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Costs and Returns in Groundnut Cultivation: A Spatio-temporal Analysis


Murlidhar Meena , K.A. Khunt and H.N. Meena



The Indian Journal of Economics and Development (2018) 14(4), 587-599
DOI: 10.5958/2322-0430.2018.00176.2
Indexed in Clarivate Analytics (ESCI)

Murlidhar Meena , K.A. Khunt and H.N. Meena

ICAR- Directorate of Groundnut Research, Junagadh-362001
2Deaprtment of Agricultural Economics, Junagadh Agricultural University, Junagadh- 362001
*Corresponding author’s email:

Groundnut acreage in the country is shrinking significantly year by year. To find out the possible reason for such narrowing acreage profitability in groundnut cultivation was estimated from 1996 to 2015. All major groundnut growing states namely, Andhra Pradesh, Gujarat, Karnataka, Maharashtra and Tamil Nadu were analyzed as they jointly contribute around eighty-five per cent of groundnut area and production to the country. Based on the CACP cost of cultivation information costs and returns analysis was carried out. Results pointed out that farmers incurred losses over cost C in twelve and more years out nineteen studied years except 2 in Gujarat. Farmers in Gujarat earned maximum times profits over cost C in seventeen years and incurred losses to a maximum of 2 fifteen years in Karnataka. Cost of production was found more than Minimum Support Prices from nine to seventeen years. Maximum share to total cost was contributed by human labour, calls to increase mechanization in groundnut cultivation. Cost of production was found to decrease significantly with an increase in productivity in all the states indicated that profitability in groundnut can be increased with yield enhancement. The results implied that there is a need for policy intervention in term of higher MSPto attract more area towards this crop.

Costs and returns, groundnut, growth, instability, post-WTO period.

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