A study on cost of cultivation and profitability analysis of wheat production in Indore Block of Madhya Pradesh

Introduction

Wheat (Triticum aestivum L.) is one of the most important cereal crops of the world and is grown in the largest area. It belongs to Gramineae family. Wheat is originated from South West Asia. Wheat is the most widely cultivated food crop in India and is the second most important staple food for more than half of the world' population. It has high nutritive value and can be used in many ways such as chapatti, poories, upma, backed leavened bread, flakes, cakes, biscuits, dalia and halwa. Wheat contains protein 8-15%, carbohydrates 60-70%, oil and fat 1.5%, fiber 2-2.5%. (FAO). The global area of wheat is about 220 million hectares with a total production of 819.10 million tonnes and an average productivity of 3.72 tonnes per hectare. in the world China rank first in the wheat-producing country during 2025-26 (Singh et al,2023) [3] with a production of 140.07 million tonnes from 23.58 million hectares and a productivity of 5.94 tonnes per hectare. India ranked second, producing 120.21 million tonnes from the largest wheat area of 33.40 million hectares, with a productivity of 3.60 tonnes per hectare. (Food and Agriculture Organization of the United Nations FAOSTAT,2025). In Madhya Pradesh wheat is grown on area of 101.09 lakh hectare with a production and productivity of 382.32 lakh metric tons and 3782 kg/ha, respectively (2024-25). In the Indore district wheat is an important cereal crop and occupies an area under cultivation 2.15 lakh hectare with production of 9.59 lakh metric tonnes and productivity 4456 Kg/ha respectively (Dept. of Agri. & Farmer Welfare Madhya Pradesh 2024-25).

Research methodology

The study was confined to Indore district of Madhya Pradesh. Indore district was selected purposively because this district has first position in area and production under wheat crop in the Malwa plateau, and also for the convenience of the researcher to get more accurate information. The multistage random sampling was used to acquire sample farmers for the study. Indore district has four blocks namely Depalpur, Indore, Mhow and Sanwer.At the first stage of sampling, Indore block were selected purposively, At the second stage of sampling, a list of wheat growing villages were prepared from Indore block then 5 villages was selected randomly then a list of wheat growing farmers from each selected village was prepared then classified into five major categories on the basis of their land holding i.e. marginal (less than 1ha), small (1-2 ha), semi medium (2-4 ha), medium (4-10 ha) and large (10 ha or above). Then a sample of 75 farmers were selected from each block by simple random sampling technique. Thus, in all 75 sample farmers were selected.

Cost concepts

The cost and returns concepts were used to estimate total cost incurred on wheat production. Detail estimation procedure is given below. (Verma et al, 2016 and Kumar et, 2023) [4,5] .

Cost A1 = All actual expenses incurred in the crop production.

Results and Discussion

The cost of cultivation of wheat crop in the Indore Block was analyzed and the results are present in the table1. The result reveals that the average total cost of cultivation of wheat production found to be ₹55980.05 /ha. which was highest on large farm (₹58125.09) followed by medium (₹57568.43), semi medium (₹55923.49), small (₹54789.85) and on marginal farm (₹53493.41/ha) Kumar et al 2025 [6] . The highest cost at large farm incurred due to large group of farmers invest more money on variable resources. Cost A 1 share maximum ₹31685.75/ha (56.60 per cent of cost C 3 ) in the total cost of cultivation and remaining cost together share by Interest on fixed capital (3.97), rental value of own land (25.90 per cent), the imputed value of family labour (4.44 per cent). Cost A 1 among the categories were seen maximum on the large farm (₹33560.66/ha) followed by medium (₹33045.18/ha), semimedium (₹31641.05/ha), small (₹30662.76/ha) and marginal farm (₹29519.11/ha). The expenditure trends among the categories indicated that cost A 1 increase with increase the size of farms. On an average, among the component of cost A 1 maximum cost share by machinery labour ₹5671.52 /ha (10.13 per cent of cost C 3 ) which was found to be highest under large farms (₹6547.85/ha) followed by medium (₹6247.71), semi-medium (₹5621.83ha), small (₹5121.39 /ha) and marginal (₹4818.84/ha). It implied that cost of machinery labour increase with increasing size of farms due to large and medium group of farmers utilize more of machinery labour as compared to marginal and small group. After the cost of machinery labour, cost on seed was second most expensive inputs, at overall level expenditure on seeds was observed ₹5536.55/ha (9.89 per cent of cost C 3 ) which was the highest on large size farm (₹5970.11/ha) and lowest on the small size of the farm (₹5098.90/ha). The variation seen in the cost of seed among categories due to farmers used different types of variety of wheat for sowing. Cost on fertilizer was observed third most expensive input, an average cost on fertilizer was observed ₹4596.57/ha (8.21 per cent) which found to be maximum on a large farm (₹4961.77/ha) followed by medium (₹4780.66/ha), semi-medium (₹4680.78ha), small (₹4358.40/ha) and marginal farm (₹4201.26/ha). The average expenditures on machinery labour were observed ₹5671.52/ha which was highest on the large farm (₹6547.85/ha) and lowest on marginal (₹4818.84/ha) farm which indicates that the cost on machineries labour increase with the increased in the size of the farm. The charges on human labour were observed ₹3520.11/ha (6.29 per cent) which was the highest on the large farm (₹3680.57/ha) and lowest on the marginal farm (₹3253.55/ha).The charges on irrigation were observed at overall farm-level ₹4238.54/ha (7.57 per cent) which was observed ₹3990.75/ha, ₹4160.44/ha, ₹4200.78/ha ₹4402.74/ha, and ₹4437.98/ha on marginal, small, semi-medium, medium, and large farm size respectively. The interest on working capital and land revenue state or village Panchayat tax was observed ₹1971.95/ha (3.52 per cent) and ₹250 /ha (0.45) respectively. The Depreciation cost on repairs of farms implements and machinery were charged ₹1293.11/ha (2.31 per cent) which was increased as the increased size of the farm. Cost A 2 and A 1 are the same which indicates that the leasing pattern of land was not adopted by the sampled farmers. Cost B 1 , B 2 , C 1, and C 2 were found to be ₹33907.96/ha (60.57 per cent), ₹48407.96 (86.47 per cent), ₹36390.96ha (65.01 per cent) ₹ 50890.96/ha (90.91per cent) respectively. Among the categories cost B 1 B 2 , C 1 , and C 2 increase with increasing size of the farm.

