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SITUATION ASSESSMENT OF AGRICULTURAL

HOUSEHOLDS IN PUNJAB

Thesis

Submitted to the Punjab Agricultural University


in partial fulfillment of the requirements
for the degree of

MASTER OF SCIENCE
in
AGRICULTURAL ECONOMICS
(Minor Subject: Statistics)

By

Vikas Kansal
(L-2014-BS-242-M)

Department of Economics and Sociology


College of Basic Sciences and Humanities
©PUNJAB AGRICULTURAL UNIVERSITY
LUDHIANA-141004

2017
CERTIFICATE – I

This is to certify that the thesis entitled, “Situation assessment of agricultural


households in Punjab” submitted for the degree of Master of Science in the subject of
Agricultural Economics (Minor subject: Statistics) to the Punjab Agricultural University,
Ludhiana, is a bonafide research work carried out by Vikas Kansal (L-2014-BS-242-M)
under my supervision and that no part of this thesis has been submitted for any other degree.
The assistance and help received during the course of investigation have been fully
acknowledged.

_____________________________
(Dr. Poonam Kataria)
Major Advisor
Senior Professor of Economics
Deptt. of Economics and Sociology
Punjab Agricultural University
Ludhiana-141004 (India)
CERTIFICATE – II

This is to certify that the thesis entitled, “Situation assessment of agricultural


households in Punjab” submitted by Vikas Kansal (L-2014-BS-242-M) to the Punjab
Agricultural University, Ludhiana, in partial fulfillment of the requirements for the degree of
M.Sc., in the subject of Agricultural Economics (Minor subject: Statistics) has been
approved by the Student‟s Advisory Committee along with External Examiner after an oral
examination on the same.
.

_________________________ _______________________________
(Dr. Poonam Kataria) (Dr. J.C. Karwasra)
Major Advisor External Examiner
Professor & Head (Retd.)
Department of Agricultural Economics,
Chaudhary Charan Singh Haryana
Agricultural University, Hisar
(Haryana) – 125004

_______________________
(Dr. Sukhpal Singh)
Head of the Department

__________________________
(Dr. Neelam Grewal)
Dean, Post-Graduate Studies
ACKNOWLEDGEMENT
With all humility and sincerity, I bow my head with reverence and accord my gratitude
to the ‘ALMIGHTY’, whose grace and blessings gave me courage and wisdom to accomplish
this important task of my life.
Words are compendious in expressing my profound sense of gratitude and heartfelt
sincere thanks to my revered and worthy Major Advisor, Dr Poonam Kataria, Professor of
Economics, Department of Economics and Sociology, Punjab Agricultural University (PAU),
Ludhiana, for her enthusiastic interest, valuable and intellectual guidance, unfailing courtesy,
painstaking efforts, unceasing encouragement, unstinting moral support and constant
supervision during the pursuance of this study. I feel proud to be associated with her.
I owe my profound thanks to the esteemed members of my advisory committee, Dr
Jasdev Singh Sidhu, Senior Farm economist, Department of Economics and Sociology, Dr S S
Sidhu, Head and Professor of Statistics, Department of Maths, Stat and Physics; and Dr D K
Grover, Director Agro Economic Research Centre, Department of Economics and Sociology,
Nominee of Dean PGS for their help, encouragement, intellectual inferences, valuable
suggestions and critical examination of the manuscript.
I am thankful to Dr Sukhpal Singh, Professor-cum-Head, Department of Economics and
Sociology, PAU, Ludhiana for providing necessary support in accomplishing the research work.
Words at my command are inadequate in form and spirit to convey the depth of my
feelings for my respected parents, Parshotasm Dass Kansal and Usha Rani. The selfless
sacrifices, paramount affection and constant moral support of my family cannot be
acknowledged through words. I am extremely obliged to my brother Subodh Kansal and my
beloved friends, Akash, Gurpal, Parminder and Sreepriya for their indelible help, perceptive
inspiration, moral support and immense love at every stage of this research work right from the
conception to the execution.
It is indeed a pride and personal gratification to have friends like Ankit, Deepak,
Gurlal, Gurhem, Himanshu, Hitesh, K K, Pankaj, Parteek, Rahul, Rajat, Rohit, Ranjodh,
Suresh, Sourav and Vanusha. I thank them for their encouragement, unmemorable company,
pleasant association, inspiration and ungrudging help. I also acknowledge with gratitude for
generous help by my juniors, Shradhha, and Nanda. Invaluable help rendered by office staff,
Tarwinder Singh during the course of study and the completion of thesis is gratefully
acknowledged.
It is not possible to give a mention to everybody by words but I am gratified to
everyone who had been a source of moral support and inspiration directly or indirectly during
the course of present study.

Place:
Dated: (Vikas Kansal)
Title of the Thesis : Situation assessment of agricultural households of
Punjab
Name of the student and : Vikas Kansal
admission no. (L-2014-BS-242-M)
Major Subject : Agricultural Economics
Minor Subject : Statistics
Name and Designation of : Dr. Poonam Kataria
Major Advisor Professor of Economics
Degree to be Awarded : M.Sc.
Year of award of Degree : 2017
Total Pages in Thesis : 65+ VITA
Name of University : Punjab Agricultural University, Ludhiana-141 004,
Punjab, India
ABSTRACT
The present study, based on both secondary and primary data, was conducted to examine the
agricultural production scenario of Punjab and to carry out situation assessment of the agricultural
households of different agro-climatic zones of Punjab and associate it with agricultural production on
the basis of farm expenses and receipts. The analysis based on secondary data, culled from various
published sources for the state of Punjab for the period 2001-02 to 2013-14, highlighted that cropping
intensity in the state has increased from 186.9 percent in TE 2003/04 to 190.1 percent by the TE
2012/13 limiting the possibility of vertical expansion as well. The study reinforced that wheat, paddy,
cotton, sugarcane and maize were the important crops cultivated in Punjab. Paddy and wheat area as
percent of GCA has been increasing unabatedly from 74.4 percent in 2001-02 to 80.8 percent in 2012-
13. The analysis of primary data, for the crop year 2014-15, sought from 120 agricultural households
(30 each from Sub-Mountainous Region- Zone I and South Western Region-Zone III, 60 from Central
Plain Region -Zone II) highlighted significant inter zonal differences in the cropping pattern. In Zone
I, paddy crop was conspicuous by its absence and wheat accounted for 37.9 percent of gross cropped
area. The paddy and wheat together accounted for 83 percent of the GCA in Zone II and 64.6 percent in
the case of Zone III. The results elucidated that total variable cost per acre of NSA figure was the
highest (Rs. 40228) in case of Zone I , followed by that in case of Zone II (Rs. 26342) and Zone III
(Rs. 24135), wherein the differences (Zone II vs. Zone III) were found to be non-significant (p< 0.05).
The value of output on per acre of NSA was observed to be the highest (Rs. 77835) in case of Zone II
followed by Zone I (Rs. 65041) and Zone III (Rs. 63292) with significant differences (p<0.05) amongst
each other, testifying the production potential of Central Zone of Punjab. The returns over variable cost
per acre of NSA were the least in case of Zone I, which calls for immediate policy attention. In the case
of zone II, wheat and paddy rotation which accounted for 83.3 percent of the total cropped area,
entailing 76.2 percent of the farm cost exhibited the potential to generate 82.4 percent of the farm
accruals net of variable costs. In case of Zone III, wheat crop accounting for 47.5 percent of the
cropped area accounted for 53.2 percent of the total farm returns, whereas cotton cultivation on 30.4
percent of the cropped area, accounted for 43.8 percent of the entire farm cost and returned
proportionately less (only 17.9 %) in terms of returns over variable costs. These inter zonal
differentials call for customized crop planning, diversification options along crop and regional
dimensions and matching policy support to bring about all round development of the state agriculture
on both agronomic and economic front and that too on a sustainable basis.

Keywords: Situation assessment, agriculture households, production, agro-climatic zones, wheat-paddy


rotation

______________________ ____________________
Signature of Major Advisor Signature of the Student
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CONTENTS

CHAPTER TITLE PAGE NO.

I INTRODUCTION 1-3

II REVIEW OF LITERATURE 4-12

III MATERIALS AND METHODS 13-17

IV RESULTS AND DISCUSSION 18-57

V SUMMARY 58-62

REFERENCES 63-65

VITA
LIST OF TABLES

Table Title Page


No. No.

3.1 Selection of blocks from selected districts 15

3.2 Selection of villages for the selection of sampling units 15

3.3 Land holding categories for the purpose of present study 16

4.1 Agricultural land use in Punjab: Changes over time 19

4.2 Shifts in the cropping pattern of Punjab 21

4.3 Production profile of major crops of Punjab: Changes over time 22

4.4 Share of Agriculture and livestock sector in Punjab‟s Gross State Domestic 23
Product (GSDP) at constant 2004-05 Prices

4.5 State domestic product from Agriculture (at 2004-05 prices) per unit of 24
land area in Punjab, TE 2003/04 to TE 2012/13

4.6 Personal characteristics of respondents of different zones of Punjab, 2014-15 25

4.7 Distribution of sampled households of Punjab by major source of income, 26


2014-15

4.8 Zone wise information on proportion of agricultural households of Punjab 27


reporting access to technical advice, 2014-15

4.9 Land inventory details of different zones of Punjab, 2014-15 28

4.10 Farm size category wise land inventory details of Punjab, 2014-15 29

4.11 Zone wise cropping details of selected farms of Punjab, 2014-15 30

4.12 Cropping pattern followed in different zones of Punjab, 2014-15 31

4.13 Zone wise land use pattern of selected agricultural households of Punjab, 32
2014-15

4.14 Farm size category wise land use pattern in Punjab, 2014-15 33

4.15 Zone wise productivity and cost-return profile of paddy (non basmati) 34
crop in Punjab, 2014-15

4.16 Productivity and cost-return profile of basmati crop in Punjab, 2014-15 35

4.17 Productivity and cost-return profile of cotton crop in Punjab, 2014-15 36

4.18 Zone wise productivity and cost-return profile of maize crop in Punjab, 37
2014-15

4.19 Zone wise productivity and cost-return profile of bajra fodder in Punjab, 39
2014-15

4.20 Zone wise productivity and cost-return profile of sorghum fodder in 40


Punjab, 2014-15
4.21 Zone wise productivity and cost-return profile of wheat crop in Punjab, 42
2014-15

4.22 Zone wise productivity and cost-return profile of berseem fodder in 43


Punjab, 2014-15

4.23 Zone wise productivity and cost-return profile of oat fodder in Punjab, 44
2014-15

4.24 Productivity and cost-return profile of green pea crop in Punjab, 2014-15 46

4.25 Zone wise productivity and cost-return profile of potato crop in Punjab, 47
2014-15

4.26 Component wise split up of farm expenditure (Rs/farm) in different zones 49


of Punjab, 2014-15

4.27 Apportionment of cost components to different crops grown in Zone I of 50


Punjab, 2014-15

4.28 Apportionment of cost components to different crops grown in Zone II of 50


Punjab, 2014-15

4.29 Apportionment of cost components to different crops grown in Zone III of 51


Punjab, 2014-15

4.30 Component wise split up of farm expenditure (Rs/farm) in different land 52


holding categories of Punjab, 2014-15

4.31 Zone wise cost-return analysis for agricultural households of Punjab, 2014- 53
15

4.32 Land holding wise cost-return analysis for agricultural households of 54


Punjab, 2014-15

4.33 Share of different crops in farm cost in relation to area apportioned in 55


different zones of Punjab, 2014-15

4.34 Share of different crops in farm returns over variable cost in relation to 56
area apportioned in different zones of Punjab, 2014-15
LIST OF FIGURES

Figure Title Page


No. No.

