Production and Marketing of Bidi Tobacco Crop in Belagavi District of Karnataka - an Economic Analysis

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Date
2016-06
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University of Agricultural Science, Dharwad
Abstract
Tobacco also called as “Golden Leaf” is one of the important commercial crops of India. Bidi tobacco is the most important non-virginia tobacco produced in the country. Nicotine is the principal alkaloid present in tobacco leaf. Tobacco provides direct and indirect employment to 45.7 million people, around 70 % of whom are in the agricultural sector. The combined tax revenue collected from tobacco products is more than 29,000 crore annually. Multi-stage random sampling technique was employed to select 125 sample farmers from Belagavi district. Tabular presentation technique, budgeting technique, Cobb-Douglas production function and Garrett ranking technique were used in study to analyze the data. The total cost incurred by the farmers was 36,056.72/acre. The gross returns obtained per acre by sample farmers were 98,074.12/acre. The cultivation of bidi tobacco in the study area found to be profitable as also supported by a high magnitude of B: C Ratio of 2.72. The MVP to MFC ratio indicated seed, bullock labour, machine labour, fertilizer and FYM, and PPC were more than one indicating that these resources were underutilized and still there was scope for higher utilization. There were three bidi tobacco marketing channels identified in the study area. Producer share in processor rupee was found highest (87.61 %) in channel-I. Non–availability of seed, non–availability of inputs, lack of irrigation facility and non–availability of labour in peak period were the major production constraints identified. Non–availability of credit on time, inadequate credit supply by the financial institution and high cost of borrowing were the credit constraints identified in the study area. The cultivation of bidi tobacco was found profitable in the study area.
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