Sugarcane 1.2 13,343 22,193 24,209 2,045 228
Total 60,043 99,868 56,272 9,200 331

1.5.6.4 Input Utilization for Sweet Corn by Host Farmer

Crop - Sweet Corn Variety – Sugar-75
Area - 0.8 Ha Season - Summer
Table No. 1.43 Input Utilized for Sweet Corn
Sr. Item of Cost Unit Per Hector Per Plot
No. Qty Rate(₹) Value (₹) Qty Rate (₹) Value(₹)
1. Hired Human Labour
i. Male Days 25 300 7500 20 300 6000

50
 ii. Female Days 20 150 3000 16 150 2400
2. Owned Machinery Used
(Diesel charges)
i. Ploughing Lit. 15 67 1005 12 67 804
ii. Horrowing Lit. 15 67 1005 12 67 804
iii. Ridges Lit 22 67 1474 17.6 67 1179
3. Hired Machinery Used - - - - - - -
(Harvesting)
4. Seed Purchased Kg 7.5 2500 18,750 6 2500 15,000
5. Manure - - - - - - -
6. Fertilizers
i. N (100) Kg 217 6 1302 174 6 1044
ii. P (50) Kg 83 7 581 66.4 7 465
iii. K (50) Kg 313 19 5947 250.4 19 4758
7. Weedicide
i. Tinzer Ml 30 50 1500 24 50 1200
8. Irrigation Charges ₹ - - 7358 - - 5886
9. Incidental Charges ₹ - - 1484 - - 1187

1.5.6.5 Cost of Cultivation of Sweet Corn

Table No. 1.44 Cost of Cultivation for Sweet Corn
Sr. No Item of Cost Per Hector Value (₹) Per Plot (₹)
1. Hired Human Labour 10,500 8400
2. Owned Machinery Used 3484 2787
3. Hired Machinery Used - -
4. Seed Purchased 18,750 15,000
5. Manure - -
6. Fertilizers 7834 6267
7. Weedicide 1500 1200
8. Irrigation Charges 7358 5886
9. Incidental Charges 1484 1187
10. Total W.C (1 to 9) 50,909 40,727
11. Interest On W.C @ 6 % 3055 2444
12. Total Operational Cost (10+11) 53,964 43,171

51
 13. Land Revenue & other Cesses 25 20
14. Depreciation on Implements Machinery & 9684 7747
Building
15. Rental Value of Land 68,308 54,646
16. Interest on Fixed Capital @ 10 % 16,106 12,885
17. Total Fixed Cost (13+14+15+16) 94,123 75,298
18. Total Cost 1,48,086 1,18,469
19. Total Operational Cost 53,964 43,171
20. Land Revenue 25 20
21. Depreciation on Implements & Machinery 9684 7747
22. Cost A1 (19+20+21) 63,673 50,938
23. Interest on Fixed Capital @ 10 % 16,106 12,885
24. Rental Value 68,308 54,646
25. Cost B1 (22+23+24) 1,48,087 1,18,469
26. Imputed Value of Family Labour 7500 6000
27. Supervision Charges (10% of Cost A1) 6367 5094
28. Cost C1 (25+26+27) 1,61,954 1,29,563
• Rental Value of Land = 1/6 of the Gross Produce – Land Revenue
For 1 Hector = 1/6 × 4,10,000 - 25
= 68,333 – 25
= ₹. 68,308
For 0.8 Hector = 1/6 × 3,28,000 - 20
= 54,666 – 20
= ₹. 54,646
1.5.6.6 Yield of Sweet Corn-
Table No. 1.45 Yield of Sweet Corn
Sr. No Item Unit Per Plot Per Ha
Quantity Rate Value (₹)
1. Main Product Cobs 40,000 8 3,20,000 4,00,000
2. By Product - - - 8,000 10,000
Total 3,20,000 4,10,000

52
1.5.6.7 Estimate Income Measures of Sweet Corn-
a) Farm Business Income (F.B.I.) = Gross Income - Cost A1
= 3,20,000 – 50,938
= ₹. 2,69,062
b) Family Labour Income (F.L.I.) = Gross Income - Cost B1
= 3,20,000 – 1,18,469
= ₹. 2,01,531
c) Net Income (N.I.) = Gross Income - Cost C1
= 3,20,000 – 1,29,563
= ₹. 1,90,437
d) Farm Investment Income (F.I.I) = F.B.I - Imputed Value of Family Labour
= 2,69,062 – 6000
= ₹. 2,63,062
e) Benefit Cost Ratio = Gross income
Cost C1
= 3,20,000
1,29,563
= ₹. 2.46

f) Per Tonne cost of cultivation = Cost C1 - Value of by Product

Quantity of main produce (tonne)

= 1,29,563 – 8000
40,000
= ₹. 3.03

g) Per hectare cost of cultivation = Cost C1 - Value of by product

Area (ha)
= 1,29,563 – 8000
0.8
= ₹. 1,51,954

53
1.5.6.7 Comparison Between Existing Farm Plan & Alternative Farm Plan-
Table No. 1.46 Comparison Between Existing Farm Plan & Alternative Farm Plan
Sr. No. Particulars Existing Farm Alternative Difference
Plan Farm Plan
1. Cropping Intensity 169 193.75 24.75
2. Gross Income 12,18,550 15,38,550 3,20,000
3. Net Income 4,68,305 6,58,742 1,90,437
4. Benefit Cost Ratio 1.67 1.78 0.11
5. Farm Business Income 8,38,570 11,07,632 2,69,062
6. Family Labour Income 5,41,285 7,42,816 2,01,531

1.5.7 Problems Faced by Farmers & Suggestions-

Table No. 1.47 Problems Faced by Farmers & Suggestions to Overcome them
Sr. No. Problems Suggestions
A] Resource Management
1. Increase in Use of Chemical Fertilizers Mainly Focus on Organic Farming.
2. High Cost of Chemical Fertilizers Use of Organic Manures, FYM etc.
B] Financial Management
1. Finance is easily not available Various Schemes are available for
Development of Agriculture.
C] Production Management
1. Cost of Production is getting Higher Group Farming can be done.

54
1.6 Study of Multipurpose Co-operative Society:
1.6.1 Information of the Co-Operative Society:
• Name : Khandali Vividh Karyakari Seva Sahakari Sanstha Maryadit,
Khandali.
• Address: A/P.: Khandali, Tal. - Malshiras, Dist. - Solapur
• Registration Number: 21916
• Year of Establishment: 15/05/1992
• Audit Class: “B” Class
• Number of Members: Male – 256 , Female – 85, Total – 341.
1.6.1.1 Information of Management Committee:
Table No. 1.48 Information of Management Committee (2015/16-2020/21)

Sr. No Name of Member Position Group

1. Mr. Subhash Shripati Patale Chairman Debt
2. Mr. Bandu Ankush Bhosale Voice Chairman Debt
3. Mr. Narayan Bhau Patale Member Debt
4. Mr. Prakash Ganapat Patale Member Debt
5. Mr Rahul Bhausaheb Jadhav Member Debt
6. Mr. Tukaram Hanumant Gaikwad Member Debt
7. Mr. Kailas Balaso Bhosale Member Debt
8. Mr. Vitthal Limbraj Bhosale Member Debt
9. Mrs. Vishrantibai Shrirang Pawar Member Women Reserved
10. Mrs. Kusum Ashok Patale Member Women Reserved
11. Mr. Shabbir Sharfuddin Tamboli Member OBC
12. Mr. Mahadev Namdev Thorat Member VJ/NT
13. Mr. Nahadev Namdev Thorat Member SC/ST
14. Mr. Shakir Shaukat Mulani Sachiv -
1.6.1.2 Whether Society is for a single Village? – Yes

Table No. 1.49 Other Information of the Society

Sr. No. Name of Village Head Quarter Population Distance from H.Q No. of Members
1. Khandali Solapur 7,707 109 Km 341

55
1.6.1.3 Share Capital:
Table No. 1.50 Share Capital of Society
A) Authorised Share Capital: ₹. 18,81,440
B) Paid up Capital ₹. 36,82,139
C) Value of Each Share
i. From Members ₹. 200
ii. From Government ₹. 200
iii. From N.C.D.C ₹. 200
iv. From Others ₹. 40
1.6.1.4 Borrowing of the Society:

Table No. 1.51 Borrowings of the Society

Sr. No. Institution Amount Borrowed Rate of Interest Period of Repayment

1. DCCB, Solapur 40,26,228 6% 1 Year
2. Nationalised bank - - -
3. Government - - -
1.6.1.5 Other Fund of the Society:
a) Reserve Fund: ₹. 10,19,851
b) Special Reserve Fund: ₹. 28,60,390
c) Special Emergency Fund: ₹. 18,18,000
1.6.1.6 Working Capital of the Society: 2,03,97,497
1.6.1.7 Credit Advance:
A) Short Term Loan:
1. Rate of Interest: 6%
2. Duration: 1 Year
3. Purposes: Crop Loan
Table No. 1.52 Credit Advance- Short Term Loan

Sr. No Year No. of Amount Advanced to Members Total

Borrowers Cash Kind Others
1. 2018 155 21,08,125 - - 21,08,125
2. 2019 130 19,22,897 - - 19,22,897
B) Medium Term Loan:
1. Rate of Interest: 13 %
2. Duration: 5 Year
3. Purposes: Livestock & Machinery