1 Trends in agricultural land use pattern in Punjab 19

2 Changes in intensity of cropping in Punjab 20

3 Importance of paddy and wheat in the cropping pattern of Punjab 21

4 Variable cost components (in % terms) of paddy cultivation in Punjab, 2014- 34


15

5 Variable cost components (in % terms) of basmati cultivation in Punjab, 35


2014-15

6 Variable cost components (in % terms) of cotton cultivation in Punjab, 2014- 36


15

7 Variable cost components (in % terms) of maize cultivation in Punjab, 38


2014-15

8 Variable cost components (in % terms) of bajra cultivation in Punjab, 39


2014-15

9 Variable cost components (in % terms) of sorghum cultivation in Punjab, 40


2014-15

10 Variable cost components (in % terms) of wheat cultivation in Punjab, 42


2014-15

11 Variable cost components (in % terms) of berseem cultivation in Punjab, 43


2014-15

12 Variable cost components (in % terms) of oat cultivation in Punjab, 45


2014-15

13 Variable cost components (in % terms) of pea cultivation in Punjab, 2014- 46


15

14 Variable cost components (in % terms) of potato cultivation in Punjab, 47


2014-15
CHAPTER I
INTRODUCTION

India is an agricultural country with nearly 70 per cent of its population dependent on
agriculture. Though the contribution of agriculture to Gross Domestic Product (GDP) of the
country has been recorded at only 13.9 per cent in 2013-14, it provides employment to about
52 per cent of population (CSO, 2012). About 43 per cent of India‟s geographical area is used
for agricultural purposes. The total food grain production of India has reached up to 263.2
million tonnes in the year 2013-14. India holds the first position in the total irrigated area,
pulse production, milk production and livestock population in the world. Globally, India ranks
second in the production of rice, wheat, fruits and vegetables. Hence the prosperity of the
country lies in the growth and development of rural India and particularly so in the prosperity
of agricultural households. During the agricultural year 2012-13, 57.8 per cent of rural
households were found to be agricultural households i.e. about 90.2 million households
(Anonymous, 2014) and the cropped area per agricultural household in India has been
estimated at 0.937 hectare (NSSO,2013).
Punjab state, with only 1.5 per cent of the country‟s land area is popularly known as
the wheat basket of India and its economy mainly depends on the agricultural sector. The
contribution of Punjab to the total food grain production of the country and thereby to the
food security of India is quite significant. Punjab is divided into three zones on the basis of
the agro climatic conditions namely; Sub-mountainous Zone (Zone I), Central plain Zone
(Zone II) and South-western Zone (Zone III). The major crops grown in Zone I are maize,
wheat, potato, sugarcane and fruit crops etc. In Zone II, wheat, paddy, pea, tomato etc. crops
are grown widely and in Zone III, wheat, cotton, paddy etc. are the major crops grown.Punjab
ranks first among the states in India in terms of its production potential.
After the green revolution period, the state has witnessed quite many changes in
socio-economic conditions, changes in the government policies, increasing support and
incentives to the agricultural sector, changes in preferences of farmers and consumers which
have paved way for the new cropping pattern, in consonance with the agro climatic
conditions of different parts of the state(Velayuthum and Planniappan, 2003). The agricultural
scenario in the state has been giving importance to the rice-wheat cropping pattern and it
almost completely ignored other crops. These crops constitute about 80 per cent of the total
cropped area in the state. The dominance of wheat-rice cropping pattern has led to the
deterioration of the soil health and thereby productivity, which in their own right have
affected the farming practices. Some of other concerns are declining water table in some
parts, water logging in other parts, widespread deficiency of micro nutrients in the soil,
increase in weed infestation and pest and disease outbreak and environmental pollution. The
problems are more pronounced in the rice-wheat belt of the state (Sidhu and Johl, 2002).
There have been consistent efforts put in place for the diversification from the monoculture of
rice-wheat but have not borne much of the desired result. The efforts taken for the
diversification of crops in the state can only succeed if the crops being introduced or
recommended have stable yields and can provide more monetary benefits and reduce price
risk of the farmers.
One of the major featureof Punjab agriculture, distinguishing it from the rest of the
country is that it is endowed with assured irrigation. Due to positive economic outcomes from
the rice-wheat cropping system, there has been over exploitation of the ground water
resources as rice is being grown even in traditionally non rice growing areas. Due to
consequent decline in ground water level, consumption of power in agricultural sector has
increased manifolds. Large amounts of power (motors, tube well, bore etc.) is required to lift
the water causing increase of irrigation costs. The major threat to the sustainability of the rice-
wheat crop rotation in Punjab is its declining water table. The depletion of soil water has
resulted in moisture stress, poor harvest and lower productivity.
As is the situation world over, the climatic changes have become a matter of serious
concern to the production system in Punjab. The major effects can be observed in terms of
increasing insect-pest attacks and diseases caused by increasing temperature, humidity or
drought conditions during the critical growth periods of rice and wheat. It can be observed
that increase in American boll worm attacks have resulted inthe increased use of insecticides
leading to an increase in cost of cultivation of cotton crop thereby necessitating the lowering
down of the area under the crop which had earlier reached a high during the nineties. There
have been other major effects as well on agro-systems in Punjab due to climate change.
Additionally, climate change has also affected the land use patterns of agriculture and
herding.
Other issue confronting Punjab agriculture is excessive fertilizer and input use.
Punjab with only 1.5 per cent of the total landarea of the country accounts for a significantly
higher proportion (18 %) of the total pesticide usagein India.To add to this, almost 75 per cent
of the total pesticide consumption in Punjab is in south western zone. Increased use of
pesticideshas also caused serious environmental and health hazards apart from adding to the
cost of production. The ever increasing cost of agricultural production over the years has
seriously affected the income of the farmers. The average incomeof the farmers have been
stagnating over the years,leading towidespread farmers‟ distress.
Diversification of agriculture along with promoting integrated and sustainable farm
practices are the way forward for a flourishing agriculture sector in the state. Organic
farming, green farming and environmental friendly practices should also be given due
importance. Only a diversified cropping pattern can cope up with production risks and
2
uncertainties associated with climatic and biological vagaries (Shiyani and Pandya, 1998) and
thus reduce inconsistencies in yield and income. There should be promotion and
encouragement given for growing vegetables, fruits, herbs, fiber crops oilseed, fodder crops
and mushroom. The main aim is to increase the income of the farmers without compromising
on the environment and natural resources by producing high value crops and products which
are profitable and have consumer demand.
The situation assessment and getting to the roots of the problems, the Punjab
agriculture is at present confronted with is the only way forward. Efforts to analyze the
problems of agricultural households as characterized by different agro climatic conditions can
help bring out the lacunae in the formulation and implementation of policies aimed at
improving the agricultural sector of Punjab. The problem can be addressed only by studying
the situation at the base level that is at the level of agricultural households in the rural Punjab.
This study is a modest attempt to bring out the situation of the agricultural households in the
state of Punjab.This will be of utmost interest for the government and other policy makers, as
it would help them formulate area specific policies for the upliftment of the agricultural
households of the state.The study primarily focused on the following objectives:
1. To examine the agricultural production scenario of Punjab.
2. To carry out situation assessment of the agricultural households of Punjab as
characterized by different agro-climatic zones.
3. To work out the potential correlates of situation assessment parameters with
agricultural production parameters.

3
CHAPTER II
REVIEW OF LITERATURE

It is considered desirable that before proceeding with any study, a comprehensive


