Economics of Cost of Cultivation of Major Crops in the Cotton Belt of Rural Punjab

Published by: Admin

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Authors: Mandeep Kaur

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Abstract

Today every farmer in India has to face the basic economic problems of maximising the profitability and minimising the costs. To accomplish this, it is crucial to estimate the cultivation costs and profitability of different crops. The present study aimed to assess the costs of producing main crops in the cotton belt region of Punjab. The data was collected from 520 farmer households. The study observed that the new agricultural strategy adopted for increasing production and productivity followed in Punjab has become costlier in terms of rising cultivation costs. The research revealed that, during 2016-17, the cultivation expenses for wheat, paddy and cotton was Rs. 20157, Rs. 27682, and Rs. 27034 per acre, respectively. Per acre cultivation cost of wheat and paddy showed a declining trend with the larger farm sizes. The analysis highlighted that the marginal farmer households had to spent larger shares on irrigation charges due to the high dependence upon diesel irrigation. The cost of pesticides and insecticides was the highest in cotton farming which contributed to comparatively higher cultivation cost for this crop.

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