Jammu and Kashmir Union Territory is divided into varied agro climatic zones temperate Kashmir valley and humid sub-tropical and tropical region of Jammu. Each has its own specific geo-climatic conditions which determine the cropping pattern and productivity profits. Organic farming has been considered as one of the best options for protecting/sustaining soil health, and is gaining lot of importance in present day agriculture. The present study was confined to the Research Farm, SKUAST, Jammu, Chatha, Jammu and Kashmir Union Territory as this farm has the area under both organic and non-organic basmati. The per hectare cost of cultivation of organic and non-organic basmati rice for human labour, machine labour and irrigation charges were found to be same i.e., ₹ 6863.12, ₹ 3587.05 and ₹ 3640.00 respectively. Whereas expenditure incurred on other items such as seed and manure and fertilizer were found to be maximum in organic cultivation i.e., ₹ 1800.00/ha and ₹ 12000.00/ha respectively. The per hectare cost C2 was ₹ 30201.13 for organic farm, and ₹ 19790.49 for non-organic farm. After working out management cost, i.e., 10 percent of cost C2, per hectare cost C3 found to be ₹ 33221.24 and ₹ 21769.53 for organic and non-organic farms respectively. Cost benefit ratio for non-organic basmati is higher as compare to organic basmati whereas the net return per hectare in organic basmati is higher as compare to non-organic basmati.
HIGHLIGHTS
Cost benefit ratio for non-organic basmati is higher as compare to organic basmati whereas the net return per hectare in organic basmati is higher as compare to non-organic basmati.
Per hectare cost incurred for the cultivation of Basmati on Organic farm is higher as compared to non-organic farm.
Organicinorganicbasmaticostreturns
According to Indian Brand Equity Foundation 2019, Agriculture is the primary source of livelihood for about 58 per cent of India’s population. Gross Value Added by agriculture, forestry and fishing is estimated at ₹ 18.53 trillion (US$ 271.00 billion) in FY18. Rice production is considered to have begun simultaneously in many countries over 6500 years ago. Rice has been produced in china since ancient times. Most believe the roots of rice came during 3000 BC in India. Maximum area under rice falls in Asia. Rice, the most important cereal crop grown in India. According to the Food and Agriculture Organization (FAO), about 26 per cent rice production of the world is produced in India. In India rice is grown in almost all the states such as Jammu & Kashmir Union Territory, Kerala, Bihar, Uttar Pradesh, Madhya Pradesh, and West Bengal etc. Introduction of high yielding varieties (HYVs) and intensive rice farming had led to magnified use of chemical fertilizers and pesticides. Continuous and increased/indiscriminate use of sole chemical fertilizers lead to several harmful effects on the soil environment, ground and surface water, and even atmospheric pollution, reducing the productivity of the soil by affecting soil health in terms of physical, chemical and biological properties (Prakash et al. 2003; Rakshit et al. 2015).
Agricultural and Processed Food Products Export Development Authority (APEDA) made efforts to produce and export basmati rice, aromatic rice and other rice varieties by establishing model farms in states like Punjab, Haryana and Uttar Pradesh. Rice is the major crop that receives maximum quantity of fertilizers (40%) and pesticides (17-18%) and these are two major challenges in organic rice farming. They are: nutrient management and pest management. Rice is fully-grown in more than hundred countries, with a total harvested area of approximately 158 million hectares, producing over 700 million tons annually and there have been around 161.1 million hectares of rice cultivated area worldwide in 2016/2017 (OECD/FOA, 2017). In India, the cultivated area under rice is 433.88 lakh ha. with a production of 115.60 million tonnes (Dept. of Agriculture, Cooperation & Farmers Welfare, 2019).
Jammu and Kashmir Union Territory is divided into varied agro climatic zones temperate Kashmir valley and humid sub-tropical and tropical region of Jammu. Each has its own specific geo-climatic conditions which determine the cropping pattern and productivity profits. Therefore, agricultural sector continues to stay the vital sector for socioeconomic development of the individuals. In J&K, the area under rice cultivation is 262.01 thousand ha. with the production of 6161 thousand quintals and the productivity of 23.51 quintals per hectare. The area under rice in Jammu division is about 131.52 thousand ha. with production of 2839.00 thousand quintals (Digest of Statistics J&K, 201819).
