An Economic Analysis of Potato Seed Production in Haryana#

Abstract

The study revealed that the per acre total cost of cultivation of potato seed production in small, medium and large categories for contract farmers were estimated to be 70486 71234, and 72778 respectively. Further, the total cost estimated for small, medium and large categories basis for non-contract farmers were 63651, 65946, and 66459 respectively. These results clearly advocated that the total cost of seed production is much higher for all the categories of contract farms over non-contract farmers. This may be due to overutilization of resources such as seed, plant protection charges, human and tractor labour by the contract farmers. Whereas per acre net returns of small, medium and large categories of contract farmers obtained from potato seed production were 36089, 36958 and 35250 respectively, Similarly per acre net returns of small, medium and large categories non-contract farmers obtained from potato seed cultivation were 14471, 14711 and 13602 respectively. It is clearly evident from the results that per acre net return were high in all categories of contract farmers as compared to non-contract farmers. The may be due to the higher yield on contract farming which was mainly because of use of superior quality and proper quantity of inputs such as seeds and chemicals as well as following proper guidelines of package of practices provided by the contractual agency. In nutshell, the potato seed production was found to be profitable with the adoption of contract farming due to the remunerative price on one hand and an increase in yield on the other which reduced their yield and price uncertainty. Therefore, use and adoption of contract farming needs to be expanded among all the potato seed growers.