Economic analysis of potato (Solanum tuberosum L.) production and marketing in Ballia district of Uttar Pradesh, India

Introduction

The potato is a crop of significant economic importance, serving as a staple food source in both developed and developing nations. This versatile tuber is cultivated in approximately 150 countries worldwide. China holds the foremost position in production, followed by India and Russia. India ranks third in terms of cultivated area and is the second-largest producer of potatoes globally. Annually, approximately 380 million metric tonnes of potatoes are produced across more than 100 nations, with 50 percent of this yield being consumed in its fresh form. The tuber plays a crucial role in ensuring food security for millions of individuals in South America, Africa, Europe, and Asia. In the agricultural year 2018-19, India produced around 53 million metric tonnes of potatoes. The nation exports approximately 350,000 metric tonnes of potatoes annually, generating revenue in the range of Rs. 350-400 crore. (potatopro.com 2018-19) [9] . In India, potato cultivation occurs across various agro-climatic regions. Approximately 85 percent of the potato is produced in the Indo-Gangetic plains of northern India. Uttar Pradesh, West Bengal, Bihar, and Gujarat contribute to over 70 percent of the overall production. Within Uttar Pradesh, Ballia district holds considerable importance for vegetable cultivation. Located in the eastern part of the state, Ballia lies in the Middle Gangetic Plains agro-climatic zone and is characterized by fertile alluvial soils, favorable climate, and relatively abundant water resources. These conditions support year-round cultivation of vegetables such as potato, onion, okra, pointed gourd, green pea, and green chillies. According to official estimates, vegetables are grown over approximately 12,860 hectares in the district, producing around 244,876 metric tonnes annually. The potato (Solanum tuberosum) represents the most significant alimentary crop globally. This tuber is classified as a temperate crop, cultivated predominantly under the subtropical climatic conditions prevalent in India. Historically, the potato has been regarded as the 'friend of the impoverished'. The cultivation of this crop has a documented history extending over three centuries within the nation. In terms of vegetable applications, it has emerged as one of the most favored crops in this region. Potatoes serve as a cost-effective source of nourishment, supplying an economical form of energy within the human diet. They are an abundant source of starch, vitamins, particularly C and B 1 , as well as essential minerals. The nutritional composition includes 20.6 percent carbohydrates, 2.1 percent protein, 0.3 percent fat, 1.1 percent crude fiber, and 0.9 percent ash. Additionally, they provide a substantial quantity of vital amino acids such as leucine, tryptophan, and isoleucine. The potato, often referred to as 'The King of Vegetables,' has ascended to the status of the fourth most significant food crop in India, following rice, wheat, and maize. The inclusion of potatoes is indispensable in the Indian vegetable repertoire. This is attributable to the fact that the dry matter, edible energy, and edible protein content of potatoes render them a nutritionally superior vegetable and a staple food, not only within our nation but also on a global scale. Currently, it constitutes a fundamental component of breakfast, lunch, and dinner across various cultures worldwide. As a crop with a relatively short growth duration, it generates a greater yield of dry matter, edible energy, and edible protein in a shorter time frame compared to cereals such as rice and wheat. Consequently, potatoes may serve as an effective instrument for enhancing the nutritional security of the nation. The crop is highly capital and labour intensive due to significant expenses on seed, fertilizer, and labour. Human labour constituted approximately 30 percent of the total cost of Rs. 74,461, with seed accounting for 18 percent. Consequently, the cost benefit ratio was 1:2.51 (Harbans and Sharma 2006) [3] . The total cost C 3 of potato cultivation was Rs. 86523.78 per hectare. The gross income averaged Rs. 188370 for farms (Singh et.al. 2019) [10] . The average cost of potato cultivation was Rs. 47408.91 per hectare. The gross and net returns from potato cultivation were Rs. 92766.74 and Rs. 45357.83, respectively. The overall inputoutput ratio was 1:1.96 (Sinha and Singh 2019) [12] . The total cost of potato cultivation was calculated to be Rs 96272.30 per hectare. This was highest for large holdings (Rs. 109402.21), followed by medium (Rs. 101713.80), small (Rs. 90349.28), and marginal (Rs. 83623.96) holdings. The cost C 3 , accounting for managerial functions performed by farmers, was Rs. 105899.53. The gross income, net income, farm business income, and family labour income per hectare amounted to Rs. 257440.38, Rs. 161168.08, Rs. 192972.85, and Rs. 170435.55, respectively. The B: C ratio, indicating investment profitability, was observed to be 2.67 overall (Kumar et.al. 2021) [5] . The average cost of cultivation was estimated at Rs. 82560.79 per hectare, with a net income of Rs. 88993.96 and an input-output ratio of 1:2.08, indicating crop profitability (Kumar et.al. 2022) [4] . On average, Rs. 92552.03 was spent per hectare on potato cultivation. In the medium farm category, the highest expenditure was Rs. 100166, followed by small farms at Rs. 92867 and marginal farms at Rs. 84623.09. (Kumari and Maurya 2023) [7]. Producers received approximately 70.80% and 68.60% of consumer prices in Channel-I and Channel-II, respectively. Likewise, the shares were 70.90% and 68.30% for Channel-I and Channel-II (Balaji, et.al. 2010) [1] . The total marketing costs and margins were Rs.100 for Channel-I, Rs.466.42 for Channel-II, Rs.731.19 for Channel-III, and Rs.154 for Channel-IV (Kumar et.al. 2015) [6] . The farmer's share of the consumer's expenditure is approximately 25.00% for carrots and 41.00% for tomatoes. The marketing efficiency indices of 0.33 for carrots and 0.71 for tomatoes are notably low (Chand et.al. 2020) [2] .