56
 Table No. 1.53 Credit Advance- Medium Term Loan

Sr. No Year No. of Amount Advanced to Total

Borrowers Members
Cash Kind Others
1. 2018
i. Livestock 72 12,20,212 - - 12,20,212
ii. Tractor 1 2,63,230 - - 2,63,230
2. 2019
i. Livestock 79 13,09,546 - - 13,9,546
ii. Tractor 3 7,46,956 - - 7,46,956
1.6.1.8 Progress of the Society:
Table No. 1.54 Progress of the Society

Sr. No. Particulars 2014-15 2015-16 2016-17 2017-18 2018-19

1. Member 270 292 302 325 341
2. Share capital (₹.) 25,95,213 29,24,985 31,97,547 34,68,224 36,82,139
3. Reserve fund & 5,79,365 6,55,147 7,12,658 9,01,623 10,19,851
other funds (₹.)
4. Deposits (₹.) 7,41,393 8,23,770 9,15,300 10,17,000 11,30,000
5. Borrowing 32,98,186 35,47,586 37,01,548 38,12,874 40,26,228
6. Total turnover of 10,372,023 11,524,470 12,804,966 14,227,740 15,808,601
the society
7. Net profit 2,80,000 2,90,000 3,05,000 3,33,000 3,11,393
8. Audit Class B B B B B
1.6.1.9 Expenditure of the Society:
Table No. 1.55 Information of Expenditure of the Society

Sr.no Particular Amount ₹

1. Salaries to staff 3,10,500
2. Bonus to staff 9,000
3. Rent of building & repairing of building 7,000
4. Electricity charges & repairs 7,000
5. Audit fees and other fees 25,000
6. Stationary, printing, advertisement etc. 6,000
Total Expenditure 3,70,500

57
1.7 Bank Loan Proposal for Tractor
1.7.1 Loan Proposal:
1. Name of Beneficiary: Mr. Shahurao Govind Ptale
2. Purpose of Loan: Tractor
3. Rate of interest: 9%
4. Type Of Loan: Medium Term Loan
5. Bank: IDBI
6. Company: Mahindra
7. Price: ₹. 6,00,000
8. Own Fund (25%): ₹. 1,50,000
9. Loan from Bank (75%): ₹. 4,50,000
1.7.2 Documents Required For Borrowing Loan
1. Loan Application Form.
2. 7/12 Abstract & 8 A.
3. Relevant Quotations in all aspects.
4. Income Certificate.
5. No Dues Certificate of Financials Institutes of Surrounding Area.
6. Statement of Recent Loan Borrowing, if Borrowed.
7. Photocopy of Ration card, Aadhar Card/Voting card/PAN Card/ Light bill.
8. Domicile Certificate.
9. Passport size photo.
1.7.3 Information about Borrowings:

Table No. 1.56 Borrowing of Loan for Purchase of Tractor

Sr. No. Source Amount Purpose Rate of Repayment Outstanding

Borrowed Date Interest During the
Year
1. IDBI 4,50,000 22/03/2018 9% 2021 1,05,000

58
1.7.4 Loan Proposal Form:

59
1.8 Experienced Gained:
1. Got Experience about production of agricultural crops like Jowar, Maize, Sugarcane, Wheat, Onion
& Groundnut etc. i.e. crops life cycle, seed rate, method of planting, Nutrient management and yield
per acre, etc.
2. Experience the financial requirements for all crops i.e. cost of seeds cost of fertilizers, irrigation
charges and cost of plant protection chemicals, etc.
3. Got Experience about estimated income measures, including working capital, gross income, net
income, farm business income, family labour income, BCR.
4. Got experience regarding the loan proposal for Tractor from Bank.
5. Experience the working of Cooperative Society and its progress.

60
 CHAPTER II

AGRICULTURAL PROCESSING
MANAGEMENT

61
2.1 INTRODUCTION:

Agri-Processing is the sub-sector of manufacturing that processes raw materials & intermediate
products derived from the Agricultural sector. Agri-Processing industry thus means transforming products
originating from agriculture, forestry & fisheries. We aim to increase the variety of Agri based processed
products in both international & local markets & to improve quality of local Agri-based processed products
as well as increase the number of small & medium enterprises involved in the processing of Agriculture
commodities.
2.1.1 Status of Food Processing in India:
• The Indian food industry is poised for huge growth, increasing its contribution to world food trade
every year.
• In India, the food sector has emerged as a high-growth & high-profit sector due to its immense
potential for value addition, particularly within the food processing industry.
• Accounting for about 32% of the country’s total food market, the Government of India has been
instrumental in the growth & development of the food processing industry.
• The Government of India aims to boost growth in the food processing sector by leveraging reforms
such as 100% Foreign Direct Investment (FDI) in marketing of food products.
• In spite of a large production base, the level of processing is low (less than 10%). Approximately 2%
of fruits & vegetables, 8% marine, 35% milk, 6% poultry are processed.
• More than 70% of the industry is in Unorganized sector.
• At present, India’s agricultural exports predominantly consist of raw materials, which are then
processed in other countries, again indicating the space to move up the value chain.
2.1.2 Status of Food Processing in Maharashtra:
Maharashtra covers an area of approximately three lakhs sq.km and its population exceeds 25 crore.
The states contribution to the Indian food processing industry is about 13 percent, and if proper focus is given,
it can increase to 25 percent. It processes various cereals, fruits, vegetables, dairy and fishery products.
Maharashtra is the leading producers of onions in India. Though Maharashtra is leading producer of
Agricultural, horticultural and marine products, it is poor as far as their processing concerned. As per my
estimates, the state’s overall processing rate-excluding those dairy and food grains-is about seven percent. It
is certainly can increases its value addition to 25 percent over the next 10 years with proper focus and
implementation policies.

62
2.2 RESEARCH & METHODOLOGY:
2.2.1 Introduction of Research:

Research is activity of solving the problems which adds new knowledge and develops the theory as well
as gathered evidence to test generalization. In order to arrive at proper conclusion, it is necessary for
investigator to adopt appropriate methods and procedures. The success of any project depends on
methodology which is adopted during data collection and various types of analysis on scientific lines.

2.2.2 Selected Processing Unit:

“Guruprasad Vermicelli Processing Unit”

2.2.3 Introduction of Processing Unit:

Guruprasad Processing Unit is established in 2011 as a small processing unit located a at Akluj, in
Malshiras tehsil.
A vermicelli processing is a business enterprise established for the processing of suji for to make
availability of ready to cook human consumption. It is mostly located in a Urban areas where the women’s
are engaged in work.
2.2.4 Collection of Data:
i. Primary Data:
It was collected from the personal interview with the owner of Guruprasad Processing Unit. The collected
was related to the various operations performed in processing unit, raw material requirement, licence
information, initial investment etc.
ii. Secondary Data:
It was collected from Internet, Agriculture Processing Books, Websites etc. The data was related to the
general information of the vermicelli process, packaging etc.
2.2.5 Objectives of Study:
• To study the capital investment of selected processing unit.
• To understand processing method of vermicelli.
• To estimate per unit cost of vermicelli.
• To workout profitability of selected processing unit.
• To study the problems faced by selected processing unit and give suggestions to overcome them.

63
2.2.6 Survey of different processing units in Malshiras Tehsil:

Table No. 2.1 Survey of Processing Units

Sr. No. Unit Name Name of Owner Address Products

1. Mauli Masale Mr. Mahesh Nagmal Padmavati Nagar, Kala masala,

Akluj chataney, Pickle

2. Guruprasad Processing Mr. Sachin Asabe Plot, Vermicelli, Rice

Unit Mangalge Sangramnagar, Papad.
Akluj

3. Prabhanand Chips Sau. Smita Lohakare Gandhi Chauk, Potato & Banana
Akluj chips

4. Shri Shengadana Ladu Mr. Kailas Patil Sangramnagar, Shengadana Ladu

Akluj

2.2.7 Analysis of Data:

Data were analysed in accordance with the specific points laid down at the time of preparing research
plan & interpreted using Tabular & Graphical method.
1) Total Cost = Fixed Cost + Variable Cost
Income of selected Product
2) Product Share = × 100
Total Income of the Unit
Total Cost of Production
3) Per Kg Cost of Production =
Total Production
Original Amount × 10
4) Junk Value = 100
Present Value - Junk Value
5) Depreciation =
Expected Life
Gross Income
6) Benefit Cost Ratio =
Total Cost
Fixed Cost
7) Break Even Point (in Unit) =
Price per Kg - Variable Cost per Kg
Total Fixed Cost
8) Break Even Point (in ₹.) =
1 - (Variable Cost per Kg / Selling Price per Kg)

9) Margin of Safety (in Unit) = Total Production – Production at BEP

10) Margin of Safety (in ₹) = Gross Income – BEP in ₹

64
2.3 RESULT & DISCUSSION:
2.3.1 General Information of Selected Processing Unit:
Table No. 2.2 General Information of Guruprasad Processing Unit
Sr. No. Particular Content
1. Name of the Factory Guruprasad Processing Unit
2. F.P.O. Licence Number 21520217000036
3. Address Asabe Plot, Sangramnagar, Akluj
4. Name of the Owner Mr. Sachin Kallappa Manglage
5. i. Age 41
ii. Education 12 th
iii.Mb. No. +91 9326436639
6. E-Mail manglage_rekha@rediffmail.com
7. Type of Ownership Individual
8. Year of Establishment 2011
9. Category of Processing Factory Home Scale
10. Items Processed Vermicelli, Rice Papad

