Cost and returns of turmeric (Curcuma longa L.) growers in Nanded district of Maharashtra

Introduction

Agriculture continues to be a major source of employment, income and livelihood for a large section of the rural population in India. With increasing commercialization and diversification of agriculture, farmers are gradually shifting towards high-value crops that offer better income and valueaddition opportunities. Among these crops, spices occupy an important position due to their domestic demand, industrial applications, export potential and processing opportunities. Turmeric (Curcuma longa L.) is one of the most important spice crops cultivated in India and has considerable economic importance for farmers as well as the agricultural economy. Turmeric belongs to the family Zingiberaceae and is primarily cultivated for its underground rhizomes. It is widely used as a spice, colouring agent and raw material in food, pharmaceutical, cosmetic and nutraceutical industries. The presence of curcuminoids, particularly curcumin, has further increased its commercial and industrial importance. The growing demand for turmeric and its value-added products provides opportunities for farmers to enhance farm income through improved production, processing and marketing practices. India occupies a leading position in the production, consumption and export of turmeric. The crop generates employment and income at different stages, including land preparation, planting, intercultural operations, harvesting, curing, drying, polishing and marketing. However, turmeric cultivation is relatively input-intensive and involves substantial expenditure on seed rhizomes, labour, machinery, fertilizers, plant protection, irrigation, harvesting and postwww.extensionjournal.com harvest operations. Therefore, the profitability of turmeric depends not only on yield but also on the efficient management of production costs and the price realized by growers. Maharashtra is an important turmeric-producing state, particularly in the Marathwada region. Turmeric cultivation has expanded in several parts of the state owing to suitable agro-climatic conditions, irrigation facilities in selected areas, farmers' experience and established marketing networks. The crop contributes to agricultural diversification and provides an important source of cash income to farm households. However, the economic returns from turmeric cultivation vary according to input use, production technology, labour requirements, yield, market prices and post-harvest practices. Nanded district is an important agricultural region of Marathwada and is also associated with turmeric production and trade. During 2023-24, the district had approximately 223 hectares under turmeric cultivation, with production of about 3,245 quintals and productivity of nearly 5,000 kg per hectare, as reported by KVK Nanded. The presence of production and trading activities makes Nanded an appropriate location for examining the economic performance of turmeric growers. The cultivation of turmeric involves considerable investment, particularly in seed rhizomes, hired labour, machinery, fertilizers and plant protection inputs. Rising input prices and labour costs can substantially increase the total cost of cultivation, while fluctuations in yield and market prices may affect the returns received by farmers. Hence, estimation of the different cost components and returns is essential for determining the economic viability of turmeric production. Measures such as gross returns, net returns, farm business income, family labour income and benefit-cost ratio provide useful indicators of profitability. Post-harvest processing is another important determinant of the economic value of turmeric. The major operations include curing, drying and polishing, which improve the quality, appearance, storability and marketability of the produce. Although these operations involve additional expenditure on labour, machinery, fuel and other resources, appropriate processing can enhance the value realized by farmers. In particular, polished turmeric fingers may obtain better market prices because of their improved appearance and quality. Thus, the economics of turmeric should be examined by considering both cultivation costs and returns obtained from processed produce. The economic assessment of turmeric cultivation is therefore important for identifying major cost components, evaluating resource-use efficiency and determining the profitability of the crop. Such an analysis can help farmers make informed production decisions and identify opportunities for reducing avoidable expenditure. It can also provide useful information to agricultural extension agencies, researchers, traders and policymakers for developing measures aimed at improving production efficiency, post-harvest management, market access and farmers' income. In this context, the present study entitled "Cost and Returns of Turmeric Growers in Nanded District of Maharashtra" was undertaken to examine the economic performance of turmeric cultivation at the farm level. The study focuses on the estimation of input use, cost of cultivation, different cost concepts, gross and net returns and profitability of turmeric production. The study also considers the importance of postharvest processing and the major factors influencing the economic performance of turmeric growers. The findings are expected to provide an empirical basis for understanding the profitability of turmeric cultivation and for suggesting suitable measures to improve the economic sustainability and income potential of turmeric growers in Nanded district Objective of the study 1. To estimate the cost of cultivation and returns from turmeric production in Nanded district

Materials and Methods

The study was conducted in Nanded district of the Marathwada region of Maharashtra, which is predominantly an agricultural district with favourable conditions for diversified crop production, including turmeric. The district is characterized mainly by black cotton soils and receives support from irrigation sources such as the Godavari and its tributaries in selected areas. Turmeric is an important commercial crop in the district, providing income and employment opportunities to farming households. The availability of suitable soils, agricultural resources and established marketing facilities makes Nanded an appropriate location for analysing the cost and returns of turmeric cultivation.