Materials and Methods

Selection of Study Area

Uttar Pradesh is broadly divided into nine agro-climatic regions, namely: Tarai and Bhabar Region, Western Plain Zone, Mid-Western Plain Zone, South-Western Semi-Arid Zone, Upper Gangetic Plain Zone, Central Plain Zone, Bundelkhand Zone, Eastern Plain Zone (also known as the North-Eastern Plain Zone or Poorvi Maidan Kshetra), and Vindhyan Zone.

Selection of District

The Eastern Plain Zone of Uttar Pradesh comprises nine districts, namely Azamgarh, Mau, Ballia, Faizabad, Ghazipur, Jaunpur, Sant Ravidas Nagar, and Varanasi. From these districts, Ballia district was selected for the study. The selection was made purposively due to the district's considerable area under potato cultivation.

Selection of blocks

A list of all 17 blocks were prepared on the basis of Potato growing area. Two block namely Murlichhapra and Bairia block were purposively selected for the study.

Selection of Villages

A comprehensive list of villages under Murlichhapra and Bairia blocks was prepared in consultation with Block Development Officers and arranged based on the number of Potato growers. From this list, eight villages were selected randomly for detailed investigation. These villages were Sonbarsa, Bhojpur, Lakshimipur, Dalan Chhapara, Upadhyapur, Chakiya Jamalpur, Madhubani, and Karmanpur.

Selection of Sample Size and Farmers

A complete list of Potato growing farmers was prepared for each selected village. Farmers were classified into four categories based on landholding size: marginal farmers (below 1 ha), small farmers (1-2 ha), medium farmers (2-4 ha), and large farmers (above 4 ha). From each category, five farmers were selected randomly from each village, resulting in a total sample size of 160 farmers.

Sources of data

Primary data were collected directly from the selected farmers through personal interviews using a pre-structured and pre-tested schedule.

Period of Study

The study was conducted in year 2024-25.

Analytical tools

The data of selected farmers is analyzed using the Tabular analysis, Simple averages and Percentages. These formula helped in easy interpretation and comparison of the results.

Arithmetic Mean

Arithmetic

CACP Cost Concepts:

The following cost components were calculated:

Results and Discussion

The Per hectare costs of different inputs used in potato cultivation (Rs/ha) is presented in table1. Overall per hectare total cost of potato cultivation Rs 109425.81 varies directly with the farm size. Which was highest for large (Rs.122148.02) size of holding followed by medium (Rs. 112533.45), small (Rs. 105370.40) marginal (Rs. 97852.80) size of holdings. Overall per hectare operational cost was Rs.68855.43 (62.92 percent of the total cost). The per hectare fixed/overhead cost came out to be Rs.99478.01 (90.91 percent of the total cost). The percent share of seed cost to the total cost was as high as 24.36. 22.66 and 21.78 percent on large farms, medium and small as low as 21.72 percent on marginal farm size group. Overall highest cost was seed of potato (22.72 percent) followed by rental value of own land (20.56 percent), human labour (18.73 percent), Manure & fertilizer (11.58 percent), irrigation charges (06.09 percent) and plant protection charges (03.39 percent) respectively. marginal, small, medium and large farms. respectively. The net income on potato production was highest for the large farmers (Rs.138566.98) followed by medium (Rs.139330.05) small (Rs.138754.60) and marginal (Rs.138764.70) farmers. The B: C which indicates the profitability of investment was observed to be 1:2.27at the overall level. The benefit-cost ratio was highest in large size farm (1:2.13) followed by medium (1:2.24), small (1:2.32) and marginal (1:2.42) farmers.

Existing Marketing Channels for vegetables in the Study Area

The commonly observed marketing channels in the study area were as follows:

Channel I Producer → Consumer

This channel was mainly adopted by marginal and small farmers who sold their produce directly in local markets, village haats, or roadside markets. Although this channel involved minimal marketing costs and no intermediary margins, it required farmers to spend more time and effort on marketing activities.