2.3.2 Selected Product:

Fig. No. 2.1 Selected Product – Vermicelli

65
2.3.3 Process of Vermicelli:

Fig No. 2.2 Flow Chart of Vermicelli Processing

66
2.3.4 Capital Investment of Processing unit:
The analysed data on Capital Investment in Processing Unit should be presented in following Table.
Table No. 2.3 Capital Investment of Processing unit
Sr. No. Items Unit Quantity Purchase Price (₹) Vermicelli Share
1. Acquisition of Land R 1 5,00,000 40,875
2. Water Supply Structure Tank 1 4,000 3270
3. Construction of Building
a. Processing unit R 1 1,50,000 1,22,625
4. Machinery
a. Vermicelli Machine No. 1 1,00,000 1,00,000
b. Weighing Balance No. 1 6,000 4905
c. Stamp Pad No. 1 300 245
5. Equipment’s
a. Wooden Sticks No. 200 1,000 1,000
b. Iron Racks No. 4 8,000 8,000
c. Tubs No. 2 500 500
d. Burner No. 2 900 735
6. Vehicle No. 1 50,000 40,875
Total 3,23,030
2.3.5 Working Seasons (2018-19):
Table No. 2.4 Working Seasons
Sr. No Month Days
1. January 30
2. February 25
3. March 30
4. April 28
5. May 27
6. June 30
7. July 20
8. August 22
9. September 20
10. October 25
11. November 30
12 December 30
Total 317

67
2.3.6 Raw Material Purchased per Month & per Year:
Table No. 2.5 Raw Material Purchased
Sr. No. Product Name Quantity per Quantity Per Value
Month (Kg) Year (Kg) Per Kg Whole Lot
1. Suji 1882 22,588 26 5,87,288
2. Salt 7 84 10 840
Total 22,672 36 5,88,172

2.3.7 Quantity Processed in a Year:

Table No. 2.6 Quantity Processed
Sr. No. Product Name Quantity (Kg) Income per Year (₹) % Share
1. Vermicelli 19,200 13,44,000 81.75
2. Rice Papad 1200 3,00,000 18.25
Total 20,400 16,44,000 100

2.3.8 Operating Cost:

Table No. 2.7 Operating Cost per Year
Sr. No. Item of Cost Quantity Rate (₹) Value (₹) % Share (81.75)
1. Family Labour
a. Male 1 200 70,000 57,225
b. Female 2 100 70,000 57,225
2. Plastic Bags
a.130 gm 120 Kg 1,200 14,400 14,400
b. 500 gm 60 Kg 600 7,200 7,200
3. Paper Labels 7500 1 7,500 6,131
4. Licence Fee 1 1500 1,500 1,226
5. Advertisement - 1000 1000 818
6. Fuel
a. Electricity 540 unit 8 4320 4,320
b. Petrol 120 Lit 82 9840 7,416
7. Maintenance - 1000 - 1000
8. Other Miscellaneous - 40 480 392
Total 1,57,353

68
2.3.9 Fixed Cost:
Table No. 2.8 Fixed Cost with their Depreciation
Sr. No. Particulars Vermicelli Share (₹) Depreciation Amount (₹)
1. Depreciation on Building @ 2 % 1,22,625 2,452.5
2. Depreciation on Water Supply Structure 3,270 65.4
@ 2%
3. Depreciation on Machinery &
Equipment’s @ 10 %
a. Vermicelli Machine 1,00,000 10,000
b. Weighing Balance 4,905 490.5
c. Wooden Stick 1,000 100
d. Iron Rack 8,000 800
e. Tubs 500 50
f. Stamp Pad 245 24.5
g. Burner 735 73.5
4. Vehicle @ 10 % 40,887 4088.7
5. Rental Value of Land @ 10% 40,887 4088.7
6. Total - 59,032
7. Interest on Fixed Capital @ 10 % - 5,903.2
8. Total Fixed Capital - 64,935.2

Total Fixed Cost

• Fixed Cost for 1 Kg =
Quantity Processed in a Year in Kg
64,935
=
19,200
= ₹. 3.38
Fixed Cost per Kg is ₹. 3.38
Total Fixed Cost
• Fixed Cost per Quintal =
Quantity Processed in a Year in Quintal
64,935
=
192
= ₹. 338.20
Fixed Cost per Quintal is ₹. 338.20

69
2.3.10 Variable Cost:
Table No. 2.9 Variable Cost
Sr. No. Item of Cost Value (₹)
1. Electricity Bill 4,320
2. Fuel 7,416
3. Wages 1,14,450
4. Maintenance 1,000
5. Packaging Material 27,253
6. Licence Fee 1,226
7. Advertisement 818
8. Raw Material 5,88,128
9. Loss in Processing @ 0.75 % 3749
10. Other Miscellaneous 392
11. Total 7,48,752
12. Interest on Working Capital @ 12 % 89,850
13. Total Variable Cost 8,38,602

Total Variable Cost

• Variable Cost for 1 Kg =
Quantity Processed in a Year in Kg
8,38,602
=
19,200
= ₹. 43.67
Variable Cost per Kg is ₹. 43.67
Total Variable Cost
• Variable Cost per Quintal =
Quantity Processed in a Year in Quintal
8,38,602
=
192
= ₹. 4367
Variable Cost per Quintal is ₹. 4367

70
2.3.11 Total Cost of Processing:
• Total Cost of Processing = Total Fixed Cost + Total Variable Cost
= 64,935 + 8,38,602
= ₹. 9,03,537
Total Cost of Processing is ₹. 9,03,537
Total Cost
• Total Cost of Processing per Kg =
Quantity Processed in a Year in Kg
9,03,537
=
19,200
= ₹. 47
Total Cost of Processing per Kg is ₹. 47
Total Cost
• Total Cost of Processing per Quintal =
Quantity Processed in a Year in Quintal
9,03,537
=
192
= ₹. 4706
Total Cost of Processing per Kg is ₹. 4706

2.3.12 Production / Income:

Table No. 2.10 Total Income
Sr. Name of Quantity Cost of Price Total Cost Total Profit (₹.)
No Product Processed Production Realised (₹.) Income
in Kg (₹. / kg) (₹. / Kg) (₹.)
1. Vermicelli 19,200 47 70 9,03,537 13,44,000 4,40,463

2.3.13 Benefit Cost Ratio:

Gross Income
• Benefit Cost Ratio =
Total Cost
13,44,000
=
9,03,537
= 1.48
Interpretation: BC Ratio is 1.48 and is Greater than 1 hence Business is in Profit.

71
2.3.14 Break Even Point:
The BEP is the point at which Total Cost Curve & Total Revenue Curve are Equal & generating
zero Profit.
Fixed Cost
• Break Even Point (in Unit) =
Price per Kg - Variable Cost per Kg
64,935
=
70 - 43.67
64,935
=
26.33
= 2,466 Kg
Break Even Point in Unit is 2,466 Kg
Total Fixed Cost
• Break Even Point (in ₹.) =
1 - (Variable Cost per Kg / Selling Price per Kg)
64,935
=
1 - (43.67/ 70)
64,935
=
1 - 0.62
= ₹. 1,70,882
Break Even Point in ₹ is ₹. 1,70,882
Interpretation: 2,466 Kg of ₹. 1,70,882 is the point where Vermicelli Processing is neither in loss nor in
profit.
• Graphical Approach:

Fig No. 2.3 Graphical Approach

72
2.3.15 Margin of Safety:
• Margin of Safety (in Unit) = Total Production – Production at BEP
= 19,200 – 2,466
= 16,734

Margin of Safety (in Unit) is 16,734 Kg.

• Margin of Safety (in ₹) = Gross Income – BEP in ₹
= 13,44,000 – 1,70,882
= ₹. 11,73,118
• % Margin of Safety = Production at BEP × 100
Total Production
= 2,466 / 19200 × 100
= 12.84 %
2.3.16 Marketing Channels of Vermicelli:

Producer

Retailer

Consumer
• Channel wise Marketing Cost:
The producer sold the 20 Kg Vermicelli to the Retailers at Akluj @ ₹. 70 / Kg. The retailer sold the
Vermicelli to the Consumer @ ₹. 80 / Kg.
Table No. 2.11 A) Cost Incurred by Producer
Sr. No. Particulars Quantity (Kg) Rate (₹) Total
1. Transportation 20 2 40

Table No. 2.12 Cost Incurred by Retailer

Sr. No. Particulars Quantity (Kg) Rate (₹) Total
1. Storage 20 3 60

1. Market Cost:
a. Cost Incurred by Producer = ₹. 40
b. Cost Incurred by Retailer = ₹. 60

73
Total Marketing Cost = Cost incurred by Producer + Cost incurred by Retailer
= 40 + 60
= ₹. 100
Total Marketing Cost is ₹. 100

2. Market Margin:
Market Margin of Retailer = Selling Price of Retailer – Purchase Price + Marketing Cost
Of Retailer incurred by retailer
= 80 – (70+3)
= 80 – 73
= ₹. 7
Market Margin of Retailer is ₹. 7

3. Producer Price:
Pf = PA - Cr
(Producer Selling Price – Cost incurred by Producer)
= 70 – 2
= ₹. 68

4.Price Spread:
Table No. 2.13 Price Spread
Sr. No. Particulars Gross for 1 Kg % Share in price paid by Consumer
1. Producer Price 68 85
2. Total Marketing Cost 5 6.25
3. Market Margin of Retailer 7 8.75
4. Price Paid by Consumer 80 100

Price Spread = Retailer Purchase Price – Price Received by Produced

= 80 – 70
= ₹. 10

74
2.3.17 SWOT ANALYSIS
a. Strength-
1. Good Quality.
2. Available in Different packaging size.
3. Ready to Cook Product.
4. Round the year availability of Raw Material.
5. Provide Qualitative Product to the Consumer.
b. Weakness
1. Lack of market expertise.
2. Mostly Housewife women are made it at Home.
3. Less Advertisement.
4. Sometimes Electricity is not timely available.
c. Opportunity-
1. Market Widening.
2. To Generate Employment.
3. To Create Own Brand.
d. Threats-
1. Demand decreases due to lack of promotions.
2. Day by day increase Raw Material prices.

