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Cost Benefit Ratio and Calculation of different concentration of chemicals.pptx
1. PROFESSOR JAYASHANKAR TELANGANA STATE
AGRICULTURAL UNIVERSITY
PRESENTATION ON : Calculation of Cost-Benefit Ratio & Preparation of different concentrations of chemicals
including botanical pesticides based on active ingredients against pathogens.
COURSE TITLE : PL PATH 511 (2+1).
Submitted to : Submitted by :
Dr. V Ramya, Prajwal Gowda M.A
Associate Professor, RAM/2020-50
Dept of Pathology, Msc-Ag, 2nd Year
CoA, Rajendranagar. Dept of Entomology.
2. Definition & Objectives of BCR
Advantages & Drawbacks of BCR
Components & Input parameters of BCR
Methodology & Interpretation of BCR
Examples & Calculations of BCR
Preparation of various concentrations of chemicals & botanicals based on a.i
Case Studies
References
CONTENTS
3. Calculation of Benefit Cost Ratio (BCR)
Benefit-Cost Ratio- refers to the financial metric that helps in assessing the viability of an
upcoming project based on its expected costs and benefits.
It’s the ratio determines the relationship between the expected incremental benefit from a
project and the corresponding costs that would be incurred to complete the project.
The benefit cost ratio compares the present value of all benefits with that of the cost.
CB analysis is to compare the economic performance of the reference system and the
innovative systems.
Typically, we use the symbol B to represent our measure of benefits and the symbol C to
represent our measure of costs.
Calculation of BCR has several objectives.
A) First, BCA can be used to evaluate the economic merit of a project.
B) Second the results from a series of benefit-cost analysis can be used to compare competing
projects.
4. We have to specify operations realized in the three stages of production to calculate BCR:
Pre-sowing (manuring, ploughing/seed bed preparation, seed treatment, habitat
manipulation, actions to improve biodiversity) and sowing.
Husbandry (fertilization, pesticide application, mechanical weeding, biological control,
irrigation)
Harvest (products sorting and grading, pest/disease management for conservation)
Mathematically it can be defined as the ratio of project benefits versus project costs.
It involves summing the total discounted benefits for a project over its entire duration/life
span and dividing it over the total discounted costs of the project.
BCR is expressed in monetary terms.
All benefits and costs should be expressed in discounted present values.
6. Benefit-Cost Ratio = Net Profit/Gross Cost, where
Net Profit = Gross Income - Gross Cost
Gross Cost = Fixed costs + Variable Cost
Bi = the project’s benefit in year i,
i = 0 to n years
Ci = the project’s costs in year i,
n = the total number of years for the project duration
d = the discount rate
7. The simple steps in this methodology are:
1. Determine the discounted benefits for each year of the project
2. Determine the discounted costs for each year of the project
3. Sum the total discounted benefits for the entire project duration
4. Sum the total discounted costs for the entire project duration
5. Divide the total discounted benefits over the total discounted costs
8. Nearly every farming decision involves some comparison of benefits and costs.
Example : You must decide when to go for controlling a particular disease ( at what stage ).
Going out will have associated benefits and costs incurring. The benefits include timely
control of disease, higher yield and increased market value. The costs of spraying includes
the labour cost, equipment cost and the rate of fungicide. Costs could run higher if you act
irresponsibly, by not taking timely required measure.
Components of the BCR
1. Present Value of Benefits
To determine this sum, all inflows in a period (i.e. cash flows considered as benefits) need to
be discounted with 1 plus the discount rate, i to the power of the period.
2. Present Value of Cost
The outflows are considered as representing costs.
3. Ratio of Both Present Values
Both amounts should be absolute, i.e. non-negative
9. Input Parameters To Calculate BCR
1. Cash Flow: These are monetary values & need to be estimated separately for benefits and
costs.
2. Discount Rate: Discounting is a technique that converts all benefits and costs into their value
in the present. Discounting is based on the premise that a dollar received today is worth more
than a dollar received in the future.
Advantages
• The BCR translates the absolute amounts of benefits and costs into a ratio.
• It facilitates the comparison of different investment projects.
