Economic Analysis of Tobacco Production in Rural Area of District Swabi

Abstract

The study was carried out in 2019 in district Swabi. The major objective was the economic analysis of Tobacco crop production in the study area. There were a large number of tobacco growers in district swabi. Purposively two villages namely Sheikh Dheri, Zakaria were selected for the present study. In these two villages total farmers number of the tobacco was 212, Sheikh Dheri 129 and Zakaria was 83 while all were selected for the study to fully analyze the situation about tobacco return in the study area. With the help of interview schedule data was collected from the respondents while for analysis descriptive statistics, Benefit/Cost ratio and Profit function were used. The result indicates that the fuel cost of tobacco barn per acre is very high and equal to Rs.31889 while the NPK fertilizer cost per acre is Rs. 8924. The average gross revenue from tobacco is Rs. 272097.56 per acre. The total cost of production is equal to Rs. 98288 per acre. While net revenue from tobacco production is Rs. 173810 and it is very higher than the other crops because of this majority people take interest more in this crop due to high return. Major problems are facing to farmers in the study area. The well known problems are:- The cost of the inputs of tobacco is so high that they cannot use proper inputs for their crops for enhancement per acre production; Quality seed is not available in the study area for high tobacco production; Good credit facilities are not available by bank in the study area; Majority farmers faced health problems and good treatment facilities of hospital are not available for farmers in the study area; The farmers sell their main product of tobacco on low price in different DEPO of the industry and because of this they cannot obtain high return from their crops; The cost of the wood is so high which increase the total cost of the Barn; Skilled labors are not available in the study area and majority children are working in the field for tobacco activities; The government has taxed the products more in the study area which have increased the total cost per acre of the production and decrease the net revenue of the farmers; Due to high interest by bank the farmers cannot demanding for credit for their input purchasing; The credit process is very complicated and the tenant cannot access to credit facilities. On the basis of problems the following recommendation were suggested for its solution: Agricultural scientists should conduct research to improve varieties of tobacco seeds to increase net yields per acre; Extension services should focus on the balance of inputs, particularly fertilizers to increase tobacco production per acre; The government must promote the export of tobacco. This will lead to greater demand and a better return to production; Farmers must be trained in the production of quality tobacco yield to obtain a better return; Firewood as expensive inputs should be replaced by a cheaper fuel alternatives; Credit facilities should be provided to farmers on easy interest in the study area by bank.