COMPREHENSIVE SCHEME FOR STUDYING THE COST OF CULTIVATION OF PRINCIPLE CROPS IN INDIA “TELANGANA”

COMPREHENSIVE SCHEME FOR STUDYING THE COST OF CULTIVATION OF PRINCIPLE CROPS IN INDIA “TELANGANA”

DEPARTMENT OF AGRICULTURAL ECONOMICS, COLLEGE OF AGRICULTURE, PROFESSOR JAYASHANKAR TELANGANA STATE AGRICULTURAL UNIVERSITY, RAJENDRANAGAR, HYDERABAD

Government of India launched a comprehensive scheme on “Cost of Cultivation of Principal Crops in India” during 1970-71 in the major states with an aim of supplement required data to aid Commission on Agricultural Costs and Prices (CACP) for fixation of Minimum Support Price for principal crops. This scheme has been in operation since 1970-71 in the erstwhile Andhra Pradesh under the administrative control of the then Andhra Pradesh Agricultural University (APAU). Subsequently was named as Acharya NG Ranga Agricultural University (ANGRAU) and later by the Professor Jayashankar Telangana State Agricultural University (PJTSAU). After bifurcation of CCS during 2022 in to two Implementing Agencies, one at Telangana and other at Andhra Pradesh. Now presently, CCS Telangana is under the administrative control of PJTSAU, Hyderabad. The scheme is fully funded by Directorate of Economics and Statistics (DES), Ministry of Agriculture & Farmers' Welfare, New Delhi.

The scheme methodology has been changing from time to time. The present approach known as ‘crop complex’ has been adopted from 1981, signifies the importance of selection of crop complex rather than a single crop, which meant that the particulars of all the crops cultivated by a selected farmer are considered for collection of data. Further, the data will be collected by gross root level fieldmen by staying in the village or in a nearby center through “Cost Accounting Method”. Cost accounting method generates the realistic data pertaining to the farmers as it is recorded as and when the farm activity is carried out.

For every three years (Known as block period) different sample tehsils, villages and farmers will be selected. The new block period 2023-26 will be started from Kharif June 2023. The selected crop complex for block period 2023-26 which includes 9 crops for Telangana viz., Paddy, Maize, Red gram, Green gram, Bengal gram, Groundnut, Sesamum, Soybean and Cotton.

The main goal of the scheme is to collect representative data on inputs and outputs in physical and monetary terms based on “cost accounting method” and submit online data to Directorate of Economics and Statistics (DES), Ministry of Agriculture and Farmers Welfare, Government of India, New Delhi. The collected data are verified and submitted in online mode through a software known as FARMAP 2.0. Thus, the submitted data is verified at different levels namely Field Supervisor and Field Officer supervised by the Honorary Director at state level, further it is scrutinized by the DES and discrepancies are raised by them and sought out by the field level functionaries. This data is used by CACP as an important input for estimating cost of production for various crops, which helps in fixing Minimum Support Price as a measure of price policy and many other relevant non price policy measures.

At present the scheme operates in 26 tehsils (sample villages) in Telangana state. For previous block period 2020-23, total 26 villages were selected and 260 farmers are studied covering 10 farmers each from one centre. Accordingly, the state estimates of cost of cultivation will be generated and published by DES, New Delhi. During the upcoming new block period (2023-26), from each tehsil two villages will be selected. Then from each selected village six farmers two each from marginal (< 1 ha), small (1–2 ha) and large (>2 ha) categories will be selected making a sample of 12 from a tehsil. The sampling technique of stratified proportionate random sampling technique with replacement up to tehsil level and without replacement for village and farmer selection is adopted Thus, a total of 52 villages and 312 farmers will be studied across the state of Telangana. Till now the process of sample selection up to farmers for the new block period has been completed. These 26 tehsils are scattered across the state, covering 8 tehsils each from Northern Telangana Zone (NTZ) and Central Telangana Zone (CTZ) and 10 tehsils from Southern Telangana Zone (STZ) as follows.

