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ECONOMICS OF COTTON CULTIVATION IN GUNTUR DISTRICT OF ANDHRA PRADESH

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Title ECONOMICS OF COTTON CULTIVATION IN GUNTUR DISTRICT OF ANDHRA PRADESH
 
Creator KRISHNA KISHORE, K
 
Contributor GOVARDHAN REDDY, T
 
Subject ECONOMICS, COTTON, CULTIVATION, GUNTUR, DISTRICT, ANDHRA PRADESH,
 
Description Cotton is one of the important commercial crops playing a key role in the economy of the
world and It occupies a significant position in agricultural and industrial economy of India as well
as Andhra Pradesh.
The specific objectives of the study are
1. To study the costs and returns, profitability In cotton cultivation according to farm size.
2. To examine the resource returns, returns to scale and resource use efficiency according
to farm size.
3. To estimate the remunerative prices for cotton under the present condition of farming.
4. To identify the production problems among the cotton cultivators in Guntur district.
Methodology
Guntur district was purposively selected for the study. Two mandals, Tadikonda and
Chllakaluripet, out of 57 mandals of Gunturdistrict were selected based on the probability proportion
to the area under cotton. All the villages in each mandai were arranged in an ascending order based
on its area and the top four villages were selected. The farmers were stratified into 3 size groups
viz., small farms (less than 2 hectares), medium farms (2- 4 hectares) and large farms (4 hectares
and above) and 9 cotton growers were selected randomly from each of 8 villages representing 3
size groups. The required data were collected from the informants by personal investigation with
the help of a specially designed set of qtJestionnaires. Conventional and functional analysis were
used to arrive at valid conclusions for the study. Profitability in cotton farming has been assessed
with the help of management tool ie. 'Break-Even Analysis'. Bulk line cost of production concept
has been used to find out the remunerative price for cotton. The reference period of the study was
1987-88 agricultural year.
Main findings
The following are the main findings emerged from the study:
The total cost of production indicated a direct relationship with the farm size. The labour
utilization showed an inverse relationship with the farm size. Plant protection, interculture and
preparatory cultivation were the important operations which accounted for the major share of the
total human labour utilized. lnterculture and preparatory cultivation accounted for a major share
of cattle labour utilisation on the farms. The proportion of paid out costs also Indicated a direct
relationship with farm size.
The study further revealed that there was a direct relationship between farm size and
productivity.
The gross returns also indicated a direct rela-tionship with the farm size. However, net returns
(net loss) showed an inverse relationship with the farm size.
The Break-Even Analysis revealed unprofitable nature of cotton cultivation since the break even
output was in the 3rd quandrant of the graph. Cost benefit ratio had also confirmed the unprofitable
nature of cotton cultivation at present.
It is observed from the study that large farms had a definite advantage over small and medium
farms though all the size groups realized maximum negative returns from cotton cultivation.
The production function analysis had indicated the operation of diminishing factor returns as
well as decreasing returns to scale, except in case of large farms. Further, the ratios of marginal
value product to opportunity cost showed an excessive use of resources and to a certain extent
high degree of inefficiency Indicating the scope for resource adjustments.
The bulkllne cost of production showed a huge gap between bulkiine cost and the actual
price received by the farmer in the market This analysis further confirmed the unprofitable nature
of cotton cultivation.
The study exposed a wide gap between potential yields obtained at the research station and
the actual yields in the farmer's fields.
The opinion survey revealed the following production problems associated with cotton
production such as severe pest attack, vagaries of weather,adulteration of inputs like pesticides
and seeds, high cost of fertilizers, labour and pesticides, lack of latest technical know-how and
non-availability of timely credit.
 
Date 2016-08-08T11:09:54Z
2016-08-08T11:09:54Z
1989
 
Type Thesis
 
Identifier http://krishikosh.egranth.ac.in/handle/1/71439
 
Language en
 
Relation D3133;
 
Format application/pdf
 
Publisher ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY, RAJENDRANAGAR, HYDERABAD