HYMAJYOTHI, SPRIYANKA CHOWDARY, MUVVA2019-02-142019-02-142018http://krishikosh.egranth.ac.in/handle/1/5810094956D5619The present study entitled “Economic analysis of production costs and prices of rice in West Godavari district of Andhra Pradesh” was undertaken with the objectives i. to estimate the costs and returns involved in cultivation of rice in West Godavari district of Andhra Pradesh. ii. to compare and examine the relationship among minimum support price, wholesale price, farm harvest price and farmer expected prices. iii. to study the production and marketing constraints faced by farmers in rice cultivation. iv. to make suggestions in order to enhance the effectiveness of MSP and procurement of rice by the government. Multi-stage stratified random sampling technique was employed for selection of final respondents. A sample of 120 farmers was selected from eight villages and four mandals of West Godavari district of Andhra Pradesh. Tabular analysis was carried out to study the costs and returns of rice cultivation in the study area. The cost concepts and income measures were also analysed through conventional analysis using various cost concepts and farm income measures. The prices like minimum support price (MSP), wholesale price (WP), farm harvest price (FHP) and farmers expected price were analysed by compound growth rates. The comparison and the relation between these prices were examined by Nerlovian price expectation model. The problems during production and marketing of rice were identified and analysed using Garrett ranking technique. Finally the suggestions in order to enhance the effectiveness of MSP and the procurement of rice by government were documented. The average cost of cultivation per hectare of rice cultivation was Rs. 74,698.21 for pooled farmers. The average per hectare total cost of cultivation(TCOC) increased with the increase in the size of the holdings from Rs. 72,200.22 on small farms, Rs. 74,356.57 on medium farmers to Rs. 77,007 on large farms indicating a direct relationship with the size of the holding. This was due to intensive use of inputs by large farmers. The proportion of variable costs accounted for a major share in the TCOC on all categories of farms. The total per hectare operational costs ranged from Rs. 54,342.22 (73.88%) on small farms, Rs. 55,279.57 (74.34%) on medium farms to Rs. 57,007 (74.02%) on large farms, with an overall average of Rs. 55,437.93 (74.62%) on pooled farms. Among the different variable costs the cost of human labour was the major cost component with an amount of Rs. 17,950 per hectare accounting for 24.03 per cent of TCOC on pooled farmers. Among the different variable costs the same was Rs. 16,290.54 on small farmers, Rs. 17,200 on medium farmers and Rs. 17,300 on large farmers accounting for 22.56, 23.13 and 22.46 per cents of their respective TCOC followed by machine labour, fertilizers and pesticides. Gross income exhibited a direct relationship with the farm size and it was of the order of Rs. 85,120, Rs. 95,900, Rs. 1,01,388.7 and Rs. 94,080 on small, medium, large and pooled farmers respectively. The gross income was more on large farmers due to highest productivity compared to other categories of farmers. The net income showed a direct relationship with the farm size. Large farmers recorded a higher net income of Rs. 24,381 against Rs. 12,919.78 and Rs. 21,543.43 for small farms and medium farmers respectively. The same was Rs. 19,381.79 on pooled farmers. The benefit cost ratio increased with increase in farm size and in terms of cost, the cost of production decreased with increase in farm size. Compound growth rates of MSP, wholesale price, farm harvest price and farmers expected prices were almost similar but slighter higher for MSP (6.88%) during the period 1997-98 to 2016-17. The analysis of relationship between MSP, wholesale price and farm harvest price showed a positive relation, with significant regression coefficients and a high value of R2. The farmers expected price of rice depends on previous year expected as well as actual prices significantly and positively at 1 per cent level of significance. The farmers expected prices were found to be higher than the previous year MSP. However, the increase in expectation has been narrowing down over time. The major constraints faced by farmers in production were marginal size of holding leading to lesser production with a mean score of 64.18, lack of drainage facilities (61.24), scarcity of labour during production and marketing (59.62) and non availability of sufficient storage space (54.08). The major constraints in marketing were low price for the produce with a mean score of 69.18, MSP after official and unofficial cut (67.22), high marketing cost (45.10) etc.en-USnullThesis