An economic analysis of production and processing of groundnut in Haryana
Abstract
The present study was carried out with the objectives of working out costs and returns of groundnut cultivation, to study processing costs and returns of groundnut and to identify the constraints in production and processing of groundnut. The study was based on collection of primary data. The primary data from selected farmers for the year 2021-22 were collected by survey method through personal interview with the help of a well-structured interview schedule. For collection of data multistage purposive sampling technique was used. The selection of districts formed the first stage of sampling. Out of major groundnut growing districts of Haryana, Fatehabad, Hisar, Sirsa and Rewari districts were selected purposively based on the area under groundnut for the present study. Selection of farmers and processing units formed the ultimate unit in the sample. From seven selected villages from four selected districts, total 84 farmers were selected, comprising 21 farmers from each district. A total of 7 processing units were selected from the study area as per availability. The outcomes of the study revealed that the average total cost of cultivation of groundnut in four districts came out to be Rs. 98275.
The total cost incurred by the farmers of Rewari district was higher (Rs. 106886/ha) compared to that of Sirsa (Rs. 100271/ha), Fatehabad (Rs. 93789/ha) and Hisar (Rs. 92155/ha). The average yield of the groundnut was 24.61 q/ha which was highest in Rewari district being 29.15 q/ha as compared to Sirsa (25.17 q/ha), Fatehabad (22.30 q/ha) and Hisar (21.83 q/ha).The gross return obtained after inclusion of value of by product, per hectare was again highest in Rewari district (Rs. 169376) as compared to Sirsa (Rs. 145692), Fatehabad (Rs. 129242) and Hisar (Rs. 127695). The average net return of the groundnut for selected respondents as a whole was Rs. 44997 per hectare. As B: C ratios are greater than one, this indicates that groundnut cultivation is economically viable in all the districts, with Rewari district having the highest profitability. Total cost per quintal of groundnut processing was higher in oil processing units (Rs.17289.33/q) when compared to decorticating units (Rs.8273.57/q). In respect of net returns, it was also higher in case of oil processing units (Rs. 161.55/q) compared to decorticating units (Rs. 130.59/q). On an average a minimum quantity of 342 quintals of groundnut kernel and 813 quintals of groundnut oil should be processed so as to continue the production process without sustaining losses at average level in decorticating units and oil processing units respectively. The identified constraints, such as less availability of improved varieties/ seeds and high cost of seeds, high incidence of pest and disease infection and problem of uncertain weather/ climate, pose significant challenges for groundnut farmers, impacting their productivity and profitability. The scarcity and high wages of skilled labour during peak seasons, high machinery costs, erratic power supply, repair and spare parts problems, complex bank finance procedures, expensive raw materials, and high transportation costs were all identified as significant challenges.