Economic Analysis of Sugarcane Cultivation in Andhra Pradesh, India
Author: I. V. Y. Rama Rao
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Abstract
The area under sugarcane in India decreased from 5.06 Million hectares (Mha) to 4.57 Mha and during 2018-19 to 2019-20. Scenario was much worse in Andhra Pradesh state, where the area dwindled down (38%) from 1.39 Lakh Hectares (Lha) to 0.86 Lha in a span of five years (from 2014-15 to 2019-20). The present study was an attempt to estimate the factors affecting the sugarcane cultivation in Andhra Pradesh for the period 2019-20. The data on various aspects of costs and returns involved in crop collected from farmers based on multistage sampling. Budgeting techniques, Cost Concepts, Benefit Cost Ratio (BCR) and Bisliah model of Yield gap Analysis were employed for achieving objectives. The results revealed that, in plant crop, Benefit Cost Ratio (BCR on Operational Cost) was higher in rainfed (0.96) than irrigated (0.94). There was a 65.55 % yield gap between irrigated and rainfed, in which input usage (37.23%) had higher effect than cultural practices (28.32%). So, irrigated sugarcane method is a more remunerative, yields can be sustainable if irrigation is assured with proper package of practices.
Keywords
Sugarcane, Yield gap analysis, Irrigation, Srikakulam, Vizianagaram, Visakhapatnam, North Coastal Zone Andhra Pradesh
Conclusion
(i) Return on Investment was Higher in ratoon crop than plant crop
(ii) Human labour was the most important factor under both rainfed and irrigation conditions
(iii) In-put use difference (37.23%) was major contributor than cultural practices (28.32%) in yield gap (65.55%) between irrigated and rainfed sugarcane.
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