Economic analysis of cost structure and profitability of Swarna (MTU 7029) Paddy across farm sizes in Chhattisgarh plains

Abstract

The present investigation, titled “Economic Analysis of Cost Structure and Profitability of Swarna (MTU 7029) Paddy Across Farm Sizes in Chhattisgarh Plains,” was conducted in Dhamtari, Raipur, and Janjgir-Champa districts, representing a major paddy-producing agro-climatic zone of Chhattisgarh. These districts were purposively selected due to their extensive paddy cultivation. From each district, two blocks were randomly chosen, and a total of 386 farmers were surveyed during the agricultural year 2023-24 using pre-tested structured questionnaires. Farmers were classified into marginal (0-1.0 ha), small (1.01-2.0 ha), medium (2.01-4.0 ha), and large (>4.0 ha) categories. The cost structure and profitability were analysed using the CACP cost concept. Results revealed considerable variation in production cost across farm sizes. Cost A1 was lowest for marginal farmers (Rs. 32,233.85/ha) and highest for large farmers (Rs. 44,166.66/ha), with an overall mean of Rs. 34,371.97/ha. Labour was the major cost component, with hired labour accounting for 18.65 percent on marginal farms and rising to 27.04 percent on medium farms, indicating increasing dependence on wage labour. Mechanization increased with farm size, as marginal farmers relied more on hired machinery, while larger farmers utilized owned equipment. Key inputs such as seeds, fertilizers, and plant protection chemicals contributed 17-19 percent, 10-11 percent, and 14.69 percent respectively. Cost C2 ranged from Rs. 62,594.15/ha to Rs. 69,046.66/ha, increasing with farm size. Economies of scale were evident as production cost per quintal declined from Rs. 1061.59/q (marginal) to Rs. 1013.74/q (large). Yield ranged from 58.96 q/ha to 68.11 q/ha, reflecting higher output efficiency in larger farms. Gross income including bonus varied from Rs. 181,987.39/ha to Rs. 203,097.44/ha, with an overall BC ratio of 1:1.91, confirming profitability of MTU 7029 across all farm sizes.