Cost and Return Analysis of Bidi Tobacco in Gujarat


Sandeep Kumar Panchal, R.S. Pundir, and Hemant Sharma



Indian Journal of Economics and Development
Year : 2016, Volume : 12, Issue : 3
First page : ( 595) Last page : ( 598)
Print ISSN : 2277-5412. Online ISSN : 2322-0430.
Article DOI : 10.5958/2322-0430.2016.00182.7

Cost and Return Analysis of Bidi Tobacco in Gujarat

Panchal Sandeep Kumar1,*, Pundir R.S.2, Sharma Hemant3
1Department of Agriculture Economics, Anand Agriculture University, Anand

2College of International Agriculture Business Management Institute, AAU, Anand

3Agro Economic Research Centre, Vallabhvidyanagar, Anand, Gujarat

*Corresponding author’s email:

JEL Codes C81, D22, D24, J24, Q12

Online published on 6 September, 2016.

The present study was conducted with the objectives to study the input use pattern, cost structure, returns of inputs used in bidi tobacco production. From middle Gujarat Anand and Kheda district were selected purposively for this study as they collectively covered about 79.62 percent area of bidi tobacco in triennium ending 2008–09, 2009–10, and 2010–11 (Anonymous. 2009–2012). In second stage, two talukas from each selected district on the basis of concentration of area of bidi tobacco cultivation were selected. Hence, total four talukas were selected. Further, in third stage, three villages were selected randomly from each selected talukas. Thus, total 12 villages were selected for the study. Considering size of population and resources, 60 cultivators were selected randomly with proportional allocation from the selected villages. Primary data was used to analyze the results. The survey was conducted during August-2014 to January-2015 for farmers. The total cost of cultivation of bidi tobacco farms was/J53856.04/ha. Highest share in total cost was found for rental value of land in bidi tobacco. On an average Cost A (paid out cost) formed 53.32 per cent of total cost, while Cost B accounted for 83.34 per cent of total cost for tobacco farms. It is depicted from the data given in the average total cost (Cost C2) per hectare in bidi tobacco crop was/J53856 per ha. The average yield of bidi tobacco was 18.73 quintals per hectare. The average farm harvest price received by the tobacco growers was [p518.06 per quintal. On an average net gain over Cost C2 in bidi tobacco was U40813.26 per ha. The average net profit was increased in bidi tobacco crops. The average per hectare net farm business income, family labour income and farm investment income were [J106763.21, [B7594.00 and [J)6125.53 per ha, respectively. The input-output ratio was 1: 2.21 for bidi tobacco.