• Common indicator of the profitability of a potential investment or project.
• It indicates whether an option is beneficial.
• It considers the value of cash flows in relation to the time of their occurrence.
10. Limitations of BCR
The BCR alone does not indicate the funding aspects of the options e.g. an option may
require large investments and expenses in earlier periods while producing returns in far later
stages.
For projects/practice with an environmental (intangible things) impact, it can be difficult to
place a monetary value on the benefits and costs.
An important drawback with BCA is that while most benefits and costs that arise in the
present are known, many that arise in the future are unknown.
PARAMETERS TAKEN INTO CONSIDERATION ARE
• Marketable yield.
• Gross Income.
• Cost of Control/Management.
• Return over control & Net increase over control.
11. Type 1 Problem:
1.A Farmer has recently invested 10,000 for the purpose of replacing some of its pesticidal machinery
components. This renovation is expected to result in incremental benefits of 5,000 in 1st year, 3,000 in
2nd year and 4,000 in 3rd year. Calculate the benefit-cost ratio of the replacement project if the applicable
discounting rate is 5%.
PV= Pt/ (1+i)^t
PV is the present value of the amount invested
Pt is the value of future amount in time t
i is the discount rate
t is the year in which Pt is realized.
Particulars Values in
Rupees
Initial investment 10,000
Benefits in 1st year 5,000
Benefits in 2nd year 3,000
Benefits in 3rd year 4,000
Discount rate 5%
12. PV of benefit is calculated as,
PV of benefit in 1st year = 5000/(1+5%)^1 = 4,761.90
PV of benefit in 2nd year = 3,000/(1+5%)^2 = 2,721.09
PV of benefit in 3rd year = 4000/(1+5%)^3 = 3,455.35
PV of Expected Benefits = 4,761.90 + 2,721.09 + 3,455.35 = 10,938.34
BCR = PV of Expected Benefits / PV of Expected Costs
= 10,938.34 / 10,000 = 1.09
The benefits exceed the costs, and the project should be allowed to proceed.
13. Type 2 Problem:
The two projects are assessed . One is organic farming(A) and other is commercial
farming(B). The cash flow and discount rate details of the Project A and Project B are as
given below. Based on the given information, calculate out of the two projects which is a
better project.
Particulars Project A in Rupees Project B in Rupees
Cash outflow 2,000,000 3,000,000
Benefit in 1st year 3,000,000 600,000
Benefit in 2nd year 600,000 800,000
Benefit in 3rd year 900,000 900,000
Benefit in 4th year 700,000 1,000,000
Benefit in 5th year 600,000 1,200,000
Discount rate 10% 12%
14. Benefits of Project A
• PV of benefit in 1st year = 300,000 / (1+10%)1 = 272,727.27
• PV of benefit in 2nd year = 600,000 / (1+10%)2 = 495,867.77
• PV of benefit in 3rd year = 900,000 / (1+10%)3 = 676,183.32
• PV of benefit in 4th year = 700,000 / (1+10%)4 = 478,109.42
• PV of benefit in 5th year = 600,000 / (1+10%)5 = 372,552.79
Total = 2,295,440.57
Benefits of Project B
• PV of benefit in 1st year = 600,000 / (1+12%)1 = 535,714.29
• PV of benefit in 2nd year = 800,000 / (1+12%)2 = 637,755.10
• PV of benefit in 3rd year = 900,000 / (1+12%)3 = 640,602.22
• PV of benefit in 4th year = 1,000,000 / (1+12%)4 = 635,518.08
• PV of benefit in 5th year = 1,200,000 / (1+12%)5 = 680,912.23
Total = 3,130,501.92
15. Therefore, it can be seen that ProjectA has a higher benefit-cost ratio as compared to
Project B which indicates that out of the two, ProjectA is the better investment option.
Project A Project B
BCR
Formula
2,295,440.57
/ 2,000,000
3,130,501.92
/ 3,000,000
BCR 1.15 1.04
16. Evaluation of Some Selected IPM Modules for the Management of Tomato
Fruit Worm (Helicoverpa armigera Hub.)
