Profitability assessment of small ruminant-based integrated farming systems of Telangana

Abstract

The study evaluates the economic performance of a small ruminant-based Integrated Farming System (IFS) in Telangana, where mixed farming remains the primary livelihood strategy for smallholders. Primary data from 480 farm households were collected using a multi-stage sampling technique and analysed through descriptive statistics and profitability assessment methods. The results indicate that the farming system is strongly livestock-oriented, with small ruminants forming the core enterprise supported by crops, dairy and backyard poultry. Cost and returns analysis revealed substantial variation in profitability across enterprises. Crop enterprises, which included kharif and rabi paddy, generated modest net returns owing to high input costs and climatic vulnerability. Dairy enterprises offered stable supplementary income, while backyard poultry exhibited exceptionally high efficiency despite minimal investment. Small ruminants emerged as the most profitable component, recording the highest net returns and return per rupee invested, reflecting their low input needs and strong market demand. Overall, the findings demonstrate that small ruminant-based IFS enhances farm income, reduces production risk and strengthens overall economic resilience, supporting the promotion of livestock-led integrated systems in semi-arid regions.