Pearl millet ( Pennisetum typhoids) belongs to the

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1 researcharticle International Journal of Commerce and Business Management (April, 2010) Vol. 3 Issue 1 : Costs, returns and profitability of pearl millet production Accepted : March, 2010 ABSTRACT Investigation was carried out during the year Multistage sampling design was adopted for selection of district, tehsil, villages and cultivators. In all 96 cultivators were selected for present study with equal distribution in small, medium and large groups. The techniques like mean percentage, ratio and cost concept of cost-a, cost-b and cost-c were used to analyze the data. The results revealed that use of hired human labour was more than family human labour in pearl millet production. The use of hired labour and bullock labour, increased with an increase in farm size. Whereas, the use of machine labour, seed, nitrogen, phosphorus, potash, manures, family human labour decreased with an increase in farm size. Per hectare net profit was Rs in small farm followed by Rs and Rs on medium and large farms, respectively. The output-input ratio was 1.18 on small farm followed by that of 1.17 and 1.12 on medium and large farm, respectively. The per quintal cost of production in pearl millet was Rs on large farm followed by Rs and Rs on medium and small farm, respectively. Key words : Net profit, Pearl millet, Cost-C, Gross returns Pearl millet ( Pennisetum typhoids) belongs to the family Graminaceae. It is popularly known as bajra. The origin is traced to tropical Africa. Pearl millet is the sixth most important cereal crop after the wheat, rice, maize, barley and sorghum in the world as one of the millet crops. Pearl millet crop is also grown for grain purpose in China, India, is expected to increase and it would be possible to bring low fertile land of drought prone area which is in large proportion, can be brought under pearl millet cultivation in addition to present area. The increased demand may lead to increase in prices of pearl millet and the farmers may be benefited. The need was felt to answer some queries such as costs, returns and profitability.keeping in view the above aspects, the present study has been undertaken.pakistan and South East Asia. The total area under pearllmillet cultivation in India is 9.24 million hectares which indicates the fourth rank after rice, wheat and barley. The total area under pearl millet cultivation in India is 9.24 million growing states are Rajstan, Maharashtra, Gujarat, Haryana, Karnataka, Madhya Pradesh, Tamil Nadu and Andhra Pradesh. Maharashtra State is the third largest and second Correspondence to: D.S. DESHMUKH, Department of Agricultural Economics and Statistics, Marathwada Agricultural University, PARBHANI (M.S.) INDIA Authors affiliations: B.R. PAWAR AND V.V. LANDGE, Department of Agricultural Economics and Statistics, College of Agriculture, LATUR (M.S.) INDIA P.P. YEWARE, Department of Agricultural Economics and Statistics, Marathwada Agricultural University, PARBHANI (M.S.) INDIA in respect of area under pearl millet. The area under crop was 14 lakh hectares with a production of lakh tonnes and yield was 712 kg/ha during the year Ultimately area under pearl millet METHODOLOGY Survey design of the study was based on four stages of sampling so as to elicit adequate and accurate information by the field of enquiry in Beed district of Maharashtra. In the first stage, the study was purposively conducted in Beed district because of the large area under pearl millet. In the second stage, Georai Tehsil was selected from Beed district on the basis of highest area under pearl millet in Kharif season. In the third stage, eight villages from Georai Tehsil were selected on the basis of highest area under rainfed pearl millet. From each of the villages, list of rainfed pearl millet growers was obtained. The list was divided into three groups on the basis of area under the pearl millet crops like small (<0.40 ha), medium (>0.40 to <0.80 ha) and large (>0.80 ha). From each group, four pearl millet growers were selected randomly. In short, from eight villages, 32 small, 32 medium and 32 large pearl millet growers were selected for present study. Cross sectional data were collected with the help of pretested schedule by personal interview method. Data pertained for the year The cost concept of cost-a, cost-b and cost-c was used to analyze the data in present investigation. Cost-A included the items namely, hired human labour, seed, fertilizer, manure, plant protection, land revenue, incidental expenditure, interest on working capital and depreciation on asset. cost-b included the cost-a plus rental value of land and