A multistage sampling procedure was followed for the selection of turmeric growers for the present study in Nanded district of Maharashtra. Nanded district was purposively selected considering its importance in turmeric cultivation, favourable agro-climatic conditions and commercial significance of the crop. From the district, three talukas having comparatively higher area under turmeric cultivation were purposively selected based on secondary information obtained from the District Agriculture Office and related sources. Subsequently, three turmeric-growing villages from each selected taluka were chosen through simple random sampling, giving a total of nine villages. From each selected village, turmeric growers were randomly selected from the available list of farmers, with due consideration to the presence of turmeric cultivation in the village. Thus, 10 turmeric growers were selected from each village, resulting in a total sample of 90 turmeric growers for the study.

Estimation of Cost and Returns

The cost and return structure of turmeric cultivation was analysed using the cost concepts recommended by the Commission for Agricultural Costs and Prices (CACP). Both actual and imputed costs were considered to obtain a comprehensive assessment of the economics and profitability of turmeric cultivation. The analysis was carried out on a perhectare basis.

Cost Concepts

The following cost concepts were used for estimating the cost of turmeric cultivation:

Cost A1

Cost A₁ comprises the actual paid-out expenses incurred by the farmer in cash and kind for turmeric cultivation. The above cost concepts were used to determine the complete cost structure of turmeric cultivation, from paid-out expenses to the imputed value of family resources and managerial functions.

Returns from Turmeric Cultivation

The economic returns from turmeric cultivation were estimated using the following measures: 1) Gross Returns: Gross returns represent the total monetary value of turmeric production obtained per hectare.

Gross Returns (₹/ha) = Quantity of Output (q/ha) × Price Received (₹/q)

Gross returns indicate the total income generated from turmeric cultivation before deducting the cost of production.

2) Net Returns: Net returns represent the surplus obtained after deducting the total cost of cultivation from gross returns.

Net Returns (₹/ha) = Gross Returns -Total Cost of Cultivation Net returns were used as an important indicator of the profitability of turmeric cultivation.

Income Measures 1) Farm Business Income: Farm business income represents the return available to the farmer after meeting the paid-out costs of cultivation.

Farm Business Income (₹/ha) = Gross Returns -Cost A₁ (or A₂)

It reflects the return to land, owned capital, family labour and management after meeting the paid-out expenses.

2) Family Labour Income: Family labour income represents the return remaining after accounting for Cost B₂.

Family Labour Income (₹/ha) = Gross Returns -Cost B₂ This measure indicates the return accruing to family labour and farm management.

Profitability Measure 1) Benefit-Cost Ratio (BC Ratio):

The benefit-cost ratio was used to assess the economic efficiency and profitability of turmeric cultivation. It was calculated as:

BC Ratio = Gross Returns / Total Cost of Cultivation A BC ratio greater than 1.00 indicates that the gross returns obtained from turmeric cultivation are higher than the total cost incurred, indicating economic profitability.

Assessment of Economic Viability

The different cost concepts, returns measures and profitability indicators were used collectively to assess the economic viability and profitability of turmeric cultivation among the selected turmeric growers in Nanded district of Maharashtra.

Results and Discussion

Input use Pattern of Turmeric cultivators (per hectare)

Turmeric crop is a long-duration crop; it requires around 9 months, and the requirement for both human and machine labour is high. Consequently, labour expenses form a substantial portion of the total cultivation costs. Throughout the farming process, physical resources are directly converted into the final yield. Because the total output depends heavily on the volume of resources applied, achieving maximum profit requires precise management. It is crucial that these inputs are optimally utilized-meaning they must neither be wasted through over-utilization nor restricted through underutilization. www.extensionjournal.com 1 presents the per hectare physical quantity of various inputs utilized by the turmeric cultivators, along with their respective rates. Regarding labour and machinery, turmeric cultivation relied heavily on hired labour, requiring 44.87 female and 26.71 male man-days per hectare. In contrast, family labour utilization was lower, at 9.18 male and 5.67 female man-days. Additionally, the average machine power used was 27.39 hours per hectare, while the primary seed material (rhizomes) requirement was 11.23 quintals per hectare.

