AN ANALYSIS OF COTTON CHAIN IN ANDHRA PRADESH
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Date
2012
Authors
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Publisher
ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY
Abstract
This study was under taken to analyse the cotton chain. The study was conducted in
Adilabad and Guntur districts of Andhra Pradesh. From the Adillabad district six mandals
and the Guntur district four mandals were selected for this study. From the each selected
mandal one village was selected and three farmers were selected randomly from each
village for collection of data. Thus a total of 30 farmers formed the sample size for the
study. A sample of fifteen commission agents, fifteen CCI agents, twenty Ginners and five
spinners were selected.
Findings of the study revealed that, the total cost incurred for irrigated Bt and
rainfed Bt cotton cultivation was Rs.69607 and Rs.63793.2 per ha in Adilabad and Guntur
districts respectively. Net returns in Adilabad and Guntur districts were Rs. 36781.15 and
Rs.21901.78 respectively.
The results indicated that the total cost incurred in the processing of kapas to lint
worked out to be Rs.4630.87 per quintal of kapas. It is worth noting that the total variable
cost (Rs.4545.75 per quintal) formed a substantial component (98.2 %) of the total cost of
processing of kapas to lint. The total fixed cost being Rs.85.12 per quintal, accounted for
only 1.8 per cent of the total cost of processing. The average total cost incurred in the
processing of lint to yarn was Rs.17201.64 per quintal, of which the total variable cost was
Rs.15497.16 (90.09%) and total fixed cost being Rs.1704.48 per quintal (9.91%).
The gross returns obtained from ginning one quintal of kapas were Rs.4970.41, of
which the returns from main product (lint) were Rs.3978.81 and that from by product (seed)
were Rs.991.6. The value addition to the product in the process was Rs.732.41. The net
value added as a result of processing of kapas to lint was Rs.339.54 per quintal of kapas
processed. The benefit cost ratio worked out to be 1.86 in kapas processing. The gross
returns obtained from processing (spinning) of one quintal of lint were Rs.20435, which
comprised of mainly returns from yarn (Rs.18250) and wastage (Rs.2185). The value
addition in the process was Rs.8435. The net value added as a result of processing of lint to
yarn was Rs.5933.36 per quintal of lint processed. The resultant benefit- cost ratio was
1.62.The ginners have maximum financial profitability (1.86) followed by spinners (1.62)
and farmers (1.39).
The cost of marketing a quintal of lint and yarn was Rs.81.07 and Rs. 575.09
respectively. Among all the marketing costs of lint and yarn, the maximum cost was
incurred on packing material Rs.30.36 per quintal (37.47%) and Rs.275.48 per quintal
(47.9%) respectively. The results indicated that an additional value to the extent of
Rs.2297.54 was created in the course of processing kapas in to yarn.
Marketing efficiency was relatively higher in market channel I (Farmer-
Commission agent-Ginner-Spinner) in both the approaches, i.e. 3.64 in Shepherd’s method
and 1.96 in Acharya’s approach.
Description
Keywords
cotton, costs, markets, productivity, manpower, marketing, area, beverages, economics, tillage equipment