Economic analysis of Cost, Returns and Profitability of Maize in Karnataka State

Author: Gadigeppa Muramatti, S.N. Mishra, Abhiram Dash, B. Mohapatra and K.K. Sarangi

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Abstract

Maize (Zea mays) is one of the important cereal crops of the World and gaining lot of importance in animal feed and other industry uses. The present study aimed to calculate the costs and returns of maize in Karnataka. We evaluated profitability, net income, family labor income, farm business revenue, and the B:C ratio in this article by estimating the cost of cultivation using the cost concept (cost A1 A2, B1 B2, C1 C2, and C3). The absence of high-quality seeds was one of the main issues mentioned by the farmers. They believed that there were seeds of various qualities mixed together, which causes poor germination and reduced yields. The study comes to the conclusion that maize growers in the study area will see higher net returns if they make the best use of the resources at their disposal and make the required efforts to fix the issues found in the production of maize. The cost of cultivation of maize (total cost C2) was Rs. 48312.44 per hectare, variable cost was Rs. 32319.16/ hectare and fixed cost was Rs. 13228.79/ hectare. The per hectare gross income was Rs. 61180 and net return Rs. 15631.84 with B: C ratio of 1:1.34 which showed the profitable of crop. On the basis of finding of study, it is recommended that the study area getting profit and study will suggest to go for maize cultivation.

Keywords

Cost and return, profitability, Maize, estimation, Karnataka, net income and labor

Conclusion

Among total cost of cultivation variable cost accounted around 70 per cent and fixed cost accounted 30 per cent. Human labor, animal labor and machine labor accounted 24 per cent, 7.9 per cent and 13.5 per cent respectively. Cost incurred on manures and fertilizers was 11.96 per cent. And interest on working capital accounted 1.74 per cent. Rental Value of Owned Land and Interest on Fixed Capital are 24.36 per cent and 4. 26 per cent respectively. Gross returns by the sale of main produce and by- product in Karnataka was estimated to be Rs.61, 180 and Rs. 6000 respectively. And net return was Rs. 15631.84. finally, the ratio of benefits to costs was calculated and found to be 1.34. Consequently, it might be concluded that maize is a productive crop.

References

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How to cite this article

Gadigeppa Muramatti, S.N. Mishra, Abhiram Dash, B. Mohapatra and K.K. Sarangi (2023). Economic analysis of Cost, Returns and Profitability of Maize in Karnataka State. Biological Forum – An International Journal, 15(1): 694-697.