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The present study estimates the social cost of growing paddy, wheat and legumes as Rs 9484, 8804 and 1281 per ha respectively. Monetized value of overall risk in paddy, wheat and legumes is Rs 716, 650 and 1738 per ha respectively. An economic incentive consisting of risk and social benefits, to the tune of Rs 8611 and 9225 per ha over wheat and paddy respectively, should be provided for the production of legumes. The study highlights the need to internalize environmental benefits of legumes vis-à-vis competing crops, and accordingly cultivation of legumes needs to be encouraged through a proper mechanism of incentivization.


Economic Incentive, Environmental Benefits, Legumes, Risk Sharing, Rice, Wheat.
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