Abstract
The study was done on the economic analysis of tomato, brinjal and bhendi cultivation with a comparison of income, access to technology of supermarket and traditional market supply farmers in the two selected districts. The per hectare cost of cultivation of the three selected vegetables on supermarket and traditional market supply farms revealed that cost of cultivation of vegetables was remarkably higher for traditional farms than supermarket supplying farms. This was mainly due to excessive use of manures and fertilizers, irrigation, plant protection chemicals and human labour. The returns per rupee invested have been noted higher for supermarket supply farmers than that of traditional farmers. The evidence indicates that innovative institutions contribute in reducing production cost and augmenting farm profits. Discriminant function analysis shows that price, manures and fertilizers, yield, hired labour and net income contributed mostly to discriminate between two groups viz., supermarket and traditional market supplying farmers. DOI: http://dx.doi.org/10.3329/sja.v10i2.18333 SAARC J. Agri., 10(2): 121-136 (2012)
Highlights
Indian agriculture is gradually diversifying towards high-value food commodities
Rapid growth in demand for high value food commodities opens up immense income and employment opportunities for producers especially, small holders and other stakeholders as the cultivation of vegetables is more profitable, capital and labour intensive compared to staples and other cash crops
Evidence from many Asian and African countries indicates that vegetable production requires 1.5-3 times more labour and generates 1.3-14 times more returns compared to cereals (Joshi et al, 2006)
Summary
Indian agriculture is gradually diversifying towards high-value food commodities This is expected to benefit millions of farmers especially smallholders, who rely on agriculture for their livelihood. Rapid growth in demand for high value food commodities opens up immense income and employment opportunities for producers especially, small holders and other stakeholders as the cultivation of vegetables is more profitable, capital and labour intensive compared to staples and other cash crops. This offers a perfect opportunity to small holders to augment their income and employment. Studies on fresh fruit and vegetable retail chains in India have confirmed relative advantages for farmers connected with organised retail and the farmers contracted by retail chains received comparatively higher prices (Dhananjaya and Rao, 2009)
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