Socio-economic Analysis of Costs and Returns of Potato Var. Pokhraj in Midmapur (West) District of West Bengal, India
Abstract
Potato (Solanum tuberosum L.) is one of the most important vegetable crops in India, and West Bengal has been the leading producer of potatoes in the country in terms of area and production. The present study examines the socio-economic aspects of potato cultivation, particularly focusing on the cost structure, returns, and economic viability of the Kufri Pokhraj variety in the Salboni block of Paschim Medinipur district during the Rabi season of 2022-23. A three-stage random sampling method was used to obtain primary information from 60 potato growers in six high-producing villages selected purposefully by personal interviews, along with secondary sources. The analysis was done using the standardized cost concepts as recommended by the Commission for Agricultural Costs and Prices (CACP). The results revealed that the average Cost A1 (operational cost, excluding land rent) was ?141,346 per hectare, with the major components being human labor, seed, and manures/fertilizers. There was no leased-in land, and hence Cost A2 was zero. The costs rose progressively with each successive concept: B1 (?142,569), B2 (?161,104), C1 (?154,926), C2 (?173,461), and C3 (?190,807) per hectare, including the value of family labor, value of owned land, and management cost. The average productivity of Kufri Pokhraj was 339.80 quintals per hectare, which gave a gross return of ?169,900 per hectare. Net returns were highly positive for Cost A1 (?28,554/ha) and B1 (?27,331/ha), and marginally positive for B2 (?8,796/ha), while negative for C2 (??3,561/ha) and C3 (??20,907/ha). Family labour income and business income were calculated to be ?8,796 and ?28,554 per hectare, respectively. The results show that the enterprise is reasonably profitable at the farm level, but it suffers from economic stress when the opportunity cost of family labour and land resources is taken into account. The production technology is still labour-intensive, highly reliant on chemical fertilizers, and not much emphasis is given to the use of organic manures.
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Introduction
In West Bengal, potato cultivation holds a dominant position in terms of area and production among vegetable growers, making it an important crop in the agricultural landscape of the state. The soil and climatic conditions in West Bengal offer high potential for potato production. West Bengal is a major producer of potato in India, with a significant portion of the state's agricultural land dedicated to potato cultivation. The crop is grown in approximately 4.6 lakh hectares of land in the state. Potatoes have high nutritive value, with 100 grams of edible potato containing 97 kilocalories, 1.6 grams of protein, a small amount of fat, 10.07 grams of minerals, and a modest iron content. They consist of 74.7% water and 22.6% carbohydrates, complemented by other essential food components. With their nutritional value, adaptability to diverse climates, and ability to serve as a staple food, potatoes have become an essential component of diets in many countries. People consume potatoes in various forms such as cooked curries, fries, potato crackers, and as flour for making bread, biscuits, chips, and more, both domestically and internationally. This research paper will explore the economic intricacies surrounding potato production and marketing, investigating factors such as production costs, market structures, trade patterns, and government policies. By examining various www.extensionjournal.com facets of this vital sector, the study aims to contribute to informed decision-making processes, promote sustainable agricultural practices, and enhance the economic viability and efficiency of potato farming systems. The findings will provide a deeper understanding of the industry's dynamics and offer recommendations to foster the growth, efficiency, and resilience of potato farming and distribution systems.
Objectives of the study
To study the cost and returns of the growers of potato var. Pukhraj in the study area.
Materials and Methods
This study aims to analyze the costs and returns of potato cultivation and investigate the price spread and marketing issues in the Salboni block of the Paschim Medinipur district in West Bengal. In line with the study's objectives, this chapter focuses on the methodological aspects, including the analytical tools used and the description of terms and concepts considered for data collection, analysis, and interpretation. The following sections discuss these aspects in detail. 1. The study area 2. Nature and collection of data 3. Analytical procedure as under The analysis of cost of cultivation and their respective profitability from potato production
Study area
The study is specifically conducted in Paschim Medinipur district of West Bengal, as this area is deliberately chosen due to its significance in terms of area of potato cultivation.
