Jasdev SinghBhoi, Priya Brata2017-09-282017-09-282017http://krishikosh.egranth.ac.in/handle/1/5810031911The present study has been carried out to examine the temporal changes in use of inputs, cost structure and profitability in Punjab agriculture; to examine the efficiency of farmers in crop production and its determinants; and to analyse the bulk line cost in relation to average cost and Minimum Support Price (MSP) of major crops in the state. Data generated under cost of cultivation scheme regarding principal crops of state i.e. wheat, paddy and cotton was analysed for this purpose. Overtime increase (1981-82 to 2012-13) in fixed cost in case of wheat and paddy and operational cost in case of cotton mainly contributed towards the increase in of total cost of cultivation of these crops. Component-wise, cost on account of the rental value of land, human labour, machine labour and insecticides increased in a major way in cultivation of the study crops. Further, the rise in input prices rather than physical use had been the major reason behind increase in the input costs. Overtime while the profitability of wheat and paddy increased consistently with some variations, the profitability of cotton crop fluctuated in a major way and farmers also faced net losses during some years of the study period. Farm size wise analysis at two points of time (2001-02 and 2011-12) revealed an inverse relationship between farm size and cost of production of wheat and paddy. Thus, the scale economies on larger farms which led to relative lower per unit cost resulted in higher profitability in comparison to their smaller counterparts. However no such relationship was observed in case of cotton production. The production function analysis revealed the sub-optional use of some of the crucial inputs in the production of study crops. Thus, optimal use of inputs would have helped in increasing the profitability of crops. The estimated average technical efficiency of farmers in production of wheat, paddy and cotton at 85, 83 and 79 per cent during 2011-12 pointed towards the existence of potential to raise the output of these crops at the same level of input use through increased farm specific efficiency. The size of operational area, education of farmer, investment, tenancy level and level of fragmentation were observed to be the main determinants of farm level technical efficiency. Although MSP of wheat and paddy was observed to cover the average cost of production fairly during 2001-02 and 2011-12, the level of profitability at bulk line cost was only marginal. However, in the cotton crop, the MSP did not even cover the average C2 cost and bulk line cost of cotton was found to be significantly higher than it. To increase farm profitability, the study suggests that there is need to check unusual rise in input prices along with strengthening of the agricultural extension system and to take steps to discourage fragmentation of lands. Further, liberalization of land lease market and shifting to a transparent price fixation mechanism ensuring some reasonable levels of farm incomes may boost capital formation and lead to the increase in the farm specific crop production efficiency.ennullThesis