Abstract
Many economists and experts opined that agriculture is an unprofitable activity in India nowadays, mainly because of increasing cost and low prices of farm produce. However, during the field survey in Galsi-I and Galsi-II Blocks of Purba Bardhaman, it was observed that many farmers do not think so. In this context, using the secondary data on the cost of paddy cultivation for the period 1996–97 to 2015–16, this paper analyses the cost and returns from paddy cultivation in West Bengal. It is observed that the cost has increased at a very high rate. Paid out cost at current prices during the last decade has increased by 12.1 per cent per annum. However, they do not realise the right price of their produce, and consequently, the profit margin has declined. Data reveal that farmers incurred losses in paddy cultivation upto 14 times except for in 2007–08 and in 2009–10 during 2000–01 to 2015–16. They are also being deprived of getting even the minimum support prices (MSP) due to loopholes in government initiatives. Using primary data, this paper explains why many farmers think that paddy cultivation is still a profitable activity. In doing so, the research finds that they miscalculate the cost of cultivation and that is why they perceive the profit margin to be higher. The kinds of cost that they do not calculate include family labour, depreciation charge, interest on capital, the rental value of owned land, and others. Another cause for exaggerated profit is that farmers include income from paddy business as return from agriculture.
Highlights
The agrarian crisis is one of the most critical issues in India nowadays (Raghavan, 2008; Posani, 2009; Shroff, 2019)
The primary concern of the agricultural price policy was to ensure that the gap between demand and supply of foodcrops did not result in excessive price rise and that minimum support price (MSP) of the food crops were below market price (Ray, 2007, p. 36; Tripathi, 2013, p. 91)
No importance has been given on farmers’ perception in these studies. In light of this backdrop, this study aims to examine the profitability of paddy cultivation and farmers’ perception in the district of Purba Bardhaman, West Bengal
Summary
The agrarian crisis is one of the most critical issues in India nowadays (Raghavan, 2008; Posani, 2009; Shroff, 2019). It is confined in backward regions, instead farmers of most productive agricultural regions such as Karnataka, Punjab, West Bengal, Andhra Pradesh and Maharashtra are ending their lives mainly because of their massive indebtedness (Biru & Barpujari, n.d.). In this connection, it is opined that “indebtedness and other related problems are mainly caused by poor returns from crop cultivation; one should study the issue of profitability” The results are critically discussed in the sections following this
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