review of the studies conducted earlier is carried out to have an idea of the aspects covered
and the methodology adopted therein. The crux of the studies, directly or indirectly related to
the present study has been presented in this chapter. Consistent with the objectives of the
study, the review of literature is presented under the following heads.
2.1 STUDIES RELATED TO AGRICULTURAL PRODUCTION SCENARIO
This section reviewed the studies related to the agricultural production scenario
particularly in Punjab and elsewhere in India in general. Growth of agricultural output,
concept of agricultural diversification, productivity of crops, sustainability in production,
input use and cost of cultivation were some of the important points highlighted in these
studies.
Singh and Sharma (1986) examined the growth in area, production and yield under
different crops and the relative contribution of each, for the period 1960-61 through 1983-84,
to the enhancement of crop output in Punjab. The results revealed that the area under wheat,
potato, paddy and American cotton increased significantly, while area under desi cotton
showed significant decline. The oil seeds demonstrated a commendable growth. It was found
that during the sixties, the productivity of the crops was main factor of growth but in the
subsequent years the area also made prominent contribution to the enhancement of
production.
Dhindsa and Sharma (1995) analysed the growth performance in terms of production
of various crops with respect to the cropping pattern changes in the Punjab state during the
period 1965-66 to 1990-91, by fitting the exponential function. The study concluded that the
cropping pattern has changed with respect to some crops like wheat, American cotton, paddy
and moong as these crops have exhibited very high growth rates of production mainly due to
the increase in both area and productivity of the crops.
Sharad and Saxena (2000) carried out a study to evaluate the growth performance of
wheat from 1966-67 to 1998-99 (for 33 years) in Haryana. As per the results of the study, the
average area under wheat in Haryana has increased from 827.33 thousand hectares in 1966-67
to 2094.33 thousand hectares in 1998-99 i.e. registered an increase of 153.3 per cent during a
period of 33years. The production of wheat, during the same period, increased by 496.1 per
cent. This rise in production can be attributed to improvement in the productivity of wheat,
which increased by 136.77 per cent over the base period. The linear growth rate of area of
wheat after first decade (1966-67 to 1975-76) was found to be 4.85 per cent which declined to
3.83 per cent and 2.74 per cent after second (1976-77 to 1985-86) and third decade (1986-87
to 1995-96) respectively. During 1998-99, the growth rate showed reduction of 2.56 per cent.
The production growth rate has increased in second decade from 5.53 to 6.46 per cent but it
also decreased in 1986-97 to 1995-96 and 1998-99 by 5.49 and 5.1 per cent, respectively. The
productivity has shown an increasing trend in second and third decade, respectively.
Dev (2002) in his study highlighted readiness of the country for third revolution of
agricultural diversification and food processing. The attainment of this was by i) deregulation
and decontrol of agriculture ii) increasing the flow of agricultural credit iii) setting up a
new co-operation for agricultural insurance iv) improving irrigation system v) new approach
to research and extension services for diversification and modernization of agriculture vi)
rural development by making new roads, rural electrification and rural employment. All these
proposals were in right direction but they were not enough to solve the short and long term
problems of agriculture and rural employment. The study advocated the need for bold
initiatives on public investment and credit incentives for private investment in order to
revitalise agricultural growth and rural employment which in turn will reduce rural poverty.
Hasija et al (2004) studied the trends in area, production and yield in wheat, in eastern
and the western zone of Haryana, for the three periods, that is 1966-67 to 1976-77; 1977-78 to
1988-89 and 1988-89 to 1998-99. The findings of the study pointed out that area, production
and yield of wheat has increased significantly from time period 1966-67 to 1998-99. It was
suggested that the improvement in the productivity would be the way forward for further
increase in the area of wheat in the state.
Singh and Sidhu (2004) analysed the growth of agricultural output in Punjab and the
contribution of crop shift and crop diversification in the growth of agriculture sector. They
showed the scale of diversification by calculating the Diversification Index for different
regions of Punjab for different time periods. The Diversification Index for Punjab recorded at
0.707 in 1970-71 declined to 0.591 by 2001-02. The rice and wheat continued to dominate
the agricultural production scene continued to dominate in terms of area and production to the
disadvantage of other crops, and the output mix became less and less diverse over time. This
in turn led to almost a specialization of the wheat–rice system all over the state with the level
of specialization varying marginally across regions due to land and water constraints. The
study concluded that in the presence of same crop pattern and technology, because of no
scope of productivity enhancement, the future growth in agriculture will come primarily from
the area expansion, which is constrained due to several reasons. Otherwise, the crop pattern
shall have to be changed towards high-value crops like fruits and vegetables.
Singh (2004) conducted a study to examine the nature and magnitude of crisis in the
farm sector of Punjab during post-green revolution period. Various diversification strategies
recommended so far, especially the contract farming practice were also evaluated. The main
problems of farm sector were found to be the declining growth rate of farm production and
5
declining capacity of the agricultural sector to absorb labour. It was suggested that the crisis
confronting basically the marginal and small farmers, cannot be improved unless there were
shifts in the cropping pattern and/or the production technology. Diversification along crop
dimensions or technology dimensions was intended to stabilize income and employment in
the farming sector. The author reiterated that for diversification many attempts since 1980
were made but these were not much successful. Agricultural diversification will work
successfully only if the current system of procurement based on MSP was changed in favour
of new crops and to reduce crisis.
Singh and Sidhu (2004) conducted a study to examine the factors affecting crop
diversification. It was highlighted that agricultural production in Punjab has been
characterized by wheat-rice specialization over the past few decades. Wheat and Rice crops
experienced the highest growth in output due to improved yield and increase in area. Their
price structure was more remunerative and market clearance was relatively easy. These
factors dampened the diversification of crops in Punjab agriculture and monoculture of wheat
and rice crop in turn caused serious issue of groundwater, removal of nutrients from land etc.
Wheat and rice crops together removed 83 per cent of major nutrients, 80 per cent of sulphur
and 77 per cent of zinc. In the case of Punjab, with no chances of improvement in
productivity of these crops, there is a strong need of diversification. The study highlighted the
efforts done by the policy makers to promote diversification through contract farming, high
value crops like fruits, vegetables, medicinal plants, oilseeds and pulses and agro industries as
well as through educating farmers about the ill effects of wheat-rice system on natural
resources.
Sidhu and Bhullar (2005) tried to make a comparison between Indian and Pakistani
Punjab and observed that the productivity of all the crops except cotton was higher in Indian
Punjab than in Pakistani Punjab. Low level and less assured irrigation and low use of modern
production inputs were primarily responsible for low productivity in Pakistani Punjab. Use of
fertilizers and pesticides was also higher in Indian Punjab. Rural electrification, high rural
roads intensity and strong input delivery mechanism provided further impetus to growth in
Indian Punjab. Intensive agriculture in both the states has led to land and water resources
degradation. The increase in area under rice and wheat has put greater pressure on ground
water resources leading to a fall in water table depths. Similarly, the nutrient-exhaustive crop
pattern has resulted into poor fertility status of soils. The problem of salinity by using
brackish water was reported in the case of Pakistani Punjab. Consequently, the production
patterns are reaching the limits of unsustainability from both economic and ecological points
of view and call for diversification in both Indian and Pakistani Punjab.
Later on Shergill (2007) analyzed the sustainability of wheat and rice production at
the present scale in Punjab. He came to the conclusion that at present there is no such threat to
6
it both on economic and ecological grounds. It has been found that the fall in the water table
has neither crossed the danger mark nor has the fall been caused by intensive wheat–rice
cultivation per hectare. The marketing prospects of Punjab grains are also quite secure. The
Minimum Support Price (MSP) of wheat and rice in India has remained quite in line with the
world market price of these grains. The contribution of food subsidy in the fiscal deficit of the
central government, and its burden on the economy is rather marginal. He observed that the
water table situation in the state is not as serious as is being made out by some experts and
newspaper reports. Also the water use in wheat–rice rotation is not excessive so the
economics of wheat–rice cultivation in Punjab is not alarming.
Raghwan (2008) analyzed the trend in the cost of utilization of different inputs in
agriculture and the overall cost of cultivation in different state of India. He observed that the
cost of cultivation has soared to unprecedented heights coinciding with the economic reforms.
The analysis shows that all items of costs have not increased at the same pace. While fixed
cost seemed to exhibit a gradual deceleration, operational costs have continued their relentless
acceleration. Further during the post-reform period, there has been a steep decline in the
labour hours applied in cultivation. So the agrarian crisis in the post-reform period afflicted
not only the cultivating households but also the entire agriculture dependent population.
During this period, there has been a deceleration in the rate of growth of fertilizers applied in
cultivation. Nonetheless, the corresponding rate of growth of fertilizer‟s charges was three
times higher than that of its physical application.
Kannan and Sundaram (2011) examined the trends and patterns in agricultural growth
at the national and sub-national levels in India. The study has also estimated crop output
growth model to analyze its determinants at the all-India level for the period 1967-68 to 2007-
08. The analysis of data has revealed that the cropping pattern in India has undergone
significant changes over time. There was a marked shift from the cultivation of food grains to
commercial crops. Among food grains, the area under coarse cereals declined by 13.3 per cent
between 1970-71 and 2007-08. Similarly, the performance of pulses in terms of area and
output was not so impressive during the study period. The use of technological innovations in
the cultivation of other crops was also not so conspicuous in the case of pulses. Nevertheless,
the increase in crop yield has been a major factor for accelerating production in the country
since the late 1960s. The use of modern varieties, irrigation and fertilizers were important
factors that ensured higher growth in crop production. However, technological and
institutional support for a few crops like rice and wheat brought significant changes in crop
area and output composition in some regions. The results of crop output growth model
indicated that the enhanced capital formation, better irrigation facilities, normal rainfall and
improved fertilizer consumption helped to improve crop output in the country.

7
Kannan (2011) analyzed the trends in crop sector growth at national and sub-national
levels in India. Data on important variables such as area, production, input use, and value of
output were compiled for the periods 1967-1968 to 2007-2008 from published sources. The
analysis has revealed that the cropping pattern in India has changed significantly over time,
with a marked shift from the cultivation of food grains to commercial crops. Among food
grains, the area under coarse cereals declined by 13.3 per cent between TE 1970-1971 and TE
2007-2008. Similarly, the performance of pulses in terms of area and output was not
impressive during the study period and the technological breakthrough witnessed in other
crops was not conspicuous in pulses. Nevertheless, increase in crop yield has been a major
factor in accelerating crop production in the country since the late 1960s. Modern varieties,
irrigation, and fertilizers were the important contributors of higher growth in crop production.
However, technology and institutional support for a few crops such as rice and wheat have
changed crop area and output composition significantly in some regions. The results of the
crop output growth model indicated that enhanced capital formation, better irrigation
facilities, normal rainfall, and improved fertilizer consumption would help increase crop
output in the country.
2.2 STUDIES RELATED TO PRODUCTIVITY DIFFERENTIALS
Bhoite and Thorat (1987) investigated the relationship between yield gap and
technological gap with high yielding Jowar (Sorghum) technology in Solapur district
(Maharashtra). The study revealed that 50.6 per cent of the yield gap is because of three
crucial factors taken together i.e. nutrient management, water management and pest control.
The findings of the study further pointed out that 19.8 per cent of yield gap was due to
ecological factors, such as soil, temperature and rainfall.
Basavaraja et al (1990) conducted a study and employed decomposition analysis to
examine the factors which contributed to yield gap in cotton crop in Raichur district
(Karnataka). The cross section data of 120 cotton growing farmers was taken for the study.
From the study, more than 50 per cent of the yield gap was found and this estimated yield gap
was due to inappropriate techniques of production adopted by large farmers and in case of
small farmers it was sub-optimal input use. Further, the study suggested that by improving the
extension services and education activities for large farmers, liberalization of credit policy to
acquire the needed inputs for small farmers would help in tackling the yield potential in
cotton crop in Raichpur district of Karnataka.
Gaddi et al (2002) investigated the magnitude and sources of yield gap in cotton
production by studying 80 farmers. The study found that bullock labour and low use of
human labour were the most important factors that contributed to the yield gap. The study
also revealed that non-use of high quality seeds and fertilizers at recommended level were the