Amjad Usman, ImtiazAli Khan, Maqsood Shah. Accepted: 15-07-2015
17.
18. Under RBD, 8 IPM modules as treatments including control were evaluated & cost benefit
ratio of these modules was also evaluated. Study revealed that all IPM modules were effective
than control, in reducing fruit damage by H. armigera.
The lowest fruit damage (5.74%) and maximum tomato yield (22013 kg ha-1) was obtained in
M6, where use of chlorantraniliprole was integrated with other control strategies. The same
module also revealed highest cost benefit ratio (1: 6.4).
CONCLUSION
On the basis of effectiveness & on the basis of CB ratio, M6 is the on the top followed by
M3. Here the cost of control was depended on cost of pesticide, as all other control measures
were kept constant in all modules.
Highest CB ratio was recorded for M6 (1:6.4) and lowest for M7 (1:3.00).
Among the tested pesticide, chlorantraniliprole is the most expensive.
From the cost benefit analysis, it could be concluded that chlorantraniliprole based module
was the most efficient in reducing fruit damage and gave high marketable yield with highest
net return.
19. To study the effect of technical approaches for awareness to farmers and application of
antagonistic microorganisms with potash against the management of charcoal rot disease of
soybean with cost benefit ratio. Raj Sharma et al Accepted: 09-08-2021
20. CONCLUSION:
Economic indicators such as net profit and B:C ratio clearly revealed that plot (T3) supplied T.
harzianum with 40kg K2O as basal dose results in highest return (Rs 43,410) and with highest B: C
ratio (1:2.89).
21. Integrated disease management approaches for management of Alternaria blight
disease in linseed caused by Alternaria lini.
Samir Kumar Biswas andAshutosh Shukla Accepted: 19-03-2021
22.
23. CONCLUSION
Here the variable cost is the cost of treatments & the labour wages.
The maximum cost:benefit ratio (1:5.26) was obtained in the treatment T7
(ST with combination of carboxin (37.5%) and thiram (37.5%) (2g/kg seed)+2 FS of
carbendazim (0.1%).
24. Biopriming and integrated management of Cercospora leaf spot of Sesame caused
by Cercospora sesamicola. Harshiya Banu et al Accepted: 03-06-2020
25.
26. CONCLUSION
:
Adaptive(IPM) module (M3) - was found to be superior in reducing the Cercospora
leaf spot severity and increasing the seed yield coupled with increased net returns
and higher cost benefit ratio.
27. Stem canker management in rice fallow rabi blackgram in Krishna district of
Andhra Pradesh. P Sudha Jacob and K Jhansi Accepted: 09-08-2020
28. Inference
In both 2018/19 & 2019/20, gross returns & net returns obtained was highest in
T1(IDM). Hence BCR was higher in T1. So we can conclude that IDM is the best
management strategy to control blackgram stem canker.
29. Preparations/Calculations of different concentrations of chemicals
including botanicals
Active Ingredient - It is the chemical in commercial formulation of pesticides which is
directly responsible for its toxic effect or the ingredient in a pesticide which is biologically
active.
Pesticides are not sold in its pure form.
They are subjected to dilute with any carrier to avoid the hazards of poisoning to applicator.
The pure forms or technical grades are only used in analytical and toxicological studies.
Pesticides are commercially manufactured in various formulations like Emulsifiable
concentrates, water-dispersible powders, dusts, granules, solutions etc.
Recommended dosage of Fungicides:
Most fungicide recommendations are given in kg of a.i/ha or a.i(%)
30. 1. Preparation of NSKE 5%
To prepare a 100 liters of 5% NSKE solution,
1. Neem seed kernels (well dried) – 5 kg
2. Water – 100 litres
3. Detergent - 200 g
4. Muslin cloth for filtering
Methodology
1. Take 5kg of Neem seed kernel
2. Grind the kernels gently to powder it
3. Soak it overnight in 10 liter of water.
4. Stir with wooden plank in the morning till solution becomes milky white
5. Filter through double layer of muslin cloth and make the volume to 100 liter
6. Add 1% detergent (mix it in the spray solution)
7. Mix the spray solution well and use.
31. Like NSKE, Pongamia seed extract also prepared.
2. Lantana leaf & Calotrophis leaf extract 10%:
Nematodes, Bacteria, Fungi, Termites, Leaf miner & sucking pests.
