International Journal of Horticulture 2015, Vol.5, No.11, 1
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Table 5 Details of Human Resources Employed in the Match Splints Industry
Sl. No
Details of Human
Resources Employed
Role Played by the HR
Number of
HR Employed
Wages Paid per
Month per Labor (Rs)
Percentage
to Total
1
Supervisor
Overall Supervision
01
10000.00
06.67
2
Machine Operator – I
Peeling and Trimming
the Sheets
01
8750.00
06.67
3
Machine Operator – II
Out Turn of Splints as per
the Indents
01
8750.00
06.67
4
Wage Labor from Bihar
Removal of Barks
03
7500.00
20.00
5
Wage Labor from Odhisa
Assembling, Drying,
Packing and Forwarding
09
7500.00
60.00
Total
15
100.00
the working hours is too long and the wages paid were
poor to the tasks executed. The labor force from Bihar
and Odhisa is receiving Rs 300 per day and the
monthly wages is arrived at Rs 7500. The migration of
labor from Bihar and Odhisa is mainly due to the
absence of employment opportunities in their native
state and hence they are migrating to the developed
state like Tamil Nadu and are employed in different
sectors. Match industry is one of the industry started
utilizing the labor force form Bihar and Odhisa for
different operations. In a nutshell, the match splints
industry is employing 15 laborers for converting four
tons of logs per day to get the quality match splints
and meeting the requirements of laborers by providing
the accommodation and other basic amenities.
1.6.
Cost of Production of Match Splints
Cost of production is a guiding force for the young
Agripreneurs who wanted to establish a business unit.
In the preceding chapters, we have discussed the
potential business and its economic incentives associated
with that. One can compare and establish the agribusiness
venture in the desirable locale. In this unit, the cost of
production of match splints is discussed in detail and
the results are presented in Table 6.
Table 6 revealed that the cost of production details are
discussed under four heads viz., Fixed cost involved
in the production of match splints; variable expenses
involved in the processing of match splints; revenue
realized from sale of output of one ton of raw
materials and the cost of production of match splints
per ton.
The fixed expenses involved in the production process
of match splints are rental value of land and buildings,
depreciation cost on machineries, annual electrical
installation charges, interest on fixed expenses, land
tax including cess, salary on permanent staff and the
share of establishment cost. All these fixed expenses
were arrived at 4.51 lakhs which is accounted for only
6 per cent to the total cost of production of match
splints in the match wood industry. Among the fixed
expenses, major investment is found to be on the
machineries. The Annual depreciation cost on
machineries is accounted to be 1.40 lakhs which is
accounted for only around 2 per cent to the total cost
of production of match splints.
The variable expenses involved in the production
process of match splints are cost of raw materials
(Match Wood), Labor charges, electricity and fuel
expenses, cost of marketing which included sales
promotion, packing and forwarding expenses, interest
on variable cost and the cost of sulphur which is used
for fumigation of match splints to get a uniform color
to the match splints. The total variable expenses
incurred were arrived at Rs 70.43 lakhs which is
accounted for 94 per cent to the total cost of
production of match splints in the Match Wood
industry. Among the variable expenses, the major
investment goes to the purchase of raw materials from
different zones of origin which is arrived at Rs 49.60
lakhs per annum which is accounted for 66 per cent to
the total cost of production of match splints. Another
important component in the variable expenses were
the labor charges or wages which is arrived at Rs
12.90 lakhs accounted for 17 per cent to the total cost
of production of match splints.
The total cost of production of match splints in the
match wood industry is included the fixed cost and the
variable expenses both are accounted for Rs 74.94
lakhs. The cost of production of match splints per ton
is arrived at Rs 17776 and the per kg production cost
