Submitted by: Submitted by

Views: 281

Words: 601

Pages: 3

Category: Business and Industry

Date Submitted: 03/12/2011 09:38 AM

Report This Essay

Conditions favouring the sales of vanraj to the small and marginal farmers

* The given technical utilities:-

1. Small and marginal farmers constituted 82% of the total land holdings and do not own tractors probably they used to hire the tractor from others.

2. The Fuel efficiency of Vanraj (1.5 litres of diesel per hour)

3. Single piece casting enabling easy repairs and maintenance

4. Smaller Wheel base and turning radius, enables to reach small corners of the land

5. Adjustable wheel base that suits interculture operation in various crops

6. Three Wheel convertible feature – beneficiary for cash crops and for spraying pesticides and fertilizers etc.

7. PTO (Power take off) – enables alternate use of the engine of the tractor

* Advantage over bullocks

Initial cost of bullocks: Rs. 25000-30000

Average Cost: Rs. 27500

Annual Requirement of Fodder, cleaning, shed maintenance: Rs.15000-20000

Average requirement: Rs. 17500

Life span: 12 years ( approx) with average 9 years as useful life time and 3 years

Total spending on fodder etc.: 12*17500 = Rs. 210000 (*)

Thus total expenditure for a pair of bullocks:- 2*210000 + 27500 = Rs. 447500

Whereas in case of VANRAJ

Cost = Rs. 190000

Additional cost for the diesel taking into consideration all the necessary activities of farming:

1 hectare = 2.5 acres

Thus for small and marginal farmers average land holding can be considered as average of 1 hectare i.e 2.5 acres

Thus diesel requirement for 2.5 acres for a round of crop will be :

35.5*2.5 = 88.75 litres

Cost of diesel = 88.75 *40 = Rs. 3550

Even for two crops in a year the cost will be :- Rs. 3550*2 = Rs.7100

Thus total...