| Revenue
Model of Krishi Pragati Kendra (KPK)
|
|
1. Assumptions
|
|
Krishi Pragati Kendra (KPK) is a center in a village, which
gives all the necessary information & training about Agri-Inputs to the
member farmers. It also helps farmers to get better price realization for their
crop.
|
|
To start with, a KPK provides its services to a farming area of 20 Sqr.
kms or 4000-5000 Acres. One KPK starts its operations with 200 farmers
& this number gradually increases up to 600 farmers.
|
|
To be very precise the KPK is responsible for providing following services
to the farmers:
|
- Training, knowledge & availability of Agri-Inputs.
- Knowledge dissemination of various segments of agriculture.
- Better price realization for the crop.
|
|
The above services are provided by KPK with the help
of District Management Network and revenues are shared amongst the various
participants. The revenue sharing pattern is different for different sources of
revenue and is explained in the point below.
|
|
|
2. Revenue Model
|
|
Revenue model is so designed that revenues are shared amongst the network according to the value
additions made by them.
|
|
There are three sources of revenue generations and the same are shared with the network as below.
|
|
 |
Through registration |
Through input (VAC*) |
Through output (VAC*) |
| KPK Owner (Inclusive VR) |
15% |
40% |
40% |
| KPK(C) |
5% |
20% |
20% |
| TC |
3% |
12% |
12% |
| DLC |
2% |
8% |
8% |
| Total sharing |
25% |
80% |
80% |
| ANPL Share |
75% |
20% |
20% |
|
|
|
2.1 Example of a Territory & Revenue sharing
|
- A territory consists of 1 TC, 4 KPK(C), 20 KPKs, 100 villages and 200 registered farmers per KPK in the first year.
- For the ease of calculation purpose, one crop of wheat and rice is taken in a year with following calculations.
|
|
First Crop: Wheat
|
|
Average production per acre = 40 mann = 1600 kg
|
|
Average production per farmer = 200 mann = 8000 kg
|
|
Average price realization per kg = Rs. 10.00
|
|
Total realization = 8000 x Rs. 10.00 = Rs. 80000
|
|
|
Second Crop: Rice
|
|
Average production per acre = 25 mann = 1000 kg
|
|
Average production per farmer = 150 mann = 5000 kg
|
|
Average price realization per kg = Rs. 15.00
|
|
Total realization = 5000 Rs. 15.00 = Rs. 75000
|
|
|
|
2.2 Projected revenues for various stakeholders per KPK
|
|
Assumptions :
|
| 1 KPK |
= |
200 farmers |
|
|
| Total service area |
= |
200 * 5 acre(per farmer) |
= |
1000 acres |
| Input comsumption per acre |
= |
2 bags urea + 1 bags DAP + 1 bag seed + agrochemicals |
= |
Rs. 2000/- |
| Output per acre |
= |
16 qntl. wheat + 10 qntls. paddy = Rs. 16000 + Rs. 15000 |
= |
Rs. 31000 |
|
| At 100% operation level |
|
From Registration
100 * 250 = 25000 |
From Input
5% of 100 * 5 * 1500 |
From output
1% of 100 * 5 * 10700 |
| KPK Owner |
15% |
Rs. 3750/- |
40% of 5% |
Rs. 15000/- |
40% of 1% |
Rs. 21400/- |
| KPK(C) |
5% |
Rs. 1250/- |
20% of 5% |
Rs. 7500/- |
20% of 1% |
Rs. 10700/- |
| TC |
3% |
Rs. 750/- |
12% of 5% |
Rs. 4500/- |
12% of 1% |
Rs. 6400/- |
| DLC |
2% |
Rs. 500/- |
8% of 5% |
Rs. 3000/- |
8% of 1% |
Rs. 4280/- |
| ZI |
1% |
Rs. 250/- |
6% of 5% |
Rs. 2250/- |
6% of 1% |
Rs. 3210/- |
|
|
| At 50% operation level (other than registration) |
|
From Registration
100 * 250 = 25000 |
From Input
5% of 50 * 5 * 1500 |
From output
1% of 50 * 5 * 10700 |
| KPK Owner |
15% |
Rs. 3750/- |
40% of 5% |
Rs. 7500/- |
40% of 1% |
Rs. 10700/- |
| KPK(C) |
5% |
Rs. 1250/- |
20% of 5% |
Rs. 3750/- |
20% of 1% |
Rs. 5350/- |
| TC |
3% |
Rs. 750/- |
12% of 5% |
Rs. 2250/- |
12% of 1% |
Rs. 3210/- |
| DLC |
2% |
Rs. 500/- |
8% of 5% |
Rs. 1500/- |
8% of 1% |
Rs. 2140/- |
| ZI |
1% |
Rs. 250/- |
6% of 5% |
Rs. 1125/- |
6% of 1% |
Rs. 1605/- |
|
|
| At 25% operation level (other than registration) |
|
From Registration
100 * 250 = 25000 |
From Input
5% of 25 * 5 * 1500 |
From output
1% of 25 * 5 * 10700 |
| KPK Owner |
15% |
Rs. 3750/- |
40% of 5% |
Rs. 3750/- |
40% of 1% |
Rs. 5350/- |
| KPK(C) |
5% |
Rs. 1250/- |
20% of 5% |
Rs. 1875/- |
20% of 1% |
Rs. 2675/- |
| TC |
3% |
Rs. 750/- |
12% of 5% |
Rs. 1125/- |
12% of 1% |
Rs. 1605/- |
| DLC |
2% |
Rs. 500/- |
8% of 5% |
Rs. 750/- |
8% of 1% |
Rs. 1070/- |
| ZI |
1% |
Rs. 250/- |
6% of 5% |
Rs. 562/- |
6% of 1% |
Rs. 802/- |
|
|
|
* In principle policy of Value Added Commission(VAC) to be
shared in the network on account of fecilitating distribution of Inputs
and outputs.
|
