Production and marketing of groundnut in Palghat District

Abstract

A study on economics of production and marketing was taken up in Palghat District with reference to the first season (April – August) of the year 1982-83 to estimate costs and returns, resource use efficiency of groundnut cultivation, marketing cost and price spread in groundnut marketing and to identify the problems of the groundnut cultivators. Eighty cultivators were selected by multistage random sampling method. Data were collected from samples of groundnut cultivators, traders and oil millers by personal interview method. It was found that the average family size was 5.71. Only 76.25 per cent of the respondents were literate. The average size of land holding was 3.40 hectares. The cropping intensity was 178.90. The average capital investment including the value of land was Rs.55740 per holding and Rs. 17160 per hectare. The capital investment excluding land value was Rs.8790 per holding and Rs. 2700 per hectare. Costs of cultivation per hectare of groundnut based on cost A, cost B and cost C were Rs. 2340.93, Rs.3203.13 and Rs.3240 respectively. The average costs of production per quintal of groundnut pods based on cost A, cost B and cost C were Rs. 181.73, Rs.261.05 and Rs.264.40 respectively. The major item of cost was human labour which accounted 31.02 per cent (Rs. 1004.88) of the total cost followed by seeds 22.49 per cent (Rs.728.80),bullock labour and machinery 7.12 per cent (Rs.249.13), fertilizers and manures 7.12 per cent (Rs.230.82) and plant protection chemicals 0.91 per cent (Rs.29.63).The average seed rate was 133.10 kg per hectare. The average amount of fertilizers used per hectare was 6.45 kg of nitrogen, 7.89 kg of phosphorous and 12.35 kg of potash. The average human labour utilized per hectare was 100.49 mandays. The average bullock labour used per hectare was 10.50 bullock pair days. Seed sowing was the most important operation which accounted for 25.65 per cent (Rs.831.83) of the total cost of cultivation followed by harvesting 15.78 per cent (Rs.511.32), manuring 9.87 per cent (Rs.320.51), after cultivation 9.70 per cent (Rs.314.51), preparatory cultivation 7.78 per cent (Rs.229.48) and plant protection 1.10 per cent (Rs.35.73). The average yield per hectare was 1087 kg of groundnut pods. Gross income, farm business income, family income, net income and farm investment income per hectare were Rs.3739.43, Rs.1398.50, Rs.536.30, Rs.499.43 and Rs.1361.63 respectively. The benefit cost ratios based on cost A, cost B and cost C were 1.60, 1.17 and 1.15 respectively. Cobb-Douglas production functions were fitted to test the resource use efficiency. Marginal productivity analysis revealed that land and human labour had positive and significant influence on gross income. Three channels were identified in groundnut marketing and most commonly used channel was producer- village merchant- oil miller. The producer’s share in the miller’s price was 87.83 per cent in Chittur Block and 89.55 per cent in Kollengode Block. The marketing margin for the village merchant was 5.23 per cent in Chittur Block and 3.45 per cent in Kollengode Block. The marketing cost incurred by the village merchant was 6.94 per cent in Chittur Block and 7.10 per cent in Kollengode Block. Four channels were identified in the groundnut oil marketing and most commonly used channel was oil miller – wholesaler – retailer – consumer. The marketing margins were 4.66 per cent to the miller, 1.55 per cent to the wholesaler and 0.85 per cent to the retailer. The marketing costs were 5.58 per cent to the oil miller, 0.45 per cent to the wholesaler and 0.21 per cent to the retailer. Farmers faced many problems such as incidences of pests and diseases, low price, lack of drying facilities and absence of proper marketing system.