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Cost of Cultivation of Castor

Cost of Cultivation of Castor

Importance of cost calculation of Castor

(1) Usefulness to the farmer:

Cost of Cultivation of Castor

(2) Utility to Government of cost of Cultivation of Castor

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(3) Utility for banks and credit institutions: Cost of Cultivation of Castor

A scientific method of calculating farm expenditure

In order to bring a formula in the calculation of agricultural cost and economically accepted methodology has been developed by the Commission on Agricultural Cost and Price (CACP) and implemented across the country.

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Cost of Cultivation of Castor

What is CACP?

1. Calculation of Farming Costs

Method of calculating farm cost per unit area (per acre or per hectare)

Expenditure Details of costs involved


Method of calculating cost


Expenditure– A


Wage Labor (Human Labour)


Expenditure calculated by taking into account the market value of payments made in the form of tea-snacks or food in addition to cash
+ Bullock expenses (own/hired)


Actual cost (taking into account the cost of own bulls at prevailing market prices)
+ Seed cost (own/purchased)


Actual cost (taking into account cost of own seed as per prevailing market price)
+ Manure / Cake (own/purchased)


Actual cost (taking into account the cost of own manure/cake as per prevailing market price)
+ Chemical fertilizers Actual cost
+ Water (own/hired)


Actual cost (calculated as per prevailing market price for own water)
+ Pesticide/Insecticides Actual cost
+ Miscellaneous expenses

(Rent of machinery like tractor/trailer, cost of miscellaneous items like rope and land revenue/taxes etc.)

Amount actually paid


+ Depreciation expenses

(House used for farming, bullock cart

Also small implements like shovels and spades depreciation expense)


Kachha House:5% per annum

Pacca House:2% per annum

Bullock Cart: 10% per annum

Small implements:20% per annum

(In proportion to area under crop out of total area)

+Working Capital Interest (Sum all above mentioned Expenses) 12% per annum (For Crop period only)



+ Land Rent (if on Rent) Amount actually paid


Expenditure– B


Expenditure– A


As per earlier calculations mentioned above in Expenditure-A method


+ Own land rent Actual Rent Paid
+ Interest on fixed capital

-Houses used for agricultural work, Bullock carts,

-Cost of land, tractor, well or irrigation pump etc. is calculated at market price but not included in calculation of depreciation in fixed capital)-



10% per annum

(Area under crops and as per duration of crops from total cultivated area)

Expenditure– C1


Expenditure– B


As per earlier calculations mentioned above in Expenditure-B method


+ Labour used for Agricultural works of own home (Man Days spent by own Family Members) Cost of labor calculated according to the prevailing rate of human labor in the domestic human market used for agricultural work


Expenditure– C2


Expenditure– C1


As per earlier calculations mentioned above in Expenditure-C1 method


+Management Cost

(For entire production of Agricultural Produce)

10% of total farm management cost of C1


2. Calculation of income:

Total revenue = Revenue of Main product x Revenue of Secondary product

= [(Primary Product Quantity × Market Price)] X [(Secondary Product Quantity × Market Price)]

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Cost of Cultivation of Castor

3. Calculation of cost of production (Rs. /quintal):

In agriculture, there are generally two types of production namely main production and secondary production. Out of which the production cost per quintal is calculated only for the main product. By comparing the cost of the main product (Rs./quintal) and the prevailing market price (Rs./quintal) the estimate of profit and loss is quickly arrived at.

The cost of production (Rs./quintal) is calculated as follows.

(a) When income from secondary production is 10% or less of total income

Prime cost of production (Rs./Quintal)=Expenditure C2-Income from Secondary Products/Main Product Quantity (Quintal)

(b) When income from secondary production is 10% or more of total income

Prime cost of production (Rs./Quintal): Expenditure C2 x Main Product Quantity/Main Product Quantity (Quintal) x Total Income

Cost of Cultivation of Castor

4. Net profit

Profit = Total Revenue – Expenses incurred

The profit at different stages of cost is calculated as follows.

Profit Over Expense A=Total Income- Expense A

Profit Over Expense B=Total Income- Expense B

Profit Over Expense C1=Total Income- Expense C1

Profit Over Expense C2=Total Income- Expense C2

5. Income Expenditure Ratio:

On Expenditure A=Total Income/Expense-A

On Expenditure B=Total Income/Expense-B

On Expenditure C1=Total Income/Expense-C1

On Expenditure C2=Total Income/Expense-C2

6. Calculating the fertilizer from the amount of elements Chemicals required to take one kg of elements





1. Urea




2. Ammonium Sulphate




3. Ammonium nitrate




4. Can




5. Ammonium sulfate nitrate








1. Super phosphate




2. D.A.P.


2.175 + 400 grams of Nitrogen






1. Murate of Potash




2. Sulphate of potash




Detail Cost of Cultivation of Castor

Table-1 : Castor cultivation cost (per hectare)

Sr.No. Particulars Unit Quantity Expense % of total Expense
1 Labour (Hired) Human Day 30.84 6860 10.55
2 Bullock Pair/Day 0.35 238 0.37
3 Seed Kilogram 7.1 1973 3.03
4 Farm yard Manure Kilogram 1057 1046 1.61
5 Chemical Fertilizer 3036 4.67
6 Irrigation 7966 12.25
7 Pesticides/Insecticides 2241 3.45
8 Miscellaneous expenses 8688 13.36
9 Depriciation 428 0.66
10 Interest on Working Capital 2923 4.50
11 Expenditure– A 35399 54.44
12 Rent of own land 14523 22.33
13 Interest on fixed capital 552 0.85
14 Expenditure– B 50474 77.62
15 Labor (Own Family) Human Day 37.85 8641 13.29
16 Expenditure– C1 59115 90.91
17 Administrative Expenses 5912 9.09
18 Expenditure– C2 65027 100.00
19 Total Labor (1 + 15) Human Day 68.69 15501 23.84

Table-2: Production and income (per hectare) in Castor cultivation

1 Main Production Quantity (Quantl/Ha) 25.87
Price (Rs./Quantal) 5243
Income (Rs.) 135636
2 secondary production Quantity (Quantl/Ha) 14.44
Price (Rs./Quantal) 100
Income (Rs.) 1444
3 Total Income Rs. 137080

Table-3: Cost of Production (Rs./Quantal) and Income-Output Ratio in Castor Cultivation

SN Particulars Profit in Rs. Cost of Production (Rs./Quintal) Income-expenditure ratio
1 Expenditure– A 101691 1313 3.87
2 Expenditure– B 86616 1895 2.72
3 Expenditure– C1 77975 2229 2.32
4 Expenditure– C2 72063 2458 2.11


Economic Analysis:

From the above Table No-1 it is revealed that  Expenditure A incurred 54.44% cost out of the total cost followed by Expenditure B and Expenditure C1

From the above Table No-2 it is revealed that  Income from Main production and Secondary production arrived at Rs.137,080.00.

From the above Table No-3 it is revealed that Expenditure-A has the highest Income Output ratio  of 3.87 followed by Expenditure-B, Expenditure-C1 and Expenditure-C2 has  Income Output ratio  of 2.72,.32 and 2.11, respectively.

Final Conclusion:

A Profit from one hectare/acre of Castor cultivation is approximately Rs.72,053.00 as per cost of cultivation calculated in Table No-1,2 and 3.










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