Sampling techniques
Three staged random sampling technique has been used to select the block, village and potato growers. At first stage, out of 21 blocks of Paschim Medinipur district, one block namely Salboni block was purposively selected for the study where area under potato cultivation was higher in comparison to other blocks. At second stage, list of highly potato producing villages was prepared and then 6 villages of Salboni block, (Chaita, Krishnanagar, Bhabrigere, Rautara, Debagram, Muchibere) were selected on the basis of maximum coverage of area under potato crop. At the third stage of selection, a complete list of potato growers for all 6 selected villages was prepared from the record of the Assistant Director of Agriculture (Salboni Block) and record of the panchayat office of respective villages and 60 farmers as sample for the study were selected randomly from the list of farmers.
Nature and source of required data
The data required for the present study were both of primary and secondary in nature. The primary data were collected from the selected sample potato growers and recorded as follows:
Reference period
The collected data were related to the crop calendar year 2022-23 (Rabi season).
Method of inquiry
Data for the study were gathered through personal interviews with selected potato growers using pre-tested questionnaires and schedules. These tools were designed to cover various aspects that align with the systematic objectives of the study. The data collection process involved conducting surveys, and multiple visits were made to ensure contact with each selected sample of potato growers.
Analytical process described
The data gathered from the participants underwent a thorough review to identify any deficiencies or inaccuracies before being analyzed in tabular form. The expenses and profits related to potato cultivation were calculated separately for different categories of potato growers.
Cost concepts
The determination of costs was based on the principles outlined by a designated committee of experts commissioned by the Government of India for estimating costs. The updated cost concepts utilized in this research are outlined as follows:
Net farm income: This is the income remaining after
subtracting the cost 'C2' from the gross income. It represents the actual profit earned from the farm operation.
Input-output ratio:
The input-output ratio measures the efficiency of the farm operation by comparing the gross income with the cost of cultivation. It is calculated by dividing the gross income by the cost of cultivation.
An evaluation of farm inputs and output (a) Inputs
Human labour: For casual labour, the evaluation is based on the actual payment made in cash or kind. In the case of family labour, it is assessed according to the prevailing wage rate in the village during a specific reference year. Bullock and machine labour: Hired bullock or machine labour is evaluated based on the actual cash or non-cash payment. Owned bullock labour is assessed using the prevailing wage rate in the village during a specific reference year. Value of seed: The value of seed is determined by the actual price paid for purchasing seed of a particular quality. (b) Output: Gross value is computed by converting the physical products into monetary terms. This is achieved by multiplying the output of the potato crop by the harvest prices (TPP x Py or TVP).
Costs and returns structure of potato cultivation
Studying the economics of potato cultivation is crucial for assessing its profitability and making informed decisions regarding cultivation practices, resource allocation, and production scale. Additionally, it provides estimates of the financial requirements associated with cultivating potatoes in different-sized areas and with varying levels of technological adoption. It is widely recognized that the profitability of potato production is influenced by the costs of inputs and field operations, as well as the prices obtained for the harvested potatoes. Therefore, the significance of conducting these analyses cannot be overstated, as they shed light on key aspects of the study related to profitability and economic viability.
Results and Discussion
The The Table . 1 represents the cost structure of potato cultivation (variety: Kufri Pukhraj) per hectare. On average, the cost of cultivating one hectare of potato crop is found to be Rs. 141,346, referred to as cost A1. There is no cost A2 indicated because farmers used their own land for potato cultivation. Furthermore, the table reveals that the average operational cost, known as cost B1, amounts to Rs. 142,569 per hectare for potato cultivation. Similarly, the average cost B2 is recorded as Rs. 161,104 per hectare for potato production.
It is noteworthy that the costs C1, C2, and C3 are observed to be Rs. 154,926, Rs. 173,461, and Rs. 190,807 per hectare, respectively. Among these components, the investment pattern indicates that the expenditure on plant protection measures and irrigation is relatively lower in terms of variable costs. Conversely, the higher costs incurred per hectare for potato production are attributed to labour, manures and fertilizers, and seed, respectively. www.extensionjournal.com
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