• Lantana leaves
• Detergent/soap solution
• Knife
• Water
• Filter
• Stick & bucket
Methodology.
A) Take 1 kg Lantana leaves. Cut into small pieces and grind it.
B) Add 250 ml of water and stir well. Filter the material by adding another 250 ml of water.
C) Add detergent few drops and stir well. Then dissolve in 10 litres of water and spray on plants.
32. 3. Tobacco Decoction:
• Soak 1kg tobacco leaves in 10litre of water for half an hour.
• Boil it for 30 minutes, cool it.
• Squeeze and mix with 100g of surf, spray 1:10 proportion.
Effective against whitefly and other sucking pests.
4. Neem Cake:
Neem cake - 20 kgs
Water - 160 lts Cow urine - 20 lts
Procedure : Soak the neem cake in water and cow urine close the container,
open once a week to stir vigorously.
Dilution ratio : 1:4
- Increase the beneficial organsims in soil and control the soil borne pathogens like nematodes
and fungi.
33. 5. Neem oil @ 1%
Mix neem oil 1lit, soap solution 100ml & water 100 lit. Acts as insect repellant and molting
inhibitor. It also reduce the feeding of nematodes.
6. Bordeaux Mixture @ 1%
Materials required
1. Copper sulphate powder - one kg
2. Lime - 1 kg
3. Water - 100 litre
Methodology
1 kg of copper sulphate powder is dissolved in 50 litres of water. Similarly, 1 kg of lime is
powdered and dissolved in another 50 litres of water. Then copper sulphate solution is slowly
added to lime solution with constant stirring, both the solutions may be poured simultaneously
to a third container and mix well.
34. Precaution
Always copper sulphate solution should be added to the lime solution, reverse the addition
leads to precipitation of copper and resulted suspension is least toxic.
Note: CuSO 4 + Ca (OH) 2 = Cu(OH) 2 + CaSO 4
Cupric hydroxide is the active principle and is toxic to fungal spores.
The ultimate mixture contains a gelatinous precipitate of copper hydroxide and calcium
sulphate, which is usually sky blue in colour.
Acts as fungicide and bactericide. It’s sprayed on plants as a
Preventive treatment.
Bordeaux paste: It’s nothing but 10% of Bordeaux mixture.
35. 7. Spices and Cow Urine
Ingredients :
Red / Green chillies 500g
Garlic ………………500g
Onion ………………500g
Turmeric ……………500g
Ginger ……………...500g
Cow urine …………. 20 lts
Procedure : Cut the chillies, onion and turmeric into small pieces.
Crush the garlic and ginger, make them into paste and then add to the other ingredients.
Add this mix to the cow urine and leave for 3-4 days
Dilution ratio : 1:9
Used against RKN, thrips, rice bugs, rusts & downy mildew.
36. By Pearson's square method:
To prepare 0.05 per cent mixture from Endosulfan 35EC.
To get the required amount of insecticide and water, Substract the smaller figure from the
higher ones (i.e., 0.05-0 = 0.05 and 35-0.05 = 34.95), diagonally.
Put 0.05 opposite EC at d and 34.95 opposite water at c point.
This mean that to make 0.05 % solution out of the Endosulfan 35 EC,
we have to mix 0.05 part of
Endosulfan + 34.95 part of water.
37. Fungicides calculations or Preparation of Different Concentration of Fungicides
Based on Active Ingredients.
For the formulations like EC, SL, SC or WP,
Use N1V1=N2V2.
N1: Concentration of commercial formulation in % or grams.
V1: Volume or amount of commercial formulation required in millilitre or grams.
N2: Desired concentration of spray fluid in %.
V2: Volume of spray fluid required (millilitre).
Problems
1. How much quantity of dinocap 20EC required to spray @0.05% for control of powdery
mildew in mango & the spray fluid recommended for spraying is 150 litres/ha.
