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India's Agricultural Production Overview

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0% found this document useful (0 votes)
6 views11 pages

India's Agricultural Production Overview

Uploaded by

luluparida358
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

The country brags the largest area under cultivation for wheat, rice, and cotton, and is the

world's largest producer of milk, pulses, and spices, which characterized large agro ecological
diversities of India including soil, temperature, rainfall, etc. The country accomplished a record
production of 329.69 million tonnes of food grains in 2022-23, transcending the prior five-year
average by a appreciable margin. (Source: Ministry of Agriculture & Farmers Welfare)

The highest produced food grain is rice, with over 130 million metric tons produced in fiscal
year 2023 followed by wheat, pulses and coarse cereals. Pulses play a fundamental role in
dietary protein take whereas coarse cereals are gaining influence due to their nutrient-dense
benefits. However Rice and wheat are the dominant food grains cultivated in India, owing to
their status as staple foods for a large portion of the population.

The country's agriculture landscape accounts Horticulture sector as a major force because the
horticulture sector adds significantly to India's Gross Value Added (GVA) in agriculture,
accounting for around 33%. India ranks second in the world in terms of overall fruit and
vegetable production. As of 2022-23, India's horticulture production is estimated to be a
staggering 351.92 million tonnes, excelling even food grain production.

India brags the top spot in the production of several fruits and vegetables, including mangoes,
papaya, okra, banana & ginger. The country also ranks among the leading producer of
commercial horticultural crops including watermelon, tomato & several flowers globally.

The Horticultural sectors of india includes another flourishing sector is floriculture. It brags
second spot globally with regard to cultivation area, spotlighting the weight of the country as a
flower producer. It includes major flowers like Marigold, Rose, chrysanthemum, tube rose.
These are just a few of the many beautiful flowers that India produces. The country's
floriculture industry is escalating rapidly, and with its favorable climatic conditions and skilled
workforce, India is poised to become a leading exporter of flowers in the world.

Agriculture is the mainstay of Odisha's economy, playing a indispensable role in the state's
development. It is characterized by vast agro ecological diversities including high fertile alluvial
soil, favorable climatic conditions, which support intensive agriculture. The state's rice bowl,
the mahanadi delta, is renowned for its high rice [Link] 55% of Odisha's population
counts on agriculture for their income, making it the primary source of employment in the state
(source: OES, 2022-23).

The agriculture sector amplifies around 22.5% to Odisha's Gross State Value Added (GSVA) in
2022-23, appreciably impacting the state's economy (Source: OES, 2022-23). The agriculture
sector in odisha registered a much higher growth rate than that of india (3.5 percent) in 2022-
23 ( source: OES, 2022-23).

Odisha is a major producer of rice, not only ensuring food security for its own population but
also contributing to India's national food security. Total food grain production in Odisha is
around 113.8 lakh MT ( source: OES, 2022-23). However the food production has declined over
previous fiscal year due to decline in rice production.

While not a leading producer nationally, Odisha also produces different non paddy agriculture
& Horticulture crops like fruits, vegetables, flowers , pulses & oilseeds. For additional income
generation and to reduce inter state migration for work people are cultivating crops like
watermelon, Marigold in down time to some extent.

MARIGOLD

Marigolds are brightly colored flowers belonging to the genus Tagetes, native to Central and
South America. These cheerful blooms hold cultural significance in many regions, symbolizing
joy, prosperity, and remembrance. Marigolds are prized today for their aesthetic appeal, pest-
repelling properties, and even medicinal uses.

In india, leading Marigold producing states are Madhya pradesh, Karnataka, Gujarat. While
brags the 7th spot. In 2022-23 india produced 935.60 thousand MT of marigold in total area of
84.22 thousand hectare.

728.53 thousand tonnes of lose flowers and 26.57 thousand tonnes of cut flowers. Madhya
pardesh tops the Indian marigold production followed by Karnataka, Gujarat.

Resource use efficiency


Cobb-Douglas type of production function (per hectare) was used to assess the resource use
efficiency in ragi production. The specification of the equation for ragi and sunflower cultivation
is given in the equation (2).

Y=a X, X X X X X (2)

Where,

Y= Crop Output (Quintal.)

X_{1} = Human labour (Man days)

X_{2} = Bullock labour (Pair days)

X_{1} = 1 Machine labour (Hours)

X. Seeds (Kg.)

XFYM (Tractor load)

X_{6} = 1 Fertilizers (Kg.)

a Constant

u = Random variable
b_{1} to b_{8} indicate regression coefficients of respective inputs and implicitly represents the
elasticity of production of respective inputs.

The equation (2) was transformed into the logarithmic form (log linear) and the same is
presented as follows,

log Y=log a+b 1 log X 1 +b 2 log X 2 +b 3 log X 3 +b 4 log X 4 +b 5 log X 5 +b 4 log X 6+ u *


log(e) ...(3)

Where,

Dependent variable;

i) Crop output (Quintal) Y

Output obtained per hectare by ragi and sunflower cultivation was taken as dependent
variable.

Independent variables;

i) Human labour (man days) X₁


Human labour was expressed in terms of total man days per hectare in the production of ragi
and sunflower.

ii) Bullock labour (Pair days) X_{2}

Cost incurred on bullock labour for per hectare ragi and sunflower production was taken.

iii) Machine labour (Hours) X)

Cost incurred on machine labour for per hectare ragi and sunflower production was taken.

iii) Seeds (Kgs) X

This refers to seeds (kg) used per hectare in Ragi and sunflower production.

iv) FYM (Tractor load) X

This refers to FYM (Tractor load) used in per hectare ragi and sunflower production.

v) Fertilizers (Kg) X
The total quantity of fertilizers used in per hectare ragi and sunflower production were taken.

