Economics and Profitability Analysis of Sugarcane Cultivation: A Study of Narsinghpur District in Madhya Pradesh, India

Abstract

Sugarcane (Saccharum officinarum) is a major commercial crop in India, vital for agriculture, rural employment, and industries like sugar and ethanol. Uttar Pradesh leads production, while Madhya Pradesh, especially Narsinghpur, has emerged as a key contributor due to favorable conditions and irrigation. The present study analyses the economics of sugarcane production with special reference to the cost of cultivation, returns, and break-even analysis in the Narsinghpur district of Madhya Pradesh. Primary data were collected from 120 randomly selected sugarcane growers across 12 villages in Kareli and Gadarwara blocks during the 2024–25 agricultural year. Standard cost concepts and farm budgeting techniques were employed for analysis. The results revealed that the total cost of cultivation increased with farm size, ranging from 1,27,115.36 Rs/ha on small farms to 1,47,823.37 Rs/ha on large farms. Gross returns and net returns were highest for large farms, primarily due to their higher productivity. The cost- benefit ratio (1:2.35) remained stable across all farm categories, indicating the economic viability of sugarcane cultivation. Break-even analysis (break-even yield (403.70), break-even price Rs/qt (143.66) showed that the actual yield exceeded the break-even yield across all farm sizes, confirming the profitability of sugarcane production in the study area. High input costs and pest incidence expenses emerged as major constraints. Farmers emphasised the need for subsidised inputs, mechanisation, and better irrigation.