Performance of cotton crop in non-traditional areas of Karnataka – an economic analysis
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Abstract
There is a spectacular shift in cotton growing areas in Karnataka. From traditional
areas, it has spread to many non-traditional districts like Mysore, Shivamogga,
Chamarajanagar and Davanagere. Hence, the study has made an attempt to analyse growth in
area, productivity and production of cotton, to identify the price and non-price factors
influencing the production, profitability of cotton on different farm sizes, behaviour of
arrivals and prices, marketing channels and their efficiency and problems in production and
marketing of cotton crop in the non-traditional cotton producing areas of Karnataka. Both
secondary and primary data were used for the study. Results revealed that growth in area was
negative for all the three districts except Mysore district, which observed positive but nonsignificant
growth rate (18.92%). The production growth rates of cotton crop were positive in
Davanagere (4.16%) and Mysore district (10.67%). Cotton yield in Chamarajanagar (-4.62%)
and Mysore (-6.94%) districts experienced a negative growth rate, whereas Davanagere
(7.57%) and Shivamogga (1.76%) districts showed positive growth rate. Principal component
analysis was used to know the price and non-price factors influencing cotton production. One
of the major factors responsible was lagged price of cotton. Net returns were high on large
farms (` 76,550.87) compared to small farms (` 54,736.30) because of higher yield levels on
large farms. Higher seasonal indices have been observed for market arrivals of cotton during
peak period i.e., during the months immediately after the harvest. In markets, with wide area
of operatios, the transportation cost was found to be the component of the total marketing
cost. Three marketing channels were identified for cotton, among which channel-III was the
most efficient one. The major problem faced by the farmers in production of cotton was low
yield and in case of marketing it was lack of rergulated markets.
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