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TOTAL COST MANAGEMENT IN RUBBER
PRODUCTION:BHR METHOD
Muhammed Abdul Jamiah.M
Indian Institute of Plantation
Management Bangalore M.A.Jamiah.M
INTRODUCTION
 Rubber is a famous plantation crop.
 The unexpected price fluctuation and high
cost of cultivation are the major problems
faced by rubber industry.
 Through our project we are introducing a new
method of production and cost management
to revamp the rubber sector.
 New technique called “Integrated BHR
method” is our proposed solution for the crisis
of rubber sector.
M.A.Jamiah.M
CURRENT ISSUES
 Inadequate nursery management
 Lack of implementation of proper
technology.
 Low productivity due to poor plantation
management
 Poor quality of raw rubber products.
 Lack of technical training for rubber tappers.
 7 years of non productive stage and
minimum 9 years to reach breakeven point
M.A.Jamiah.M
OPPURTUNITIES
 Domestic and export markets offer
excellent price for rubber raw materials.
 Export markets offer excellent
opportunities for rubber-based products.
 High demand for raw rubber products
leading rubber to high value.
 Increased demand in the automobile
industry.
M.A.Jamiah.M
OBJECTIVES
 Cost management practice for nursery
plant production.
 Attain Break-even point at end of
developing stage(Reduce Gestation
period)
 Increased yield during Tapping stage
M.A.Jamiah.M
Nursery – root trainer cups
 Rubber Research Institute of India has
developed and a new short duration
variety “Illegitimate seed” in
polypropylene cups instead of
polythene bags. These cups are called
"Root Trainers“
 It is a sophisticated propagation
technique having great potentials in
improving the physical quality of
root system as well as reducing the
time and cost required for the
production of advanced planting
materials
 Under this method, the root trainers are
filled with uniformly mixed potting
mixture instead of soil
 The plants in the root trainers get
matured for cultivation within 9
months after sowing the seeds M.A.Jamiah.M
Labour cost
BHR Traditional
MEN 185 196
WOMEN 115 121
COST 93500 98850
DIFFERENCE 5350
M.A.Jamiah.M
Integrated BHR method
 Integrated BHR method include Intercropping
with Banana, Honey production From second
year onwards after planting of Rubber
plantlet in main field.
 BHR method help the farmer to attain Break-
even point before 5th year and gives
reasonable profit too.
 Integrated BHR include:
 1)Intercropping with Banana
 2)Honey Production
M.A.Jamiah.M
Intercropping with banana
 Ratoon nd Non-Ratoon types like Nendran
is suitable as intercrop during the initial
three years.
 During the first year 1250 plants per
hectare can be grown in a double row
system at 2 x 2 metre spacing.
 The pseudo stem, leaves and mother
rhizome left after harvest can be used for
mulching the rubber plant.
M.A.Jamiah.M
Contd..
Returns from Inter cropping
Pineapple Banana Ginger
Yield in kg 15,000 14,000 7,000
Price Rs/kg 20 28 35
Income from fruit 300000 392000 245000
total income from 3 Harvest 900000 1176000 735000
Total cost of intercropping@1 yr 65040 51775 64375
Cost 2nd & 3rd yr (35%/yr for
pineapple & banana),100% for
ginger 45528 36242.5 128750
Total cost of intercropping 110568 88017.5 193125
Net returns from intercropping 789432 1087982.5 541875
B/C ratio 7.1 12.4 2.8M.A.Jamiah.M
Bee keeping in rubber
plantation
 The rubber tree is a prolific source of honey
which is obtained from the extra floral
nectaries at the tip of the petiole, where the
leaflets join
 It can be continued during the tapping stage
Returns of Production
Particulars Qty Amount/kg
Total
Amount
Honey production in
kg(40 kg/Box) 3200 350 1120000
Total cost 261850
Net profit 858150
M.A.Jamiah.M
COMPARISON BETWEEN INTEGRATED BHR AND TRADITIONAL METHOD OF RUBBER
CULTIVATION
PARTICULARS INTEGRATED BHR TRADITIONAL METHOD
Net income from Banana Intercropping 1087982.5 0
Net income from Honey production 858150 0
Total Net income @ Developing stage 1946132.5 0
Total cost of Rubber Production during
Developing stage
Total Material & other cost 22966 27466
Total labour cost 93500 98850
Total cost production 116466 126316
Net profit or loss 1829666.5 -126316
Comparison
M.A.Jamiah.M
Break even point
0
500000
1000000
1500000
2000000
2500000
1 2 3 4 5
total cost
total revenue
M.A.Jamiah.M
conclusion
 Through Integrated BHR
method Harvesting
(Tapping) stage will be
reduced from 7 years to
5 years
 It help the farmer attain
BEP before 5th year
Instead of 8-10 years
 BHR also provide the
farmer Net income of
approx. 18 lack, it is an
additional benefit to
farmer
INTEGRATE
D BHR @
5TH YEAR
TRADITIONAL
METHOD 5TH
YEAR
Total Income @
Developing stage 1946132.5 0
Total cost of Rubber
Production @
Developing stage 116466 126316
Net profit or loss 1829666.5 -126316
M.A.Jamiah.M
THANK YOU
M.A.Jamiah.M

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Total cost management in rubber production

