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کیلکولیٹر

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Quick margin check: total cost vs revenue per acre. Full CACP A2/A2+FL/C2 cost build-up is coming soon.

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نتیجہ

آمدنی: ₹48,500

خالص منافع: ₹30,500

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This is a simple cost-vs-revenue check. The detailed CACP cost build-up (A2, A2+FL, C2 with MSP comparison) is coming soon.

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Deep-dive guide

The CACP cost concepts: A2, A2+FL and C2

The Commission for Agricultural Costs and Prices (CACP) under the Ministry of Agriculture computes three cost-of-cultivation concepts that every Indian farmer should understand. A2 is the actual paid-out cost — what you actually wrote a cheque for during the season: seed, fertiliser, pesticide, irrigation, hired labour, bullock or tractor rental, diesel, interest on working capital, and land revenue. A2+FL adds the imputed value of family labour — the wage that your spouse and children would have earned working someone else’s farm. C2 is the full economic cost: A2+FL plus the imputed rent on owned land plus interest on owned fixed capital (tractor, tubewell, sprayer). C2 is what CACP uses to compute MSP — under the Swaminathan formula adopted in 2018-19, MSP is set at C2 plus 50% (the “C2 + 50” benchmark, although in practice the government often uses A2+FL + 50%, which is a lower bar).

Why this calculator matters

Two-thirds of Indian farmers do not know their per-quintal cost of production. They know the cost per acre — vaguely — and they know the open-mandi or MSP price received. But the per-quintal cost is where the actual margin lives. A 5-acre wheat farm in Punjab cropping at 22 q/acre with total cost of ₹88,000 has a per-quintal cost of ₹800. Against an MSP of ₹2,585, the margin is ₹1,785/q or 69% — a healthy operation. The same farm cropping at 14 q/acre because of late sowing has per-quintal cost of ₹1,257 — margin compresses to 51%. The difference between a 67% margin and a 48% margin on a 5-acre farm is roughly ₹28,000 a year — the cost of a tubewell repair. Every farmer needs this number, on every crop, every season.

Worked example: wheat in western UP (Saharanpur)

Suppose a 1-acre wheat plot in Saharanpur has the following expenses for the 2024-25 season. Seed (DBW-187 at 40 kg/acre × ₹38/kg) = ₹1,520. DAP 1 bag (50 kg) = ₹1,350. Urea 3 bags = ₹800. MOP 0.5 bag = ₹850. Pesticide + herbicide = ₹1,200. Custom hire seed-drill = ₹700. Custom hire harvest combine = ₹1,500. Irrigation diesel + electricity (4 irrigations) = ₹2,800. Land prep tractor 4 hrs × ₹800 = ₹3,200. Hired labour 8 person-days × ₹350 = ₹2,800. Interest on working capital (6 months at 9%) = ₹900. Land revenue = ₹80. A2 total = ₹17,700/acre.

Add family labour: spouse + adult son contribute 12 person-days of supervision and field work at imputed wage ₹350 = ₹4,200. A2+FL = ₹21,900/acre.Add imputed land rent (1 acre × ₹15,000/acre/yr × 0.5 for rabi season) = ₹7,500. Add interest on owned tractor + tubewell capital = ₹3,500. C2 = ₹32,900/acre.

At a yield of 22 q/acre and MSP price ₹2,585/q, gross revenue is ₹56,870. Net margin against A2 is ₹39,170 (221% return on paid-out cost). Net margin against C2 is ₹23,970 (73% return on full economic cost). Both numbers are true — they answer different questions. A2 margin tells you whether you have cash for the next season. C2 margin tells you whether wheat farming is economically superior to leasing out the land and working off-farm.

The hidden costs farmers routinely miss

  • Family labour at imputed market wage. The single biggest underestimate. Indian smallholders typically run on 60-80% family labour; not pricing this distorts the entire margin story.
  • Land rent on owned land. The opportunity cost of owning rather than leasing out. In high-value belts (Saharanpur basmati, Davanagere maize, Solapur sugarcane) this can be ₹25,000-40,000/acre/year — material.
  • Depreciation on machinery (tractor, tubewell, sprayer, seed-drill). CACP uses straight-line depreciation over published asset-life schedules.
  • Interest on owned fixed capital at prevailing rates.
  • Storage losses if grain is held back from sale awaiting better prices — typically 2-4% per quarter for non-controlled storage.
  • Transport & mandi commission (hamali, dharmada) typically ₹50-100/q on top of the grower price.

Region-by-region cost benchmarks (2022-23 crop year, CACP)

  • Wheat: A2 ₹810/q (PB), ₹1,020/q (UP), ₹1,180/q (MP) — yield-driven.
  • Paddy: A2 ₹820/q (PB), ₹1,180/q (WB), ₹1,520/q (Odisha rainfed).
  • Cotton: A2 ₹4,750/q (GJ irrigated), ₹5,420/q (Vidarbha rainfed).
  • Soybean: A2 ₹3,180/q (MP irrigated), ₹3,640/q (Vidarbha).
  • Sugarcane: A2 ₹160/q (UP), ₹185/q (MH cooperative), ₹220/q (TN).
  • Maize: A2 ₹1,180/q (Bihar rabi), ₹1,420/q (Karnataka kharif).

Using this calculator to make decisions

The calculator is intentionally simple. Type your per-acre cost (rupees per acre, all inclusive), per-acre yield (quintals per acre), and price (rupees per quintal). It returns revenue and net margin. Use the simple version for quick decisions on which crop to sow next season, and the worked C2 version (above) when you’re comparing staying in farming versus exiting. The same calculator is embedded on each crop pillar page (wheat, paddy, cotton, soybean, sugarcane, maize) pre-filled with the relevant crop’s representative MSP and yield — so the contextual comparison is instant.

Sources

CACP Cost of Cultivation/Production of Principal Crops in India (latest annual report); DES MoA&FW Agricultural Statistics at a Glance; NSSO 77th Round Situation Assessment Survey of Agricultural Households; Swaminathan Commission Report 2006 — cost-of-production methodology.