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-221 005. 3ICRISAT India 5DSR India Corresponding Author s Email: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 2013-2014 (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 10.62 million tons 2013-2014. Despite the decrease in area over the year, production has been sustained at 10.62 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 1967-68 to 2010-2011 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
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 2004-05 and 2010-2011) 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
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 2 + 10per 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 ( 2004-05 and 2010-11) ITEMS ANDHRA KARNATAKA MADHYA ANDHRA KARNATAKA MADHYA Area (000 500.0 1662.0 659.0 254.0 1243.0 432.0 hectare) Production(000 tonne) 516.0 781.1 630.6 308.0 1467.0 616.0 Cost A(paid 6786.68 3501.74 3677.82 16966.39 7599.19 9163.04 out in Rs/ha) Cost C(total 11636.66 6078.49 7848.16 31448.52 13880.98 18597.79 cost including family labour Yield (q/ha 14.21 7.27 9.10 13.99 6.57 14.42 )main product. Value of main 8479.64 4938.30 5382.72 30668.50 13229.28 11852.64 product(rs/ha) Value of By 1347.25 1087.37 1484.67 2379.09 2246.20 3719.71 product (Rs/ha) Output-input 0.84 0.99 0.88 1.05 1.12 0.84 ratio Gross income 9826.89 6025.67 6867.39 33044.70 15475.48 15572.35 (Rs/ha) Net return 0ver -1809.77-52.82-980.77 1596.18 1594.50-3425.44 cost C Net return over cost A(Rs/ha) 3040.21 2523.93 3189.57 16078.31 7876.29 6409.4 Source: computed from cost of cultivation data collected from eands.dacnet.nic.in 709
Table 2: Estimate of cost and return to sorghum production (2004-05 and 2010-11) ITEMS MAHARASHRA RAJASTHAN TAMIL MAHARASHRA RAJASTHAN NADU Area (000 hectares) 4756.0 573.0 376.7 4060.0 726.9 Production(000tonnes) 3624 265.9 252.1 3452.0 508.9 Cost A(paid out in Rs/ha) 6324.85 2613.40 5708.27 14809.04 5296.35 Cost C(total cost 10306.06 7287.81 11157.44 26333.23 13045.45 including family labour Yield (q/ha )main 10.44 7.14 8.93 12.77 5.56 product Value of main 6928.06 4514.21 5958.37 20002.96 5185.21 product(rs/ha) Value of By product 4234.46 3594.91 3945.39 9776.83 7236.91 (Rs/ha) Output-input ratio 1.08 1.11 0.89 1.13 0.95 Gross income (Rs/ha) 11162.52 11162.52 9903.76 29779.79 12422.12 Net return 0ver cost C 856.46 821.31-1253.68 3446.56-623.33 Net return over cost 4837.67 5495.72 4196.49 14970.75 11825.77 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) 2004-2005 2010-2011 Production Area Yield (000 tonnes) (000 (q/ha) Yield (q/ha) Productio n hectare) ANDHRA 500.0 14.21 516.0 254.0 13.99 308.0 (-49.2) (-1.8) (-40.3) KARNATAK 1662.0 7.27 781.1 1243 6.57 1467.0 A (-25.2) (-9.6) (87.8) MADHYA 659.0 9.10 630.6 432 14.42 616.0 (-34.4) (58.5) (-2.3) MAHARASH 4756.0 10.44 3624.0 4060 12.77 3452 710
RA (-14.63) (22.3) (-4.7) RAJASTHA N 573.0 7.14 265.9 726.9 (26.8) 5.56 (-22.1) 508.9 (91.4) TAMIL NADU 376.7 8.93 252.1 243.5 (-35.4) 8.47 (-5.2) 247.0 (-2.02) Table 4: Showing increase in Cost, Gross Margin and Net return STATES Cost A(paid out in Rs/ha) 2004-05 2010-11 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 6786 11636 9826-1809 3040 16966 (150) KARNATAKA 3501 6078 6025-52 2523 7599 (117) MADHYA 3677 7848 6867-980 3189 9163 (149) MAHARASHRA 16966 10306 11162 856 4837 14809 (-13) RAJASTHAN 2613.40 7287.81 8109 821 5495 5296 (102) TAMIL NADU 5708 7848 9903-1253 Cost C(total cost including family labour 31449 (363) 13881 (128) 18597 (137) Gross (Rs/ha income Net retu 0ver cost C 33045(236) 1596 (-188) 15476(156) 1595 (310) 15522(126) -3425 (-449) 26333(155) 29779(166) 3446(303 13045(79) 12422(53) -623 (-176) -8177 (-753) 4196 8912(56) 15624(99) 7446 (-24) 711
