Economic Analysis of Basmati and Non-basmati Rice Cultivation in Shahjahanpur District of Uttar Pradesh

Abstract

The study was conducted in the year 2022-23 entitled “Economic Analysis of Basmati and Non-Basmati Rice Cultivation in Shahjahanpur District of Uttar Pradesh” with a sample of 100 paddy growers, further bifurcated evenly into Basmati and Non-Basmati growers respectively. In both the categories, average family size was found to be medium with 5.10 and 5.02 respectively. The cost analysis of Basmati and non-basmati rice cultivation revealed varying per hectare costs for different cost components. For Basmati crop, the per hectare costs for costs A1/A2, B1, B2, C1, C2, C2* and C3 were ₹ 48,877.42, ₹ 49,120.83, ₹ 79,120.83, ₹ 78,877.42, ₹ 55,653.27, ₹ 85,653.27, ₹ 92,184.27 and ₹ 1,01,402.70, respectively. The corresponding benefit-cost ratios were 1:2.74, 1:2.73, 1:1.70, 1:2.41, 1:1.57, 1:1.45 and 1:1.32. For non-basmati rice cultivation, the per hectare costs for costs A1/A2, B1, B2, C1, C2, C2* and C3 were ₹ 44,802.23, ₹ 45,038.80, ₹ 75,038.80, ₹ 50,686.08, ₹ 80,686.08, ₹ 87,323.58 and ₹ 96,055.94, respectively. The benefit-cost ratios for these cost components were 1:2.59, 1:2.58, 1:1.55, 1:2.29, 1:1.44, 1:1.33 and 1:1.21. Cost A1 and Cost A2 were same because of no leasing activity in the study area. Basmati rice cultivation exhibited higher per hectare gross returns, amounting to ₹ 1,34,115.64 compared to ₹ 1,16,112.21 for Non-Basmati rice, indicating better financial outcomes for Basmati rice growers. The cost of cultivation for Basmati paddy was also relatively higher. Resource use efficiency for Basmati rice cultivation revealed the significant impact of input variables on output. Human labour (X1) showed a significant positive impact on the output, indicating that increased labour usage leads to substantial yield improvement. Fertilizer (X3) exhibited a highly significant positive impact on output, emphasizing the crucial role of fertilizers in enhancing Basmati rice production. Non-Basmati rice cultivation, on the other hand, displayed a non-significant positive impact of human labour and seeds on output. Fertilizers (X3) played a critical role in Non-Basmati rice production as well, showing a highly significant positive impact. Additionally, excessive use of plant protection (X5) was observed in both types of cultivation, which could lead to inefficiencies and higher costs without significant benefits in output. Overall, Basmati rice cultivation demonstrated higher gross income and profitability compared to Non-Basmati rice cultivation in Shahjahanpur district. Efficient resource management, particularly the optimal utilization of human labor and fertilizers, was found to be crucial in enhancing Basmati rice production. Addressing the highest ranked production and marketing constraints identified in the study, such as high price of fertilizer and plant protection and lack of proper marketing knowledge can further contribute to the economic sustainability of rice cultivation in the district.