INTRODUCTION

Tomato is cultivated mainly as a cash crop. It is a short duration crop. So the profit can be earned
immediately and cultivation of tomato is possible within a period of 3 to 6 months. The tomato
cultivation being commercial activity undertaken by farmers, they scrupulously follow the use of
different inputs.

COST OF PRODUCTION OF VARIOUS INPUTS

A. Variable Cost
Costs of production of inputs of tomato production are explained below:
1. Seeds and Small Plants: Tomato producer farmers buy the HYVs from the market and prepare
plants at their own and cultivate them. The whole process includes the cost of seeds, land charges,
fertilizers, insecticide, water charges and labour charges. Some farmers prefer to buy readymade
plants from market in the neighboring city, such expenses are also included.

2. Farmyard Manure: Farmyard manures boost the fertility of land and hence farmers consider the
fertilizers from own animals and those brought from the local area. The cost of farmyard manures
are valued at the price prevailing in the local area.

3. Fertilizers: Under this head, the value of chemical fertilizers, organic, inorganic and biological
fertilizers are to be considered.

4. Cost of Insecticide and Fungicide: Tomato crop is attacked by a number of diseases. Most of
the diseases can be controlled by chemical sprays and dusting. For this purpose various fungicides
and insecticides are used. For example Bilitox, Blue Copper Fytolon, Sulphex, Sulfet, Setsulf,
Captan are the fungicides frequently used. Carbary, Endosulphan, Malathin, Rogar, Quinalphos,
Phosphamidon are insecticides used for controlling various diseases. In the present study actual
expenses incurred on fungicide and insecticide are taken into account. The prevailing rate schedule
of various fungicides and insecticides are used for costing of these inputs.
5. Human Labour Expenses: Human Labour in this case is classified into family labour and hired
labour. The farm operation of preparation of land, nursery work, planting, applying fertilizer,
spraying, watering, thinning, harvesting, picking of tomato fruit etc. require considerable amount
of labour. The labour charges include man hours contributed by both hired labours and members
of family. The hired cost includes the actual wages paid in cash and the cost of members of family
is evaluated on the market rate prevailing at the time of employing them.

6. Bullock Labour: It has been computed on the basis of working cost per bullock pair per day. In
such cases, the hire charges of bullock or tractor should be taken into account and some of the
tomato cultivators use the dry and green fodder and it is also considered.

7. Irrigation: Majority of the sample tomato growers rely on wells, bore-wells, private and co-
operative water supply societies. They are the real source of water-facilities. Irrigation charges
include cost of labour charges required for irrigation, electricity charges and maintenance of
electric motor. The gravity technique of watering is in fashion, but for more economic use of water,
the technique of drip irrigation is also adopted by some growers.

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8. Staking Sticks / Stumps: One small bamboo staking stick is installed near for one tomato plant.
This cost is considered under production cost.

9. Steel Wires: Steel wires are used to see that the plants grow straight and as supportive to the
plants.

10. Gunny twine / rope: Gunny twine or ropes are utilized in combination with steel wire, this cost
is considered too.

11. Repairs and Maintenance: This head includes equipments like tractor, electric pump, chemicals
spray machine / pump and other tools. Their repairs and maintenance cost is taken into account
here.

12. Miscellaneous Cost: This item comprises some items of costs not taken under any of the above
mentioned items e.g. traveling, telephone bill, labours mid-time tea etc.

13. Interest on variable cost: In this present study, interest has been charged at the rate of 12%@
on owned capital and borrowed capital for the life period of the tomato crop.

B. Fixed Costs
Fixed costs include the depreciation rental value of land, land revenue and interest on fixed cost.
Fixed costs are time costs. During the agreed period fixed cost remains constant, even though
volumes are to change. Fixed cost decreases per unit with increased level of output and increases
per unit with decreased level of output.

