PROFITABILITY ANALYSIS OF SORGHUM PRODUCTION IN INDIA

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1 PROFITABILITY ANALYSIS OF SORGHUM PRODUCTION IN INDIA Jimjel. Zalkuwi 1, Rakesh Singh 2,Madhusudan Bhattarai 3, O.P Singh 4, B.Dayakar 5 1,2,4Department of Agricultural Economics, Institute of Agricultural science, BHU, Varanasi ICRISAT India 5DSR India Corresponding Author s jzalkwi4u@gmail.com Abstract The study examines the profitability of sorghum in the six States of India. The cost concept was used to compare the profitability of the production in these INTRODUCTION states. The result reveal that the profitability of sorghum is higher in Andhra Pradesh State, had the highest Gross income and Net return to sorghum production and on average we can see that there is a decrease in area production Sorghum (jowar or jowari) is an important nutrition cereals constituting staple diet in the country [1]. India contributes about 16% of the world s sorghum production. It is the fourth most important cereal crop in the country. This crop was one of the major cereal staple during 1950 s and occupied an area of more than 18 million hectares then reduce to 5.72 million hectares in (TE 2014).production increases from 9 million tons in the early 1970s to 12million tons in early 1980 and maintained this level for over a decade until early 1990s, followed by a steep decline to million tons Despite the decrease in area over the year, production has been sustained at million tons due mainly to adoption of improve varieties and hybrids. Sorghum grain yields in India have average 1170kg/ha in the rainy season and 880kg/ha in the post rainy season in recent year[7][8] All India total sorghum production has registered a constant growth rate of 0.10% per annum during the period to which can be mainly attributed to negative production of kharif sorghum rather than positive growth in rabi sorghum production. Though, kharif sorghum yield growth rates were relatively higher, it could not offset the declining growth rates in production, as the growth rates in kharif sorghum area were negative and high. Just opposite is true in case of rabi sorghum where the area decline was not sufficient to undermine the yield growth, thus resulting in positive production growth rates. Among the states, Maharashtra alone recorded positive growth in production during both kharif and rabi seasons, while Karnataka registered a positive growth rate in rabi production. Gujarat recorded highest growth in yield of 3.72%, while it also recorded highest 707

2 decline in area in kharif. Based on the performance of sorghum in Maharashtra, it appears that relatively it has a promising future during both kharif and rabi. This therefore prompts the need for the study on the need for the profitability of the enterprise so as to ascertain its viability among the producing states in two different seasons (ie and ) METHODOLOGY Study area The study was carried in India being the fourth sorghum producer in the world. The sorghum producing states were purposively selected that is Andhra Pradesh, Karnataka Madhya Pradesh Maharashtra, Rajasthan and Tamil Nadu. The production of sorghum in India is usually concentrated in the southern part of in India. Nature and source of data Data were collected from secondary source and were analysed using the CACP cost concept [8] Analytical tool The cost concept was used as the analytical tool. Cost A 1, cost A 2, cost B and costc 1, C 2, C 3 were computed to derive farm income.various cost included in each concept are given below; Cost A 1 = All actual expenses in cash and kind incurred in production by the owner. Cost A 2 = Cost A 1 +rent paid for leased in land Cost A 2 + FL =Cost A 2 + imputed value of family labour Cost B 1 = Cost A 1 + interest on value of owned capital asset (excluding land) Cost B 2 =Cost B 1 +rental value of owned land (net of land revenue) 708

3 Cost C 1 =Cost B 1 + imputed value of family labour Cost C 2 =Cost B2+ imputed value of family labour Cost C 2 = Cost C 2 estimated by taking into account statutory minimum or actual wage whichever is higher. Cost C 3 = Cost C per cent of cost C 2 on account of managerial function performed by farmer. Gross income = is the total income realised from the production. Output-input ratio= is the output divide by cost C RESULT AND DISCUSSION Table 1: Estimate of cost and return to sorghum production ( and ) ITEMS ANDHRA KARNATAKA MADHYA ANDHRA KARNATAKA MADHYA Area ( hectare) Production(000 tonne) Cost A(paid out in Rs/ha) Cost C(total cost including family labour Yield (q/ha )main product. Value of main product(rs/ha) Value of By product (Rs/ha) Output-input ratio Gross income (Rs/ha) Net return 0ver cost C Net return over cost A(Rs/ha) Source: computed from cost of cultivation data collected from eands.dacnet.nic.in 709

4 Table 2: Estimate of cost and return to sorghum production ( and ) ITEMS MAHARASHRA RAJASTHAN TAMIL MAHARASHRA RAJASTHAN NADU Area (000 hectares) Production(000tonnes) Cost A(paid out in Rs/ha) Cost C(total cost including family labour Yield (q/ha )main product Value of main product(rs/ha) Value of By product (Rs/ha) Output-input ratio Gross income (Rs/ha) Net return 0ver cost C Net return over cost A(Rs/ha) Source: computed from cost of cultivation data collected from eands.dacnet.nic.in Table 3: Showing the percentage increase in Area, Yield and production STATE Area (000 hectare) Production Area Yield (000 tonnes) (000 (q/ha) Yield (q/ha) Productio n hectare) ANDHRA (-49.2) (-1.8) (-40.3) KARNATAK A (-25.2) (-9.6) (87.8) MADHYA (-34.4) (58.5) (-2.3) MAHARASH