2.3.18 Problems & Suggestions:

Table No. 2.14 Problems & Suggestions

Sr. No Problems Suggestions

1. No big transportation facility. Purchase big vehicles so develop transport structure.

2. Less area for processing & Storage. Widen the area for processing & construct storage room.

3. Promotional strategies are poor. Use more promotional activities.

4. Lack of communication. Create a deep connection with your core target

customers.

75
2.3.19 Experience Gained:
• I got practical Knowledge about Processing of Vermicelli & its detail procedure.

• I got Knowledge about Capital investment in processing unit.

• I got knowledge about machinery & their functions used for selected product.

• I got Knowledge about Fixed cost & Variable cost.

• I got Knowledge about per unit cost of processing of selected product.

• I got knowledge about how to calculate BEP, BCR and other financial parameters.

76
 CHAPTER III
AGRICULTURAL MARKETING
MANAGEMENT

77
3.1. INTRODUCTION OF THE AGRICULTURAL MARKETING IN INDIA:
India is an Agricultural Country & one third population depends on the Agricultural sector directly or
indirectly. Agriculture remains as the main stay of the Indian Economy since time immemorial. Indian
Agriculture contribution to the national Gross Domestic Product (GDP) is about 25%. With food being the
crowing need of mankind, much emphasis has been on commercialising Agriculture production. For this
reason, adequate production & even distribution of food has of late become a high priority global concern.
Agriculture Marketing is mainly the buying & selling of Agricultural products. In earlier days when
the village economy was more or less self-sufficient the marketing of Agricultural products presented no
difficulty as the farmer sold his produce to the consumer on a cash or barter basis.
Todays Agricultural Marketing has to undergo a series of exchanges or transfers from one person to
another before it reaches the consumer. There are three Marketing functions involved in this, i.e., Assembling,
Preparation for Consumption & Distribution. Selling of any agriculture produce depends on some couples of
factors like the demand of the product at that time, availability of the product etc. the products may be sold
directly in the market or it may be stored locally for the time being. Moreover, it may be sold as it is gathered
from the field or it may be cleaned, graded & processed by the farmer or the merchant of the village.
Sometimes processing is done because consumer want it, or sometimes to conserve the quality of that product.
The task of distribution system is to match the supply with the existing demand by whole selling & retailing
in various points of different markets like primary, secondary & terminal markets. Most of the Agriculture
products in India are sold by farmers in the private sector to moneylenders or to village traders. Products are
sold in various ways. For example, it might be sold at a weekly village market in the farmers village or in
neighbouring village. If these outlets are not available, then produce might be sold at irregularly held market
in a nearby village or town, or in the mandi.
In India, there are several Central Government Organisations, who are involved in Agriculture
marketing like, CACP, FCI, CCI, JCI, etc. there are also specialised marketing bodies for Rubber, Tea, Coffee,
Tobacco, Spices & Vegetables. Under the Agricultura Produce (Grading & Marketing) Act of 1937, more
then forty primary commodities are compulsory graded for export & voluntarily graded for internal
consumptions. Although the regulation of commodity market is a function of state government, the
Directorate of Marketing & Inspection provides marketing & inspection services & Financial aid down to the
village level to help set up commodity grading centres in selected markets.
As we have a tradition of agricultural production, marketing and allied commercial activities, now it
is the time for us to brainstorm & come out with new ideas of value-added services. These value-added
services will give the existing Agricultural engine a new dimension. The next logical step could be food
processing which not only could be another revenue generating area but also can provide lots of full-time
employment to our youths. With the changing Agricultural Scenario 7 global competition, there is a need of
exploiting the available resources at maximum level.

78
 There was a survey undertaken by the DMI in the Ministry of Agriculture in 1970-71 & 1971-72, of
500 regulated markets was, with a view to assessing the adequacy & efficiency of the existing regulated
markets & highlighting their drawbacks has been the inadequate financial resources of some of the market
commodities. During the fourth plan, a central sector scheme was drawn up by the Ministry of Agriculture to
provide a grant of 20 % of the cost of development of market, subject to a maximum of Rs. 2 lakhs. The
balance will have to be provided by the commercial banks.
Another important development in the filed of regulated markets is the keen interest taken by the
International Development Agency in the development of the infrastructure in regulated market. The IDA is
financing the development of infrastructure in 50 markets of Bihar.
3.1.1 Types of Agriculture Markets:
The important types of Agriculture Markets in India are as follows:

i. Primary or Local Markets:

Primary markets are held once or twice a week in the neighbourhood of a group of villages. There are
more than 22,000 such markets in India. Most of the agriculturists sell their farm products in these markets.
More than 50% of the total marketed surplus is sold in these markets. These markets are organized by village
Panchayats who charge some rent from shopkeepers for the space occupied. Haggling and bargaining is a
common feature of these markets.
ii. Secondary Markets:
These are also known as ‘wholesale’ or ‘assembling’ markets and are called ‘mandis’. There are about
4145 such markets. These markets are permanent in nature; business in the markets is transacted regularly
throughout the year. The produce is handled in large quantities and specialized operators become necessary
for the performance of different services. The markets provide facilities of storage, handling and banking
services and are well-served by roads and railways. A number of middlemen operate in these markets.
iii. Terminal Markets:
These markets perform the function of carrying goods to consumers, final buyers or to places of
processing. Such markets are to be found in big cities or at ports. The area of their operation extends over a
state.
iv. Fairs:
Fairs held on religious occasions at pilgrim centres are important sources of marketing of agricultural
produce in India. Such fairs are held annually and are organized by district officers, local bodies or private
agencies. These fairs are very popular in Bihar, W. Bengal, UP, Orissa, Maharashtra, Gujarat and Rajasthan.
v. Regulated Markets:
These have been set up by the Government with the purpose of checking fraudulent practices which
are generally practiced by traders in the primary and secondary markets. In these markets, the rules and
regulations are prescribed by the Government marketing practices.
vi. Co-Operative Marketing:
These markets function on the basis of principles of cooperation. A cooperative marketing society
carry the agricultural produce direct to the consumers thus eliminating a large army of middlemen and
intermediaries.

79
vii. State Trading:
State trading in agricultural produce has become an important element of agricultural marketing in
India. State agencies like, Food Corporation of India, set up their exclusive centres in and around villages and
mandis at harvest time to procure produce from peasants to Government at fixed prices.

3.2 RESULT & DISCUSSION:

3.2.1 Study of Agriculture Produce Market Committee (APMC):

3.2.1.1 Functions of APMC:
a. To manage the main & sub-market yards & run them in the interest of the agriculturists & traders.
b. To prescribe the hours of trading with a view to controlling & regulating transactions.
c. To issue, renew or withdraw licences of market functionaries with a view to regulating the entry of
persons in the market.
d. To fix market charges for various functions & services.
e. To realise market fee from either buyers or sellers.
f. To collect & disseminate market news among the farmers, & buyers.
g. To settle disputes, which arise out of the sales & purchase of the notified agricultural commodities,
among farmers, traders & other market functionaries.
h. To control & regulate the behaviour of those who enter the market for transactions.
i. To provide facilities for grading & standardization & to take steps for the prevention of adulteration
of agriculture produce.
j. To bring, prosecute & defend any suit on behalf of the market committee.
k. To create amenities in the market yard & sub-yards as well as in the market area which are necessary
for the smooth functioning of the market of agricultural commodities.
3.2.2 Agriculture Produce Market Committee, Akluj:
3.2.2.1 General Information of Market:
Table No. 3.1 General Information of the APMC, Akluj.
1. Name of Market Committee Shankarrao Mohite Agriculture Produce
Market Committee, Akluj.
2. Address A/P. Akluj, Tal- Malshiras, Dist.- Solapur
3. Year of Establishment 1960
4. Act under which APMC established Maharashtra Agricultural Produce Marketing
Development & Regulation Act (1960)
5. Daily Working Hours (Official) 10:00 am to 5:30 pm
6. Trading Period 4 am to 10 pm (18 hrs.)
7. Market Area Malshiras Tehsil

80
 8. Notified Commodities Wheat, Sorghum, Maize, Banana,
Pomegranate, etc.
9. Present Chairman Mr. Madansinh Shankarao Mohite-Patil
10. Vice-Chairman Mr. Bappurao Narayan Pandhare
11. Present Secretory Mr. Rajendra Tukaram Kakade