Andhra Pradesh Table 1 reveals that there is an increase in area production from 500000-2540000 ha from 2004-05 to 2010-11 but production has decrease from 516000 to 308000 tonnes. Cost A (paid out in Rs/ha) were Rs 6786.68 and Rs 16966.39 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 11636.66/ha to Rs 31448.52/ha on the other hand the yield per ha has reduced from 14.21qtl/ha in 2004-05 to 13.99qtl/ha. The output input ratio has increase from 0.84 in 2004-05 to 1.05 in 2010-11.The gross income has drastically increase from Rs 9862.89 to Rs 33044.70 between 2004-05 to 2010-11,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 1662000 ha to 1243000 ha while production has increase from 781100tonnes to 1467000.There was a drastically increase in cost A and cost C from 2004-05 to 2010-11(Rs 3501.74 and Rs 6078.49 to 7599.19 and 13880.98). The yield decrease from 7.27qtl/ha to 6.57qtl/ha but gross income has increase from Rs 6025.67 to Rs 15475.48 and also the output-input ratio increase from 0.99 to 1.12 from 2004-05 to 2010-11 with also an increase in net return from Rs 2523.93/ha to Rs7876.29/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 (659000 ha and 630600 tonnes to 432000ha and 616000 tonnes) from 2004-05 to 2010-11, but there was an increase in both cost A and C (Rs 3677820 and 7848160 to Rs 9163040 and 18597790/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 6867.39/ha to Rs 15572.35/ha and also the net return on cost has also from Rs 3189.57/ha to Rs6409.4/ha. Maharashtra The state result shows a decrease in both area and production (4756000 ha and 3624000 tonnes in 2004-05 to 4060000ha and 3452000 tonnes in 2010-11) but with an increase in both cost A and C from Rs 6324.85 and Rs 10306.06 in 2004-05 to Rs 14809.04 and Rs 26333.23 in 2010-11, with the increase in the cost still the yield per hectare also increase10.44qtl/ha to 712
12.77qtl/ha from 2004-05 to 2010-11. The gross income, output input ratio and the net return also increase from Rs 11162.52, 1.08, Rs 4837.67 to Rs 29779.79, 1.13, 14970.75 from 2004-05 to 2010-11.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 (573000 ha and 265900 tonnes to 726900 ha and 508900 tonnes) from 2004-05 to 2010-11.Both cost A and C shows an increase from Rs 2613.40/ha and Rs 7287.81/ha to Rs 5296.35 /ha and Rs 13045.45/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 (376700 ha and 252100 tonnes to 243500 ha and 247000 tonnes) despite the decrease in area and production there was an increase in both cost A and C (Rs 5708.27/ha Rs11157.44/ha to Rs 8912.85 and Rs 15624.02/ha respectively ) from 2004-05 to 2010-11.Output input ratio, gross income and net return shows decrease from 2004-05 to 2010-11(0.89, Rs 9903.76 and Rs 4196.49 to 0.48,Rs 7446.06,-Rs1466.79). 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
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] www.eands.dacnet.nic.in.retrived on 2014-03-29 [8] www.icrisat.in.,retrived on 2014-03- 29. 714