List of selected tehsils for the block period 2023-26 in Telangana

Sl. No. Name of the Zone Name of the Districts Covered Name of the Tehsils
1 Zone-I (NTZ) Adilabad, Komaram Bheem Asifabad, Jagtial, Rajanna Sircilla, Kamareddy, Nizamabad Tamsi, Sirpur_U, Kodimial, Boinpalle, Birkoor, Bhiknur, Machareddy, Jakranpally
2 Zone-II (CTZ) Sangareddy, Medak, Jangoan, Khammam, Mahabubabad, Bhadradri Kothagudem Zahirabad, Pulkal, Kohir, Nizampet, Narmetta, Mudigonda, Kesamudram, Aswaraopeta
3 Zone-III (STZ) Wanaparthy, Jogulamba Gadwal, Nalgonda, Suryapet, Nagarkurnool, Rangareddy Wanaparthy, Veepangandla, Gadwal, Peddavura, Madugulapally, Nadigudem, Mattampalle, Kollapur, Yacharam, Shabad

COST CONCEPTS

The item of cost of cultivation cover both the paid – out costs (out of pocket Expenses) and the imputed costs .The items Covered under these costs are:

a. Paid – out Costs

  • Hired labour (human, animal and machinery)
  • Maintenance expenses on owned animals and machinery.
  • Expenses on material inputs such as seed (home grown and purchased), fertilizer, manure, (owned and purchased), pesticides and irrigation
  • Depreciation on implements and farm buildings such as cattle sheds, machine sheds, storage sheds.
  • Land revenue
  • Rent paid for leased-in land
  • Miscellaneous expenses.

b. Imputed Costs

  • Value of family labour.
  • Managerial input of Family.
  • Rent of owned land
  • Interest on owned fixed capital (value of fixed assets and equipment’s to be estimated and 10% per annum to be considered).

COST A1=

  • Value of hired human labour (HHL)
  • Value of bullock labour (owned and hired)
  • Value of machinery labour (owned and hired)
  • Value of seed (both farm produced and purchased)
  • Value of insecticides and pesticides
  • Value of manure ( owned and purchased)
  • Value of fertilizer
  • Depreciation on implements and farm buildings
  • Irrigation Charges
  • Land revenue, cesses and other taxes.
  • Interest on working capital- to be calculated on all the paid-out costs @ 12.5 % for half of the crop period.
  • Miscellaneous expenses (Artisans etc.)

COST A2= COST A1+ rent paid for leased in land
COST B1= COST A1+ interest on value of owned fixed capital assets (excluding land)
COST B2= COST B1+ rental value of owned land + rent paid for leased in land
COST C1= COST B1+ imputed value of family labour
COST C2= COST B2+ imputed value of family labour

COST C3= COST C2 + value of management input at 10 Percent of Total cost (C2).
FL = Family labour

Estimates of Cost of cultivation of major crops in Telangana (2018-19 to 2020-21) (A2+FL, C1 and C2) (Rs. /Ha)

S. No. Name of the Crop Cost of Cultivation (A2+FL) Cost of Cultivation (C1) Cost of Cultivation (C2)  Cost of Cultivation (A2+FL)  Cost of Cultivation (C1)  Cost of Cultivation (C2)  Cost of Cultivation (A2+FL)  Cost of Cultivation (C1)  Cost of Cultivation (C2) 
2018-19 2019-20 2020-21
1 Paddy 63694.55 60752.7 90521.3 76780.57 71846.37 105156.48 72353.64 73143.89 103975.19
2 Maize 54564.98 54173.5 80790.71 60293.97 58154.39 83687.79 66009.81 65801.01 90124.29
3 Red Gram 23655.60 24504.00 30095.03 36117.75 37648.38 47094.37 33341.27 35190.88 48631.95
4 Gram/
Bengal Gram
31555.70 32540.04 49178.67 30278.24 31113.7 50857.79 28102.84 30427.73 49391.69
5 Ground Nut 80329.56 78135.1 105636.84 91827.18 92541.42 120928.16 90458.23 90980.26 121719.48
6 Cotton 61126.85 60359.8 87456.90 82501.16 78461.63 107545.14 75188.3 75485.65 96759.32
7 Green Gram 21971.27 22666.13 26859.19 17690.22 18136.05 26863.34 29084.55 28009.92 37908.36
8 Sesamum 16633.25 17996.19 23290.31  --  -- -- 27911.46 30177.29 53775.28
9 Soybean 36551.28 36256.09 54755.54 38331.97 38763.07 60938.50 34864.39 36557.69 45117.13

