Ideally with a proper application of chemical fertilisers Nitrogen (N), Phosphorus (P) and Potassium (K) in the right proportion of 24 kg of N, 12 kg of P and 12 kg of K per acre the output should be 18 quintals of Lok1 wheat. However, when a shift is made to organic compost there is a reduction in yield initially and so we can expect conservatively about 12.5 quintals of output from an acre. The seed sown is 0.5 quintals and so the net output is 12 quintals.
Agriculture Cost A2
Cost of manure – Rs 7000
Preparation of field and sowing of wheat – Rs 3000
The electricity cost for running the pump for irrigation is Rs 3000
Five irrigations will have to be done each requiring one person to work for two days @ Rs 220 per day which is the agricultural minimum wage in Madhya Pradesh – Rs2200
Preparation and application of bio-culture thrice – Rs 1800
Harvesting and threshing of wheat – Rs 5000
Cleaning, grading, storing and packaging of wheat – Rs 4000
Agricultural Cost A2 – Rs 26000
Family Labour (FL) in protecting the crop for 140 days – Rs 6000
Government Formual for Minimum Support Price = 1.5(A2 + FL) = Rs 48000
Therefore, Price at the farm for the wheat = Rs 48000 for 12 quintals which comes out to be – Rs 40.00 per kg.