1. Depreciation: The depreciation of each form asset is estimated by using Straight Line method.
The life of the asset, its junk value at the end of its stipulated life is fixed on the basis of the
information gathered from the respondents and rate of depreciation is calculated. This annual cost
of apportioned on the basis of total area under tomato crops during that year.

2. Rental Value of Land: The rental value of owned land is similarly apportioned on the leased
principle while the quantum of rent paid is allocated on the basis of area under the crop.
Lease charges of owned land (farm) are calculated according to the model example of a leased
farm in the village and that value is comprised in the production cost.

3. Land revenue: This cost item forms a very small portion of the aggregate cost. It includes land
revenue, educational tax and tax of employment guarantee scheme. Actual paid-out amount is
included in this cost item.

4. Interest of Fixed Costs: In the present study interest has been charged on all different farms of
agricultural assets, like machinery implemented and building etc. (excluding land) at the rate of 12
% @.
C. Total Cost of Cultivation
It is calculated by taking into account per acre cost of cultivation which includes Cost A and
Cost-B.

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Farmer and area details
Name of the farmer - Venkatesha
Place - kolar
Zone - Eastern dry zone of Karnataka
Area - 1 acre
Crop Plan recommended - Tomato-Tomato.
Crop variety - Sikander.
Yield per plant - 2boxes per plant(15 kg per box)

Reason for choosing tomato

Tomato is cultivated mainly as a cash crop.

It is a short duration crop. So the profit can be earned immediately and
cultivation of tomato is possible within a period of 3 to 6 months.
Kolar APMC is the second-largest market for tomatoes in Asia (after
Pimpalgaon, Nashik) and the largest in South India.
Widely distributed-Tomatoes from the Kolar APMC market are transported
to Bihar, Bengal, Odisha, Jharkhand, Punjab, Madhya Pradesh, Uttar
Pradesh, Delhi, Andhra Pradesh and Tamil Nadu. They are also exported to
Pakistan, Bangladesh and sometimes airlifted to Dubai.

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PER ACRE TOTAL COST OF CULTIVATION OF TOMATO

A) Variable Cost

SL.NO PARTICULARS COST(RS)

1 Seeds & Small Plants 1250

2 Farmyard Manure 4500

3 Fertilizers 8500

4 Cost of Insecticide & Fungicide 4000

5 Human Labour Expenses (3 13050

labours@200 for different activities)
6 Bullock Labour 1100

7 Irrigation 3000

8 Staking Sticks/ Stumps 4800

9 Steel Wires 5100

10 Gunny Twine/Rope 1000

11 Repairs & Maintenance 200

12 Miscellaneous Cost 200

13 Interest on Variable Cost(12%) (for 2799

six months)
SUB TOTAL 49449

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B) Fixed Cost

SL.NO PARTICULARS COST

2 Rental Value of Land 9000

3 Land Revenue(tax) 50

4 Interest on Fixed Cost(12%) 543

(for six months)
Sub total 9593

C) Factor cost

Sl .No Particulars Cost

Transportation cost 15000

Commission agent (4% on gross sales) 9000

TOTAL 24000

D) Total cost

Total Cost

Total cost = VC +FC+FC 83042

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E) Returns

Yield in Quintal 150

Rate Rs./Quintal 1500

Gross Returns (Rs.) 225000

Net Returns (Rs.) 141958

FOR NEXT 6 MONTHS

Same crop is grown again

Net returns for 6 months -141958 Rs
Remaining loan amount- 7000 Rs
Invest for next six months 7000+141958(net returns) = 148958

CONCLUSION

Total cost of cultivation for next 6 months = 83042 Rs

Remaining amount = 148958-83042 = 65916

Total returns after the year = 65916 +141958(net returns

of next 6 months)
=207874

Loan amount repaid = 207874 (90000 (PA) +10800(I)) = 107074

Profit after paying loan and interest = 107074

Farmer can earn a profit of 107074 Rs per acre of tomato cultivation throught
the year