Organic farming has been considered as one of the best options for protecting/sustaining soil health, and is gaining lot of importance in present day agriculture. Significant enhancements in soil physical, fertility and biological properties have been reported in several organic farming experiments. Although grain yield under organic farming is usually not up to under standard farming, it is feasible to have increased rice yields under the former. Organic agriculture enables ecosystems to better adjust to the effects of climate change, and also improves carbon sequestration potential of the soil. Therefore the present study is undertaken with the objective to find out the cost and returns of Basmati under organic and nonorganic conditions.
MATERIAL AND METHODS
The present study was confined to the Research Farm, SKUAST, Jammu, Chatha, Jammu and Kashmir Union Territory as this farm has the area under both organic and non-organic basmati.
Cost and return Analysis: For computation of costs and returns, the concepts framed by CACP were used.
Cost A1 = Expenditure on casual labour, farm machinery, seeds, fertilizer and manure, plant protection chemicals, irrigation, miscellaneous expenditure (cost of transportation, baskets and ropes) and interest on working capital + land revenue.
Cost A2 = Cost A1 + rent paid for leased-in land. Cost B1 = Cost A1 +interest on value of owned fixed capital excluding land.
Cost B2 = Cost B1 + rental value on owned land (net of land revenue) + rent paid for leased-in land.
Cost C1 = Cost B1 +imputed value of owned labour.
Cost C2 = Cost B2 + imputed value of owned labour.
The benefit cost ratio (BCR) of an investment is the ratio of the discounted value of all cash inflows to the discounted value of all cash outflows during the life of the project.
BCR=Σ{(Bt)/(1+r)t/Σ[(Ct)/(1+r)t]}
Where,
Bt = gross returns in time t
Ct = variable cost in time t
r = rate of interest
t = time period (t = 0, 1, 2, …….., i, ……., 30)
RESULTS AND DISCUSSION
Cost of cultivation of organic and non-organic basmati is presented in table 1, which indicated the cost structure for growing basmati rice in organic and non-organic farms. The per hectare cost of cultivation of organic and non-organic basmati rice for human labour, machine labour and irrigation charges were found to be same i.e., ₹ 6863.12, ₹ 3587.05 and ₹ 3640.00 respectively. Whereas expenditure incurred on other items such as seed and manure and fertilizer were found to be maximum in organic cultivation i.e., ₹ 1800.00/ ha. and ₹ 12000.00/ha. respectively. For non-organic basmati expenditure incurred on weedicides and pesticides was found to be higher i.e., ₹ 1350.00 as compare to organic basmati i.e., ₹ 60/ha. However, the operational cost was to the tune of 99.48 per cent for organic farm and 99.21 for non-organic farm to that of total cost. Expenditure on human labour, machine labour, seed, manure and fertilizer, plant protection chemicals was the important components of operational cost. Similarly land revenue and interest on fixed capital were the major components of fixed cost, which accounted for ₹ 154.7/ha. for both organic and non-organic farm.
Item wise cost of cultivation of organic and non-organic basmati on sampled farm (₹/ha.)
Concept wise cost of cultivation
In order to view the cost of cultivation of organic and non-organic basmati, various cost concepts were also worked out on per hectare basis and are presented in Table 2. The table revealed that per hectare cost A1 and A2 for the organic and non-organic farms were same i.e., ₹ 30046.43 and ₹ 19635.79 respectively as the value of rent paid for leased land was negligible which constitutes about 90.44 percent and 90.11 percent of total cost (Cost C3) respectively. Similarly, per hectare cost B1 was ₹ 30061.13 and ₹ 19650.49 in organic and nonorganic farm of Research farm, SKUAST-Jammu, respectively whereas cost B2 was ₹ 30201.13 for organic farm and ₹ 19790.49 for non-organic farm. The cost C1 constituted was equal to cost B1 as there was no involvement of family labour. The per hectare cost C2 was ₹ 30201.13 for organic farm, and ₹ 19790.49 for non-organic farm. After working out management cost, i.e., 10 percent of cost C2, per hectare cost C3 found to be ₹ 33221.24 and ₹ 21769.53 for organic and non-organic farms respectively.
