AN ECONOMIC ANALYSIS OF DAIRY-INTEGRATED FARMING SYSTEMS IN TERAI REGION OF WEST BENGAL
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Date
2022
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ICAR-NDRI, KARNAL
Abstract
One of the integral parts of India’s agriculture sector is the livestock sector which provides
employment to 8.8 per cent of the country’s population. Livestock sector contributes 4.1 per
cent of GDP and 25.6 per cent of total agricultural GDP (20th Livestock Census, 2019). In
the state of West Bengal, the number of livestock increased from 30.35 million in 2012 to
37.40 million in 2019, representing a positive growth of 23.22 percent in the total number
of animals of various species. Though livestock density is higher (730 per square km) in the
Terai region compared to other region in West Bengal, milk productivity is comparatively
low. Therefore, it is not possible for the farmers in this region to depend only on cattle
rearing for their livelihood. Agriculture and animal husbandry have a symbiotic relationship,
with the agricultural sector providing feed and fodder for animals, the animal sector
providing milk, manure, and draught power for various agricultural processes. Farming
system insures the farmers against the probable risk and uncertainties in agriculture. The
present study was therefore conducted to identify the existing dairy-integrated farming
systems and to examine linkages among various components of farming systems, to estimate
profit efficiency of the farmers in different farming systems and to analyse resource use
efficiency in milk production. The major farming systems identified in Terai Region were
Dairy (D), Dairy + Crop (D+ C), Dairy + Crop + Goat (D + C + G), Dairy + Crop + Poultry
(D + C + P), Dairy + Crop + Mushroom (D + C + M) and Dairy + Crop + Fish (D + C + F)
farming system. The estimated input-output coefficient revealed that the backward linkage
i.e., the link from dairy to crop, was stronger than the forward linkage, i.e., the link from
crop to dairy, in each farming system. The farming system with the strongest connection
between dairy to crop was in D + C + P (0.44) and the weakest linkage was found in D + C
(0.31) farming system. Stochastic profit frontier revealed that the mean profit efficiency was
highest in D + C + M farming system, where mean profit efficiency of the farmers was 0.9
followed by D + C farming system (0.84). It was estimated that 81 to 96 per cent variation
in actual profit from maximum profit (profit frontier) among households under these
farming systems was mainly due to the differences in farmers’ practices. There was wide
range of variation in profit efficiency in overall farming system. The level of education,
farming experience, age and herd size were the important determinants of profit inefficiency
of the farmers. The result regarding resource use efficiency in milk production revealed that
green fodder was used efficiently in D and D + C + G farming system but it was
underutilised in D + C + M farming system, whereas dry fodder was used efficiently in all
the farming systems. Concentrate was used efficiently in D + C, D + C + P farming system
but was over utilised in D + C + M and D + C + F farming system. Concentrate was over
utilised in overall farming system for indigenous cow, whereas green fodder and dry fodder
in case of crossbred, and dry fodder in case of indigenous cow were used efficiently.