ECONOMIC ANALYSIS OF PRODUCTION AND MARKETING OF MAIZE IN KURNOOL DISTRICT OF ANDHRA PRADESH
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Date
2015
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Acharya N.G. Ranga Agricultural University
Abstract
The present study entitled “Economic analysis of production and marketing of
maize in Kurnool district of Andhra Pradesh” was undertaken mainly to study growth
rates of area, production and productivity, costs and returns, resource use efficiency,
marketing aspects and constraints in production and marketing of maize. Three stage
sampling was adopted for the selection of district, mandals, villages and the sample
farmers. A sample of 120 farmers was randomly selected from the selected two
mandals and four villages. The farmers were stratified into Marginal (<1 ha), Small
(1-2 ha) and Other (>2 ha) categories on the basis of their size of operational holding.
The primary data for the year 2013-14 were collected through a pre-tested schedule
by survey method. Conventional as well as functional analysis was used to analyze
the data and arrived at valid conclusions.
Compound growth rates of area and productivity of maize showed significant
increase at All-India level, in Andhra Pradesh and in Kurnool district that were
influential in boosting the production of maize during the overall reference period.
The total cost of cultivation of maize per hectare was Rs. 54,610.82, Rs.
51654.7, Rs. 47,159.63 and Rs. 50,214.55 on marginal, small, other and pooled farms
respectively. The per hectare cost of cultivation and cost of production (Rs/Qtls) are
inversely related with the farm size. The gross returns were Rs. 62,260.75, Rs.
63,018.24, Rs. 65810.35 and Rs. 63,353.11 on marginal, small, other and pooled
farms respectively indicated direct relationship with the farm size.
The DEA analysis pertaining to the resource use efficiency in maize
cultivation revealed that, 12.5 per cent of the farms are operating at CRS indicating
efficient utilization of resources. Majority of farmers (62.50%) are operating at IRS
and 25 per cent of the farmers are operating at DRS indicating that, more resources
should be provided to the farms operating at IRS and the same should be decreased
towards the farms operating at DRS.
Price spread in transacting maize was studied with reference to two marketing
channels: Channel-I (Producer → Commission agent → Wholesaler → Poultry feed
unit → Retailer → Consumer (sale of poultry feed)), Channel-II (Producer →
MARKFED → Co-operative dairy → Consumer (sale of animal feed)). Of the two
channels identified in transacting maize, Channel-II was found more efficient than
Channel-I, as indicated by the computed marketing efficiency indices.
Majority of the farmers prioritized power cut as the major constraint for
production of maize with a mean score of 73.47 followed by high cost of input and
input services (67.72) and shortage of labour during production (62.63). Regarding
marketing, they prioritized frequent price fluctuations as the major problem with a
mean score of 71.84 followed by unorganized marketing (67.85) and lack of
transportation facilities (64.38). In view of the production constraints, regulating
quality power supply to the farmers, purchase of inputs on co-operative basis,
encouraging farm mechanization, effective implementation of crop insurance scheme
etc., deserve immediate attention to improve production scenario. The prospects of
marketing of maize can be enhanced through improving transportation facilities,
marketing news and information network and strengthening scientific storage
facilities.
Description
D5372
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