An economic analysis of production of maize in Balrampur district of Chhattisgarh

Introduction

Maize (Zea mays L.) is the world's leading crop, domesticated in Central America, and is known for its versatility and high genetic yield potential. It is the only food cereal crop adaptable to various seasons, ecologies, and uses. Maize has many types, including yellow/white grain, sweet corn, popcorn, and others. In India, maize is the third most important food crop, ranking 4th globally in cultivation area and 7th in production. The area under maize cultivation in India reached 10.04 million hectares in 2021-22. India's maize production increased significantly from 1.73 million MT in 1950-51 to 33.62 million MT in 2021-22. Productivity has grown from 547 kg/ha to 2965 kg/ha, though it remains lower than the global average. Maize in India is cultivated in two seasons: kharif (rainy) and rabi (winter). Kharif maize, mostly rainfed, covers 83% of the area, but its productivity is lower (2706 kg/ha) compared to rabi maize (6105 kg/ha). Madhya Pradesh and Karnataka lead in maize cultivation, followed by Maharashtra, Rajasthan, and Uttar Pradesh. Andhra Pradesh has the highest maize productivity, with districts like Krishna and West Godavari achieving up to 12 tons per hectare. Maize in India is mainly used for poultry feed (47%), livestock feed (13%), food (13%), and industrial purposes (12%). In Chhattisgarh, maize cultivation has grown, especially in tribal areas. In 2020, the state produced 508,000 tons of maize, with significant contributions from the Bastar and Surguja divisions. Surguja covers the largest area for maize cultivation in the state, and Balrampur district has the largest maize area.

Methodology

Sampling technique of Balrampur district of Chhattisgarh was purposively chosen as the study area because, it has the larger area under Maize cultivation in the district. A multistage simple random sampling technique (SRS) was adopted to select the villages and the respondents, different farmer involved in Maize production and marketing in Balrampur district. The details of the sampling techniques at various stages are given as under:

Costs and returns of Maize cultivation

Despite the costs & return was worked out by old concepts, a standard method of cost of cultivation of Maize was also www.extensionjournal.com used. This method is accepted by The Commission of Agricultural Costs and Prices (CACP). Under this method, the cost of cultivation was computed by using the 7 Cost concepts, which are known as cost A1, cost A2 cost B1, cost B2 and cost C1, cost C2, and cost C3.

Results and Discussion

Cost of cultivation of maize Cost of cultivation of maize for Balrampur district

The cost of cultivation for maize production is crucial for understanding the expenses incurred on various inputs and assessing farmers' profitability. According to the findings, the total cost of maize cultivation per hectare was ₹44,888.60, with variable costs accounting at 79.06% and fixed costs at 20.94% (Table 1 & Figure 2). In human labor costs constituted the highest share at 30.49%, followed by material costs at 34.18%, power costs at 11.61%, and interest on working capital at 2.77% (Figure 1). Within the material costs, seeds accounted for 15.64% and fertilizers/manure for 13.41%. Hired labor costs were notably higher than family labor costs, with shares of 23.38% and 7.11%, respectively. The machine power accounted for 10.14%, while bullock power was minimal at 1.47% of the total variable costs. In fixed costs, including the rental value of land at 18.56%, remained consistent across farm sizes, which indicating economies of scale (Figure 2). The total cultivation cost varied with farm size, with large farms incurring the highest cost at ₹48,066.20 per hectare and marginal farms incurred the lowest of ₹43,729.30 per hectare. Overall, the study demonstrates that the farm size increases, so does the total variable cost was reflecting higher expenditures on material inputs by larger farmers.

Measures of farm profit in maize in Balrampur district.

The profitability of maize cultivation was evaluated by using various economic parameters such as a yield, cultivation costs, gross return, net return, cost of production, and input-output ratio. (In Table 2 & Figure 3). Empirical findings revealed that the net return over the total cost of maize cultivation averaged ₹38,704.30 per hectare across all farm sizes, it ranging from ₹36,717.70 to ₹44,854.80 per hectare for marginal to large farms and this indicates economies of scale in maize production. The cost of production per quintal was ₹1,022.19, ₹1,031.77, ₹1,021.01, and ₹946.93 for marginal, small, medium, and large farms, respectively. The input-output ratio showed an increasing trend with farm size, overall it was 1:1.86. These results underscore the profitability and efficiency gains which associated with larger-scale maize farming operations.

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