Simulation

Dear Participant,

Welcome to “Naranpur Express”, a simulation on decision making set in a rural context. Though in the first instance, it will appear to you to be very far away from your life and its concerns, please remember that decision making in any situation involves the same set of parameters:

resource allocation risk taking dealing with macro factors working together as a team taking care of everybody’s needs and concerns being ethical taking responsibility for consequences

In any situation where a decision needs to be taken, the aim is to take the best course of action in order to achieve the optimal solution using the scarce resources available. At the same time, ethics need to be guarded. It is no different in the rural scenario for a farmer. The next eight hours will take you through some of the cares and concerns of a farmer, the decisions he constantly takes and the consequences of the same. We hope you enjoy the day and what you learn from Naranpur Express stays with you through the exciting and eventful corporate journey that awaits you.

Warm Regards,

Knowledgepros

[email protected]

www.knowledgepros.in

1 BIMTECH/ September 2012

NOTE

“Naranpur Express” is the property of Institute of Rural

Management, Anand (IRMA). It was developed by the faculty of

the institute during field work in Sabarkantha district of Gujarat.

Use of the concept, details and associated symbols are reserved

with IRMA. It is being used here with the express permission of

the institute.


NARANPUR EXPRESS

DATA TABLES

The main data you will need in order to play Naranpur Express and take your decisions is presented in Table I to VI provided in this document. Please read and understand this document so that you can participate in the simulation. The structure of your household and the assets your family owns will be given to you on the day of the simulation. Any doubts or queries will also be answered before the simulation begins.

Table ICrop production states

No drought, no pest attack

No drought, but pest attack

Drought, but no pest attack

Drought and pest attack

no irrigation, no pesticide

A C B D

irrigation only A+ C+ A C

pesticide only A A B B

irrigation and pesticide

A+ A+ A A

Table II Crop yield (kg/acre) corresponding to different crop states and production technologies

Maize grain Maize strawCrop

production states Ordinary seed HYV seed Ordinary seed HYV seed

no fert with fert no fert with fert no fert with fert no fert with fertD

430 480 140 160 1700 2000 2700 3000C

650 820 500 600 1800 2100 3100 3300C+

780 984 600 720 2160 2520 3720 3960

B 600 750 350 480 2100 2400 3700 4100

A 900 1300 1000 1800 2200 2600 3900 4500

A+ 1080 1560 1200 2160 2640 3120 4680 5400


Table – IIIInputs requirements (per acre) for maize crop

Input requirements Maize (ord seed) Maize (HYV seed)Essential seeds (kg) 30 30labour (FLU/season) 1 1.5bulls (BPU/season) 2 4Optionalirrigation power (hours) 40 60

fertilizer (kg) 50 100pesticide (kg) 5 10

Notes:

1. HYV refers to High Yield Variety seeds for maize. These seeds are genetically modified in order to give a crop yield higher than the ordinary seeds. However, the input requirement (fertilizer, pesticide and irrigation) of these seeds is higher than ordinary seeds.

2. The maize crop from HYV seed can only be used for consumption. It cannot be used as seed for the next year. Only crop from ordinary seed can be used for both consumption and as seed for future.

3. Maize straw is used as fodder for animals.4. Land can only be used in units of 1 acre. You cannot take any decisions for fractions of

one acre.5. FLU (Family Labour Unit) is the labour put in for one year by one male or female in the

age group of 16 – 60 years. Labour can be used or hired in terms of FLUs. Each family member in the specified age group provides labour equivalent of 1FLU per year. A child, on attaining the age of 16, starts providing 1 FLU. An adult (male or female) crossing the age of 60 cannot be used as farm labour.

6. BPU (Bull Power Units) is the bull power needed for land preparation, tilling and other farming operations. A single bull provides 20 BPUs per year.