8
major reasons for yield gap. The authors suggested that demonstration of new technology and
campaign by extension agents should be the prime concern for policy makers.
Shuklaet al (2003) conducted a study to check the impact of technology adoption on
the crop productivity in two districts of Ghazipur and Sultanpur in eastern UP. The objective
was to access the technological adoption and its impact on crop productivity and change in
socio-economic status of various groups of farming community in these districts. Multistage
stratified random sampling method was used to select a sample of 150 farm families and
concluded that with the adoption of technology the production increases and therefore there is
growth in farm income and significant changes in socio-economic status of the farmer
families. Study also concluded that there is a need to develop irrigation infrastructure,
marketing and transport facilities and food processing industries for the benefit of rural
masses.
Singh et al (2006) analysed the productivity gap in paddy crop. The data from 80
farmers of Nathana district and Rampuraphul block of Bathinda district in Punjab were
collected from two categories of farmers for this study (i.e. medium and large). Differentials
in productivity between blocks and size group were analysed by using student‟s t-test and no
significant difference was observed in productivity between blocks as well as size. Further the
regression analysis for paddy crop showed that use of biochemical fertilizers had significant
negative impact on productivity in Rampuraphul block, which indicated that excessive use of
these inputs needs reduction. In Nathana block, area showed positive impact whereas human
labour and irrigation have negative impact on productivity. So in order to increase gross value
of output of paddy crop, area should be increased with the reduction in inputs like human
labour and irrigation.
Singh et al (2012) analyzed the input use and productivity differentials in wheat crop
in Punjab. The elasticity of wheat productivity was examined by using log-linear production
function with respect to important input used. The study revealed huge variations in wheat
productivity with the use of crucial inputs. Similarly, the farmers who applied more irrigation,
i.e. up to six, had the highest wheat productivity. The sowing time, irrigation and plant
protection chemicals expenses were found to be the major determinants of wheat productivity
as analyzed by production function.
Rajuet al (2014) conducted an inter-state analysis to analyze the instability in Indian
agriculture. The study was extended to year 2010-11 to capture the more recent
developments. The study covered entire post-Independence period since 1950-51. The
analysis was undertaken at the national and state levels. The analysis revealed that the
instability in foodgrains production in India has undergone substantial decline whereas
oilseeds production showed significant increase over time. The states which were well
endowed with irrigation facility were showing more stability in foodgrains production. The
9
increase in crop yield has been a major factor for accelerating production in the country. The
better irrigation facilities, use of modern seed varieties, and improved fertilizer consumption
helped to improve food grains output in the country.
2.3 STUDIES RELATED TO REMUNERATIVE ASPECTS OF CROP
PRODUCTION
Prasad et al (2000) examined the income pattern of agricultural labour households in
Bihar. The study revealed that almost all the agricultural labourers of the state were dependent
on hire out employment. It was found that the agricultural labourer got 77.33 per cent of
annual income from crop farming and 7.95 per cent form dairy. Annual income of about 74
per cent people was less than Rs.15000.
Mohanty (2005) in his research carried out in Maharashtra concluded that the farmers
especially the smaller ones, had been adversely affected by neo-liberal economic policies
during the 1990s to the extent that some of them have even over extended themselves
financially. Not only had their agricultural income declined, the cost of cultivation also
increased.
Sidhu et al (2005) in his study revealed that Punjab farming sector has witnessed
large changes in cropping pattern, productivity and farm income since the introduction of
HYV of wheat and rice crops. But with the advancements, the cost of cultivation has
increased which affected the profit margins. The contribution of family labour also decreased
over the years and due to land fragmentation, the number of small and marginal farmers has
increased. All these changes may have serious repercussions for the agrarian economy of
Punjab. To tackle the adverse effects of decreasing income and productivity growth, a new
approach of focusing on high value crops, modernizing of market infrastructure for new crops
and vertical integration of the market for perishable and other high value enterprises has
become a necessity in Punjab.
Vatta and Sidhu (2007) studied the pattern of income distribution among rural
households of Punjab. For the study, a sample of 315 farmers was used. It was concluded that
income diversification was significantly influenced by family size and family labour whereas
the impact of operational area was found to be negative. To increase the income of farm
households there is need to emphasise on the development of dairying, manufacturing and
trade and also Government should take steps to increase the skills of labour in order to
increase their income level.
Vatta and Garg (2008) studied the pattern and access to employment and income in
Punjab based on primary data collected from 315 rural households. The results of the study
revealed that community, social and personal services followed by transport and
manufacturing were the three most prominent non-farm sources of employment and income
for almost 70 per cent of the rural households. Falling profitability in agriculture and almost
10
exhausted capacity of the farm sector to further absorb the labour force appeared to be major
reasons for such livelihood diversification. Gender, age, education, caste, family size,
operational area, workforce participation rate and nearness to the urban settlements had
significant influence on the incidence of rural non-farm employment and income. The per
capita expenditure on education in Punjab had been even less than all India average. The
study identified a need to ensure the vocational training of rural youth immediately after
leaving the school.
Sachdeva and Chahal (2010) studied the trends in farm income of Punjab and
concluded that the income level of farm households in India was very low. This income was
observed to be insufficient to meet even their own consumption expenditure. A negative
growth of farm income was observed over the years in India. The productivity of crops in
India is lower than that in other developed countries and public investment in the field of
agriculture was also declining over the years. To boost the income from agriculture,
government and extension personnels should educate and give hands-on training to farmers
about technological advancements. An effort to promote diversification can also be useful in
increasing farmer‟s income by reducing the risk of crop loss.
Vatta and Sidhu (2010) studied the income pattern of households in Punjab. It was
observed that the income groups of landless laborers, small and marginal farmers derived
their major share of income from non-farm sectors. Rural income inequalities were found in
both farm and non-farm incomes. Also, rural non-farm income was found to be more evenly
distributed than rural farm income. All the agricultural labour households were found to be
poor. The income level showed a direct relationship with the size of operational land holding.
Also, the cultivated area, education of the workers and number of income sources has a
significant effect on the income level of the farmers.It was also observed that the uneven
distribution of the land resulted in higher dependence of poor households on non-farm
income. The paper brought out the need for generating rural non-farm employment
opportunities in the unorganized or organized private sector to promote self-employment
through education and skill formation. Also, it was identified that there is a need to promote
semi-skilled labour intensive sub sectors within the non-farm sector to improve the access of
households to more remunerative employment opportunities
Kaur and Singh (2014) studied the income distribution among marginal and small
farmers in rural Punjab by taking into consideration three regions on the basis of agricultural
productivity level i.e. low, medium and high. The district Ludhiana was selected from high
productivity region, Faridkot district from medium productive region and Hoshiarpur from
low productivity region. The study concluded that the per capita income and average
households income was directly related with the agricultural productivity and farm size The
average sampled farm household in the rural Punjab earned Rs.63373 per annum. It was also
11
found in the study that marginal and small farmers maintain a minimum level of expenditure
whether they could afford it or not. The way forward to raise the income level of marginal
and small farmers as suggested in the study is to educate them about various agricultural
schemes and programmes, provide credit facilities, create sufficient employment
opportunities, price stabilization, assured purchase of agricultural produce, insurance cover
for unpredictable losses etc.
Singh et al 2014 conducted a study to analyze the income level of Punjab farmers. He
concluded that there was decrease in farm income level due to increasing cost of cultivation.
The declining income of farm households in Punjab was not sufficient to meet their domestic
expenditure. Also a significant variation in the income level of different farm size categories
was observed. It was found in the study that more than one third (53 %) of marginal farmers
and one fifth of small farmers had very pitiable situation. By allocation and implementation of
various welfare schemes income level of marginal and small farmers can be raised which in
turn will develop Punjab economy.
Kapilaet al. (2015) carried out a study to assess income and employment of the rural
households of Punjab. The results revealed that the proportion of rural households earning
income more than Rs. 5000 per month have increased by 69.18 per cent and nearly 52 per
cent of the rural households gained employment of more than 180 man days per year with
access of microfinance through Self Help Groups. Hence it was concluded that better access
of microfinance through Self Help Groups is helpful to generate the households‟ income and
employment on sustainable basis in the rural area. It was suggested that an adequate amount
of microfinance must be assured to participants by developing links of SHGs with banking
institutions and NGOs for efficient functioning of the SHGs in Punjab.
The review of the literature has brought forth the trends in the farm sector in general
and given ample scope for making the present study fruitful in terms of addition to the
existing body of knowledge by highlighting the points the previous studies have overlooked.

12
CHAPTER III
MATERIALS AND METHODS

A scientific methodology is a pre-requisite for conducting a research study as it adds to


clarity, precision and validity of the findings relating to the research problem. This chapter,
therefore, systematically elucidates the sampling plan and analytical tools used to achieve the
objectives of the study entitled, “Situation assessment of agricultural households in Punjab”.
The methodological frame work adopted to fulfill the objectives of the present study is being
outlined below:
3.1 Description of the Study Area
3.2 Nature and Sources of Data
3.3 Methodological Framework
3.4 Analytical Tools and Techniques

3.1 DESCRIPTION OF THE STUDY AREA


The study has been conducted in the state of Punjab. Present Punjab, located in north-
western India has an area of 50,362 km2 and is bordered by the Indian states of Himachal
Pradesh to its east, Haryana to the south and southeast and Rajasthan to the southwest as well
as the Pakistani province of Punjab to the west. It is also bounded to the north by Jammu and
Kashmir. Most of the Punjab lies in a highly fertile plain with extensive irrigation canal
system in place. On the basis of agro-climatic conditions, the state is divided into three
regions called Zone I, Zone II and Zone III, the chief characteristics of which are detailed
below.
Zone I named as Sub-mountainous Region, and popularly recognised as the Kandi
belt, accounts for nearly 17 percent of Punjab‟s total area. This zone with undulating
topography is well endowed with ample rainfall to the tune of more than 1,100 mm per
annum. In this zone, which is characterised by low water table and rocky soil, pumping out of
water by sinking of tube wells is an uneconomical proposition. Due to widespread
heterogeneity in the agro-climatic conditions of this region, the cropping pattern of this zone
is more diverse relative to the other zones of the state. The major crops of this zone are wheat,
rice, basmati rice, maize, oilseeds, fruit and vegetables.
Zone II, the Central Region of Punjab, is known as the sweet water region and covers
a close to half (47 %) of the state‟s area. This zone has an annual rainfall to the tune of about
760 mm on an average. The area irrigated mainly with the use of tube wells through a well-
knit system of irrigation has won accolades for its productive performance. This zone is
characterised with the predominance of the rice-wheat rotation. The monoculture of rice and
wheat over the years has been taking its toll in terms of fall in the water table and that too at a
very alarming speed, which is quite worrisome. The declining soil fertility has also been
posing a threat to the very sustainability of the agriculture in this region in particular.
Zone III, the South-Western Region is often quoted as the cotton belt and accounts for
nearly 36 percent of state‟s overall cultivated area. This region is characterised by deep and
brackish groundwater, has sandy soil and is much drier in comparison to other two zones. The
average annual rainfall of this region has been recorded at 360 mm. Over the last decade,
there have been quite many ups and downs in the area apportioned to cotton crop. Due to the
shift in the cropping pattern in favour of paddy crop, necessitating the continuous use of
ground water (which is brackish) for irrigation, there has been increased salt accumulation on
the soil surface and has led to water logging of the soil.
3.2 NATURE AND SOURCES OF DATA
Both secondary as well as primary data were used for the accomplishment of the
study. For the first objective, secondary data on pertinent variables were extracted primarily
fromthe web sources as well as published sources like Statistical Abstracts of Punjab and the
Reports of Central Statistical Organisation. The time series data on the pertinent variables
were collected from 2000-01 onwards. The two selected periods, presented in the form of
triennia, for which the information has been presented, are
Period I: TE 2003/04, and
Period II: TE 2013/14.
The primary data were used for studying the rest of the objectives of the study i.e. to
carry out the situation assessment of the agricultural households of Punjab as characterized by
different agro-climatic zones and to work out the potential correlates of situation assessment
parameters with agricultural production parameters.The primary data collected from the
households pertains to the crop year 2014-15. A specially structured interview schedule was
used for the purpose of data collection. The interview schedule was pre-tested on non-
sampled households before actual administration and based on that necessary modifications
were incorporated so as to extract the valid responses.
3.3 METHODOLOGICAL PROCEDURES
3.3.1 Selection of Districts
At the first stage, one district each from Zone I (Sub-Mountainous Region) and Zone
III (South Western Region) and two districts from Zone II (Central Plain Region) were
randomly selected. Hoshiarpur district from Zone I; Amritsar and Ludhiana district from
Zone II and Bathinda district from Zone III were selected.
3.3.2 Selection of Blocks
Two blocks were selected randomly from each of the four districts making a total of
eight blocks. The blocks thus identified are enlisted below:

