Economic Analysis of Major Crops in Jammu Division of Union Territory of Jammu and Kashmir, India

Abstract

This micro-economic study focuses on the cost and returns analysis for major crops (wheat, paddy, and maize) in the districts of Jammu, Kathua, and Samba in the Jammu division. Conducted at SKUAST, Jammu during 2023, the study utilized a multistage random sampling method to achieve its objectives. Data was collected from 360 sample farmers, covering aspects such as land-holding size, costs, and return structures. The costs associated with crop cultivation varied pointedly across the districts, with Samba incurring ₹14272.57 for Cost A2 and ₹33023.58 for Cost C3 which was the highest of overall costs. Jammu had the highest main-product yield of 25.22 quintals and by-product yield of 32.70 quintals. Jammu also recorded the highest fixed costs (₹13488.30) whereas the highest total cost was in Samba with ₹30021.43. Gross returns were highest in Jammu with ₹68303.22, resulting in net returns of ₹38740.29. Jammu also had the highest benefit-cost ratio of 1:2.30, as well as the highest family labor income and farm business income (₹41755.29 and ₹43060.92, respectively). The rental value of owned land (Cost B2) suggestively impacted final costs, and Jammu district emerged as the most economically favorable for major crop cultivation. Overall, it depicted the possible profitability from cultivation of major crops like wheat, paddy and maize, that may encourage the farming community specially the youngsters to choose agriculture over private sectors, which would ultimately contribute to meet the state demand as well as contribution to SGDP.