Cost of Production and Marketing Efficiency of Sorghum in Bhind District of Madhya Pradesh, India

Abstract

A sound understanding of the cost structure, profitability and marketing efficiency of sorghum is essential for designing interventions that improve farm incomes in rainfed tracts of central India, yet district-level evidence combining both dimensions remains limited for Madhya Pradesh. This study estimated the cost of cultivation, returns and marketing efficiency of sorghum among 120 randomly selected growers from Gohad and Mehgaon blocks in Bhind district during the kharif season of 2025-26. Cost concepts recommended by the Commission for Agricultural Costs and Prices were used to work out farm-size-wise costs and profitability, while marketing cost, marketing margin, price spread and marketing efficiency were estimated for the three marketing channels identified in the study area. The overall cost of cultivation (Cost C3) was estimated at ₹43,520.62 per hectare, of which variable costs accounted for the larger share; gross income averaged ₹70,175.43 per hectare and net income ₹26,654.81 per hectare, yielding a benefit–cost ratio of 1.62 that confirmed the economic viability of the enterprise, with profitability rising with farm size up to the medium category. Among the three marketing channels identified—direct producer-to-consumer sale and two intermediary-based channels involving village merchants, commission agents and retailers—the direct channel recorded the lowest marketing cost (₹100/quintal) and price spread (₹100/quintal), the highest marketing efficiency (10.50) and the highest producer's share in the consumer's rupee (95.45%), while channels involving a longer chain of intermediaries more than doubled the price spread and roughly halved the producer's share. The results suggest that reducing intermediation through direct and farmer-collective marketing arrangements, alongside cost-reducing input support, offers the most direct route to improving farm profitability in the district. Effective institutional coordination among seed corporations, Krishi Vigyan Kendras (KVKs), the state agricultural extension system, and market regulatory bodies is essential to ensure the long-term productivity, sustainability, and profitability of sorghum cultivation in the district.