Economic analysis of organically produced basmati paddy in Haryana
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Date
2005
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Publisher
CCSHAU
Abstract
In the present scenario of globalization quality of the product is one of the most
important pre-requisite in the international market. The quality of the farm products can
be improved through the adoption of organic farm practices. Contract farming alongwith
organic farming plays a dominant role in reducing farmers marketing risk. India is one of
the major producers of rice in the world. It contributes about 20 per cent of world’s export
of rice in which basmati rice is a major contributor. With increasing trend towards
globalization, it has become imperative to improve the quality of basmati rice to compete
and harvest rich benefits in the international market. Recently cultivation of organi
basmati paddy is gaining popularity in Haryana. Keeping this in view and marketing of
organically produced basmati paddy, the present study was undertaken in Haryana with
following specific objectives:
i) To study the comparative economics of organically and non-organically
produced basmati paddy. ii) To workout marketing cost, margin and
price spread through different marketing channels. iii) To examine the
constraints and prospects of organically produced basmati paddy.
For collection of primary data, 120 farmers were selected from
Sonepat and Kaithal districts practicing both organic and inorganic
cultivation of basmati paddy. The organic farmers were further
sub-divided into two categories i.e. one selling their produce in open
market and another through contract to the processor. The collected
data for the crop year 2003-04 were analyzed by simple tabular
analytical method. The study revealed that i) The per acre net returns
were more in non-organic basmati paddy but gross returns were more in
case of organic basmati paddy. ii) The total cost involved in the
cultivation of organic basmati was more compared to non-organic
basmati paddy. iii) The cost involved in irrigation was less in case of
organic basmati paddy due to better retention of moisture by the organic
manures. iv) The price received by the farmer’s in case of organic basmati
paddy was more than price received by the farmers in case of inorganic
basmati paddy. v) The producers share in processors rupee was more in
Channel-I i.e. in contract farming. vi) Organic basmati produce
marketing was more efficient than inorganic basmati produce marketing.
vii) Open market sale was less efficient than contract market sale. viii)
Low yield of basmati paddy, higher cost of production and higher weed
infestation were major constraints in organic basmati production. ix)
Price fluctuation and delay in auction of produce were the major
marketing constraints in marketing of organically produced basmati
paddy. x) Contract farming helps the farmer in reducing marketing risk
and increasing income. xi) Some incentives alongwith setting of
certification agencies were suggested for popularization of organic
produce in the country.