  • 1. TOTAL COST MANAGEMENT IN RUBBER PRODUCTION:BHR METHOD Muhammed Abdul Jamiah.M Indian Institute of Plantation Management Bangalore M.A.Jamiah.M
  • 2. INTRODUCTION  Rubber is a famous plantation crop.  The unexpected price fluctuation and high cost of cultivation are the major problems faced by rubber industry.  Through our project we are introducing a new method of production and cost management to revamp the rubber sector.  New technique called “Integrated BHR method” is our proposed solution for the crisis of rubber sector. M.A.Jamiah.M
  • 3. CURRENT ISSUES  Inadequate nursery management  Lack of implementation of proper technology.  Low productivity due to poor plantation management  Poor quality of raw rubber products.  Lack of technical training for rubber tappers.  7 years of non productive stage and minimum 9 years to reach breakeven point M.A.Jamiah.M
  • 4. OPPURTUNITIES  Domestic and export markets offer excellent price for rubber raw materials.  Export markets offer excellent opportunities for rubber-based products.  High demand for raw rubber products leading rubber to high value.  Increased demand in the automobile industry. M.A.Jamiah.M
  • 5. OBJECTIVES  Cost management practice for nursery plant production.  Attain Break-even point at end of developing stage(Reduce Gestation period)  Increased yield during Tapping stage M.A.Jamiah.M
  • 6. Nursery – root trainer cups  Rubber Research Institute of India has developed and a new short duration variety “Illegitimate seed” in polypropylene cups instead of polythene bags. These cups are called "Root Trainers“  It is a sophisticated propagation technique having great potentials in improving the physical quality of root system as well as reducing the time and cost required for the production of advanced planting materials  Under this method, the root trainers are filled with uniformly mixed potting mixture instead of soil  The plants in the root trainers get matured for cultivation within 9 months after sowing the seeds M.A.Jamiah.M
  • 7. Labour cost BHR Traditional MEN 185 196 WOMEN 115 121 COST 93500 98850 DIFFERENCE 5350 M.A.Jamiah.M
  • 8. Integrated BHR method  Integrated BHR method include Intercropping with Banana, Honey production From second year onwards after planting of Rubber plantlet in main field.  BHR method help the farmer to attain Break- even point before 5th year and gives reasonable profit too.  Integrated BHR include:  1)Intercropping with Banana  2)Honey Production M.A.Jamiah.M
  • 9. Intercropping with banana  Ratoon nd Non-Ratoon types like Nendran is suitable as intercrop during the initial three years.  During the first year 1250 plants per hectare can be grown in a double row system at 2 x 2 metre spacing.  The pseudo stem, leaves and mother rhizome left after harvest can be used for mulching the rubber plant. M.A.Jamiah.M
  • 10. Contd.. Returns from Inter cropping Pineapple Banana Ginger Yield in kg 15,000 14,000 7,000 Price Rs/kg 20 28 35 Income from fruit 300000 392000 245000 total income from 3 Harvest 900000 1176000 735000 Total cost of intercropping@1 yr 65040 51775 64375 Cost 2nd & 3rd yr (35%/yr for pineapple & banana),100% for ginger 45528 36242.5 128750 Total cost of intercropping 110568 88017.5 193125 Net returns from intercropping 789432 1087982.5 541875 B/C ratio 7.1 12.4 2.8M.A.Jamiah.M
  • 11. Bee keeping in rubber plantation  The rubber tree is a prolific source of honey which is obtained from the extra floral nectaries at the tip of the petiole, where the leaflets join  It can be continued during the tapping stage Returns of Production Particulars Qty Amount/kg Total Amount Honey production in kg(40 kg/Box) 3200 350 1120000 Total cost 261850 Net profit 858150 M.A.Jamiah.M
  • 12. COMPARISON BETWEEN INTEGRATED BHR AND TRADITIONAL METHOD OF RUBBER CULTIVATION PARTICULARS INTEGRATED BHR TRADITIONAL METHOD Net income from Banana Intercropping 1087982.5 0 Net income from Honey production 858150 0 Total Net income @ Developing stage 1946132.5 0 Total cost of Rubber Production during Developing stage Total Material & other cost 22966 27466 Total labour cost 93500 98850 Total cost production 116466 126316 Net profit or loss 1829666.5 -126316 Comparison M.A.Jamiah.M
  • 13. Break even point 0 500000 1000000 1500000 2000000 2500000 1 2 3 4 5 total cost total revenue M.A.Jamiah.M
  • 14. conclusion  Through Integrated BHR method Harvesting (Tapping) stage will be reduced from 7 years to 5 years  It help the farmer attain BEP before 5th year Instead of 8-10 years  BHR also provide the farmer Net income of approx. 18 lack, it is an additional benefit to farmer INTEGRATE D BHR @ 5TH YEAR TRADITIONAL METHOD 5TH YEAR Total Income @ Developing stage 1946132.5 0 Total cost of Rubber Production @ Developing stage 116466 126316 Net profit or loss 1829666.5 -126316 M.A.Jamiah.M