1. |
Area under seed crop (hectares as per list submitted by the producer to seed certifying agency) |
= XX hectare |
2. |
Average yield (@ e.g. 35 to 40 qtls. Per hectare in case of wheat) |
= XXX quintal |
3. |
Value of stocks (Multiply production by average purchase price depending upon the brand) |
= `XX |
4. |
Add credit extended to outsourced farmers (cost of seed, supervision and certification charges) |
= `XX |
5. |
Total inventory cost (1+2+3+4+) |
= `XX |
6. |
Less advance received from buyers/agents |
= `XX |
7. |
Total working capital requirement (5-6) |
= `XX |
8. |
Less margin @ 25% (calculated at 20%) |
= `XX |
9. |
MPBF (7-8) |
= `XX |