Source: Directorate of Economics and Statistics, GoI

Estimates of Cost of production of major crops in Telangana (2018-19 to 2020-21) (A2+FL, C1 and C2) (Rs. /Qtl)

S.No. Name of the Crop Cost of Production (A2+FL)   Cost of Production (C1)   Cost of Production (C2)   Cost of Production (A2+FL)   Cost of Production (C1)   Cost of Production (C2)   Cost of Production (A2+FL)   Cost of Production (C1)   Cost of Production (C2)  
2018-19 2019-20 2020-21
1 Paddy 1110.55 1041.45 1550.72 1226.61 1127.60 1652.19 1320.11 1320.04 1876.43
2 Maize 1204.51 1180.40 1749.07 1118.00 1077.47 1552.75 1179.54 1179.39 1616.22
3 Red Gram 8970.27 9182.59 11283.93 6097.17 6767.90 8423.49 4497.36 4744.18 6554.39
4 Gram/
Bengal Gram
2612.95 2694.46 4072.21 2219.09 2276.87 3718.76 2277.46 2478.82 4006.94
5 Ground Nut 3615.63 3489.67 4719.50 4404.15 4410.90 5764.71 5256.49 5234.95 6940.60
6 Cotton 4053.37 3984.39 5785.99 4066.55 3890.33 5339.25 5154.18 5174.04 6640.97
7 Green Gram 7526.84 7736.98 9168.24 2945.04 3019.22 4472.11 7354.55 7020.55 8838.56
8 Sesamum 9425.49 10197.82 13197.81 - - - 3092.01 3343.01 5957.17
9 Soyabean 1953.99 1938.20 2927.16 1913.30 1934.79 3041.64 4723.32 4952.72 6112.32

Source: Directorate of Economics and Statistics, GoI

Estimates of Cost of cultivation and production of major crops in Telangana (2018-19 to 2020-21) (C3)

S.No. Name of the Crop Cost of Cultivation (C3)  Cost of Cultivation (C3)  Cost of Cultivation (C3)  Cost of Production (C3) Cost of Production (C3) Cost of Production (C3)
Rs. /Ha Rs. /Qtl
    2018-19 2019-20 2020-21 2018-19 2019-20 2020-21
1 Paddy 99707.87 115672.13 115480.37 1708.09 1817.41 2083.95
2 Maize 89004.32 92056.58 100279.20 1926.89 1708.03 1798.45
3 Red Gram 33501.91 55741.32 53495.15 12561.31 9970.12 7209.83
4 Gram/
Bengal Gram
54096.54 56511.85 54330.86 4479.43 4132.18 4407.63
5 Ground Nut 116200.52 133020.98 133891.43 5191.45 6341.19 7634.66
6 Cotton 96621.09 118554.59 107024.74 6392.28 5886.52 7345.56
7 Green Gram 29545.11 29549.67 42594.70 10085.07 4919.32 9928.84
8 Sesamum 25619.34 - 59154.59 14517.59  - 6553.08
9 Soybean 60231.09 67261.19 50007.75 3219.88 3357.40 6776.12

MSP of Major Crops grown in Telangana (Rs. /Qtl)

Name of the Crop 2018-19 2019-20 2020-21 2021-22 2022-23
Paddy 1750 1815 1868 1940 2040
Maize 1700 1760 1850 1870 1962
Red Gram 5675 5800 6000 6300 6600
Gram/
Bengal Gram
4620 4875 5100 5230 5230
Ground Nut 4890 5090 5275 5550 5850
Cotton 5450 5550 5825 6025 6380
Green Gram 6975 7050 7196 7275 7755
Sesamum 6249 6485 6855 7307 7830
Soybean 3399 3710 3880 3950 4300

Source: Ministry of Agriculture & Farmers Welfare, GoI