Farm profitability under rising input costs in Punjab: Issues and concerns Kaur Parminder*, Singh Parminder, Singh J.M. Department of Economics and Sociology, Punjab Agricultural University, Ludhiana, Punjab *Corresponding author email id: parminderkaur@pau.edu
Online Published on 18 March, 2024. Abstract The results of the present study revealed that farmers didn't consider the adoption of alternative crops as profitable due to non existent of public procurement of crops other than wheat and paddy in the state and other crops continued to suffer at the hands of private companies due to lack of effective implementation of MSP and thus, markets for such crops considered often riddled with imperfections. Agricultural production process in the state has become cost intensive due to higher need and high use of inputs and the cost of inputs increased faster than the output prices. Capital investments are required for the purchase of productive assets and deepening of tubewells, replacement of centrifugal to submersible pumps. Besides, hefty amounts required for the repair of machinery and equipment, thus squeezing the profitability of agriculture and cause a big drain on farmers ‘income. Farmers had to borrow credit at high rate of interest to meet the farm expenses. The farmers growing different crops revealed that the income from farming was not adequate and various coping strategies were under taken by the households in the wake of economic risks faced viz. reduce household consumption expenditure, deferred social and family functions, borrowed money from input dealers at a higher rate of interest. Therefore, farmers in the state need sustained support in the form of increased returns from their crop cultivation. Concerted efforts are required to be taken to strengthen the non-price incentives such as the procurement system and market infrastructure for the crops other than paddy and wheat. Top Keywords Costs, Imperfections, Inputs, Output, Markets, Procurement. Top |