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Cultivation Cost Of Arecanut

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 Annual income estimation for one acre of Areca land with inter crops

Annual Areca yield (Red) - 4 Quintal, @30,000/- 1,20,000
Annual Areca yield(white) - 5 Quintal, @25,000/- 1,25,000

Annual Areca yield (seconds) - 1 Quintal, @15,000/-

(kole, koka, bili gotu, chali kempu)

A. TOTAL  2,60,000
Peppar 1 Quintal, @30,000 30,000
B. TOTAL 2,90,000
Others Inter Crops
Banana, cocoa, ginger, turmeric,coconut 10,000
GRAND TOTAL 3,00,000


The estimation of cost of cultivation of areca nut holds good in the light of following assumptions 

                                                              1.The investment and expenses are ascertained for one acre of land.

                                                              2.Absence of subsidies and interest free loans.

                                                              3.A family is consisting of 4-5 members.

                                                              4.Average yield per acre is 10 quintals.

                                                              5.Over 60 members are orally interviewed to gather information.

                                                              6.Application of extra mud after every 10 years is ignored.

                                                              7.One acre consisting 600 trees and average life of tree is 25-30 years.

                                                              8.The yield commences from 8th year after planting.

                                                              9.Average yield per tree is about 1.7k.g.

                                                              10.The area under consideration are Sirsi, Siddapur and Yellapur taluks.

                                                              11.Cost of acquiring one acre plain land for cultivation is Rs 10,00,000/-.

                                                              12.Rent is calculated as own capital /land having opportunity cost.

                                                              13.Inherited lands does not require any establishment cost.

                                                              14.Presence of inter-crops.

                                                              15.The fixed elements of costs are regularly incurred till bank loan cleared.

                                                              16.Maintenance (labor) costs increase from the year farmer get yield in the field.




Illustration showing  establishment Cost   

I Land leveling
  1. J.C.B+Tractor 1,00,000
2. Fencing - Barbed Tining 10,000
3. Labour          5,000
4. Agri tools & implements (Pickaxe, Mammootty,     etc,.) 20,000
5. Stone pillars/Columns/Compound                25,000
TOTAL 1,60,000
 II Irrigation
1. Single open /Bore well excavation 1,00,000
2. Pump set & electrification (2 HP motor) 15,000
  3. Pump house material 12,000
4. Jet/sprinkler pipes 30,000
5. Labour 20,000
TOTAL 1,77,000
III Seedlings
Drainage/channel 30,000
seeds (600*12) 7,200
Digging of pits (RS 5*600) 3,000
Labour (planting)(RS 5*600) 3,000
Fertilizers 10,000
Fertilizers application 5,000
TOTAL 58,200
IV Investment Analyses (Fixed cost)
1. Land revenue  100
2. Power consumption (water) 4,000
3. Rent value (opportunity cost)(3000*12) 36,000
4. Interest on bank loan (10% on 10 lakh) 1,00,000
Total establishment cost 1,40,100
B.  maintenance cost
 I Human Labour
1. Self supervision and maintenance (300 days*Per day Rs 300) 90,000
II Machine hired (gross cutting) 20,000
III Material cost & labour
1. Chemical Fertilizers  20,000
2. Mulching organic manure 15,000
3. Sprayers, compost etc 10,000
4. Labour 10,000
5. Plant protection (wild animals) 5,000
Total maintenance cost 1,70,000
TOTAL A+B 7,05,300

                        The 8th year when farmer receives yield labor charges of harvesting, peeling, boiling, drying, grading works and complementing materials used must be added to maintenance cost. This may vary from Rs 30000/- to 40000/- per acre per annum. If farmer plans to grow intercrops there must be an increase of 10-15%  expenses  proportionately.