7. In order to irrigate your land, you should have a well and a pump set. Digging a well and mounting a pump costs Rs. 10,000. You can buy this from the trader if you have the money. You will also have to buy power for running your pump from the trader. One well and pumpset can generate a maximum of 600 irrigation hours per year. You could also buy irrigation hours from some other farmer who may have made the investment, at a price mutually agreed upon.

8. Other inputs i.e. seed, fertilizer and pesticide can be bought from the trader at prices announced by him/her from time to time. These prices will be displayed in a chart next to the trader.

9. The trader will also buy your output (maize) from you at prices decided by him annually.10. You can store your excess maize production for consumption for next year. If your maize

is from ordinary seed, then you can also use it as seed for next year’s crop. Alternately, you can sell maize grain to the trader at the prices announced and receive cash for it.

11. Any surplus of maize straw, FLUs, BPUs and irrigation hours will have to be consumed or traded in the same year. It cannot be stored for future use. Whatever is not used in the current year will be wasted.

12. Any surplus of fertilizer, seed or pesticide not used this year can be stored for future use.13. The rainfall and pest situation will be announced by the Game Manager from time to

time. The rainfall situation will be common for all families but the pest attack may vary for HYV and normal seeds.


Table – IVFood requirements for subsistence

Family members Maize (kg/year/person) Milk(kg/yr/person)adult >= 16 yrs 300 25child < 16 yrs 150 75

Notes: 1. The food requirements for your family are to be computed on the basis of the per

head requirement given in the above table. 2. If you are not able to produce enough maize and milk for your family, then you

can buy or trade with other families for it. You can also pay cash and buy maize from the trader for consumption. Milk is not available with the trader.

3. If you are not able to arrange for total requirements for the survival of your family, starvation deaths will occur with the youngest members of the family dying first.

4. Any surplus of maize or milk generated can be sold or stored only after subsistence maize and milk requirements for the entire family have been met.

5. You cannot enter the next year of the game without balancing the feed requirements of your family and animals or declaring them dead to balance the same. The Game Manager has to certify this.


Table – V Feed input – milk output relation for cows in-milk

Feeding rates (kg/year/animal) Milk output (kg/year/animal)

Feed combinations Maize straw MaizeI 2000 0 150II 1700 200 340III 1500 400 585

Table VI Feed requirements for other cattle

Cattle Maize (kg/year/animal) Maize straw (kg/year/animal)Bull 300 2400cow (dry) - 1200Calf - 1200

Table – VIIConversion of milk into ghee

Milk (kg) Ghee (kg)20 1

Notes:

1. A young cow gives birth to a calf for the first time and begins to produce milk at the beginning of the third year of her age.

2. From then on it gives birth to a calfevery alternate year i.e. a cow gives birth to a calf and produces milk in the 3rd, 5th, 7th, 9th and 11th year of its life. During this period it is referred to as a Cow in Milk. In the remaining years, it is referred to as a Dry Cow.

3. A cow, either in milk or dry,cannot be drafted for farming operations i.e. it cannot be used for farming operations.

4. A young bull becomes available for draft purposes from the third year of his life.5. The normal life of any animal is limited to 12 years.6. In case of a cow in milk, you can choose amongst the three feeding rates given

above. The milk output of your cow will correspond to the feeding rate chosen by you.

7. Milk can be used for family consumption, sold to other households in need of it or converted to ghee for sale to Trader. Milk is perishable and cannot be carried forward or stored for future. The conversion rate between milk and ghee is given in Appendix VI. The price at which the trader will buy ghee will be announced every year.

8. If you are unable to provide enough fodder for your animals, your animals will die starting with the youngest animal.


Table VIII. Asset Value

S. No. Assets Unit price (Rs.)

1. land 5,000 2. bullocks 1,200 3. in-milk cows 1,000 4. dry cows 1,000 5. calf (male or female) 3007. Pumpset pegged to market price

Notes:

1. Prices will stay constant for the period of the game. There will be no appreciation or depreciation in asset value over time.


Simulation

Documents

Transcript of Simulation