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Cost and Return Structure of Wheat Crop under Tenant Farmers in Punjab: A Field Survey

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Indian Journal of Economics and Development
Volume 16 No. SS, 2020, 500-503
DOI: https://doi.org/10.35716/ijed/NS20-020
Indexed in Clarivate Analytics (ESCI) of WoS

Surbhi Bansal and D.K. Grover
Department of Economics and Sociology, Punjab Agricultural University, Ludhiana-141 004
Corresponding author’s email: surbhi.bansal1993@gmail.com

ABSTRACT
The present paper was designed to study the cost of cultivation and returns structure of wheat cultivation for the tenant as well as the owner farmers. The study was based on the primary data collected from 180 farmers (120 tenants and 60 owners), spread over all the major agro-climatic zones of Punjab pertaining to 2017-18. The result of the study revealed that cost of cultivation based on various cost concepts of wheat crop per hectare was slightly lower for tenant farmers in comparison to owner farmers. Cost A2 was found relatively higher in the case of owner farmers, as it include the actual rent paid for leased-in land along with all the operational cost. The returns overall cost concepts were found to be comparatively higher for tenant farmers in relation to owner farmers. The returns over Cost A2 were estimated ₹20360from wheat on tenant farmers as compared to₹68896on the owner farmers respectively. The return over Cost A2 reflects the returns for owned human labour for the tenant farmers. Therefore, there is a need to strengthen tenant farmers by ensuring an adequate size of holding, that is, operational landholding should be distributed uniformly among all farm groups on account of providing sustainable income and livelihood to all farmers.

Keywords
Cost of cultivation, land leasing, return structure, tenant farmers.

JEL Codes
Q15, R14, R52.

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