ECONOMIC OPTIMUM CROP PLANNING FOR RESOURCE USE EFFICIENCY, SUSTAINABILITY AND MAXIMIZATION OF FARM NET INCOME IN CENTRAL DRY ZONE OF KARNATAKA
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Date
2016-04-20
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UNIVERSITY OF AGRICULTURAL SCIENCES GKVK, BENGALURU
Abstract
This study aimed at designing economic crop planning consistent with natural and
economic endowments, achieving resource use efficiency for Central Dry Zone
(CDZ) of Karnataka. Field data were collected from 45 sample farmers each under
Rainfed and Borewell irrigated conditions of CDZ of Karnataka. The extent of
efficiency in resource use and allocation is reflected in the costs incurred and net
returns realized by valuing inputs at market prices, economic prices and natural
resource valuation. The cost of cultivation of crops indicated that, the net returns for
borewell irrigated paddy were ` 34091/ha, ` 17278/ha, ` -26120/ha at market prices,
economic prices and natural resource values, respectively. Thus, due to subsidies
offered, the distortion of prices is to the tune of ` 16813/ha, while the distortion due
to inclusion of GHGs (` 1899/ha) and inclusion of groundwater cost (` 41500/ha) is
` 43399/ha. The resource use efficiency of crops was estimated using Cobb- Douglas
production function and results indicated that the ratio of MVP to MFC was differed
from unity, in most of the crops, indicating scope for reallocation of expenditure
among various resources from over used to under used resources. Economic Optimal
Crop Plan for Sustainability in the region developed using linear programming
technique indicated that, 40900 ha is to be allocated under borewell irrigated and
103673 ha for rainfed situation according to Economic pricing criteria. Total optimum
area allocated would be 144574 ha which maximizes net returns at ` 73 crores for
Tumakuru District in the CDZ of Karnataka.
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