In terms of chemical and organic fertilizers, Single Super Phosphate (SSP) was applied in the highest quantity at 182 kg per hectare. This was followed by DAP (148.5 kg), MOP (148 kg), Limboli (131 kg), Urea (127.5 kg), and the 10:26:26 mixture (116 kg). For plant protection, the major inputs utilized were Biomix (3.95 kg/lit/gm), Saaf (2.18 kg/lit/gm), and Hitlist (1.33 kg/lit/gm).

Cost of Cultivation of Turmeric

The cost of cultivation encompasses all direct and indirect expenses such as labour, rhizomes, fertilizers, and machinery required to grow a crop. It is essential for calculating profitability, optimizing resources, and guiding agricultural policies. 2 reveals the per hectare cost of cultivation, yield, and income for turmeric farmers. The total cost of cultivation (Cost C3) was calculated at Rs 398,539.79 per hectare. The analysis shows that turmeric requires high initial investments. Among the operational expenses, machinery labour (Rs 87,648.00) and seed rhizomes (Rs 52,319.22) were the most significant cost contributors, pushing the total working capital to Rs 184,595.98. Additionally, the rental value of owned land accounted for a substantial fixed cost of Rs 99,134.74. Looking at the standard cost concepts, the direct paid-out costs (Cost A1/A2) stood at Rs 249,004.59. The cost progressed to Cost B2 (Rs 356,017.90) when accounting for the rental value of owned land, and reached Cost C2 (Rs 362,308.90) after including the imputed value of family labour (Rs 6,291.00 total for male and female).

In terms of returns, turmeric cultivation proved to be a highly rewarding enterprise. The average main produce yield was 66.77 quintals per hectare, generating a gross income of Rs 594,782.26. After deducting the total costs (Cost C3), farmers earned a robust net income of Rs 196,242.47 per hectare. Consequently, the Benefit-Cost (B:C) ratio stood at 1.49, indicating that for every rupee invested, the farmer received a return of Rs 1.49, confirming the economic viability and profitability of the crop in the study area.

Profitability of turmeric production was assessed using gross returns, net returns, farm business income, family labour income and the benefit-cost (B:C) ratio to determine the economic viability and overall profitability of turmeric cultivation.

Breakdown of cost concepts for Turmeric cultivators (per hectare)

The cost of turmeric cultivation was estimated to assess the expenditure incurred by farmers in the production process. The total cost was classified into different cost concepts

Conclusion

The analysis of input use, cost structure and profitability of turmeric cultivation revealed that turmeric is a highly inputintensive but economically viable crop in the study area. Turmeric cultivation required substantial use of hired labour, machinery, rhizomes, fertilizers and plant protection inputs, indicating the importance of efficient input management for reducing production costs. The total cost of cultivation (Cost C3) was estimated at Rs 398,539.79 per hectare, with machinery labour, rhizomes and rental value of owned land constituting major components of the total cost. The profitability analysis showed that turmeric cultivation generated a gross income of Rs 594,782.26 per hectare and a net income of Rs 196,242.47 per hectare. The farm business income and family labour income were Rs 345,777.67 and Rs 238,764.36 per hectare, respectively. The Benefit-Cost ratio of 1.49 indicated that turmeric cultivation was profitable and economically feasible, with a return of Rs 1.49 for every rupee invested. The returns analysis further showed that polished fingers were an important contributor to total returns, generating Rs 415,337.01, while fresh mother sets contributed Rs 179,445.25. Overall, the findings demonstrate the strong income-generating potential of turmeric cultivation. However, the relatively high expenditure on machinery, rhizomes and other production inputs highlights the need for efficient resource utilization, timely availability of quality inputs, improved production practices and better market realization. Strengthening these aspects can further improve the profitability and economic sustainability of turmeric cultivation among farmers in the study area.