14
Table 3.1: Selection of blocks from the selected districts

Hoshiarpur Amritsar Ludhiana Bathinda


Bhunga Ajnala Dehlon Bathinda
Dasuya Chogawan Doraha Bhagtabhaika
Garshankar Harshachinna Jagraon Phool
Hoshiarpur I √ Jandiala guru √ Khanna Rampura √
Hoshiarpur II √ Majitha Ludhiana-I √ Sangat
Hajipur Rayya Ludhiana-II Talwandisabo √
Mahilpur Tarsikka Machhiwara Nathana
Mukerian Verka √ Pakhowal √ Maur
Talwara Raikot
Tanda Samrala
Sidhwan Bet
Sudhar

The eight randomly selected blocks were Hoshiarpur I and Hoshiarpur II from
District Hoshiarpur; Jandiala guru and Verka from District Amritsar; Ludhiana I and
Pakhowalfrom District Ludhiana and Rampura and Talwandi Sabo from District Bathinda.
3.3.3 Selection of Villages
In the third stage, villages were selected. The villages thus selected are enlisted
below:

Table 3.2: Selection of villages for the selection of sampling units

Districts Blocks Villages


KatianChakSamana
Hoshiarpur I
Hoshiarpur Khundey
Hoshiarpur II
Patti
Mehlan
Pindori
Verka FatehgarhShukarchak
Amritsar
Jandiala Guru Kala Ghanupur
Jandiala
Dharad
LaltoKhurd
Ludhiana 1 Jhande
Ludhiana
Pakhowal Pakhowal
BhainiArora
BalianWali
Rampura
Bathinda TeonaPujaria
Talwandisabo
NawanPind
15
3.3.4 Selection of Agricultural Households
The final stage of sample selection entailed the selection of 15 agricultural
households, with equal representation of standard land holding categories, from each block
thus making a sample of 120 agricultural households from Punjab. A household is deemed as
an agricultural household, if it receives some value of produce from any of the agricultural
activities like cultivation of crops (field/horticultural/ fodder/ plantation), animal husbandry,
poultry, fishery, piggery, bee-keeping, vermiculture, sericulture, etc. For the purpose of data
collection one respondent, primarily engaged in agriculture, was chosen from the selected
households,translating into 24 from each land holding category (Table 3.3) making a total of
120 respondents, synonymously referred to as farmers.
Table 3.3: Land holding categories for the purpose of present study

Included standard land holding categories Land area in acres


Marginal <2.5
Small 2.5 to 5
Semi medium 5 to 10

Medium 10 to 25
Large >25

3.3.5 Details of Data Collection


General information of the respondents such as age, education, family size and
composition and land holding status were obtained during survey. Information was sought
pertaining to land inventory, livestock wealth and farm assets. The details of crop production
pertained to the crop year 2014-15,
3.4 ANALYTICAL TOOLS AND TECHNIQUES
In order to infer reasonable conclusions from the data collected, the following tools
and techniques were used.
3.4.1 Tabular Analysis
The data were subjected to the computation of descriptive statistics and presented in
the tabular and diagrammatic form.
3.4.2 Cost of Cultivation
Cost of cultivation refers to the cost incurred in cultivating a unit area of land. In the
present study, only variable costs were calculated. Following items were included in
computing the variable cost of cultivation for each crop.
i. Cost of seed: Cost was calculated at purchase price. Farm produced seeds were
accounted for at prevailing market prices.
16
ii. Farmyard manure: Cost of farmyard manure was evaluated as per the prevailing
locality prices.
iii. Chemical fertilizer: It was evaluated at the purchase price.
iv. Plant protection chemicals: The relevant market prices were used for evaluation.
v. Owned and hired machinery labour: Costs were evaluated on the basis of operational
expenditure and/or the rate of hiring for the machinery. This component also included
costs of irrigation with help of diesel engines.
vi. Permanent and hired labour: Costs were worked out on the basis of number of hours
worked on the field and the wages paid for such work.
vii. Marketing and transport costs: These included costs paid to labour for loading,
unloading and stitching of bags and the costs of transporting final produce to the
market.
viii. Interest on working capital: The paid out cost includes the working capital. Interest
was worked out at the rate of 7.5 per cent per annum for half of the crop period.
3.4.3 Returns over Variable Costs
The returns over variable costs represent the earnings of the farmers over the variable
costs incurred. It is calculated as follows:
ROVC = (Rm+ Rb)– TVC
Where,
ROVC is Returns Over Variable Costs per unit area
Rmis the Returns from main product per unit area
Rbis the Returns from by product per unit area
TVC is the Total Variable Cost per unit area
3.4.5 Analysis of Variance
Analysis of variance is a statistical procedure used to test the equality of three or
more population means when data are obtained through an observational study (Anderson et
al, 2012).
One Way Analysis of Variance (ANOVA) has been carried out to test the
significance of differences among the three zones of Punjab and holding categories with
respect to productivity and cost-returns of various crops cultivated in Punjab.

17
CHAPTER IV
RESULTS AND DISCUSSIONS

The 70th round of the National Sample Survey Office (NSSO) report on „Key
Indicators of Situation of Agricultural Households in India‟ released in December 2014
brought forth the statistics on agricultural households in India. As per this report, Rural India
has an estimated 90.2 million agricultural households, about 57.8 percent of the total
estimated rural households in the country. Improving the plight of these households is a
prerequisite to fulfill the development agenda of the nation. Against this backdrop, the present
study entitled “Situation Assessment of Agricultural Households in Punjab” was envisaged to
focus on one of the crucial situation assessment parameters of gaining an insight into the farm
business of these households with a view to bring forth the differentials in different agro-
climatic zones of Punjab with respect to farm expenses and receipts.
The findings of the study have been discussed under the following headings
4.1 Agricultural Production Scenario of Punjab
4.2 Profile of the Agricultural Households of Punjab
4.3 Zone wise Agricultural Production Scenario
4.4 Details of Farm Expenditure on Agricultural Production
4.5 Cost- Return Aspects of Farm Production
4.6 Farm Level Cost-Return Profile in relation to Cropping Pattern

4.1 AGRICULTURAL PRODUCTION SCENARIO OF PUNJAB


The state of Punjab, located in north-western India is bordered by the Indian states of
Himachal Pradesh to its east, Haryana to the south and southeast and Rajasthan to the
southwest as well as the Pakistani province of Punjab to the west. In this section the
agricultural production scenario of Punjab over the years has been portrayed. Punjab
economy is predominantly an agrarian economy and is known as the bread basket of India.
The state‟s agricultural economy has become wheat-rice dominated one to the exclusion of
other crops. Diversification of crops has become a major concern for the improvement of
agricultural sub sector of the state. The present section is devoted to having a bird‟s eye view
of agricultural production scenario of the state.
4.1.1 Agricultural Land Use Pattern
Land is the fundamental basis for most of the human or natural activities and is one of
the major natural resources on earth. Primary production of minerals and agricultural products
depends entirely on the availability and use of suitable land. Punjab has a total geographical
area of 5.036 million hectares.
Table 4.1: Agricultural land use in Punjab: Changes over time

Year TE 2003/04 TE 2012/13 CAGR, %


2001-02 to -2012-13
Net sown area, ’000ha 4226 4147 -0.216
Gross cropped area, ’000ha 7899 7886 -0.050
Cropping Intensity, % 186.9 190.1 -

Net Sown Area, '000 ha

4400

4300 4254
4224
4201 4200 4192 4187
4184 4171
4200 4158 4158 4150
4134

4100

4000
2004-05
2001-02

2002-03

2003-04

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13
Gross Cropped Area, '000 ha
8100

8000
7941 7931
7932 7912 7902
7870 7876 7882 7870
7900 7868 7861
7826

7800

7700
2009-10
2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2010-11

2011-12

2012-13

Figure 1: Trends in agricultural land use pattern in Punjab

19
The land use pattern in the state has undergone significant changes over the years and
all out efforts have been made to bring about more and more area under the plough. The net
area sown during the year 1950-51 accounted for about 70 percent of Punjab‟s geographical
area, which increased to 80 percent by 1970-71, attributed primarily to the advent of green
revolution. As per the figures reported for TE 2003/04 in Table 4.1, the net sown area of
4.226 million hectares stood at 84 per cent of state‟s geographical area, the highest in the
country. The net sown area figures for the study period 2001-02 to 2012-13 have been
elicited in Fig 1 and show a declining trend throughout. A glance at the figure of 4.147
million hectares reported under cultivation for TE 2012/13 points towards a recent spurt in
urbanization. Gross cropped area (GCA) of Punjab portrayed in the second panel of Figure 1
showed a few ups and downs over the entire study period (2001-02 to 2012-13). The GCA
pegged at the figure of 7.899 million hectares in TE 2003/04 registered a fall at the rate of
0.05 percent per annum to fall to 7.886 million hectares by 2012/13.
The cropping intensity in Punjab has increased from 186.9 percent in TE 2003/04 to
190.1 percent by the TE 2012/13 and at the same time limiting the possibility of vertical
expansion. Since 84 per cent of the land area in the state is already under cultivation, bringing
more area under the plough is practically impossible and would also increase the threat to
sustainability.

192.0
191.1
189.7 189.4 189.6 189.6
188.8 188.9
189.0
187.7 187.9 188.0
186.7
Per cent

186.0 185.3

183.0

180.0
2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

Figure 2: Changes in intensity of cropping in Punjab

The state of Punjab has always been portrayed as the most stunning example of Green
Revolution in India. With the advent of high yielding, input-responsive dwarf varieties of rice
and wheat during 60‟s, the entire agriculture production system in Punjab got revolutionized.
Major shifts were witnessed in the cropping pattern, especially, in irrigated ecosystems where

20
cereal based multiple cropping came into prominence, relegating less productive, risk prone
legumes and oilseed crops to marginal lands. The farmers found the rice- wheat cycle the
most profitable and Punjab Agriculture became synonymous with rice wheat rotation.
Table 4.2: Shifts in the cropping pattern of Punjab
% of GCA
Crop TE 2003/04 TE 2012/13
Paddy 32.25 35.89
Wheat 43.26 44.60
Maize 2.00 1.64
Pulses 0.71 0.27
Sugarcane 1.77 0.98
Desi Cotton 1.02 0.08
American Cotton 5.35 6.12
Potato 0.81 0.99
Other crops 12.84 9.43

The analysis for the study period presented in the form of Table 4.2, reinforced that
wheat, paddy, cotton, sugarcane and maize were the important crops cultivated in Punjab and
accounted for 85.6 percent of the GCA in TE 2003/04, which increased to 89.3 percent by TE
2012/13. Notwithstanding the policy prescriptions of crop diversification to arrest the
sustainability issue arising from the paddy-wheat monoculture, paddy and wheat area as
percent of GCA has been increasing unabatedly from 74.4 percent in 2001-02 to 80.8 percent
in 2012-13 (Figure 3).

