International Research Journal of Agricultural Economics and Statistics

P. Asha Priyanka ¹, M. Chandrasekaran ²

Affiliations
1 Department of Agricultural Economics, Tamil Nadu Agricultural University, COIMBATORE, (T.N.), IN
2 Department of Agricultural Economics, Tamil Nadu Agricultural University, COIMBATORE (T.N.), IN

Abstract

The demand for fertilizers in India is being supplied with humongous import of fertilizer apart domestic production. The price of fertilizers both controlled (Urea 'N') and decontrolled (phosphorus 'P' and Potash 'K') are regularised by the Government with subsidy. Around 30 per cent of total subsidy bill in Union Budget (2014-15) is allocated for fertilizer subsidy in India. The study has the objective to impart the importance of fertilizer subsidy bill in India with reference to farmers and production of sugarcane. The study with the carefully forged research, attempted to find the private cost, social cost of fertilizer, Resource Use Efficiency (RUE) of essential nutrients with and without subsidy; and production loss when the subsidy is withdrawn by the Government. The fourth advances estimate of India on sugarcane production is 350.02 m. tones but when the subsidy bill on fertilizer is withdrawn then our production will be short by around 53 m. tonnes. To substantiate, the RUE will decline when fertilizer subsidy is withdrawn. Likewise, adoption per cent of drip irrigation will decline when micro-irrigation subsidy is withdrawn by the Government.

Keywords

Social Cost, Fertilizer, Drip Subsidy, Sugarcane.

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P. Asha Priyanka ¹, S. Muraligopal ², E. Nandakumar ³

Affiliations
1 Department of Agricultural Economics, Tamil Nadu Agricultural University, COIMBATORE (T.N.), IN
2 Department of Agricultural Economics, Tamil Nadu Agricultural University, COIMBATORE (T.N.), IN
3 Department of Humanites, P.S.G. College of Technology, Peelamedu, COIMBATORE (T.N.), IN

Abstract

Soil degradation is responsible for converting fertile agricultural lands into unproductive barren lands reducing productivity causing economic loss to the farmer and food insecurity. Degradation of land in any form diminishes the area of quality land available for agriculture resulting in greater yield variability, and thus, greater costs to risk-averse marginal farmers. Soil alkalinity is one such major form of degradation and causes upto 84.10 per cent of yield loss depending on intensity. In this context, the study examines the economic sustainability of farmers through soil reclamation. Though the cost of cultivation is increased due to adoption of reclamation, the economic loss due to alkalinity can be reduced by around 52 per cent and the net returns can be increased by around 1.5 per cent by reclamation. Investment on land and water must be viewed as investment on sustained food security, income, prosperity and environmental health. In this study salinity and alkalinity are used interchangeably.

Keywords

Farmers, Economically Sustainable, Degraded Soil.

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