The Journal of Research ANGRAU

Contents of 41(1) 2013 - acharya ng ranga agricultural university Contents of 41(1) 2013 - acharya ng ranga agricultural university

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AN ECONOMIC ANALYSIS OF BLACKGRAM IN GULBARGA The total costs (Rs. 798) and margins (Rs. 633) were more in channel-II than channel-I, because of which the price spread was more and producers share in consumer’s price was less in channel II. Price spread was Rs. 1093 and Rs. 881 in channel I and II respectively. Multiple regression model was employed to study determinants of profit margin per quintal of pulses. Out of five variables included in the model three variables significantly explained the variation in profit margin per quintal of pulses (R 2 = 0.92). Operating cost of production, marketing cost and gross price received by the producer were found significantly influencing profit margin (Table 3). The coefficient of determination (R 2 = 0.92) showed that about 92 percent of the variation in profit was explained by the variables included in the model. The result showed that, one rupee increase in operating cost decreases the profit margin per quintal by Rs.0.72. Reduction in the marketing cost increases the profit margin per quintal of blackgram. If the marketing cost is increased by one rupee, farmer experiences less profit margin (Rs.5.66). If the market price received by the producer is increased by one rupee, the profit margin of blackgram will be increased by Rs.0.74. Education level and fixed cost of production were found to be non-significant. Table 1. Cost of cultivation of Blackgram (per hectare) Sl.No Particulars Farmers Small farmer Large farmer Pooled 1.Operational cost (Rs.) a Human Labour i. Owned labours ii. Hired labours b. Bullock labour i. Owned labours 7995 8162 8104 5914 2471 5077 2080 5692 3027 5167 5016 5059 3468 3229 3304 ii. Hired labours 1699 1787 1754 c Tractor Power 608 1220 819 d. Seed e. FYM f. Fertilizers g. Plant protection chemicals h. Interest on working capital Total operational cost (Rs.) a. Land Revenue 752 783 773 1750 1560 1643 2998 3082 3052 2200 2660 2507 1503 1574 1537 22972 24057 23493 100 100 100 76

DEEPAK et al Table 2 Price spread and marketing margin for blackgram (Rs/qtl) S.No Particulars Channel I (Rs/qtl) Blackgram Channel II (Rs/qtl) 1 Producer a) Gross price received 3371 3198 b) Marketing cost 159 199 Net price received 3211 2999 2 Commission Agent a) Marketing cost 90 -- b) Margin 69 3 Trader a) Purchase price 3198 b) Marketing cost -- 135 c) Selling price 3450 d) Margin 117 4 Processor a) Purchase price 3529 3450 b) Marketing cost 126 126 c) Processing cost 199 199 d) Selling price per quintal of dal Dall 5790 5790 e) Selling price of per quintal of dal multiplied with conversion factor (CF) 3821 3821 f) Margin 166 245 5 5 Wholesaler Wholesaler a) a) Purchase Purchase price price 3821 3821 3821 3821 b) b) Marketing Marketing cost cost 62 62 62 62 c) c) Selling price per quintal of dall Selling price per quintal of dall 5950 5950 5950 5950 d) d) Selling price of per quintal of dal Selling price of per quintal of dal multiplied with CF multiplied with CF 3927 3927 3927 3927 e) e) Margin Margin 106 106 106 106 6 6 Retailer Retailer a) a) Purchase price Purchase price 3927 3927 3927 3927 b) b) Marketing cost Marketing cost 76 76 77 77 c) c) Selling price per quintal of dall Selling price per quintal of dall 6200 6200 6200 6200 77

AN ECONOMIC ANALYSIS OF BLACKGRAM IN GULBARGA<br />

<strong>The</strong> total costs (Rs. 798) and margins (Rs.<br />

633) were more in channel-II than channel-I, because<br />

<strong>of</strong> which the price spread was more and producers<br />

share in consumer’s price was less in channel II.<br />

Price spread was Rs. 1093 and Rs. 881 in channel I<br />

and II respectively.<br />

Multiple regression model was employed to<br />

study determinants <strong>of</strong> pr<strong>of</strong>it margin per quintal <strong>of</strong><br />

pulses. Out <strong>of</strong> five variables included in the model<br />

three variables significantly explained the variation<br />

in pr<strong>of</strong>it margin per quintal <strong>of</strong> pulses (R 2 = 0.92).<br />

Operating cost <strong>of</strong> production, marketing cost and<br />

gross price received by the producer were found<br />

significantly influencing pr<strong>of</strong>it margin (Table 3).<br />

<strong>The</strong> coefficient <strong>of</strong> determination (R 2 = 0.92)<br />

showed that about 92 percent <strong>of</strong> the variation in pr<strong>of</strong>it<br />

was explained by the variables included in the model.<br />

<strong>The</strong> result showed that, one rupee increase in<br />

operating cost decreases the pr<strong>of</strong>it margin per quintal<br />

by Rs.0.72. Reduction in the marketing cost increases<br />

the pr<strong>of</strong>it margin per quintal <strong>of</strong> blackgram. If the<br />

marketing cost is increased by one rupee, farmer<br />

experiences less pr<strong>of</strong>it margin (Rs.5.66). If the market<br />

price received by the producer is increased by one<br />

rupee, the pr<strong>of</strong>it margin <strong>of</strong> blackgram will be<br />

increased by Rs.0.74. Education level and fixed cost<br />

<strong>of</strong> production were found to be non-significant.<br />

Table 1. Cost <strong>of</strong> cultivation <strong>of</strong> Blackgram (per hectare)<br />

Sl.No<br />

Particulars<br />

Farmers<br />

Small farmer Large farmer Pooled<br />

1.Operational cost (Rs.)<br />

a Human Labour<br />

i. Owned labours<br />

ii. Hired labours<br />

b. Bullock labour<br />

i. Owned labours<br />

7995 8162 8104<br />

5914 2471 5077<br />

2080 5692 3027<br />

5167 5016 5059<br />

3468 3229 3304<br />

ii.<br />

Hired labours<br />

1699 1787 1754<br />

c<br />

Tractor Power<br />

608 1220 819<br />

d. Seed<br />

e. FYM<br />

f. Fertilizers<br />

g.<br />

Plant protection<br />

chemicals<br />

h. Interest on working<br />

capital<br />

Total operational<br />

cost (Rs.)<br />

a. Land Revenue<br />

752 783 773<br />

1750 1560 1643<br />

2998 3082 3052<br />

2200 2660 2507<br />

1503 1574 1537<br />

22972 24057 23493<br />

100 100 100<br />

76

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