3.2.2.2 Market Area:

A) Main market yard: Akluj
B) Area of market yard: 18.22 Ha
C) Name of Sub-yards:

Natepute

Pilliv

Akluj
Velapur

Malshiras

Chart No. 3.1 Sub-yards of Akluj APMC

3.2.2.3 Composition of Market Committee:
Table No. 3.2 Composition of Akluj APMC
Sr. No. Category Numbers
1. Farmers 12
2. Traders 5
3. Gram-Panchayat Members 4
4. Hamal / Weighman 4
5. Processors 2
6. Government Officers 2

3.2.2.4 Management Body of Akluj APMC:

Table No. 3.3 Management Body of Akluj APMC
Sr. No. Name Designation
1. Mr. Madansinh Shankarao Mohite-Patil Chairman

81
 2. Mr. Bapurao Narayan Pandhare Vice-Chairman
3. Mr. Rajendra Tukaram Kakade Secretory
4. Mr. Shahaji Mudhojirao Deshmukh Director
5. Mr. Kishorsinh Marutirao Mane-Patil Director
6. Mr. Haridas Lalasaheb Bhosale Director
7. Mr. Anandrao Abaso Mane-Deshmukh Director
8. Mr. Vishnu Shankar Kemkar Director
9. Mr. Hanmant Mugutkar Doltde Director
10. Mr. Islam Lalkhan Pthan Director
11. Mr. Ramdas Shankar Mane Director
12. Mr. Keshav Balu Kadam Director
13. Mr. Bhimrao Ganapat Gaikwad Director
14. Mr. Chandrakant Vishwanath Magar Director
15. Mrs. Vijaymala Nanasaheb Mane-Deshmukh Director
16. Mrs Pushplata Dilip Patil Director
17. Mr. Gajanan Bhagawan Ekatpure Director
18. Mr. Bahubali Chandrashekhar Chankeshwara Director
19. Mr. Anand Ashok Phade Director
20. Mr. Jayram Tanaji Karche Director
21. Mr. Pandurangrao Changojirao Deshmukh Director
22. Mr. Shivtejsinh Udaysinh Mohite-Patil Director

3.2.2.5 Staff of Akluj APMC:

Table No. 3.4 Staff of Akluj APMC
Sr. No. Category Numbers
1. Supervisor 5
2. Clerk 10
3. Peon 2
4. Watchman 4
5. Electrician 2
6. Driver 1

3.2.2.6 Market Functionaries:

Table No. 3.5 Market Functionaries of Akluj APMC
Sr. No. Category Numbers

82
 1. Traders
‘A’ Class 168
‘B’ Class 33
2. Commission Agent 221
3. Weighman 9
4. Hamal 207
5. Helper 25
6. Processors 8
7. Brokers 8
Total 679

3.2.2.7 A) Amenities Provided by the Market Committees:

Table No. 3.6 Amenities Provided by Market Committee
Sr. No. Particulars Sr. No. Particulars
1. Farmers Rest House 9. Auction Platform
2. Drinking Water Facility 10. Godown
3. Water Cooler 11. Post Office
4. Cattle Shed 12. Internal Roads
5. Weighing Bridge 13. Display Board for Market Price
6. Ripening Chamber 14. Electricity
7. Generator 15. Canteen
8. Banks 16. Parking Area

B) Method of Sale & Other Functions:

➢ Method of sale - Open auction
➢ How traders judge the quality? - By take produce into hand
➢ Do you think that there is real competition among traders always? –Yes
C) Disputes: Are the disputes between producer (sellers & traders) common? –No
D) Supervisor:
➢ Who exercises supervision over the day to day transaction in the market? - Supervisor
➢ Do the Chairman & Vice chairman supervise the transactions in the market? - Yes
➢ If yes, whether once in a week/once in a month/once in three or four month/occasionally - Twice in a
week
➢ How many members of the market committee participate activity in the working of the market &taking
interest? In what form?

83
 Table No. 3.7 No. of Members who actively take participate in different activity
Sr.No. Forms Members
1. Occasional Supervision 22
2. Attending meeting regularly 22
3. Participating in the discussion of the meeting 22

E) What is the approximate receipt & expenditure of the market committee?

i) Receipt: ₹. 2,29,53,181
ii) Expenses: ₹. 2,15,55,340
iii) Surplus: ₹. 13,97,841
iv) Source of finance:
➢ Market fee: ₹. 1.05 %
➢ License fees: ₹. 200/180
F) Is there inspection of the market committee from higher authority? - Yes
➢ If yes, from whom? - Government Audit
➢ At what interval? - 6 months
➢ Give year of latest inspection: 2018-19
H) a) If their audit of market committee? - Yes
b) Who undertakes audit? – Government
c) What is the audit class given to the market committee last year- ‘A’ Class
I) what is the machinery to settle disputes?
a. Electric weight
b. Information on computer
J) Grading:
➢ Which commodities are graded? - All commodities
➢ Is there is grading hall? - Yes
➢ If yes, there is sufficient? - Yes
K) Market Intelligence:
i) What market information is supplied by the market committee to farmers? - Prices& Arrivals
ii) From what source do you get this information? - Computer, display Board, Yearly report, Sticker board.
iii) How do you get this information? - Yearly Report
iv) How do you disseminate this information to the farmers? - Notice Board
L) Suggestion:-
a) Provision of market information to farmer through the message or News.
b) Give news about the prices of each commodity or any market information in newspaper.
c) Prepare groups on Facebook, WhatsApp for circulating market information at ease.

84
3.3 Marketing of Dry Chilly:
3.3.1 Marketing Channels used for Marketing of Dry Chilly:
A) Channel I

Producer Wholesaler Retailer Consumer

B) Channel II

Producer Akluj APMC Retailer Consumer

C) Channel III
Village
Producer Wholesaler Retailer Consumer
Trader

D) Channel IV
Producer Consumer

3.4 Channel Wise Marketing Cost of Dry Chilly:

Marketing channels are the routes through which products are flow from producer to consumer.
A) Channel I

Producer Wholesaler Retailer Consumer

The Farmer Mr. Patil comes to Akluj APMC with 500 Kg (50 Bags) of Dry Chilly. The Farmer incurs
following expenses,
a) Cost Incurred by Producer
Table No. 3.8 Cost Incurred by Producer
Sr. No. Particulars Quantity (Bag) Rate (₹) Total (₹)
1. To the truck owner for 50 15 750
Transporting the Dry Chilly
2. Labors for Unloading 50 4 200
Total 950
Now the produce is auctioned & the Wholesaler Mr. Phool Chand purchase the produce at a price of
₹.160 / Kg. The Wholesaler makes the payment to the Farmer. The Wholesaler incurs following expenses.
b) Cost incurred by Wholesaler
Table No. 3.9 Cost Incurred by Wholesaler
Sr. No. Particulars Quantity (Bag) Rate (₹) Total (₹)
1. Cost of Gunny Bags 50 5 250
2. Commission @ 1 % of value 50 80,000 × 1 800
of produce 100

85
 3. Weighing Charges @ 1 % of 50 80,000 × 1 800
the Value of Produce 100
3. Market Fee to the Market 500 80,000 × 2 800
Committee @ 2 % of value of 100
the produce
4. Loading & Unloading 50 4 200
Charges
5. Transportation 50 12 600
Total 3,450
The Wholesaler is sold the Dry Chilly to the Retailer @ Rs. 200 / Kg. The Retailer incurs following
Cost.
c) Cost incurred by Retailer
Table No. 3.10 Cost Incurred by Retailer
Sr. No. Particulars Quantity (Bag) Rate (₹) Total (₹)
1. Loading & Unloading 50 4 200
Charges
2. Transportation 50 10 500
Total 700
The Retailer Sold the Dry Chilly to the Consumer @ ₹. 220 / Kg.
• Total Marketing Cost = a + b + c
= 950 + 3450 + 700
= ₹. 5,100
Total Marketing Cost is ₹. 5,100
• Market Margin:
a) Margin of Wholesaler = PRi - (Ppi + Cmi)
= 1,00,000 – (80,000 + 3,450)
= 1,00,000 – 83,450
= ₹.16,550
b) Margin of Retailer = PRi - (Ppi + Cmi)
= 1,10,000 – (1,00,000 + 700)
= 1,10,000 – 1,00,700
= ₹.9300
Total Market Margin =a+b
= 16,550 + 9,300
= ₹.25,850

86
 Total Market Margin = ₹.25,850
• Producer Price:
Pf = PA - Cr
(Producer Selling Price – Cost incurred by Producer)
= 500 × 160 – 950
= 80,000 – 950
= ₹. 79,050 for Whole Lot
= ₹. 158.1 for 1 Kg
• Producer Share in Consumer’s Rupee
Ps = (PF ÷ PR) × 100
= (158.1 ÷ 220) × 100
= ₹. 71.86
• Price Spread:
Table No. 3.11 Price Spread
Sr. No. Particulars Gross for whole Gross for 1 Kg. % Share in
lot of 500 Kg price paid by
the Consumer

1. Producer Price 79,050 158.1 71.86

2. Total Marketing Cost 5,100 10.2 4.63

3. Market Margin 25,850 51.7 23.51

4. Price paid by Consumer 1,10,000 220 100

• Interpretation of Channel I
Table No. 3.12 Result of Channel I
Sr. No. Particulars Amount (₹)
1. Total Marketing Cost 5,100
2. Market Margin 25,850
3. Producer Price 79,050
4. Producer Share in Consumer Rupee 71.86

