An Economic Analysis of Maize Production across Major Producing States of India

Abstract

National Food Security Mission has been taken by Government of India to increase coarse cereal Maize production in the country to meet food, feed for livestock and poultry and industrial raw material, domestic as well as global demand. The traditional and modern industrial uses have made it one of the fastest growing cash crops in the world. Considering its global as well as national importance, In this article, we have analysed the relative change, growth rate and CDVI (cuddy-della valle-index) in cost, returns, profitability and break-even production of maize during the study period 2000-01 to 2018-19 of Maize across major Maize growing states of India. The study found that Cost A1, cost A2, cost B1, cost B2, cost C1 and cost C2 of maize was found to be increased higher in Madhya Pradesh with highly significant annual growth rate during the study period than other states. These cost concepts showed low to medium instability for almost all the leading states. The findings revealed that maize was more profitable in Bihar, followed by Andhra Pradesh and Karnataka, owing to higher net income and B:C ratios than in other states. Bihar states had higher differential yield and a greater discrepancy between the cost of production and the minimum support price. In some states, actual yields were lower than break-even, and production costs were greater than the minimum support price, resulting in losses for maize growers. The study's findings would help policymakers and governments devise appropriate development strategies and effective policies for less lucrative states.