An economic analysis of tractorisation in Sirsa district of Haryana
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Date
2011
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Publisher
CCSHAU
Abstract
The present study was carried out in Dabwali and Sirsa tehsils of Sirsa district of Haryana with the
objectives of examining the magnitude and utilization pattern of tractors, testing economic viability of
tractor, studying factors affecting demand of tractors in Haryana and identification of problems in the
purchase and use of tractors. From each selected tehsil two villages (Choutala and Asakhera from Dabwali
and Randhawa and Arniawali from Sirsa tehsil) were selected randomly and further 20 tractor owner
farmers from each village were selected to comprise a sample size of 80 tractor owner farmers. A consistent
increase in the number of tractors has been observed in Haryana state. Panchkula (232.78) had maximum
number of tractors per 1000 hectares of cultivated land. The average annual use of tractors was found
784.41 hours, out of which for 321.90 hours (41.04 per cent) the tractors were used for own work and for
462.51 hours (58.96 per cent) the tractor was used for hired out operations. Tillage was the major
agricultural operation in respect of use of tractor. Total cost of tractor was ` 209795.33 per tractor per year,
of which variable cost accounted for ` 121519.50 per tractor per year (57.92 per cent) and fixed cost
accounted for ` 88275.83 per tractor per year (42.07 per cent of total cost). The total cost of tractor per hour
was estimated to be ` 267.45. Total returns from the tractor use were ` 397791.79 per tractor per year, of
which average returns from owned operations accounted for ` 149646.42 (37.61 per cent of total returns)
and average returns from hired out operations accounted for ` 248145.37 (62.38 per cent of total returns).
Benefit cost ratio for tractor investment was 1.89, net present worth was ` 1280418.42, internal rate of
return was 37.03 per cent and payback period was 4 years which indicate viability of investment in tractor.
Sensitivity analysis by raising total cost and total returns by 5 per cent and 10 per cent showed that even
after increase in cost, investment in tractor remains viable. Out of eight explanatory variables, gross
irrigated area, area under high yielding varieties, cropping intensity and price of tractor were found
significant and affected the demand of tractors. These factors contributed for 90.74 per cent variation in
tractor demand. The total number of tractors in Haryana were estimated to be 5,17,424 for the year
2029-30. There were two financial (lack of essential matching implements/machineries and their use and
operator/user should be capable of doing minor repairs), one infrastructural (small land holding) and two
economic and financial problems (cost of new tractor is high and tractor is used for only few days in a year)
which were the major problems faced by the farmers in the purchase and use of tractor.
Description
Keywords
Costs, Economics, Area, Crops, Demand, Manpower, Marketing, Productivity, Investment, Irrigation