Cost of production of Jute

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 6 Ploughing & laddering
6 X 1400
42
18900.00
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 (3 times)
 
90
22500.00
06.
Application of pesticide & top dressing of fertilizer
 
3
750.00
07.
Harvesting, making bundles, carrying & retting
 
80
20000.00
08.
Removal of fibre, washing of fibre, carrying of fibre & jute sticks
 
80
20000.00
09.
Drying of fibre & storage
 
15
3750.00
10.
Drying of heaping of sticks
 
10
2500.00
 
Total
=
=
98,900.00
 
B. Material cost:
Sl.
no
Items
Amount
Kg/ha
Rate
Tk./kg
Total cost
(Tk.)
01.
Seed
7
150
1050.00
02.
Manures & Fertilizers
 
 
 
 
Cowdung
4000
1.00
4000.00
 
Urea
100
18.00
1800.00
 
TSP
25
23.00
575.00
 
MoP
35
17.00
595.00
 
Gypsum
4
9.00
36.00
03.
Irrigation water
 
 
5000.00
04.
Pesticides
 
 
500.00
05.
Miscellaneous
 
 
500.00
 
Total
=
=
14056.00
 
Total input cost: Non-Material cost (A) + Material cost (B)
                              = (98,900.00 + 14056.00) Tk.
                              = 1, 12,956.00 Tk.
 
C. Overhead cost:
Sl.no.
Items
Cost (Tk.)
01.
Interest on total input cost @ 8% for 6 months
4518.24
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)
5647.80
 
Total
10,726.04
 
Total cost of production = Non-Material cost (A) + Material cost (B) + Overhead cost (C)
                                          = (98,900.00 + 14056.00 + 10,726.04) Tk.
                                          = 1, 23,682.04 Tk.
 
D. Gross income
Sl. No.
Items
Amount (kg/ha)
Price (Tk./kg)
Value (Tk.)
01.
Main product
3500
55
1,92,500.00
02.
By-product
7000
5
35,000.00
 
Total
 
 
2,27,500.00
 
E. Net income: Gross income – Total cost of production
                           = (2, 27,500.00 – 1, 23,682.04) Tk.
                           = 1, 03, 817.96 Tk.  
 
Benefit cost ratio (BCR): Gross income/ Total cost of production
                                       = 2, 27,500.00 tk. / 1, 23,682.04 tk.
                                           = 1.84
 
Cost of production per unit of product (CPUP): TCP – VB / YP
                                                                                 = 1, 23,622.04 tk. – 35,000.00 tk. / 3500 kg
                                                                                 = 25.33 tk. / kg

Useful Agricultural Websites

Online Agricultural Study

Food and Agricultural Organization

Leave a Comment