5 RA (-14.63) (22.3) (-4.7) RAJASTHA N (26.8) 5.56 (-22.1) (91.4) TAMIL NADU (-35.4) 8.47 (-5.2) (-2.02) Table 4: Showing increase in Cost, Gross Margin and Net return STATES Cost A(paid out in Rs/ha) Cost C(total cost including family labour Gross income (Rs/ha) Net return 0ver cost C Net return over cost A(Rs/ha) Cost A(paid out in Rs/ha ANDHRA (150) KARNATAKA (117) MADHYA (149) MAHARASHRA (-13) RAJASTHAN (102) TAMIL NADU Cost C(total cost including family labour (363) (128) (137) Gross (Rs/ha income Net retu 0ver cost C 33045(236) 1596 (-188) 15476(156) 1595 (310) 15522(126) (-449) 26333(155) 29779(166) 3446( (79) 12422(53) -623 (-176) (-753) (56) 15624(99) 7446 (-24) 711

6 Andhra Pradesh Table 1 reveals that there is an increase in area production from ha from to but production has decrease from to tonnes. Cost A (paid out in Rs/ha) were Rs and Rs which shows an increase of more than 100% from 2004 to 2010, this might be due to increase in cost of input that is involve in the sorghum production.cost C (total cost including family labour) also increase from Rs /ha to Rs /ha on the other hand the yield per ha has reduced from 14.21qtl/ha in to 13.99qtl/ha. The output input ratio has increase from 0.84 in to 1.05 in The gross income has drastically increase from Rs to Rs between to ,we can also notice an increase in most of the variables this might be attributed to the new reveals an production in the study area. This finding is in consonance with the work of [5][4]. Karnataka The table reveals that there was an increase in production with a decrease in area in hectares, the area has decrease from ha to ha while production has increase from tonnes to There was a drastically increase in cost A and cost C from to (Rs and Rs to and ). The yield decrease from 7.27qtl/ha to 6.57qtl/ha but gross income has increase from Rs to Rs and also the output-input ratio increase from 0.99 to 1.12 from to with also an increase in net return from Rs /ha to Rs /ha, this study is in tandem with the study of[3][6] Madhya Pradesh The table also reveals a decrease in both area and production ( ha and tonnes to ha and tonnes) from to , but there was an increase in both cost A and C (Rs and to Rs and /ha respectively). The yield has also increase from 9.10qtl/ha to 14.42qtl/h,which is the highest yield within the states in the two production years.the gross income has increased from Rs /ha to Rs /ha and also the net return on cost has also from Rs /ha to Rs6409.4/ha. Maharashtra The state result shows a decrease in both area and production ( ha and tonnes in to ha and tonnes in ) but with an increase in both cost A and C from Rs and Rs in to Rs and Rs in , with the increase in the cost still the yield per hectare also increase10.44qtl/ha to 712

7 12.77qtl/ha from to The gross income, output input ratio and the net return also increase from Rs , 1.08, Rs to Rs , 1.13, from to The output input ratio is the highest among the states in the two producing years. Rajasthan The state result shows an increase in both area and production ( ha and tonnes to ha and tonnes) from to Both cost A and C shows an increase from Rs /ha and Rs /ha to Rs /ha and Rs /ha respectively but despite the increase in cost the yield per hectare and the output input ratio has reduced from 7.14qtl/ha to 5.56qtl/ha and from 1.11 to 0.95 respectively,while the gross income and the net return has increase. Tamil Nadu The result shows a decrease in both area and production ( ha and tonnes to ha and tonnes) despite the decrease in area and production there was an increase in both cost A and C (Rs /ha Rs /ha to Rs and Rs /ha respectively ) from to Output input ratio, gross income and net return shows decrease from to (0.89, Rs and Rs to 0.48,Rs ,-Rs ). Conclusion It can be concluded that the profitability of sorghum is higher in Andhra Pradesh State had the highest Gross income and Net return to sorghum production. On an average we can see that there is a decrease in area and production, this also agrees with the work [2] which indicated a shift away to commercial crops. References [1] Dayakar Rao, B., Rao MH,Karthikeyan,K., Shashidhar Reddy, CH.,Gautam V.S,.Sanjay Wanjari.S., Angadi S,S.,Seetharama.N (2005) An economic analysis of crop scenario in khalif sorghum growing areas. [2] Dayakar Rao, B.,Ratnavathi C,V., Karthikeyan,K..,Seetharama.N.,Tyagi S.J(2005) Prospect for use of sorghum grain for potable alcohol production in India. [3] Gwandi.O (2012). Economics of Beniseed (sesamum indicum l) production in mubi region of Adamawa state, NigeriaUnpublished M. Sc thesis, Department of Agricultural Economics and Extension, SAAT, FUT, Yola, Adamawa State, Nigeria [4] Maurice, D.C (2012): Optimal Production Plan and Resource Allocation in Food Crop Production in Adamawa State, Nigeria. An unpublished P.hD 713

8 Thesis. Department of Agricultural Economics and Extension, Federal University of Technology, Yola [5] Zalkuwi, J. (2012). Comparative Economic Analysis of Sole Sorghum and Sorghum Mixed with Cowpea Production Systems in Guyuk Local Government Area of Adamawa State, Nigeria. Unpublished M. Sc thesis, Department of Agricultural Economics and Extension, SAAT, FUT, Yola, Adamawa State, Nigeria [6] Zalkuwi. J and Giroh Y.D.,(2014) Comparative Profitability Analysis of Sole and Mixed Sorghum (With Cowpea) Production in Guyuk Local Government Area of Adamawa State, Nigeria. International Journal of Basic and applied Sciences. Volume 3(2);38-46 [7] on [8] on