Production marketing and supply respons of sugarcane in Chittor area

Abstract

The present investigation on the production, marketing and supply response of sugarcane in Chittoor Area of Palakkad District was conducted during 1991-’92. The main objectives of the study were:- (1) To estimate the supply response of sugarcane (2) To find out the economics of production (3) To estimate the resource use efficiency (4) To examine the marketing practices and problems Secondary data were collected from secondary sources and primary data from One hundred and Twenty farmers and traders using two stage random sampling technique. The compound growth rates were 6.87 per cent, 0.24 per cent and 6.61 cent of area, productivity and production respectively. Increase in sugarcane production was mainly due to area increase. Area-price interaction effect was also found to be significant. Area lagged by one year and two years were significant but when time trend was included they became insignificant. For the sample as a whole, Cost A1, Cost A2, Cost B1, Cost B2, Cost C1 and Cost C2 per hectare were Rs.13,597.46, Rs.13,597.46, Rs.14,094.76, Rs.19,761.87, Rs.15,010.67 and Rs.20,677.78 respectively for sugarcane planted crop, Rs.11,201.41, Rs.11,201.41, Rs.11,682.09, Rs.16,344.55, Rs.12,497.17 and Rs.17,159.63 for ratoon crop and Rs.12,399.44, Rs.12,399.44, Rs.12,888.43, Rs.18,053.25, Rs.13,753.92 and Rs.18,918.70 for combined crop. For the sample as a whole, costs of production were Rs.148.75, Rs.148.75, Rs.154.19, Rs.216.19, Rs.164.21 and Rs.226.21 for planted crop, Rs.148.95, Rs.148.95, Rs.155.35, Rs.217.35, Rs.166.19 and Rs.228.19 for ratoon crop and Rs.148.85, Rs.148.85, Rs.154.77, Rs.216.77, Rs.165.20 and Rs.227.20 for combined crop based on Cost A1, Cost A2, Cost B1, Cost B2, Cost C1 and Cost C2 respectively. The output of planted, ratoon and combined crops were 91.41 MT, 75.20 MT and 83.30 MT for the sample as a whole, having corresponding values of Rs.28,335.64, Rs.23,312.12 and Rs.25,823.38 respectively. At Cost C2, benefit cost ratio was the highest in Class III showing values 1.37, 1.36 and 1.36 for planted, ratoon and combined crops respectively. Farm business income for planted, ratoon and combined crops were Rs.14,738.18, Rs.12,110.59 and Rs.13,424.38 for the sample as a whole. Farm investment income showed values Rs.13,822.27, Rs.11,295.51 and Rs.12,558.89, while family labour income was Rs.8,573.77 for planted, Rs.6,967.45 for ratoon and Rs.7,775.61 for the combined crop. The Cobb-Douglas production function fitted with returns (rupees) as dependent variable and expenditure on labour, seeds, manures and fertilizers, irrigation and plant protection chemicals as independent variables revealed the expenditure on manures, fertilizers and irrigation were inadequate for both the crops. At the same time expenditure on plant protection chemicals was found to be in excess. The major marketing channel identified was producer- factory in which 69.17 per cent of the farmers were involved. Of the total, 15.83 per cent of farmers produced gur by themselves and were involved in the producer wholesaler (as gur) – retailer-consumer channel. The marketing cost incurred accounted for 28.11 per cent while marketing margins accounted for 15.28 per cent. The analysis revealed that producers could obtain more profit when they produced gur by themselves than by selling sugarcane to gur producers or to the factory.