REPORT ON THE CASE STUDY OF RAMJIBHAI VASAVA

SUBMITTED TO: DR. DARSHANA DAVE

SUB MITTED BY: AJAY KUMAR PANDEY ROLL NO:11002 G.H.PATEL POSTGRADUATE INSTITUTE OF BUISNESS MANAGEMENT DIV.A (2011 BATCH)

Summary:
Ramjibhai Vasava, bhill tribes is a resident of a village named Kavachia in the Valia Taluka of Bharuch district owns 8 acres of land, which is divided into four plots, with total of 7 persons in his family. He is a matriculate and a job holder. His parents are old and children goes to school so he do not have more family members to look after his farm. The three plots of Mr. Ramjibhai are adjacent to each other which measure 5 acres, his home, a stream and a shallow well is situated on one of these plots. The fourth plot of above 3 acres is located about a kilometre away without any irrigation facilities. Shri Vasava combines farm forestry regular farming, fruit plantation and dairying in his operations. As per the case given to us all the financial aspects and the intercropping done by him will be reflected below in the calculations (see annexures).

Objective of Ramjibhai Vasava:

Long term objective of Mr. Vasava is to be financially strong and sound by using maximum use of 8 acres land, so that he can support his family in all the ways. Similarly, the short term objective of Mr. Vasava is to do farming in the fourth plot so that he can earn money continuously from that.

Problems of Ramjibhai Vasava:

There are various problems associated with the farm, farming techniques, quality of soil, etc. the problems are listed below: I. Though there is no labour problem in rabi but the availability of labour in kharif is poor. II. The irrigation problem is hampering the productivity of the crop i.e. fourth plot is completely out of irrigation and It completely rely on the rainfall and other plots also do not have sufficient irrigation as per the requirement of the crop. III. Multi tasking i.e. intercropping is also the problem of Mr. Vasava because he is trying many crops at a time. IV. Time is the major problem for Mr. Vasava because he is a job holder and could not provide sufficient time to look after the farm.

Constraints of Ramjibhai Vasava:

I. II. Family members are not available for farming. Distance between one land is far away from others.

Criteria for Mr. Ramjibhai Vasava:

For solving the problems of Mr. Vasava, we have to generate certain criteria and based on these criteria we have to take the decision. I. II. III. IV. V. VI. VII. Time Cost effective (i.e. more profit) Irrigation Fodder Labour Fertility of land Crops that need less attention and irrigation.

After the criteria are established Mr. Vasava has to quantify the criteria. The quantification of the criteria has been shown in the annexure.

Alternatives for Mr. Ramjibhai Vasava:

Mr. Vasava has many alternatives that is listed below but he have to pick up the best alternative that is cost effective and give high returns. I. II. III. Grow those crops which need less water. Rent the fourth plot Plot 2 can be used for regular farming that gives fodder.

Suggestion with action plan:

Based on the calculations of the income statement of every plot we can compare the best options to adopt for farming. As per the calculations made in the annexure (1-4) concludes that Mr. Vasava should go for intercropping of paddy and groundnuts because the profit that is earned is more than that of plantation and any other intercropping. By this farming Mr.

Vasava can get paddy fodder and groundnut residues for their cattle which helps in nutrition for them and ultimately increment in the dairy farming. The basic criterion that has been undertaken is cost effectiveness of the factor of production in farming resulting to high profit. So I suggest Mr. Vasava to go with intercropping of paddy and groundnut.

Annexure: 1 Farm 3: (2 acres) Income Statement

Particulars Revenue: Marketable trees Total Revenue Expenses: Plantation Labour Cutting trees Total Expenses Net Profit (Total Revenue Total Expenses) 60*2*5 5000*1 700 600 5,000 6,300 18,700 5000*5 25,000 25,000 Amount (in Rs.)

Note: Labour Marketable trees Assuming cutting trees Calculation of per acre profit: For 1 year = Net profit / no. of year = 18,700/5 =Rs. 3740 per year Per acre = Rs. Per year / total land = 3740/2 =Rs. 1870 per acre. 60 labour @Rs. 5 for twice 5000 trees @Rs. 5 5000 trees @Rs. 1

Annexure: 2 Farm 1: (1 acre) Income Statement as on 1983 to 1988

Particulars Revenue: Paddy for 4 years Paddy for last year Mango for 20 trees Total Revenue Expenses: Cost of pesticides Cost of production for paddy Mango trees plantation DAP used for plantation Total Expenses Net Profit (Total Revenue Total Expenses) 2000*1 25*10 25*1/2*10 200 2,000 250 125 2,575 6,850 35*45*4 25*45 20*5*20 6,300 1,125 2,000 9,425 Amount (in Rs.)

Note: Cost of production for paddy Paddy for 4 years Paddy for last year Mango Assumption: Mango trees plantation DAP fertilizer Calculation of per acre profit: For 1 year = Net profit / no. of year = 6,850/5 =Rs. 1,370 per year per acre. 25 trees@Rs.10 25 site per kg@Rs.10 2,000 per acre 35 maunds@Rs.45, 4 years 25 maunds@Rs.45 5 maunds@Rs.20 of 20 trees

Annexure: 3
Farm 3: (2 acre) The intercrop between Paddy and Tuvar

Income Statement as on February 1989

Particulars Revenue: Paddy Tuvar Total Revenue Expenses: Cost of production Labour 2000*2 7*5*2*3*2 4,000 420 50*45*2 8*95*2 4,500 1,520 6,020 Amount (in Rs.)

Total Expenses Net Profit (Total Revenue Total Expenses)

4,420 1,600

Note: Paddy Tuvar Cost of production Labour 50 maunds@Rs.45 per acre 8 maunds@Rs.95 per acre Rs. 2000 per acre 7 man days, 2 days, 3 times per season@Rs.5

Calculation of per acre profit: Per acre = Rs. Per year / total land = 1,600/2 =Rs. 800 per acre.

Annexure: 4
Farm 3: (2 acre) The intercrop between Paddy and Groundnut

Income Statement as on February 1989

Particulars Revenue: Paddy Groundnut Total Revenue Expenses: Cost of production Labour 2000*2 7*5*2*3*2 4,000 420 50*45*2 22*100*2 4,500 4,400 8,900 Amount (in Rs.)

Total Expenses Net Profit (Total Revenue Total Expenses)

4,420 4,480

Note: Paddy Groundnut Cost of production Labour 50 maunds@Rs.45 per acre 22 maunds@Rs.100 per acre Rs. 2000 per acre 7 man days, 2 days, 3 times per season@Rs.5

Calculation of per acre profit: Per acre = Rs. Per year / total land = 4,480/2 =Rs. 2,240 per acre.