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Farmer's Balancesheet
NH Case Study - 1
Profit and Loss story of a five acre (25 bheega) farmer

Profit & Loss Account (Balance Sheet) of a 5 Acres Sugarcane Farmer (Nidana Village in reference):

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
(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
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
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
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
300 Quintal
INR 25 per quintal
INR 7500
Machinery, repairing, replacing
Yet to know
Natural Clamities like flood, drought
Yet to know
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)
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)
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
4 members
House Maintenance
1 house
Relatives Gifts and Customs
Not considered in this study
Marriage of Children
Not considered in this study
Life Leisures like Entertainment, minimum one bike etc.
Not considered in this study
Total expenses per month
INR 4750 + Uncertains
Total Expenses per year
INR 4750 + Uncertains
INR 57000 + Uncertains
Net Profit per year (Excluding the uncertain costs) = Gross Profit - Family Expenses
INR 24500 - Uncertains..???

For Analysis:

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.

One more interesting point coming out of this Balance Sheet is: 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?

Jai Dada Nagar Kheda Bada Bir

Author: P. K. Malik

First Revision: 29/05/2012

Publisher: NHReL

  • NH Advisory Board

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Articles in English:
    General Discussions:
    1. Farmer's Balancesheet
    2. Original Haryana
    3. Property Distribution
    4. Woman as Commodity
    5. Farmer & Civil Honor
    6. Gender Ratio
    7. Muzaffarnagar Riots
    1. Shakti Vahini vs. Khap
    2. Listen Akhtar Saheb

NH Case Studies:
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  2. Right to price of crope
  3. Property Distribution
  4. Gotra System
  5. Ethics Bridging
  6. Types of Social Panchayats
  7. खाप-खेत-कीट किसान पाठशाला
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  9. Marriage Anthropology
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