Abstract

Objective: The main purpose of the present study is to estimate the cost and returns of sugarcane production per acre on different size of farms in Sathyamangalam block of Erode district in Tamilnadu, India.

Methods: The study was confined to a sample of 120 sugarcane farmer households selected from four villages of Sathyamangalam block of Erode District. A simple percentage analysis was employed to identify the cost and returns of sugarcane cultivation for the selected sample farmers.

Findings: The study found that an average sugarcane cultivating farmer in the area spent 14.40 percent of the total cost on seed, 5.32 percent (appropriated cost) on family labour, 64.96 percent on hired labour, 5.67 percent on machinery used for different operations, 6.04 percent on chemical fertilizer and 3.61 percent on pesticide, realised a net return of Rs.26424 per acre. This might be due to the fact that the benefit of economies of scale has reached its maximum only at the farm size of 5-7.5 acres. Therefore, our generalisation on optimum farm for the area falls in the category of 5-7.5 acres.

Application/Recommendation: The study recommends that can improve cropping system and stabilizes farm income to the farmers; the Government intervention is sought in a manner that there is unbiased credit support for farms of all categories without discrimination. The general observation from the farmer’s perception in the area is that inspite of the fact that the Central and State Governments price incentives have provided them a relief to some extent, the mechanism evolved for fixing minimum price does not cover the entire cost components and the risk factors involved in the sugarcane cultivation.

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Abstract

Objective: To identify the socio-economic characteristics of sugarcane farmers, to analysis the cost and returns of sugarcane production, to examine the resource use pattern of sugarcane cultivating of varying farm size and to evaluate the farm level technical efficiencies in the production of sugarcane in Gobichettipalayam taluk of Erode District in Tamil Nadu.

Methods/Statistical analysis: The study was confined to a sample of 150 sugarcane farmer households selected from six villages of Gobichettipalayam taluk of Erode District in Tamil Nadu, India. A simple percentage analysis was employed to identify the socio-economic characteristics and cost and returns of sugarcane cultivation for the selected sample farmers. The Stochastic Production Frontier Function model of the Cobb-Douglas type used incorporates a model for the technical inefficiency effects.

Findings: The study found that the majority of farmers belonged to nuclear family; their family size had 2-4 members; their age had 40–60 years and had a small family monthly income of Rs.15,000 to Rs.30,000. The educational status of the farmers was secondary level. The output elasticities of sugarcane with respect to area under crop, seed, family labour and machine hours were worked out to 0.2689, 0.2341, 0.1923 and 0.0698 respectively. The estimated value of σ_u² and σ_v² were 0.0824 and 0.0217 respectively. A high value registered for γ (0.7916) indicated the presence of significant inefficiencies in the production of sugarcane among the farmers. The study concluded that the majority of the sugarcane farmer’s still employ low level of modern technology in sugarcane cultivation. Also, most of the sugarcane farmers are middle-aged, non-literate males; this had greatly contributed to inefficiency in sugarcane production among the sugarcane farmers.

Application/Recommendation: The central and state governments should invest more in functional agricultural extension services to enhance efficient use of available productivity increasing inputs. Farmer should be provided with minimum support price for their produce to make them survival assured. The agricultural department officials may give training and suggestion to the farmers regarding the use of recommended dose of fertilizer and pesticide and to reduce the harvesting cost of sugarcane, machinery with high technology may be used with increased numbers.

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