Channel II Producer → Retailer → Consumer

This was one of the most widely used channels in the study area. Farmers sold their vegetables directly to retailers in nearby markets. This channel reduced marketing costs compared to longer channels, but farmers still received a lower price than the consumer price due to retailer margins.

Channel III Producer → Wholesaler → Retailer → Consumer

This channel was predominantly used by medium and large farmers who marketed larger quantities of vegetables. While it ensured quick disposal of produce and access to larger markets, the presence of multiple intermediaries increased marketing costs and reduced the producer's share in the consumer's rupee.

Price Spread of Potato under Different Marketing Channels:

The table 3. presents the price spread of potato under different marketing channels in the study area. It is evident that the price received by producers decreased with an increase in the length of the marketing channel. Under Channel I (Producer → Consumer), farmers received the highest price of ₹1050 per quintal, as no intermediaries were involved. The marketing cost incurred by the producer in this channel was Rs. 120 per quintal, and the consumer paid Rs.1170 per quintal. In Channel II (Producer → Retailer → Consumer) the price received by the producer declined to Rs. 1000 per quintal due to the involvement of the retailer. The retailer incurred a marketing cost of Rs.110 per quintal and earned a margin of Rs. 180 per quintal, resulting in a consumer price of Rs. 1380 per quintal. Consequently, the producer's share in the consumer's rupee declined to 72.46 percent. Channel III (Producer → Wholesaler → Retailer → Consumer) involved both wholesalers and retailers, leading to higher marketing costs and margins. The producer received the lowest price of Rs. 950 per quintal. The wholesaler incurred a marketing cost of Rs. 100 per quintal with a margin of Rs. 110 per quintal, while the retailer incurred a marketing cost of Rs. 85 per quintal and earned a margin of Rs. 200 per quintal. As a result, the consumer paid the highest price of Rs. 1635 per quintal, and the producer's share further declined to 58.10 percent.

Marketing Cost, Margin and Price Spread under Different Channels

The table 4. shows the marketing cost, marketing margin, and price spread of potato under different marketing channels in the study area. It is evident that marketing costs and margins increased with an increase in the number of intermediaries involved in the marketing process. In Channel I (Producer to Consumer), the total marketing cost was the lowest at Rs. 120 per quintal, as there were no intermediaries. Consequently, the price spread was also minimum at Rs. 120 per quintal, and the consumer paid the lowest price of Rs.1170 per quintal.

References

1. Balaji MN, Chahal SS, Katraria P. Market intermediaries and their margins in marketing of potato in Punjab. Indian J Agric Mark. 2010;24(2):164-177.
2. Chand K, Shalander K, Suresh A, Dastagiri MB. Marketing efficiency of vegetables in developing economies: evidences for critical intervention from Rajasthan, India. Indian J Agric Sci. 2020;90(8):55-63.
3. Harbans L, Sharma KD. Analysis of cost and labour intensity in potato crop. Potato J. 2006;33(3-4):139143.
4. Kumar A, Singh R, Singh PK, Yadav B, Choudhri HPS. Economic aspects of potato cultivation in Sultanpur district of Uttar Pradesh. Econ Aff. 2022;67(1 Suppl):15-18.
5. Kumar H, Pal VK, Verma SC, Rawat VK, Maurya SK. Economics of potato production in Gorakhpur district of eastern Uttar Pradesh. Int J Creat Res Thoughts. 2021;9(5):f820-826.
6. Kumar S, Jain S, Shakya MK, Kushwaha S. Study of marketing channels, marketing efficiency and constraints in vegetable marketing in Varanasi district of Uttar Pradesh. Int J Sales Mark. 2015;5(5):35-44.
7. Kumari S, Maurya M. Economic evaluation of cost and returns of potato crop towards livelihood security of farmers in Nalanda district of Bihar. Econ Aff. 2023;68(4):1929-1935.
8. Mukul AZM, Rayhan SJ, Hassan MM. Farmer's profitability of potato cultivation at Rangpur district: the socio-economic context of Bangladesh. Int J Econ Finance Manag Sci. 2013;1(3):136-144.
9. PotatoPro. Potato statistics. 2018-2019.
10. Singh A, Singh R, Anurag, Ranjana. Economic management and analysis of potato cultivation: a case study of Agra district (U.P). Int J Curr Microbiol Appl Sci. 2019;8(2):525-530.
11. Faizabad (India): Narendra Deva University of Agriculture and Technology; 1984.
12. Sinha AK, Singh SK. Economics of potato production in northern hills of Chhattisgarh. Econ Aff. 2019;64(1):1-7.