Profitability of wheat cultivation

Profitability of wheat crop production in the Indore block was analyzed and results are presented in table 2. It was depicted from the table that an average farmer gained a yield of 35.75 q/ha at their farm, which was found to be maximum on large farms (37.02 q/ha) followed by semi medium (36.89 q/ha), medium (35.18 q/ha), small (34.78/ha) and marginal farms (33.88 q/ha) (Kumar et al 2025) [7] . The large farmers were found to be sold their produce at the highest rate (₹2300.52 /q) as compared to medium (₹2290.07/q), semi-medium (₹2116.08), small (₹2050.39 q/ha), and marginal farmers (₹1970.66/q). This is indicated that large category farmers received more prices per quintals due to they had more technical knowledge and possessed marketing facilities such as storage etc. and were able to create more time utility in their product. While small and marginal farmers received less price per quintal as compared to large categories farmers. This is due to the distressed sale of the farm produce by small and marginal farms. The gross income, cost of cultivation, cost of production, net income (Fig 1), farm business income, family labour income, farm investment income, and the benefit-cost ratio at the overall farms level were found to be ₹96830.76/ha, ₹55980.05/ha, ₹1005.71/q, ₹40850.71/ha, ₹62922.80/ha, ₹45939.80/ha, ₹60439.80/ha and 1:1.73 respectively from the cultivation of wheat in the Indore block. The gross income from wheat cultivation was found to be maximum on large farms (₹104270.35/ha) as compared to medium (₹102750.73/ha), semimedium (₹97886.19/ha), small (₹91840.56/ha), and marginal (₹87405.96/ha). It was also observed from the data that, net income, farm business income, family labour income, farm investment income was found to be maximum on large farms size. The benefit-cost ratio was found to be highest on large size farms (1: 1.79) as compared to medium farms (1:1.78) semi-medium (1:1.75) small (1:1.68) and marginal size of farm (1:1.63).

Input output ratio of wheat crop over different cost in the Indore block

The input-output (B:C) ratio gives estimates of the return from the investment of one rupee in the production process. The B: C ratio for wheat production over different costs were worked out and the data on the same is presented in table 3. The data on input-output (B: C) ratio indicates that the return from the investment of rupee one in the production of wheat gives more than one rupee return.

At an average input-output ratio over cost A 1 /, A 2 , B 1 , cost B 2 , cost C 1 , cost C 2 , and cost C 3 were found to be 1:3.05, 1:2.85, 1:2.00, 1:2.66, 1:90, and 1:1.73 respectively (Fig 2). The inputoutput ratio over total costs was found to maximum (1:1.79) at large size farm followed by medium (1:1.78) semi-medium (1:1.75) small (1:1.68) and marginal (1:1.63) respectively. The estimated input-output ratio shows that wheat production was profitable at the overall farm as well as across categories.

Conclusion

It is concluded from the above discussion that average total cost of cultivation of wheat production in the Indore block found to be ₹55980.05 /ha. which was highest on large farm (₹58125.09) followed by medium (₹57568.43), semi medium (₹55923.49), small (₹54789.85) and on marginal farm (₹53493.41/ha). The highest cost at large farm incurred due to large group of farmers invest more money on variable resources. In the component of cost A 1 maximum cost share by machinery labour (₹5671.52 /ha) following by cost on seeds (₹5536.55/ha), human labour (₹3520.11/ha) and, irrigation (₹4238.54/ha). An average farmer gained a yield of 35.75 q/ha at their farm, which was found to be maximum on large farms (37.02 q/ha) followed by semi medium (36.89 q/ha), medium (35.18 q/ha), small (34.78/ha) and marginal farms. The gross income, cost of cultivation, cost of production, net income farm business income, family labour income, and farm investment income, at the overall farms level were found to be ₹96830.76/ha, ₹55980.05/ha, ₹1005.71/q, ₹40850.71/ha, ₹62922.80/ha, ₹45939.80/ha, and ₹60439.80/ha. The average B: C ratio of wheat cultivation in the study area was observed 1: 1.73 which inferred wheat production is profitable in the study area.

References

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