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B) Channel II

Producer Akluj APMC Retailer Consumer

The Farmer Mr. Patil comes to Akluj APMC with 500 Kg (50 Bags) of Dry Chilly. The Farmer incurs
following expenses,
a) Cost Incurred by Producer
Table No. 3.13 Cost Incurred by Producer
Sr. No. Particulars Quantity (Bag) Rate (₹) Total (₹)
1. To the truck owner for 50 15 750
Transporting the Dry Chilly
2. Labors for Unloading 50 4 200
Total 950
Now the produce is auctioned & the Retailer Mr. Chavan purchase the produce through his
Commission Agent at a price of ₹.180 / Kg. The Retailer makes the payment to the Farmer. The Retailer
incurs following expenses.
b) Cost incurred by Retailer
Table No. 3.14 Cost Incurred by Retailer
Sr. No. Particulars Quantity (Bag) Rate (₹) Total (₹)
1. Cost of Gunny Bags 50 5 250
2. Commission @ 1 % of value 50 90,000 × 1 900
of produce 100
3. Weighing Charges @ 1 % of 50 90,000 × 1 900
the Value of produce 100
4. Market Fee to the Market 50 90,000 × 2 1,800
Committee @ 2 % of value of 100
the produce
5. Transportation 50 8 400
Total 4,250
The Retailer Sold the Dry Chilly to the Consumer @ ₹. 220 / Kg.
• Total Marketing Cost = a + b
= 950 + 4,250
= ₹. 5,200
Total Marketing Cost is ₹. 5,200
• Market Margin:
a) Margin of Retailer = PRi - (Ppi + Cmi)
= 1,10,000 – ( 90,000 + 4,250)
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 = 1,10,000 – 94,250
= ₹.15,750
Total Market Margin = ₹.15,750
• Producer Price:
Pf = PA - Cr
(Producer Selling Price – Cost incurred by Producer)
= 500 × 180 – 950
= 90,000 – 950
= ₹. 89,050 for Whole Lot
= ₹. 178.1 for 1 Kg
• Producer Share in Consumer’s Rupee
Ps = (PF ÷ PR) × 100
= (178.1 ÷ 220) × 100
= ₹. 80.95
• Price Spread:
Table No. 3.15 Price Spread
Sr. No. Particulars Gross for whole Gross for 1 Kg. % Share in
lot of 500 Kg price paid by
the Consumer

1. Producer Price 89,050 178.1 80.95

2. Total Marketing Cost 5,200 10.4 4.72

3. Market Margin 15,750 31.5 14.33

4. Price paid by Consumer 1,10,000 220 100

• Interpretation of Channel II
Table No. 3.16 Result of Channel II
Sr. No. Particulars Amount (₹)
1. Total Marketing Cost 5,200
2. Market Margin 15,750
3. Producer Price 89,050
4. Producer Share in Consumer Rupee 80.95

89
C) Channel III
Village
Producer
Trader
Wholesaler Retailer Consumer

The Farmer Mr. Patil Sold 500 Kg (50 Bags) of Dry Chilly to the Village Trader. The Farmer incurs
following expenses,
a) Cost Incurred by Producer
Table No. 3.17 Cost Incurred by Producer
Sr. No. Particulars Quantity (Bag) Rate (₹) Total (₹)
1. Labors for Unloading 50 4 200
3. Cost of Gunny Bags 50 5 250
Total 450
Now the Farmer sold the Dry Chilly to the Village Trader at Rs. 165 / Kg. Village Trader comes to
Akluj APMC to Sold the Dry Chilly & incurs following Cost.
b) Cost incurred by Village Trader
Table No. 3.18 Cost Incurred by Village Trader
Sr. No. Particulars Quantity (Bag) Rate (₹) Total (₹)
1. Loading & Unloading 50 4 200
Charges
2. Commission @ 1 % of value 50 82,500 × 1 825
of produce 100
3. Weighing Charges @ 1% of 50 82,500 × 1 825
the Value of the Produce 100
4. Market Fee to the Market 50 82,500 × 2 1650
Committee @ 2 % of value of 100
the produce
5. Transportation 50 15 750
Total 4,250
The Village Trader sold the Dry Chilly to the Wholesaler at Rs. 185 / Kg. The Wholesaler incurs
following cost.
c) Cost incurred by Wholesaler
Table No. 3.19 Cost Incurred by Wholesaler
Sr. No. Particulars Quantity (Kg) Rate (₹) Total (₹)
1. Weighing @ 1 % of value of 50 92,500 × 1 925
the produce 100

90
 2. Loading & Unloading 50 4 / Bag 200
Charges
3. Transportation 50 10 500
4. Storage @ 2% of value of the 50 92,500 × 2 1850
produce 100
Total 3,475
The Wholesaler sold the Dry Chilly to the Retailer at Rs. 210 / Kg. The Retailer incurs following cost.
d) Cost incurred by Retailer
Table No. 3.20 Cost Incurred by Retailer
Sr. No. Particulars Quantity (Bag) Rate (₹) Total (₹)
1. Loading & Unloading 50 4 200
Charges
2. Transportation 50 6 300
Total 500
The Retailer Sold the Dry Chilly to the Consumer @ ₹. 225 / Kg.

• Total Marketing Cost = a + b + c + d

= 450 + 4,250 + 3,475 + 500
= ₹. 8,675
Total Marketing Cost is ₹. 8,675

• Market Margin:
a) Margin of Village Trader = PRi - (Ppi + Cmi)
= (185 ×500) – (165 × 500 + 4250)
= 92,500 – 86,750
= ₹. 5,750
b) Margin of Wholesaler = PRi - (Ppi + Cmi)
= (210 ×500) – (185 × 500 + 3,475)
= 1,05,000 – 95,975
= ₹. 9,025
c) Margin of Retailer = PRi - (Ppi + Cmi)
= (225 ×500) – (210 × 500 + 500)
= 1,12,500 – 1,05,500
= ₹.7000
Total Market Margin = a +b + c

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 = 5,750 + 9,025 +7000
= Rs. 21,775
Total Market Margin = Rs. 21,775

• Producer Price:
Pf = PA - Cr
(Producer Selling Price – Cost incurred by Producer)
= 500 × 165 – 450
= 82,500 – 450
= ₹. 82,050 for Whole Lot
= ₹. 164.1 for 1 Kg
• Producer Share in Consumer’s Rupee
Ps = (PF ÷ PR) × 100
= (164.1 ÷ 225) × 100
= ₹. 72.93
• Price Spread:
Table No. 3.21 Price Spread
Sr. No. Particulars Gross for whole Gross for 1 Kg. % Share in
lot of 500 Kg price paid by
the Consumer

1. Producer Price 82,050 164.1 72.93

2. Total Marketing Cost 8,675 17.35 7.71

3. Market Margin 21,775 43.55 19.36

4. Price paid by Consumer 1,12,500 225 100

• Interpretation of Channel III

Table No. 3.22 Result of Channel III
Sr. No. Particulars Amount (₹)
1. Total Marketing Cost 8,675
2. Market Margin 21,775
3. Producer Price 82,050
4. Producer Share in Consumer Rupee 72.93

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D) Channel IV

Producer Consumer

The Producer sold the Dry Chilly directly to the Consumer at Rs. 200 / Kg. Here, both Producer &
Consumer cannot incur Marketing Cost & also Market Margin.
• Producer Price:
Pf = PA - Cr
(Producer Selling Price – Cost incurred by Producer)
= 200 – 0
= Rs. 200
• Producer Share in Consumer’s Rupee
Ps = (PF ÷ PR) × 100
= (200 ÷ 200) × 100
= ₹. 100
• Price Spread:
Table No. 3.23 Price Spread
Sr. No. Particulars Gross for whole Gross for 1 Kg. % Share in
lot of 500 Kg price paid by
the Consumer

1. Producer Price 1,00,000 200 100

2. Total Marketing Cost 0 0 0

3. Market Margin 0 0 0

4. Price paid by Consumer 1,00,000 200 100

• Interpretation of Channel IV
Table No. 3.24 Result of Channel IV
Sr. No. Particulars Amount (₹)
1. Total Marketing Cost 0
2. Market Margin 0
3. Producer Price 1,00,000
4. Producer Share in Consumer Rupee 100

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3.4.1 Conclusion:
In above marketing channels, I calculate the Channel wise Marketing Cost, Market Margin,
Producer Share & Price Spread. Here, I observed that, in Channel I, Channel II, & Channel III a greater
number of intermediaries are included thus in that Channels the Producer Share in Consumer Rupee is less
than Channel IV.
In Channel IV, there is no any intermediary included in the Channel. Thus, Producer Share in
Consumer Rupee is more.
Channel IV is the best channel for marketing of Dry Chilly.