82.0
80.8
80.4 80.3
79.9
80.0
Paddy+wheat area as % of GCA

79.1

78.0 77.7 77.4 77.5


77.3
76.6

76.0 75.5
74.4
74.0

72.0

70.0
2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

Figure 3: Importance of paddy and wheat in the cropping pattern of Punjab

21
Some of the crops, like sugarcane, pulses and maize, have lost their acreage to paddy-
wheat rotation. As can be observed from the Table 4.2, area under sugarcane as percent of
GCA dwindled from 1.77 percent in TE 2003/04 to 0.98 percent by TE 2012/13, pulses from
0.71 to 0.27 percent and maize from 2.00 to 1.64 percent during the same period.
4.1.2 Agricultural Production Profile
This subsection is devoted to the portrayal of agricultural production profile of the
state of Punjab. It has been well documented that the trio of high yielding seeds, irrigation,
and fertilizers supported by farm mechanization and institutional as well as infrastructural
development led to marked growth in agricultural productivity and production. The state of
Punjab has always been a leader as far as the agricultural productivity of wheat and rice is
concerned. The major highlights of the changes in the agricultural crop production scene
during the study period have been presented in Table 4.3.

Table 4.3: Production profile of major crops of Punjab: Changes over time

Crops Area,’000 ha Production, ’000 MT Yield, kg/ha


TE 2003/04 TE 2013/14 TE 2003/04 TE 2013/14 TE 2003/04 TE 2013/14
Rice 2544 2838 9120 11061 3583 3897
(1.14) (1.91) (0.76)
Wheat 3414 3517 14724 17398 4313 4946
(0.29) (1.63) (1.34)
Maize 157 128 407 495 2585 3855
(-2.00) (2.35) (4.35)
Sugarcane 140 84 832 503 5956 5984
(-4.88) (-4.84) (0.04)
American cotton 422 472 193 265 457 561
(0.71) (2.32) (1.60)
Desi cotton 81 8 27 3 340 449
(-21.57) (-19.09) (2.49)
Potato 64 86 1313 2142 20646 25049
(2.74) (5.38) (2.63)
* Figures in parenthesis indicate CAGR, % for the period 2001/02 to 2013/14

It can be readily seen that in the case of rice, both the area and yield registered an
increase to the tune of 1.14 and 0.76 percent per annum respectively, leading to an increase in
production from 9.1 million MT in TE 2003/04 to 11.1 million MT by TE 2013/14. The
wheat acreage in Punjab increased at the rate of 0.29 per cent per annum and yield by 1.34 per
cent leading to increase in production by 2.674 million MT. A highly significant increase in
the productivity of maize at the rate of 4.35 percent per annum could offset the drop in the
22
maize acreage resulting into increase in maize production to the tune of 88000 MT during the
study period. In case of sugarcane crop, the area showed a decline from 140 thousand hectares
in TE 2003/04 to 84 thousand hectares by TE 2013/14, accompanied by an unimpressive
improvement in yield (CAGR: 0.04 %) leading to a drop in the production to the extent of
329 thousand tonnes. The area and yield of the American cotton showed an increase leading
to positive growth rate in case of production. On the contrary, even though the yield of desi
cotton showed an increase, area decreased tremendously over the years leading to a decline in
production of the crop. In case of potato, the area under the crop increased by 22000 hectares
(CAGR: 2.74 %) and yield registered an increase of 4.4 tonnes per hectare (CAGR: 2.63%)
leading to an increase of production to the tune of 8.29 million MT.
4.1.3 Contribution of Agriculture to Gross State Domestic Product (GSDP)
An effort has been made to gauge the change in the pattern of contribution of crop
sector of Punjab to the GSDP and SDP from Agriculture and Livestock sector. The results
pertaining to this aspect have been presented in Table 4.4.

Table 4.4: Share of Agriculture and livestock sector in Punjab’s Gross State Domestic
Product (GSDP) at constant 2004-05 Prices

Particulars TE 2003/04 TE 2013/14 CAGR, per cent


2001-02 to 2013-14
GSDP, Rs Crore 88044.25 165309.58 6.6
SDP Agriculture and Livestock Sector
Rs Crore 28542.41 34411.50 1.9
% of total GSDP 32.4 20.8
SDP Agriculture Sector
Rs Crore 19503.48 22661.16 1.6
% of SDP Agriculture and Livestock
Sector 68.3 65.9
SDP from Livestock
Rs Crore 9038.93 11750.33 2.6
% of SDP Agriculture and Livestock
Sector 31.7 34.1

The GSDP of Punjab recorded a growth of 6.6 percent per annum during the study
period 2001-02 to 2013-14. It was also observed that SDP from Agriculture and Livestock
sector registered a growth of 1.9 percent although its share in GSDP decreased from 32.4 per
cent in TE 2003/04 to 20.8 percent in TE 2013/14. The SDP from Agriculture sector
increased from Rs 195 billion in TE 2003/04 to Rs 227 billion in TE 2013/14 recording a
23
CAGR of 1.6 per cent, but the share of crop sector in SDP Agriculture and Livestock sector
exhibited a decline from 68.3 to 65.9 percent during the said period. On the other hand, the
share of SDP from livestock has increased from 31.7 percent to 34.1 percent and recorded a
growth rate of 2.6 percent per annum during the study period.
In order to improve the comparability by adjusting the figures for land use changes,
the figures for SDP from Agriculture Sector have been worked out on per hectare of NSA and
GCA basis and presented in Table 4.5.
Table 4.5: State domestic product from Agriculture (at 2004-05 prices) per unit of
land area in Punjab, TE 2003/04 to TE 2012-13
SDP Agriculture
Year Rs/ ha of NSA Rs/ ha of GCA
TE 2003/04 46084 24684
TE 2013/14 54092 28451
CAGR, % 2001-02 to 2012/13 1.82 1.65

State domestic product from agriculture per hectare on NSA and GCA basis have
increased from TE 2003/04 to TE 2013/14. The SDP originating from the agriculture sector
has increased from Rs 46084 in TE 2003/04 to Rs 54092 per hectare of NSA in TE 2013/14
registering a growth rate of 1.82 percent per annum, which is higher than that observed for
SDP Agriculture enumerated on per hectare of GCA basis.
4.2 PROFILE OF AGRICULTURAL HOUSEHOLDS OF PUNJAB
In order to carry out the situation assessment of the agricultural households of Punjab
as characterized by different agro-climatic zones and to work out the potential correlates of
situation assessment parameters with agricultural production parameters, primary data were
taken recourse to.The primary data collected from the households pertained to the crop year
2014-15. The profile of the 120 agricultural households (30 each from Zone I and Zone III, 60
from Zone II) selected for the present study has been presented in this section.
4.2.1 Personal Characteristics of the Respondents
As regards the personal characteristics, the mean age of farmer respondents was 43.4
years. Further, 48.3 percent of respondents were found to lie in the age group of 30 to 50
years (Table 4.6). Only 17.5 percent of respondents were below 30 years of age and 34.2
percent of respondents were found to be above 50 years of age. . In Zone I, 50 per cent of the
farmers were in the age group of 30 to 50 years, 33.3 per cent were of age 50 and above,
while 16.7 per cent were less than 30 years of age. In Zone II, 43.3 percent respondents
belonged to age group of 30 to 50 years, 38.3 percent were from age bracket of 50 years and
above and only 18.3 percent were less than 30 years of age. Similarly in Zone III, 16.7, 56.6
and 26.7 per cent farmers belonged to less than 30 years of age group, 30 to 50 years of age

24
group and 50 and above years of age group respectively. Average age was 44.3 years in the
case of Zone I, 43.7 yearsfor Zone II and 41.9 years for Zone III. Among the respondents, 8.3
percent were illiterate, 52.5 per cent were below matric, 22.5 per cent were matriculates and
11.7 per cent had completed twelve years of formal education. Only 5.0 per cent of
respondents were found to be graduates. Table 4.6 also highlighted that the average number
of members per family was Five. About 44.2 percent of selected respondents had a family
size of up to 4 as well as of 5 to 8 members. Only 11.6 percent of respondents had more than
eight family members and majority of the families were of nuclear type (77.5%).
Table 4.6: Personal characteristics of respondents of different zones of Punjab, 2014-15
Characteristics Zone I Zone II Zone III Overall
(n1=30) (n2=60) (n3=30) (N=120)
Age, years
Less than 30 5 11 5 21
(16.7) (18.3) (16.7) (17.5)
30-50 15 26 17 58
(50.0) (43.3) (56.6) (48.3)
50 and above 10 23 8 41
(33.3) (38.3) (26.7) (34.2)
Average 44.3 43.7 41.9 43.4
Range 24-66 22-65 23-61 22-66
Education
Illiterate 5 3 2 10
(16.7) (5.0) (6.7) (8.3)
Below matriculation 22 29 12 63
(73.3) (48.3) (40.0) (52.5)
Matriculation 2 16 9 27
(6.7) (26.7) (30.0) (22.5)
10+2 - 9 5 14
(15.0) (16.6) (11.7)
Graduation 1 3 2 6
(3.3) (5.0) (6.7) (5.0)
Family type
24 45 24 93
Nuclear
(80.0) (75.0) (80.0) (77.5)
6 15 6 27
Joint
(20.0) (25.0) (20.0) (22.5)
Family size
11 23 19 53
Up to 4
(36.7) (38.3) (63.4) (44.2)
15 28 10 53
5-8
(50.0) (46.7) (33.3) (44.2)
4 9 1 14
Above 8
(13.3) (15.0) (3.3) (11.6)
Average 5.7 5.7 4.5 5.4
Range 3-12 2-13 3-10 2-13

25
4.2.2 Source of Income
It can be observed from Table 4.7 that cultivation was the major source of income
for 71.7 percent of respondents whereas wage/salaried employment and livestock was major
source of income for 15 percent and 8.3 percent of respondents respectively. In Zone I,
cultivation was the major source of income for 90 percent of the selected households. Only
6.7 percent of agricultural households selected had wage employment as the major source. In
Zone II, major source of income for 63.3 percent respondents was cultivation; for another
18.3 percent, it was wage/salaried employment and 13.4 percent of the selected households
had livestock as their mainstay. Similarly in Zone III, 70 percent of respondents had
cultivation, 16.7 percent had wage/salaried employment and 6.7 percent had livestock as their
major source of income. It can be inferred that the maximum proportion of households
dependent on agriculture was in case of Zone I (90 %), followed by 70 percent in case of
Zone III and the lowest, i.e. 63.3 percent in case of Zone II.
Table 4.7: Distribution of sampled households of Punjab by major source of income,
2014-15