Marginal Value Product (MVP): The estimated coefficients were used to compute the MVP. By
studying the marginal value product of factors of production, we can assess their relative
importance. Marginal Value Product of X₁, the it input is estimated by the following formula,

MVP by G.M. (Y) P, G. M. (X)

G.M. (Y) and G.M. (XI) represent the geometric means of output and input respectively and b, is
the regression co- efficient of ith input and Py is the price of output per quintal.

The model was estimated as follows,

r=MVP/MFC

Where,

refficiency ratio

MVP Marginal value product of variable input


MFC Marginal factor cost (price per unit input)

Based on economic theory, a firm maximizes profits with regards to resource use when the
ratio of the marginal return to the opportunity cost is one. The values are interpreted thus,

If r is <1; resource is excessively used or over utilized (no scope to increase the use) hence,
decreasing the quantity use of resource increases profits.

If r > 1 resource is under used or being underutilized (there is a scope to increase the use)
hence, increasing its rate of use will increase profit level.

r = 1 it shows the resource is efficiently used, that is optimum utilization of resource hence the
point of profit maximization.

A simple tabular method was adopted to systematically record socioeconomic status, costs,
returns, and resource utilization associated with marigold, watermelon & boro paddy
cultivation. To enhance data interpretability, relevant statistical analyses, including percentages
and averages, were worked out as required.

Cost of Cultivation Estimation

The following cost concepts were used to estimate the cost and returns of marigold

Concepts of cost:
In this study, the cost of cultivation was classified as indicated by the "Special expert committee
on cost estimates, GOI, New Delhi." The following are the cost concepts:

Cost A1: All actual manufacturing expenses, both in cash and in kind. The following expenses
are included in this cost.

1. Paid human labour, both male and female

1. Bullock's work

iv. Hired labour

iii. Planting material cost

v. Manure cost

v. Fertilizer cost

The importance of plant preservation

viii. Irrigation fees

ix. Taxes and revenue from land

x. Implement depreciation

. Implement repairs and rental

xii. Working capital interest

Cost A2: Cost Al plus the rent paid for the land that was rented.

Cost B1 is equal to Cost A2 plus interest on the value of fixed capital assets that are held. (With
the exception of land)

Cost B2 is equal to Cost Bi plus the rental value of the land that is owned.

Cost CI Cost B1+ Family Labor Value Imputed Cost C2 Cost B2 Family Labor Value Imputed
Cost C2: Cost C2 has been modified to take into account the market value of human labour or
the statutory minimum pay, whichever is higher.

Cost C3 is equal to C2 Plus 10% of C2* (as managerial cost)

Profitability Measures: The following income measures will be used to estimate profitability.

a) Net farm income (NFI): Gross income - Cost C3

b) FLI (Family Labor Income): Gross Income - Cost B2

c) Farm business income (FBI): Gross profit-Cost AI.

d) CB Ratio (Cost-Benefit Ratio) Gross revenue Gross costs

Definition of used terms & concepts

The costs were classified into variable and fixed costs. Variable cost includes cost of inputs
(seed, FYM, fertilizer, plant protection chemicals), labour cost and interest on working capital.
Fixed cost includes depreciation on farm implements, rental value of land, land revenue and
interest on fixed capital. The measurement and definitions of various cost components are as
follows.

A. Variable cost

Those costs which vary with the level of production are included in this category. The items
included under this section are given below.

a. Labour cost
The cost on hurman labour was calculated by multiplying the man days with existing age rate.
Women days were converted into man days by multiplying it with the ratio of ages given to
wonen labour to that of men labour (0.75). The cost on family labour was mputed by
multiplying man days with the prevailing wage rate. The bullock labour was kon in pair days and
the cost towards it was estimated by multiplying pair days with wage fate. Machine labour was
measured in hours and valued at prevailing hourly rates in the study

b. Cost of inputs

Cost of various inputs like seeds, fertilisers, FYM and plant protection chemicals were Included
in this category. Non-farm inputs were valued at prevailing prices while owned farm inputs
were imputed at current prices.

c. Interest on working capital

The prevailing bank rate of eight per cent (Commercial bank lending rate in study area) is taken
to work out the interest on working capital for the duration of the crop.

Fixed cost

This consists of those cost items which don't vary with the level of production. The items
included under this section are,

a. Rental value of land

The prevailing rental value of the land for the crop depending on the duration of the crop was
considered.

b. Depreciation

Depreciation on each capital equipment and machinery owned by the farmers were calculated
separately, by using straight line method. The average life of the asset as indicated by each
farmer was used in computation of the depreciation.

Annual depreciation = (Purchase value- salvage value)/ Useful life of the asset
Interest on fixed capital

Interest on fixed capital was computed at the rate of ten per cent per armum. The morest was
worked out on the values of fixed assets, after deducting depreciation for the year

d. Land revenue and taxes

Land revenue and taxes was charged at the rates levied by the government.

Total cost

Total cost is the summation of total variable cost and total fixed cost.

C Returns

a) Gross returns

Gross retum including the gross value of main product and by product imputed on the basis of
post-harvest prices prevailing in the selected study area.

b) Net returns over total cost

Net return was computed by subtracting the gross returns from total cost of cultivation.

c) Cost of production per quintal

Cost of production per quintal was worked out by dividing total cost by the yield of main
product.

d) Returns per rupee of expenditure

Return per rupee of expenditure was calculated by dividing the gross return by total cost.

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