Cotton Production Cost
A.Non-Material cost:
|
Sl.
no
|
Items of operation
|
Mechanical labours @1400tk/ha
|
No. of labours
@250tk/head/day
|
Total cost
(Tk.)
|
|
01.
|
Preparation of land by 4 Ploughing & laddering
|
4 X 1400
|
28
|
12600.00
|
|
02.
|
Trimming of ails, spading of corners & breaking of clods
|
15
|
3750.00
|
|
|
03.
|
Application of manures and fertilizer
|
2
|
500.00
|
|
|
04.
|
Seed treatment & sowing of seeds in line
|
25
|
6250.00
|
|
|
05.
|
Weeding & thinning (2 times)
|
40
|
10,000.00
|
|
|
06.
|
Application of pesticide & top dressing of fertilizer
|
3
|
750.00
|
|
|
07.
|
Harvesting and carrying
|
50
|
12,500.00
|
|
|
08.
|
Removal of fibre
|
50
|
12,500.00
|
|
|
09.
|
Drying of fibre & storage
|
15
|
3750.00
|
|
|
Total
|
=
|
=
|
62,600.00
|
B. Material cost:
|
Sl.
no
|
Items
|
Amount
Kg/ha
|
Rate
Tk./kg
|
Total cost
(Tk.)
|
|
01.
|
Seed
|
15
|
22
|
300.00
|
|
02.
|
Manures & Fertilizers
|
|||
|
Cowdung
|
6000
|
01.00
|
6,000.00
|
|
|
Urea
|
120
|
18.00
|
2,160.00
|
|
|
TSP
|
100
|
23.00
|
2,300.00
|
|
|
MoP
|
110
|
17.00
|
1,870.00
|
|
|
ZnSO4
|
10
|
130.00
|
1,300.00
|
|
|
03.
|
Irrigation water
|
5000.00
|
||
|
04.
|
Pesticides
|
500.00
|
||
|
05.
|
Miscellaneous
|
500.00
|
||
|
Total
|
=
|
=
|
14,056.00
|
Total input cost = Non-Material cost (A) + Material cost (B)
= (62,600.00+ 14056.00) Tk. = 76,656.00 Tk.
C. Overhead cost:
|
Sl.no.
|
Items
|
Cost (Tk.)
|
|
01.
|
Interest on total input cost @ 8% for 6 months
|
3,066.24
|
|
02.
|
Interest on lease value of land 10,000 @ 10 tk. per annum for a period of 6 months
|
500.00
|
|
03.
|
Miscellaneous cost (5% of total input cost)
|
3,832.80
|
|
Total
|
7,399.04
|
Total cost of production = Non-Material cost (A) + Material cost (B) + Overhead cost (C)
= (62,600.00 + 14056.00 + 7,399.04) Tk.
= 84,055.04 Tk.
D. Gross income
|
Sl. No.
|
Items
|
Amount (kg/ha)
|
Price (Tk./kg)
|
Value (Tk.)
|
|
01.
|
Main product
|
1500
|
60
|
90,000.00
|
|
02.
|
By-product
|
7000
|
5
|
35,000.00
|
|
Total
|
1,25,000.00
|
E. Net income: Gross income – Total cost of production
= (1, 25,000.00 – 84,055.04) Tk.
= 40,944.96 Tk.
Benefit cost ratio (BCR): Gross income/ Total cost of production
= 1, 25,000.00 tk. / 84,055.04 tk.
= 1.48
Cost of production per unit of product (CPUP): TCP – VB / YP
= 84,055.04 tk. – 35,000.00 tk. / 1500 kg
= 32.70 tk. / kg
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