94
3.5 STUDY TOUR & VISITS
3.5.1 Study of Multipurpose Co-operative Marketing Society:
The establishment of co-operative marketing societies was another step which has been taken to
overcome the problems arising out of the present system of marketing agricultural produce. The objectives of
economic development and social justice can be furthered by channelizing agricultural produce through
cooperative institutions.
Co-operative is an important tool of economic development in rural India, when it comes to
cooperative marketing in India, it gives an idea of collective efforts to achieve specific objective to carry out
marketing strategy for agricultural products. The cooperative marketing arises due to the prevalence of many
defects in the private and open marketing system.
• Benefits of Co-operative Marketing in India:
The advantages that cooperative marketing can confer on the farmer are multifarious, some of which are
listed below:
1. Increases bargaining strength of the farmers: If the farmers join hands and form a cooperative society,
they will be able to increase their bargaining strength because their produce will now be marketed by single
agency.
2. Direct dealings with final buyers: It outcast an intermediary which eliminates the exploiters and ensures
fair prices to both, the producers and the consumers.
3. Provision of credit: The marketing cooperative societies provide credit to the farmers to save them from
the necessity of selling their produce immediately after harvesting. This ensures better returns to the farmers.
4. Easier and cheaper transport: This reduces the cost and botheration of transporting produce to the market.
5. Storage facilities: The cooperative marketing societies generally have storage facilities. Thus, the farmers
can wait for better prices; also, there is no danger to their crop from rains, rodents and thefts.
6. Grading and standardization: This task can be done more easily for a cooperative agency than for an
individual farmer. For this purpose, they can seek assistance from the government or can even evolve their
own grading arrangements.
7. Market intelligence: The cooperatives can arrange to obtain data on market prices, demand and supply
and other related information from the markets on a regular basis and can plan their activities accordingly.
8. Influencing market prices: While previously the market prices were determined by the intermediaries and
merchants and the helpless farmers were mere spectators forced to accept whatever was offered to them, the
cooperative societies have changed the entire complexion of the game.
9. Provision of inputs and consumer goods: The Cooperative marketing societies can easily arrange for
bulk purchase of agricultural inputs like seeds, manures, fertilizers, pesticides, etc., and consumer goods at
relatively lower prices and can then distribute them to the members.
10. Processing of agricultural produce: The Cooperative societies can undertake processing activities like
crushing oil seeds, ginning and pressing of cotton, etc.
95
3.5.1.1 Maharashtra State Co-operative Marketing Federation (MSCMF):
• General Information:
The Maharashtra State Cooperative Marketing Federation (MSCMF) was registered in 1958 as an
apex society for agricultural marketing and processing cooperatives. It started functioning in the year 1959
with the main objective of creating an institutional agency for the marketing of agricultural produce and
supply of requisite agricultural input to the farmers. Other objectives of the Federation include guiding the
working of member societies, assisting them in enlarging their activities, promoting and establishing its own
processing and manufacturing units, etc.
• Various activities undertaken by MSCMF:
The Maharashtra State Cooperative Marketing Federation has been engaged in activities like trading
/ distribution of fertilizers, supply of agricultural equipment and accessories, processing of pulses, paddy and
oilseeds, and manufacture of cattle feed and granulated fertilizer.
Formed with a view to champion the farmer’s multifarious interests and activities in a rapidly growing food-
based economy, the Maharashtra State Co-operative Marketing Federation Limited has continued its
unstinting efforts in providing Indian agriculture a dependable rallying nucleus.

• Objectives of MSCMF:

a. To create an institutional agency for the marketing of agricultural produce and supply of agricultural
inputs to farmers.
b. To work as nodal agency/Agent for purchase and sale of fertilisers, seeds, agricultural equipment’s
and accessories for the member societies.
c. To guide the working of member societies and assist them in enlarging their activities.
d. To promote their inter-state and international trade in agricultural commodities and farm inputs.
e. To provide market intelligence to member societies.
f. Coordinate the working of affiliated marketing societies.
g. Construction of godowns and cold storage plants.
h. Installation of processing units.
• Statistic:
Sr. No. Particulars Quantity
1. Net Crop Area 17,619,000 hectares
2. Total Crop Area 22,381,000 hectares
3. Total Irrigated Area 3,667,000 hectares
4. Ratio of Total Irrigated Area with Crop Area 16.4 %
5. Area under Cereals 9,411,000 hectares
6. Area under Pulses 3,388,000 hectares
7. Total Area under Food grains 12,798,000 hectares
8. Area under Horticulture 10.14akh hectares

96
3.5.2 Study of Export Units: MAHAGRAPE
• General information-
Mahagrape is one of the largest exporters of Fresh grapes, especially seedless grapes. In keeping with the
international trend of fruit growers becoming exporters, the vineyard owners of Maharashtra entered the
International market with their own brand, ‘MAHAGRAPES’.
Mahagrapes was established on 19th Jan 1991 with the valuable support of :
1) National Co-operative Development Corporation (NCDC), New Delhi.
2) Government of Maharashtra
a) Department of Co-operation
b) Maharashtra State Agriculture Marketing Board, Pune.
• The 5 Objectives of MAHAGRAPE:
1. Upliftment of farmers community.
2. Growth of Co-operative Movement.
3. Encourage and develop agricultural export.
4. Maximize Foreign Exchange earnings.
5. Update the farmers on the latest technology in farming
6. Acceptance of global challenge with a commitment to quality.

MAHAGRAPE, Pune Grapes for Export

• Functions:
1. To source and develop worldwide markets.
2. To provide Quality control in post-harvest activities.
3. Provide extension services to members of co-ops for production of export quality grapes.
4. Supply and supervise branded packaging.
5. Provide logistical support
6. Provide advance payment to farmers for their produce.

• The Export Process of Grapes-

1.Harvesting-
Harvesting is done in the early hours of the morning when ambient temperatures are low. Bunches of
grapes are carefully placed in a single layer in crates and are kept in the shade.
2. Grading-

97
 Removal of unwanted berries, watered, small berries and grading bunches as per size and colour are
undertaken.
3.Packing-

The grapes are packed in corrugated boxes under supervised and hygenic conditions at the farm itself
and are then transported to societies.

4. Transportation to the societies-

Packed boxes are transported to the Member societies in Covered vehicles (Refridgerated / Ordinary) for
pre-cooling treatment.

5. Precooling-

Grapes are pre-cooled to 2 degrees C to prolong it's shelf life from 60 days to 90 days. Each of our member
societies are provided with a pre-cooling unit.

6. Cold Storage-

Pre-cooled grapes are then packed in corrugated boxes in 4.5/5/9 kgs and kept in cold storage. Boxes are
specially designed with perforations to allow cool air to pass through. The boxes are palletized to facilitate
easy handling.

7. Container filling-

The 40ft. reefer containers are pre-cooled to 2 degrees C and then are filled with the packed produce under
supervision of an Central Excise & Customs supervisor.

8. Sealing of the Container-

Containers are then sealed at site by the Central Excise Inspector / Superintendent.

9. Exports-

Thereafter, the boxes containing the grapes are stuffed in the container. Prior to stuffing the conditions of
the grapes are checked by surveyors appointed by the shipping companies. The container is then sealed by
Central Excise and Customs Inspector.

10. Dispatch to destinations-

The filled containers are then transported and shipped to various destinations as per the directives of
Mahagrapes.

• Other exports of MAHAGRAPES-

1. Pomegranate
2. Mango- Alphanso

Source- http://www.mahagrapes.com/

98
3.5.3 Study of Indian Institute of Horticultural Research, Bangalore.
• General Information:

The Indian Institute of Horticultural Research (IIHR) is an autonomous organization acting as a

nodal agency for basic strategic anticipatory & applied research on various aspects of horticulture such
as fruits, vegetables, ornamental, medicinal and aromatic plants and mushrooms in India. The institute
has its headquarters in Bengaluru, Karnataka, India. It is a subsidiary of Indian Council of Agricultural
Research (ICAR), New Delhi, under the Ministry of Agriculture, India.
• History:
IIHR, the first horticultural Research Institute in the country under the ICAR, was established on 5
September 1967 at New Delhi. Later, the base of IIHR was moved to Hessaraghatta located 25 km away
from Bangalore in Karnataka, on 1 February 1968, by merging the institute with National Horatorium of
Govt. of Karnataka. The institute is spread over a land area of 263 hectares.
• Objectives:
1. Undertake basic and applied research for developing strategies to enhance productivity and
utilization of tropical and sub-tropical horticulture crops viz., fruits, vegetables, ornamentals,
medicinal and aromatic plants and mushrooms.
2. Serve as a repository of scientific information relevant to horticulture.
3. Act as a centre for training for up gradation of scientific manpower in modern technologies for
horticulture production.
4. Collaborate with national and international agencies in achieving the above objectives.
• Achievements:
IIHR is credited with the development of 170 varieties and hybrids of horticultural crops and many
sustainable production, protection and post-harvest management technologies.
• Fruit Crops
• Vegetable Crops
• Ornamental Crops
• Mushrooms
• Production Technology
• Plant Protection
• IIHR has been awarded and recognized as:
• Sardar Patel Outstanding ICAR Institution Award 1998 from Indian Council of Agricultural
Research (ICAR).
• Sardar Patel Outstanding ICAR Institution Award 2010 from Indian Council of Agricultural
Research (ICAR).
• Recognized as the post graduate research and training center in horticulture by six universities.
99
• Second Prize in the field of Official Language Implementation for the year 2012- 13 from
Town Official Language Implementation Committee, Bangalore.
• BAGWANI, the Official Language Magazine of the institute, received the best in house
Magazine Award for the year 2011-12.
• The pollen Cryo-Bank of the institute features in the Limca Book of Records 2001
• Recognized as DBT-ICAR National Facility for virus –diagnosis and quality control in tissue
culture plants
• Recognized as the Phyto-sanitary certification agency for seeds and planting materials.

