Exhibit 2: Costs of Rice Production
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* All costs are rough estimates only.
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Current rice fields:
40,000 ha
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Population:
1 million
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Rice fields potential:
70,000 ha
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Percent agrarian:
80
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Yield potential:
5 Mt/ha (paddy)
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Percent of farmers producing rice:
30
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Input
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Quantity
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Capital cost
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Recurring costs
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Comments
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Seed
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Per hectare
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Per hectare
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IR-64
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30kg
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$60
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1kg of seed can produce 100kg of milled rice
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Fertilizer
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Per hectare
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Per hectare
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Urea (46% nitrogen)
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100kg
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$60
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Urea increases production by 30%.
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Phosphorus
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50kg
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$40
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Nitrogen + phosphorus used together increases production by 40%.
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Land preparation
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Per unit
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Per hectare
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Motorized tractor
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See Note A
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$15,000
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$80 (incl. petrol)
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Hand tractor
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See Notes B, C
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$2500-$3000
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$60 (incl. petrol)
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Water buffalo
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$700
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Irrigation
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Per scheme
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Irrigation scheme
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See Note D
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Farmer Training
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Per Year
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Farmer Field Schools (FFS)
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4 per farmer
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$400 per FFS
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Each FFS comprises 8 sessions delivered over a 3-month period
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Staff salaries
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2 per FFS
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$1992 per extension worker
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Logistics
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1 per FFS
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$500 per FFS
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Notes
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A:
1 motorized tractor can till 5-8 ha a day.
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B:
1 hand tractor can till 2-3 ha a day.
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C:
MAF's Mechanization Policy involved the distribution of 2000 hand tractors, which exceeded what was required nationally given the limited area of irrigated rice cultivated (even if every rice farmer used a hand tractor for land preparation).
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D:
The GoTL had identified 9 priority irrigation schemes. If properly functioning, they would service 10,000 ha. These 9 schemes were estimated to cost a total of $100 million.
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