2 96 interest on fixed capital. Cost-C included the Cost-B plus imputed value of family labour. Evaluation of cost items was as follows. The family labour was converted into man day by multiplying to number of female with 0.75 because wage rate of male was Rs.80 and that of female was Rs.60 per day. Bullock charge was Rs.150 per pair day. Machine labour was evaluated at the rate of Rs per hour. The rate of nitrogen, phosphorus and potash was Rs per kg, Rs per kg and Rs.7.6 per kg, respectively. Price of manure was Rs.35 per quintal. Depreciation of commonly used asset was calculated by 10 per cent. Rental value of land was estimated as 1/6 th of gross income minus land revenue. Interest on fixed capital was calculated at the rate of 12 per cent on investment of asset. FINDINGS AND DISCUSSION The findings obtained from the present study are presented below: Physical inputs and outputs: Per hectare physical inputs and outputs in pearl millet production were calculated and are presented in Table 1. Use of hired human labour was man days on large farm followed by man days on medium farm and man days on small farm. It inferred that, as farm size increased, use of hired human labour also increased. On an average, use of hired human labour was found to be man days. On the contrary, use of family human labour was higher as man days on small farm while that was and man days on medium and large farms, respectively. It implied that as farm size increased, use of family human labour also decreased. On an average, use of family human labour was man days. Thus, use of hired human labour was more than family human labour in pearl millet production. It was clear that use of bullock labour increased with increase in the farm size while use of machine labour decreased with increase in farm size. It inferred that, availability of bullock labour was more on large farm as compared to small farm. Hence, small farmer was giving preference to custom hired service of machine labour. On an average, use of bullock labour and machine labour was pair days and 7.90 hours, respectively. Use of seed also decreased with increase in farm size. In general, use of seed was 3.63 kg. Use of fertilizer with respect to nitrogen, phosphorus and potash also decreased with increase in farm size. Thus, in general use of nitrogen, phosphorus and potash was 50.33, 25.38, kg, respectively. Same trend was also observed in case of use of manure. In general, use of manure was 8.66 quintals. It is also evident from Table 1 that, per hectare main produce of pearl millet was highest as quintals on small farm followed by and quintals on medium on large farms, respectively. On an average, yield of main produce was quintals. Similarly, yield of byproduce in the form of dry fodder decreased with an increase in the farm size. Thus, on an average, it was quintals. It inferred that pearl millet grower was giving more importance to fodders along with grain production. The results are in conformity with those obtained by Kanhore (2008) in regard to use of inputs and outputs. The results revealed that use of human labour in pearl millet was man days. Use of bullock labour was pair days. Use of nitrogen, phosphorus and potash was 45.26, and 8 kg per hectare, Table 1 : Per hectare physical inputs and output of pearl millet production (Unit/ha) Sr. No. Particulars Unit Small Medium Large Overall Input 1. Hired human labour man day Bullock labour pair day Machine labour hour Seed kg Nitrogen kg Phosphorus kg Potash kg Manures q Family human labour man day output 1. Main produce (grain) q By produce (dry fodder) q

3 COSTS, RETURNS & PROFITABILITY OF PEARL MILLET PRODUCTION 97 Table 2 : Per hectare itemwise expenditure in pearl millet production (Rs./ha) Sr. No. Particulars Small Medium Large Average 1. Hired human labour (19.52) 2. Bullock labour (10.30) 3. Machine labour (16.26) 4. Seed (3.53) 5. Fertilizers (9.26) 6. Manures (2.18) 7. Plant protection Land revenue (0.10) 9. Incidental expenditure (2.06) 10. Interest on working capital (3.18) 11. Depreciation on capital assets (0.91) 12. Cost-A (Σitem 1 to 10) (67.68) 13. Interest on fixed capital (1.10) 14. Rental value of land (19.71) 15. Cost-B (Σitem 12 to 14) (88.48) 16. Family human labour (11.52) 17. Cost-C (Σitem 15 to 16) (23.77) (11.72) (15.95) (3.55) (2.40) (1.87) (0.11) (1.77) (3.38) (0.90) (71.98) (1.08) (19.48) (92.54) (7.46) (29.56) (15.23) (11.84) (3.84) (7.55) (1.57) (0.37) (0.14) (0.66) (3.54) (0.14) (75.04) (0.88) (18.72) (94.64) (5.36) (23.98) (12.27) (14.82) (3.63) (8.51) (1.89) (0.12) (1.54) (3.36) (0.86) (71.35) (1.03) (19.33) (91.71) (8.19) respectively. Cost of cultivation of pearl millet production: Per hectare itemwise expenditure in pearl millet production was estimated and is presented in Table 2. The results revealed that, Cost-C was the highest as Rs on small farm followed by Rs on medium farm and Rs on large farm. In general, Cost-C was found to be Rs It was clear that per hectare cost decreased with an increase in the farm size. In consideration of share of each item of expenditure in total cost, it was observed that, share of hired human labour increased with the increase in farm size and at overall level it was per cent. On the contrary share of family human labour decreased with the increase in farm size and in general it was 8.19 per cent. It inferred that, large farm was dependent on hired labour as compared to family labour. It was also clear that, share of bullock labour increased from small farm to large farm. While share of machine labour was higher on small farm than that of other farms. Thus, proportionate expenditure on use of bullock labour was per cent and proportionate expenditure on machine labour was per cent at overall farm. It inferred that in pearl millet cultivation proportionate expenditure was higher on mechanization in the study area. It was obvious that rental

