How much does it cost to produce 2kg of wheat?
Analysis of the
average cost of production per kg of irrigated wheat for the year 2019 was
announced, in which the cost of production per 1 kg is calculated as IRR 22380 and
the finished price was calculated IRR 28680.
Based on average production costs, the country’s
agricultural trade union has announced its bid price of guaranteed purchases of
1 kg of irrigated wheat in the range of IRR 28680, at a 22% profit for the
producer.
Accordingly, the production profit per kilogram of
irrigated wheat is IRR 6300 and the average cost per kilogram of irrigated
wheat in the country is IRR 22380.
While the Ministry of Agriculture’s proposed rate
of IRR 22950for1 kg wheat in 2019, the rate must ultimately be approved by the
Economic Council. If this rate is approved, the profitability of the agricultural
trade system will be only IRR 430 per kilo.
In this analysis, 8 items are considered for
production costs of wheat; the costs indicated are based on production per
hectare.

