Economic analysis of potato cultivation in Surguja district, Chhattisgarh

Abstract

Potato (Solanum tuberosum L.) is a vital crop in Indian agriculture, significantly contributing to food security and rural livelihoods. This study focuses on evaluating the cost of cultivation, returns, and marketing efficiency of potato farming in Surguja district, Chhattisgarh, using primary data from 250 sampled farmers during the agricultural year 2022-23. The findings revealed that the cost of cultivation per hectare averaged ?106,204.37, with variations across farm sizes: ?101,630.21 for small farms, ?106,481.98 for medium farms, and ?111,012.43 for large farms. Larger farms achieved higher profitability, with a benefit-cost ratio of 3.22 compared to 2.72 for small farms. The compound annual growth rates (CAGR) for potato cultivation in Surguja district reflect an area growth of 0.61%, production growth of 2.28%, and productivity growth of 1.55%, while Chhattisgarh state shows higher rates of 7.06%, 8.94%, and 1.55%, respectively. Marketing efficiency was higher in Channel I (direct sales to consumers) with an index of 9.05, while Channel II (sales through intermediaries) had a lower efficiency index of 1.66. Direct marketing provided higher net prices for farmers, reducing dependency on intermediaries, but was underutilized due to inadequate infrastructure and accessibility issues. Most farmers (81.2%) relied on intermediaries, citing better convenience despite higher marketing costs. Key challenges identified include limited access to quality seeds, inadequate storage facilities, high transportation costs, and reliance on traditional practices. To enhance profitability and sustainability, the study recommends promoting direct marketing channels, strengthening infrastructure for storage and transportation, and encouraging modern farming techniques through targeted policy interventions. These measures are critical to improving the economic viability and resource use efficiency of potato farming in Surguja district.