4 98 Table 3 : Per hectare profitability in pearl millet production (Rs./ha) Particulars Small Medium Large Average 1. Returns from main produce Returns from byproduce Gross returns (item 1+2) Cost-A Cost-B Cost-C Farm business income (Gross returns minus Cost-A) Family labour income (Gross returns minus Cost-B) Net profit (Gross returns minus Cost-C) Output-input ratio (Gross returns divided by Cost-C) Per quintal cost of production (Cost-C minus byproduce value divided through by main produce quantity) value of land was found predominant item of expenditure because its share was per cent. The results are in conformity with the results obtained by Singh (1982) in regard to Cost-A, Cost-B and Cost-C. The results obtained by Patil (2003) revealed that Cost-C was Rs per hectare in which share of rental value of land was per cent. Suryawanshi (1991) reported per hectare total cost of cultivation of pearl millet was to the extent of Rs The Cost-A and Cost-B constituted per cent and per cent, respectively. Profitability of pearl millet: Per hectare profitability in pearl millet production on different farms was calculated and is presented in Table 3. The results revealed that return from main produce was the highest as Rs on small farm followed by Rs and Rs on medium and large farms, respectively. At overall level, it was Rs In regard to return from byproduce, it also decreased with an increase in farm size and at overall level, it was Rs Thus, gross return on small farm was Rs followed by Rs on medium farm and Rs on large farm. In general, gross return was Rs Farm business income, family labour income and net profit were decreasing with the increase in farm size. In general, farm business income was Rs while family labour income was Rs and net profit was Rs Output input ratio was highest as 1.18 on small farm followed by 1.17 and 1.12 on medium and large farm, respectively. On an average output input ratio was It implied that when 1 rupee spent on pearl millet production, it would lead to give the return of Rs.1.16 which indicated the efficiency of use of capital in pearl millet production. Per quintal cost of production of pearl millet was minimum on small farm compared to medium and large farm and at overall level it was per quintal. It inferred that cost minimization was higher on small farm, hence it would lead to give the highest profit on small farm as compared to other farms. Singh (1982) reported the net income in pearl millet production over cost-a, cost-a2 and cost-b which was Rs.277.2, Rs and Rs.224.7, respectively. Patil and Suryawanshi (1980) stated the profit at Cost-A, Cost-B and cost-c for local pearl millet which was Rs.650, Rs.360 and Rs.281, respectively. In case of irrigated HYV, it was Rs.1102, Rs.654 and Rs.533, respectively. Jadhav (2008) reported the profitability of pearl millet on cost-c Rs and Rs , respectively. Jadhav, M.S. (2008). Economics analysis of medium farm in Marathwada region of Maharashtra. M.Sc.(Ag.) Thesis, Marathwada Agricultural University, Parbhani, 108pp. Kanhore, S.H. (2008). Economics analysis of large farm in Marathwada region of Maharashtra. M.Sc.(Ag.) Thesis, Marathwada Agricultural University, Parbhani, 114pp. REFERENCES Patil, P.R. (2003). Economics of production and marketing of pearl millet in Sangli district of Maharashtra State. M.Sc. (Ag.) Thesis, Marathwada Agricultural University, Parbhani, 84pp. Patil, R.G. and Suryawanshi, S.D. (1980). An investigation into socio-economic conditions in Ghod Command Area, Mahatma Phule Krishi Vidhyapeeh, Rahuri, 4 :

5 Singh, D.V. (1982). Economics of pearl millet cultivation in Western Rajstan. Agric. Situ. in India, 37 (8) : COSTS, RETURNS & PROFITABILITY OF PEARL MILLET PRODUCTION 99 Suryawanshi, S.D.,(1991). Resource use structure and allocation efficiency in pearl millet cultivation in Western Maharahstra. M.Sc.(Ag.) Thesis, Mahatma Phule Krishi Vidyapeeth, Rahuri, 58p. ***