Source Zone I Zone II Zone III Overall


(n1=30) (n2=60) (n3=30) (N=120)
Cultivation 27 38 21 86
(90.0) (63.3) (70.0) (71.7)
Livestock - 8 2 10
(13.4) (6.7) (8.3)
Other agricultural activity 1 - 1 2
(3.3) (3.3) (1.7)
Non-agricultural enterprises - 3 1 4
(5.0) (3.3) (3.3)
Wage/salaried employment 2 11 5 18
(6.7) (18.3) (16.7) (15.0)

4.2.3 Access to Technical Advice


The information pertaining to the source of information tapped for taking the
technical advice has been presented in Table 4.8.It can be seen that the personnel of
Department of Agriculture and Private commission agents were the major sources for advice
among agricultural households i.e. 88.3 per cent and 82.5 per cent respectively. The other
sources like Radio/TV/newspaper, agricultural universities, extension agencies were accessed
by 77.5 percent, 40.8 percent and 26.7 percent of the agricultural households. The results
revealed that Kissan call centers were approached by only one fourth of the respondents for
any technical advice, this proportion being the highest in case of Zone I (30 %), followed by
that in case of Zone II (25 %) and Zone III (20 %). Another noteworthy finding of the study

26
is that as high as 73 percent of the respondents from Zone II approached Punjab Agricultural
University for technical advice in comparison to only 10 percent in case of Zone III and 7
percent in case of Zone I, the plausible reason could be the proximity advantage to the
respondents of Central Zone.
Table 4.8: Zone wise information on proportion of agricultural households of Punjab
reporting access to technical advice, 2014-15
% of households
Zone I Zone II Zone III Overall
Source
(n1=30) (n2=60) (n3=30) (N=120)
Reporting access
Extension Agency 26.7 28.3 23.3 26.7
KVK 16.7 10.0 13.3 12.5
Punjab Agricultural University 6.7 73.3 10.0 40.8
Private Commission Agents 93.3 85.0 66.7 82.5
Progressive Farmer 16.7 25.0 26.7 23.3
Radio/TV/Newspaper 90.0 81.7 56.7 77.5
Agriculture Department 80.0 88.3 96.7 88.3
Kissan Call Centre 30.0 25.0 20.0 25.0
Multiple response

4.2.4 Land Holding Details


Land is considered as the most important asset owned by the farmer. The land
inventory details have been presented in this section to bring out the differentials in different
agro climatic zones of Punjab and also in the case of different land holding categories.
4.2.4.1 Zone wise operational holding details
The land owning details pertaining to different zones have been summarized in Table
4.9. All the agricultural households, barring only one from Zone I, had owned the land. The
average land holding in the case of 99.2 per cent of all the farmers who owned this precious
resource, was found to be 9.34 acres. The average size of the land holding has been recorded
as the highest (10.22 acres ) in the case of Zone I, closely followed by that in the case of
Zone II (9.81 acres) and the lowest in the case of Zone III (7.22 acres).
Amongst all the agricultural households, 35.8 per cent had leased in the land, this
proportion has been recorded at 26.7 per cent in the case of Zone I, 36.7 per cent in Zone II
and the highest (43.3 %) in the case of Zone III. The area leased in by these 35.8 per cent
farmers accounted for 11.7 acres. Considering the entire sample size of 120 households, it has
been worked out as 4.2 acres. A much smaller proportion of agricultural households (2.5 %)
leased out their land to the extent of 16 acres on an average and the corresponding figure for

27
Zone II stood at 20 acres and a comparatively smaller (8 acres) in case of Zone III. None of
the Zone I agricultural households had leased out the land. The leased out land, on an average
stood at 0.4 acres. The overall size of operational holding was 13.1 acres. The size of
operational holding has been recorded at 13.7 acres in the case of Zone I, 13.5 acres in Zone
II and 11.6 acres in Zone III.
Table 4.9: Land inventory details of different zones of Punjab, 2014-15

Particulars Zone I Zone II Zone III Overall


(n1=30) (n2=60) (n3=30) (N=120)
Owned land
Respondents, no. 30 59 30 119
(%) (100.0) (98.3) (100.0) (99.2)
Average*, acre 10.22 9.98 7.22 9.34
Average, acre 10.22 9.81 7.22 9.27
Leased in land
Respondents, no. 8 22 13 43
(%) (26.7) (36.7) (43.3) (35.8)
Average*, acre 13.00 11.88 10.69 11.73
Average, acre 3.47 4.36 4.63 4.20
Leased out land
Respondents, no. - 2 1 3
(%) (3.3) (3.3) (2.5)
Average*, acre - 20.00 8.00 16.00
Average, acre - 0.67 0.27 0.40
Operational holding, acre 13.69 13.50 11.58 13.07
*Effective acreage

4.2.4.2 Land holding category wise operational holding details


In order to have a holistic view of the situation of agricultural households of Punjab,
the study sample was equally spread over the five standard land holding categories. The land
inventory detailswith respect to differentland holding categories has been presented in Table
4.10. As is already highlighted, 99.2 per cent of the farmers had owned the land. As regards
the land owning status, it can be readily observed from the table that the only agricultural
household, who didn‟t own any land, happened to be from the marginal category. The average
land holding size has been recorded as 1.9 acres for marginal, 3.6 acres for small, 5.9 acres
for semi medium, 13.3 acres for medium and 21.6 acres for large land holders.

28
Table 4.10: Farm size category wise land inventory details of Punjab, 2014-15

Particulars Marginal Small Semi- Medium Large


(n1=24) (n2=24) medium (n4=24) (n5=24)
(n3=24)
Owned land
Respondents, no. 23 24 24 24 24
(%) (95.8) (100.0) (100.0) (100.0) (100.0)
Average*, acre 1.99 3.59 5.93 13.31 21.58
Average, acre 1.91 3.59 5.93 13.31 21.58
Leased in land
Respondents, no. 1 3 10 16 13
(%) (4.2) (12.5) (41.7) (66.7) (54.2)
Average*, acre 2 3.42 3.61 8.44 24.69
Average, acre 0.08 0.43 1.50 5.62 13.37
Leased out land
Respondents, no. - - - 2 1
(%) (8.3) (4.2)
Average*, acre - - - 19 10
Average, acre - - - 1.58 0.42
Operational holding, acre 1.99 4.02 7.43 17.35 34.53
*Effective acreage

As far as the proportion of farmers leasing in land was concerned medium farmers
accounted for the highest proportion (66.7 %) followed by large farmers (54.2 %), semi-
medium (41.7 %) and small (12.5 %) households. Only one household belonging to the
marginal land holding category was observed to have leased in the land to the extent of 2
acres. A much smaller proportion of farmer respondents (2.5 %) leased out their land. As
regards the leasing out of the land was concerned, only medium and large farmers had opted
for it. It was found that 8.3 per cent of the medium farmers and 4.2 per cent for large farmers
leased out their land. None of marginal, small and semi-medium categories farmers was found
to have leased out the land. The average size of the operational holding stood at 2.0 acres for
marginal category, 4.0 acres for small , 7.4 acres for semi-medium, 17.4 acres for medium
and as high as 34.5 acres for the agricultural household belonging to the large farmer holding
category.

29
4.2.5 Cropping Details
Information relating to cropping details of selected farmers in different seasons has
been presented in Table 4.11.
Table 4.11: Zone wise cropping details of selected farms of Punjab, 2014-15

Crops Zone I Zone II Zone III


(n1=30) (n2=60) (n3=30)
Respondents Average, Respondents Average, Respondents Average,
acres acres acres
Number % Number % Number %
Kharif
Paddy - - - 48 80.0 11.40 14 46.7 8.51
Basmati - - - 24 40.0 7.86 - - -
Cotton - - - - - - 21 70.0 10.04
Maize 30 100.0 13.25 2 3.3 2.00 - - -
Pearl 15 50.0 0.55 26 43.3 1.68 - - -
millet
Sorghum 9 30.0 0.53 25 41.7 1.07 29 96.7 0.60
Rabi
Wheat 30 100.0 13.25 60 100.0 12.32 30 100.0 11.00
Berseem 24 80.0 0.54 51 85.0 1.37 4 13.3 0.75
Oat - - - 1 1.7 1.00 25 83.3 0.58
Zaid
Pea - - - 10 16.7 6.90 - - -
Potato 29 96.7 7.83 9 15.0 9.00 - - -
*Effective acreage

Kharif crops: Maize was the most important Kharif crop of Zone I and all of the respondents
cultivated this crop on an area of 13.25 acres per farm. Among fodder crops, pearl millet and
sorghum was cultivated in Kharif season in Zone I during the study period. Pearl millets were
cultivated by 50 percent and sorghum was cultivated by 30 percent of respondents on an
average acreage of 0.55 acre and 0.53 acre per grower household respectively. In Zone II, all
the households had gone in for paddy cultivation, either regular or basmati variety. The
regular variety of paddy was cultivated by 50 percent of the Zone II households on an average
of 11.4 acres per grower. The basmati cultivation was undertaken by 40 percent of the
agricultural households on 7.86 acres on an average. Maize crop was cultivated by only two
farmers of Zone II. Fodder crops i.e. pearl millets and sorghum were cultivated by 43.3
percent and 41.7 percent of the selected households of Zone II respectively. In Zone III,
cotton was the most important crop of Kharif season. Cotton was cultivated by 70 percent of
the respondents with 10.04 acres of average area per cotton grower. The paddy was cultivated
30
by 46.7 percent of the farmers with average area of 8.5 acre per paddy grower. Among fodder
crops, only sorghum was cultivated in Zone III by 97 percent of farmers with an average area
of 0.6 acre.
Rabi crops: Wheat was the important cereal crop cultivated by the agricultural
households of Punjab during Rabi season. All the respondents cultivated this crop with an
average area of 13.2 acres in case of Zone I, 12.3 acres in case of Zone II and 11.0 acres in
the case of Zone III. Among the fodder crops, berseem cultivation was undertaken by 80
percent of respondents of Zone I with an average area of 0.54 acre per farmer. In Zone II,
Berseem was cultivated by 85 percent of respondents on an area of 1.37 acres. In Zone III,
berseem cultivation was undertaken by 13.3 percent of respondents whereas oat cultivation
was undertaken by 83.3 percent of respondents.
Zaid crops: In Zone I, potato cultivation was undertaken in Zaid season by 97 percent
of farmers with an average area of 7.83 acre per grower. In Zone II, pea and potato was
cultivated by 16.7 percent and 15 percent of respondents with an average area of 6.9 acre and
9 acre per grower. No crop was undertaken by respondents of Zone III during the study
period.
Zone wise cropping pattern details have been presented in the Table 4.12 below.
Table 4.12: Cropping pattern followed in different zones of Punjab, 2014-15
Zone I Zone II Zone III Overall
(n1=30) (n2=60) (n3=30) (N=120)
Crops
Area, % Area, % Area, % Area, %
acres GCA acres GCA acres GCA acres GCA
Kharif
Paddy - - 9.12 30.9 3.97 17.1 5.55 18.9
Basmati - - 3.14 10.6 - - 1.57 5.4
Cotton - - - - 7.03 30.4 1.76 6.0
Maize 13.25 37.9 0.07 0.2 - - 3.35 11.4
Pearl
0.28 0.8 0.73 2.5 - - 0.43 1.4
Millet
Sorghum 0.16 0.5 0.45 1.5 0.58 2.5 0.41 1.5
Rabi
Wheat 13.25 37.9 12.32 41.7 11.00 47.5 12.22 41.8
Berseem 0.43 1.2 1.16 3.9 0.10 0.4 0.72 2.5
Oat - - 0.02 0.1 0.48 2.1 0.13 0.4
Zaid
Pea - - 1.15 3.9 - - 0.58 1.9
Potato 7.57 21.7 1.35 4.6 - - 2.57 8.8
Total 34.94 100.0 29.51 100.0 23.16 100.0 29.28 100.0