Fig. Visit to the IIHR, Bangalore.

100
3.5.4 STUDY OF ICAR – NATIONAL RESEARCH CENTER ON
POMEGRANATE, SOLAPUR

• General Information:
The ICAR – National Research Center on Pomegranate (NRCP), Solapur was established on June 16,
2005 by the Indian Council of Agriculture Research, New Delhi, as a step to strengthen research &
development infrastructure for pomegranate crop. Though Universities & institutes all over the word are
having research programme on pomegranate, this is the only institution working solely on pomegranate. The
center was established to fulfill the growing demand for pomegranate both in domestic & export market
through tapping the immense production potential prevailing in the country.

• New technologies commercialised by National Research Centre on

Pomegranate, Solapur
A Technology License Transfer Agreement was signed between National Research Centre on
Pomegranate , Solapur and M/s Horti Floral Biotech, Tembhurni for “In vitro propagation of pomegranate cv.
Bhagwa including bio hardening”.
Another Technology License Transfer Agreement was signed between National Research Centre on
Pomegranate Solapur and M/s Bhosale Nursery, Aurangabad for “Two step pomegranate hardwood cutting
protocol including bio hardening”. Using this technology healthy planting material through various antibiotic,
fungicidal and hot water treatments can be produced throughout the year under protected structures. This is
cheaper, less labor intensive and farmer friendly technology.
• Achievements-
A. 2008-09
1. Integrated Disease and Insect Pest Management Schedule to Mitigate Pomegranate Bacterial Blight.
B. 2014-15
1. Diversity analysis:
2.Induction of flowering to bridge the yield gap:
3. Production of low cost healthy planting materials using hard wood cuttings
4. Bio-hardening of tissue cultured planting materials of pomegranate cv. Bhagwa
5. Protocol for preparation of sparkling wine from pomegranate.
C. 2015-16
1. A Process for Extraction of Virgin Pomegranate Seed Oil
2. Penicillium pinophilum —A novel microorganism for nutrient management in pomegranate
(Punicagranatum L.)
3. Improving water use efficiency in pomegranate .
• Research Farms of NRCP-

The research farm is situated in 2 different locations viz., Kegaon & Hiraj which is about 1.5km away
from each other. The research farm is accessible with the well connecting roads laid across the length and
breadth of the farm. Besides, the research farm features the following facilities:

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 • Drip irrigation system,
• Water harvesting ponds/ structures & Underground sump,
• Open wells & borewells,
• Tractors & accessories,
• Sprayers,
• Various farm implements,
• Solar lighting system,
• Barbed wire fencing, etc.
• Experience Gained –

1. We have collected all the information related to the Pomegranate production, different policies of
Government for inducing the production of pomegranate, the laboratories prepared for the research on new
pomegranate varieties etc.
2. The website includes all the necessary information.
3. We also studied information about the library of the NRCP which have different research books about
pomegranate.
4. Also, we came to know that all the staff working there is well trained and highly qualified and completely
aware about their work.
5. There is also an application ‘Solapur Anar’ which is specially created for the farmers.
6. There are different publications available on their official website which can give us accurate information
about pomegranate cultivation.

Source-http://nrcpomegranate.icar.gov.in/

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3.5.5 Study of Agro-Service Center:
3.5.5.1 Visit to the Krishi Seva Kendra, Akluj.

Name of the Owner : Shri. Vivek Sadashiv Patil

Year of Establishment : 2006

Inputs demanded in the Area : Fertilizers, Seeds, Weedicides, Pesticides etc.

Objectives:

1.To make available various inputs such as seeds, fertilizers etc.

2. To provide major fertilizers such as Urea, MOP, SSP.
3. Timely supply of seeds.

Other activities :

1.Provide actual knowledge about using fertilizer dose and application of weedicide.

2.Give knowledge about quality of seeds.

3. Provide information about the use of proper insecticide, weedicide on the crop.
Remark

The visit of Krishi Seva Kendra gives us knowledge about the seed’s fertilizer, insecticides,
weedicides, their application and prices.

Fig. Visit to the Agro Service Center, Akluj

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3.5.6 Study of State Warehousing Corporation:
3.5.6.1 Visit to the State Warehousing Corporation, Akluj:

General Information:
Separate warehousing corporations were also set up in different state of Indian Union. The first state
warehouse was set up in Bihar in 1956. In Akluj the State Warehouse corporation established in 8 th
August 1962. Six Godowns is in Akluj warehouse. Five godowns having 7600 MT and one is hired
capacity is 1000MT.
Objective:
a. Scientific storage structure
b. Protection against rodent, insects and pests
c. Reduce the post – harvest losses in farm product.
d. Facility of market information.
Activities:
a. The warehouse receipt serves as a collateral security for the purpose of getting credit.
b. The produce accepted at the warehouse is preserved scientifically and protected against
rodents, insects and pests and other infestation.
c. Warehouse receipt issued by the warehouse manager to the person storing his produce with
them.

Fig. Visit to the State Warehousing Corporation, Akluj.

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3.5.7 Study of Poultry Unit:
3.5.7.1 Visit to the Poultry Unit, Tisangi

Name of Owner : Mohan Ranshinge

Year of Establishment : 2017

Turnover : Rs. 2,25,000

Experience Gained:

1. I got experience about demonstrate the principles & practices of rearing of poultry birds.

2. Experience about to appreciate the history of poultry management & production.

3. I discuss about the characteristics of a good poultry house.

4. I got experience about the economical importance of poultry rearing for food.
5. Importance of broiler & layer birds to the Human diet.

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IV. APPENDIX
4.1 BIBLIOGRAPHY
1. Agriculture Marketing in India – Acharya S.S. & Agarwal N.L. (2011)
Publisher – Oxford & IBH
Edition – 4th
2. Agricultural Economics – Subba Reddy & Raghu Ram (2009)
Publisher- Oxford & IBH
3. Agricultural Produce Market Committee(APMC), Akluj
4. Krishi Darshani (2019)
Mahatma Phule Krishi Vidyapeeth, Rahuri
4.2. WEBSITES
1. www.indiamart.com
Link - www.indiamart.com/seller
2. www.agricultreinformationbank.in
Link – www.agriinfo.in
3. www.agmarknet.gov.in
Link – agmarknet.gov.in

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4.3 PHOTO GALLERY
4.3.1 Agriculture Production Management

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4.3.2 Agriculture Processing Management

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4.3.3 Agriculture Marketing Management

Agriculture Produce Market Committee, Akluj

State Warehousing Corporation, Akaluj

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 CURRICULUM VITAE

Name: Jadhav Snehal Sampatrao

Address: At. Post- Tisangi,
Tal- Kavathe Mahankal, Dist.- Sangli
Pin: 416 405
Email: jadhavsnehals2015@gmail.com
Mob no: +91 7620462370

CAREER OBJECTIVES
• Smart working and Result Oriented.

• Give my best skills & knowledge to fulfill organizations goals and prove myself.

• To have growth oriented and challenging career.

EDUCATIONAL QUALIFICATIONS:

Sr. Board/ Year Of

Exam School/College Percentage
No. University Passing
Shriram College of Mahatma Phule
B.B.A
1 Agriculture Business Krishi Vidyapeeth -
(Agriculture) Pursuing
Management, Paniv , RAHURI
B.A P.V.P College, Kavathe
2. Y.C.M.O.U 2019 62 %
(Economics) Mahankal
State Board,
2. HSC S.G.M College, Karad 2016 62 %
Maharashtra
S.M. Highschool &
State Board,
3. SSC Jr.College, Kavathe 2014 86.20 %
Maharashtra
Mahankal.

EXTRA- CURRICULAR ACTIVITIES -

• Participation in Mahatma Phule Krishi Vidyapeeth, Rahuri’s Intercollegiate Volleyball Tournament

held at COA, Wadala in 2016-17, COA, Rajmachi in 2017-18, COA, Nashik in 2018-19 & MPKV, Rahuri
in 2019-20.
• Participation in Mahatma Phule Krishi Vidyapeeth, Rahuri’s Intercollegiate Chess Tournament held at
COA, Rajamachi in 2018-19.

PROJECT:

1. Experiential Learning Programme –

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Study of Agri Allied Sector at Gaurav Reshim Udyog Samuh, Phalavani, Tal- Malshiras, Dist.- Solapur.
2. In-plant Training Programme –
• To study the inputs use in major Agronomical crops in the ‘Khandali’ village. To study the details of
components of Input utilization of Agronomical and horticultural crops.
• To study the Capital Investment and Income of the Vermicelli at ‘Guruprasad Processing Unit’ ,
Akluj, Tal- Malshiras, Dist.- Solapur

PERSONAL DETAILS

• Name- : Jadhav Snehal Sampatrao

• Date of birth : 22/03/1999
• Languages Known: Marathi, English, and Hindi.
• Permanent Address : A/P- Tisangi, Tal-Kavathe Mahankal, Dist.- Sangli
• Blood Group : B+
• Parent’s Name : Jadhav Sampatrao Jagannath
• Occupation : Service.

STRENGTH:

• Creative and Logical

• More Writing Capacity
• Co-operative and Keen Observer
• Good listener
• Self-confident and can mold myself to all work environments.

DECLARATION

I hereby declare that the above mentioned information is correct up to my knowledge and I bear the
responsibility for the correctness of the above mentioned Information.

Date:
Place: Paniv Jadhav Snehal Sampatrao

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