A Comparative Study of Cost and Profitability of Conventional and Organic Wheat in Southwest Punjab

Abstract

The study analyzed and compared the cost and profitability of conventional and organic wheat cultivation in Southwest Punjab, India. In the present investigation, 180 wheat farmers were interviewed (120 conventional farmers and 60 organic wheat farmers). Field survey was undertaken in 2013, and reference period covered Rabi season. Per acre produce of organic wheat was 9.18 quintals, while the yield of conventional wheat was 16.74 quintals per acre. We found that with only 30% cost difference, output differed by 82%. Cost of seeds was substantially higher in organic farming (` 1154) compared to conventional farming (` 634). The expenditure on fertilizers, insecticides, and pesticides was zero in case of the former, and the farmers spent just ` 141 on jeev amrit, that is, a sort of growth promoter and soil health enhancer. In Southwest Punjab, gross revenue of wheat cultivation on per acre basis of organic farmers was higher in comparison to conventional farmers. Therefore, growing wheat through organic practices was found to be more beneficial in value terms. Though the productivity per acre was lower in organic wheat, but price charged was high. Therefore, gross value of organic produce was higher due to availability of price premium for its produce. Further, organic wheat was found to be remunerative because there was a very small area under cultivation ; however, if the same is cultivated at a large scale, the price premium available for the produce will vanish, and if it is purchased at minimum support price, then it will be very uneconomical. There is also a challenge to maintain national food security through organic wheat cultivation (with such lower yields per acre). The study concluded that India needs enough safe food to feed its people instead of a very small amount of pure food. Therefore, instead of switching from conventional to organic techniques, conventional techniques need to be blended with organic techniques by incorporating organic techniques for national food and nutritional security.