An Economic Analysis of Sorghum Seed Production: A Profitable Enterprise for Farmers

Abstract

Sorghum is an important fodder crop of summer and rainy season and suitable for silage making. It is the fast growing crop and can provide two-three fodder cuttings. the economics of sorghum seed production crop (cv. MP Chari) was analysed for the period Kharif 2010–11, Kharif 2011–12 and Kharif 2012–13 in IGFRI, Jhansi to inform the farmers about the profitability of seed production process. The highest cost was incurred on harvesting and pooling of mature crop. The average total expenditure incurred on that was 4933.3 and it was 17.28 percent of total cost. The average total working capital was found as: 19073.3 per hectare (66.82% of total cost) and total variable cost is: 19645.5 which is 68.82 percent of total cost. The average total cost is found as: 28544.1 per hectare. The average total labour man days used per hectare are 84.64. The average total expenditure incurred on labour is: 12120.28 (42.46%) which is found as highest expenditure in total cost. The highest expenditure in percentage term is incurred on labour followed by manures, draft power and seed cost. On per hectare basis the average quality seed production was 857.00 kilogram. The average rate of quality seed was: 35 per kilogram. The total return was found as: 51899.41 per hectare. The average net return is: 22161.33 per hectare. The average benefit cost ratio at is found as 1.72. The cost of production of seed when only main product quality seed only) was considered for selling was: 35.11 per kilogram of seed. The cost of production of seed when both main product (quality seed only) and other by products (dry fodder, rejected seed etc.) was considered for selling was: 11.18 per kilogram of seed. Thus, it is clear from the study that seed production of sorghum is highly profitable and has wide market available for it.