Study includes both Farmer (owner of land) and Peasant (Land taken on lease). Endless story of pain and stressfull life of a farmer explaining taking Sugarcane one year periodic crop as an example. What to do with balance; mere survival or starving? Do you think they also have the right of standardising their life or just crawling to cruel fate? Why land and agriculture proving a White Elephant day by day, lets find out:
Balance Sheet: Sugarcane crop profit versus farmer family expenses |
Particulars Fixed |
Particulars Variable |
Quantity/Activity
(in average) |
Entity Cost in INR
(in average) |
Total in INR |
Stage 1: From Land Preparation to Sowing |
If owner of Land |
|
Maal Darkhas |
Yet to Know |
Uncertain |
|
If Land taken on Lease |
Lease Contract |
INR 12000 |
INR 12000 |
Seed Required |
|
20 Quintal |
INR 225 per Quintal |
INR 4500 |
Field Preparation |
|
Ploughing 5 times a minimum |
INR 500 per Plough |
INR 2500 |
Labor |
|
Field sowing |
|
INR 2500 |
Total cost of stage 1 for one acre of land |
INR 9500 + Uncertain + INR 12000 |
Stage 2: From Crop Growing till its Ripe-up |
Irrigation by Tubewell |
|
Minimum 30 times a year |
INR 300 per irrigation (one labor + 5 ltr diesel) |
INR 15000 |
Irrigation by Canal |
|
Minimum 10 times a year |
INR 300 per irrigation (labor only) |
INR 3000 |
Spray, pesticides and other such preventions |
|
5-6 times |
minimum INR 500 each |
INR 2500 |
Urea/D.A.P. |
|
5 bags |
INR 500 to INR 1000 |
INR 3500 |
Weeds removal (nahlaai) |
|
4 times |
INR 1800 (6 labours into INR 300 per labor) |
INR 7200 |
Crop standing (bandhai) |
|
2 times |
INR 1500 |
INR 3000 |
Total cost of stage 2 for one acre of land |
INR 34200 |
Stage 3: Crop Harvesting |
Labor |
|
300 Quintal |
INR 25 per quintal |
INR 7500 |
|
Machinery, repairing, replacing |
|
Yet to know |
Uncertain |
|
Natural Clamities like flood, drought |
|
Yet to know |
Uncertain |
Total cost of stage 3 for one acre of land |
INR 7500 + Uncertain + INR 12000 |
Total cost of production of crop (Stage 1+ 2+ 3) |
INR 51200 + Uncertains |
Total Crop produced |
|
300 Quintal |
INR 225 per quintal |
INR 67500 |
|
Government aides, subsidies, insurances |
Not considered in this study |
|
|
Annual gross profit per acre for a farmer (land owner) |
INR 16300 - Uncertains |
Annual gross profit for 5 acre for a farmer (land owner) |
5 |
INR 16300 - uncertain |
INR 81500 - Uncertains |
Annual gross profit per acre for a peasant (land taken on lease) |
INR 4300 - uncertains |
Annual gross profit for 5 acre for a peasant (land taken on lease) |
5 |
INR 4300 - uncertain |
INR 21500 - uncertains |
For the further analysis, I am taking the case of farmer (leaving the case of peasant for your analysis) so lets consider the family of same farmer is of four members (himself, his wife and two children). Their average living expenses for same period of one year would be as follows: |
Three times a day food of basic nutrients excluding milk |
|
30 days (1 month) |
INR 50 to 100 per day |
INR 2000 |
Home Bills (Electric, Cooking Gas) |
|
per month |
INR 750 + INR 500 |
INR 1250 |
Their 2 Children School Fee (Primay to Secondary level) |
|
per month |
INR 500 to INR 1000 |
INR 1500 |
Medical Expenses |
|
4 members |
|
Uncertain |
Clothes |
|
4 members |
|
Uncertain |
House Maintenance |
|
1 house |
|
Uncertain |
Relatives Gifts and Customs |
|
Not considered in this study |
|
Uncertain |
Marriage of Children |
|
Not considered in this study |
|
Uncertain |
Life Leisures like Entertainment, minimum one bike etc. |
|
Not considered in this study |
|
Uncertain |
Total expenses per month |
INR 4750 + Uncertains |
Total Expenses per year |
|
12 |
INR 4750 + Uncertains |
INR 57000 + Uncertains |
Net Profit per year (Excluding the uncertain costs) = Gross Profit - Family Expenses |
INR 24500 - Uncertains..??? |
Can you even afford a Buffalo capable of producing enough milk to feed your family of four members in INR 24500? Above this if all the uncretain expenses are taken into consideration, I am afraid if there would be a single penny left in the pocket of a farmer and this balance sheet could be positive in any calculations. This is the result of this imbalanced balance sheet that more than 90% of farmers are or have been running under the load of huge liabilities of bank loans, debits and/or regular interest payings. What a farmer can pay in INR 24500, Milk for family, loans or social rituals and responsibilities?
Moreover this analysis is done considering ideal weather conditions, story may worsen if weather turns its face and forget to shower mercy blessings over farmer/peasant crop.
If the final out-put of INR 24500 is considered as salary then it should be divided into two persons a minimum. The farmer him/herself and his/her spouse a minimum because it is the effort of their joint venture. So lets divide 24500 by 2 = INR 12250 per annum. You see a 5 acre land farmer is just an employee of merely INR 1000 per month. Even not near to minimum vages line of Indian Government salary standards of INR 4500 per month a minimum?
I hope our farmer community will soon realize this bitter truth that agri and land are nothing but just squizzed to white elephant these days. They have to rise to ask the changes in system from top to bottom, reformation of policies should have to be in their hands then only agri and land businesses could survive with the laurel and pride of old days if were in any era.
So if the condition of a farmer with five acre of land is so critical then what would be the story of a 2 acre land owner or a peasant who does contractual agriculture by taking even the land on leases? Who is responsible for such a big immbalance to life of a farmer and peasant? Is farmer in Nidana or if to say of India is born just to live the life of debitor like a slave? Can't there a system through which they could also live a cheerful life? After being the spinal bone of whole economic system, why his balance sheet is so heavily imbalanced?