Cost concept wise cost of cultivation of basmati on sampled farms (₹/ha)
Economics of basmati cultivation
The comparative economics of basmati cultivation under the sampled farm is presented in Table 3 which revealed that per hectare yield of main product and by product of basmati from organic farm were found to maximum in organic basmati for both main and by product i.e., 30 quintals and 75 quintals respectively. Per hectare yield of main product and by product of basmati from non-organic farm were 28 quintals and 70 quintals respectively. For main product and by product of organic basmati returns were found to maximum i.e., ₹ 30046.43/ha. and ₹ 11250.00/ha., respectively, with a total produce of basmati i.e., ₹ 146250.00/ha whereas in non-organic condition the returns for main product and by product were ₹ 105000.00/ha. and ₹ 10500.00/ha., respectively, with a total produce of ₹ 115500.00/ha.
Economics of Basmati rice on sampled farm (₹/ha.)
Net returns and cost benefit ratio over different costs is presented in Table 4 which revealed that per hectare net returns of organic basmati cultivation over cost A1, cost A2, cost B1, cost B2, cost C1, cost C2 and cost C3 were, ₹ 116203.57, ₹ 116188.87, ₹ 116048.87, ₹ 116188.87, ₹ 116048.87, ₹ 113028.76, respectively, whereas per hectare net returns of non-organic basmati cultivation over cost A1, cost A2, cost B1, cost B2, cost C1, cost C2 and cost C3 were, ₹ 95864.21, ₹ 95864.21, ₹ 95849.51, ₹ 95709.51, ₹ 95849.51, ₹ 95709.51, and ₹ 93730.47, respectively. The net income over various costs on non-organic farm i.e. cost A1 (Rs.95864.21), A2 (₹ 95864.21), B1 (₹ 95849.51), B2 (₹ 95709.51), C1 (₹ 95849.51), C2 (₹ 95709.51), and C3 (₹ 93730.47). The returns over each rupee invested in basmati cultivation on non-organic farm i.e. cost-benefit ratio were as cost A1 and A2 (1:5.88), B1 (1:5.87), B2 (1:5.84), C1(1:5.87) and C2 (1:5.84) and C3 (1:5.30). As per the results, cost benefit ratio for non-organic basmati is higher as compare to organic basmati whereas the net return per hectare in organic basmati is higher as compare to non-organic basmati. Thus, the farmer who can incurred higher expenditure can go for organic cultivation.
Net Return and Cost-Benefit ratio over different costs (₹/ha.)
CONCLUSION
The per hectare cost of cultivation of basmati rice were ₹ 30201.13 on organic farm, and ₹ 19790.49 on non-organic farm while as the respective cost A1 (₹ 116203.57), A2 (₹ 116203.57), B1 (₹ 116188.87), B2 (₹ 116048.87), C1 (₹ 116188.87), C2 (₹ 116048.87), and C3 (₹ 113028.76) for organic farm cost A1 (₹ 95864.21), A2 (₹ 95864.21), B1 (₹ 95849.51), B2 (₹ 95709.51), C1 (₹ 95849.51), C2 (₹ 95709.51), and C3 (₹ 93730.47) for non-organic. The cost- benefit ratio were 1:3.84 and 1:4.96 for organic and non-organic basmati respectively. Per hectare total variable cost from organic and non-organic farm was ₹ 30046.43 and ₹ 19635.79 respectively. Per hectare total fixed was same for both organic and non-organic farm.
The gross return for organic and non-organic farm were ₹ 146250.00 and ₹ 115500.00 respectively. The net return for organic and non- organic farm were ₹ 116048.90 and ₹ 98235.59, respectively.
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