N1=20% V1=? N2=0.05% V2=150 lit
38. V1=N2V2/N1
= 0.05 X 150/20
= 0.375 litre
2. Redomil Gold 36SL is recommended to control downy mildew in cucumber measured
250 ml and is added to 125 litres of water spray fluid. Calculate the percentage
concentration of the insecticide in the spray.
N1= 36% V1= 250 ml N2= ? V2= 125 litres
N2= N1V1/V2
= 36 X 250/125
= 0.072%
39. 3. How much spray fluid of 0.5% concentration can be prepared from 300gram of Captan
25WP ?
N1= 25% V1= 300g N2= 0.5% V2= ?
V2= N1V1/N2
= 25 X 300/ 0.5
= 15 litres
4. How much area will be covered with 2 litres of Contaf 30EC, if it’s applied at the rate of
0.03% concentration in 500 litres of spray material per hectare?
N1= 30 V1= ? N2= 0.03 V2= 500litres
V1= N2V2/N1 = 0.03 X 500 / 30
= 0.5 litres of Contaf for 1 ha.
2 litres for how much area Y. so Y = 2 x 1/ 0.5 = 4 ha.
40. For the formulations like dust, granules and WDG, use N1V1= 100 RA
N1= Concentration of commercial product available in %
V1= Quantity of commercial formulation required in grams or kg
R= Recommended rate of pesticide application
A= Area to be treated in hectares
1. How much quantity of commercial formulation of Phorate 10G is required to treat 7000m2
area of paddy field when the recommended rate is 0.5 kg a.i/ha ?
N1= 10% V1= ? R= 0.5kg A= 7000m2 = 0.7 ha
N1V1=100RA
V1= 100 X0.5 X 0.7/ 10
= 3.5 kg
41. 2. Calculate the quantity of Sulphur 0.4% dust applied @ 0.2kg a.i for 3 hectare area?
N1= 0.4% V1= ? R= 0.2 kg A= 3 ha
V1= 100 RA/ N1
= 100 X 0.2 X 3 / 0.4
= 150 kg
42. References
• Agricultural Economics by S. Subba Reddy, P. Raghu Ram, T.V Neelakanta Sastry and I.
Bhavani Devi.
• Benefit-cost Analysis by M.N Sivaramakrishnan.
• Gerald Shively. 2012. An Overview of Benefit-Cost Analysis. A Practical Guide.
• http://agropedia.iitk.ac.in/content/calculation-based-pesticides
• https://project-management.info/benefit-cost-ratio/
• https://timesofagriculture.com/how-to-calculate-fungicide-dosage/
• https://www.educba.com/benefit-cost-ratio-formula/
• https://vikaspedia.in/agriculture/agri-inputs/bio-inputs/production-of-ipm-inputs/botanicals
• https://vikaspedia.in/agriculture/agri-inputs/bio-inputs/production-of-ipm-inputs/neem-
seed-kernal-extract-nske
43. • Laxmi Patil and Harshiya Banu. 2020. Biopriming and integrated management of
Cercospora leaf spot of Sesame caused by Cercospora sesamicola. Journal of
Pharmacognosy and Phytochemistry. 9(4): 3130-3133
• Narendar Kumar, Samir Kumar Biswas and Ashutosh Shukla. 2021. Integrated disease
management (IDM) approaches for management of Alternaria blight disease in linseed caused
by Alternaria lini. The Pharma Innovation Journal. 10(4): 314-319.
• P Sudha Jacob and K Jhansi. 2020. Stem canker management in rice fallow rabi blackgram
in Krishna district of Andhra Pradesh. Journal of Pharmacognosy and Phytochemistry. 9(5):
1993-1996
• Plant Pathology by Manoj Kumar Yadav.
• Plant Pathology By Satvinder K Mann, Prem L Kashyap, Santokh S Kang.
• Shlokeshwar Raj Sharma, Yati Raj Khare, Nidhi Verma, Niraja Patel, Aashutosh Sharma and
Sahare. 2021. To study the effect of technical approaches for awareness to farmers and
application of antagonistic microorganisms with potash against the management of charcoal
rot disease of soybean with cost benefit ratio. The Pharma Innovation Journal. 10(9): 142-
146.