31
The paddy crop was conspicuous by its absence in case of the agricultural households
of Zone I, the kandiregion, testifying the marked intra zonal differences in the cropping
pattern of this zone. Paddy (regular and basmati) occupied 41.5 percent of the GCA in case
of Zone II and 17.1 percent in case of Zone III. The other Kharif crops in Zone II were
maize, pearl millet and sorghum which were adopted on 11.4 percent, 6.0 percent, 5.4
percent, 1.5 percent and 1.4 percent of gross cropped area respectively.. Wheat was the most
common and traditional crop of Rabi season and accounted for 41.8 percent of gross cropped
area at the overall level. The paddy and wheat together accounted for 83 percent of the GCA
in the case of Zone II and 64.6 percent in case of Zone III. Potato was important crop of zaid
season found to have grown in Zone I and Zone II accounting for as high as 22 percent of
the GCA in the case of Zone I and comparatively much lower proportion (4.6 %) in the case
of Zone II, where pea cultivation was also undertaken on 4 percent of the GCA. The analysis
has conclusively established that the agricultural households of Zone I, the region known for
its poor potentialhave adopted the crops with higher agronomic and economic productivity
and lower gestation period to tide over the problems of poor income status faced due to the
low productive performance of traditional cropping pattern.
4.2.6 Cropping Intensity
An effort has been made to carry out the comparative evaluation of cropping intensity
with respect to zonal differences and land holding differentials.
4.2.6.1 Cropping intensity as characterized by zonal differentials
Zone wise land use pattern of the selected agricultural households has been presented
in the Table 4.13. The intensity of land use was high in Punjab. Among different zones, both
net sown area and gross cropped area was observed to be the highest in the case of Zone I and
the lowest in Zone III. The cropping intensity for Punjab at the overall level has been
recorded at 224 percent. Cropping intensity showed considerable differences across the zones,
the highest being observed in Zone I (255.2 %), followed by that in Zone II (218.6 %) and the
lowest in the case of Zone III (200 %).

Table 4.13: Zone wise land use pattern of selected agricultural households of Punjab,
2014-15

Particulars Zone I Zone II Zone III Total


(n1=30) (n2=60) (n3=30) (N=120)

Net Sown Area, acres 13.69 13.50 11.58 13.07

Gross Cropped Area, acres 34.94 29.51 23.16 29.28

Cropping Intensity, % 255.2 218.6 200.0 224.0

32
4.2.6.2 Cropping intensity as characterized by land holding differentials
The farm size category wise land use pattern of Punjab has been presented in Table
4.14.As reported earlier, the intensity of land use at the overall level has been observed as 224
percent, with net sown area recorded as 13.07 acres and gross cropped area as 29.28 acres per
farm. Despite the similarity between cropping intensity across the five land holding
categories, it was observed that the highest cropping intensity was in case of semi-medium
farmers (226.5 %) and lowest in case of marginal farmers (221.1 %).

Table 4.14: Farm size category wise land use pattern in Punjab, 2014-15

Particulars Net Sown Area, Gross Cropped Area, Cropping Intensity,


acres acres %
Marginal 1.99 4.40 221.1
Small 4.02 8.96 222.9
Semi-medium 7.43 16.83 226.5
Medium 17.35 38.67 222.8
Large 34.53 77.54 224.6
Total 13.07 29.28 224.0

4.3 ZONE WISE AGRICULTURAL PRODUCTION PROFILE


The main focus of the study was to carry out the situation assessment of agricultural
households, from the standpoint of zonal differentials, with a focus on expenses and receipts
from the farm business. This in turn called for a through probing of the cropping pattern,
which has been found to vary from zone to zone and discussed in the previous sections. This
section is devoted to the study of cultivation details of all the crops that have entered into the
crop mix for a particular zone. The inter zonal comparisons with respect to crop productivity,
costs incurred and returns accruing from a particular crop have been carried out, wherever
possible.
4.3.1Paddy Cultivation Details
The paddy crop holds a prominent position in Punjab‟s cropping pattern, so much so
that paddy-wheat rotation has become synonymous with Punjab agriculture. The Zone wise
paddy (non-basmati) cultivation details have been summarized in Table 4.15.
As per the survey results enunciated earlier in Section 4.2.3, paddy (the regular
variety) cultivation was primarily undertaken in Zone II and Zone III during the study period.
As many as 80 percent of the respondents in Zone II and a comparatively much smaller (46.7)
percentage of respondents had undertaken paddy cultivation in Zone III. The mean acreage
per paddy cultivator stood at 11.4 acres in Zone II and 8.51 acres in the case of Zone III. The
said crop accounted for 30.9 and 18.9 percent of GCA in the case of Zone II and III

33
respectively, with no significant differences observed in case of productivity, which was
recorded at 28.83 and 28.07 q/acre for these two zones.
In absolute terms, the average variable cost for cultivation of paddy (Rs. 12309/acre)
estimated for Zone II was found to be higher than that observed in the case of Zone III,
although this difference was found to be non-significant (p<0.05) statistically. As can be
observed from Figure 4, the machine labour use accounted for one fourth of the total cost in
case of both the zones (Zone II and Zone III). The respective share of different cost
components i.e. seed, manure & fertilizers and plant protection chemicals in total variable
cost was found to be higher in Zone III in comparison to Zone II, though the differences were
quite negligible.

Table 4.15: Zone wise productivity and cost-return profile of paddy (non basmati) crop
in Punjab, 2014-15
Particulars Zone I Zone II Zone III Overall
(n1=0) (n2=48) (n3=14) (N=62)
Agronomic Productivity, q/acre - 28.83a 28.07a 28.66
Total Variable Cost, Rs /acre - 12308.60a 12026.80a 12245.10
Gross Returns, Rs /acre - 37950.60a 38471.40a 38068.20
Returns over Variable Cost, Rs /acre - 25642.00a 26444.60a 25823.10
abc
Figures with different superscripts in a row differ significantly (p<0.05)

Per cent

Zone
2.0 14.5 10.7 18.7 25.5 19.8 7.0 1.8
II

Zone
2.1 15.2 11.5 18.9 25.0 18.3 7.1 1.8
III

Seed Manure & fertilisers


Plant protection chemicals Transplanting
Machine use Labour use
Marketing and transportatin Interest

Figure 4: Variable cost components (in % terms) of paddy cultivation in Punjab, 2014-15

34
The gross returns from one acre of paddy cultivation have been recorded at Rs 37951
for Zone II and Rs 38471 for Zone III, the application of Analysis of Variance technique
testifying no significant difference between the Zones in this respect. The average net returns
over variable costs were found to be Rs. 25823 per acre, with Zone II accounting for Rs.
25642 and Zone III for Rs. 26445, with no significant differences observed between the zones
as far as the returns over the variable cost were concerned.
4.3.2 BasmatiCultivation Details
The basmati cultivation details have been presented in Table 4.16. During the study
period basmati was cultivated by the selected agricultural households of Zone II only. It was
cultivated by 40 per cent of Zone II agricultural households on 7.86 acres on an average. The
basmati crop cultivation accounted for 10.6 percent of the cropped area of Zone II with
average yield attained being 16.7q/acre.
Table 4.16: Productivity and cost-return profile of basmaticrop in Punjab, 2014-15

Particulars Zone I Zone II Zone III Overall


(n1=0) (n2=24) (n3=0) (N=24)

Agronomic Productivity, q/acre - 16.69 - 16.69

Total Variable Cost, Rs /acre - 14822.30 - 14822.30

Gross Returns, Rs /acre - 32318.10 - 32318.10

Returns over Variable Cost, Rs /acre - 17495.80 - 17495.80

Per cent

Zone
2.6 11.8 9.2 15.8 25.4 28.7 4.71.8
II

Seed Manure & fertilisers


Plant protection chemicals Transplanting
Machine use Labour use
Marketing and transportatin Interest

Figure 5: Variable cost components (in % terms) of basmati cultivation in Punjab,


2014-15
35
The cost incurred on the cultivation of basmati crop was observed to be Rs.14822 per
acre. The percentage share of cost incurred on different operations on basmati cultivation
presented in Figure 5 revealed that the labour use accounted for 28.7 percent of the total cost.
Another one fourth (25.4 %) of the cost was incurred on machine use. The expenses incurred on
other components i.e. transplanting, manures and fertilizers, plant protection chemicals, seeds and
marketing and transportation were found to be 15.8, 11.8, 9.2, 2.6 and 4.7 percent, respectively.
The gross returns from basmati cultivation in Zone II have been recorded at Rs.32318 per acre.
Net returns after the deduction of variable cost were found to be Rs.17496 per acre.
4.3.3 Cotton Cultivation Details
Cotton cultivation was primarily undertaken in Zone III also named as Cotton Belt of
Punjab. The productivity and cost-return profile of cotton crop was compiled in Table 4.17.
Cotton cultivation was undertaken by 70 per cent of the agricultural households of Zone III on
an average of 10.0 acres. The cotton crop is quite strategic to the agricultural households of
Zone III as it covers 30.4 percent of GCA of Zone III. The productivity of cotton in the case
of Zone III in the agricultural year 2014-15 has been recorded at 6.31q/acre.
Table 4.17: Productivity and cost-return profile of cottoncrop in Punjab, 2014-15

Particulars Zone I Zone II Zone III Overall


(n1=0) (n2=0) (n3=21) (N=21)
Agronomic Productivity, q/acre - - 6.31 6.31
Total Variable Cost, Rs /acre - - 18351.50 18351.50
28905.30 28905.30
Gross Returns, Rs /acre - -
(93:7)* (93:7)*
Returns over Variable Cost, Rs acre - - 10553.80 10553.80
*Represents ratio of returns from main product to by-product

Per cent

Zone
15.7 8.9 38.9 11.8 19 3.9 1.8
III

Seed Manure & fertilisers


Plant protection chemicals Machine use
Labour use Marketing and transportatin
Interest

Figure 6: Variable cost components (in % terms) of cotton cultivation in Punjab, 2014-15
36
The total variable cost incurred for the cultivation of cotton crop on one acre has been
estimated as Rs.18351. As can be noticed from Figure 6, plant protection chemicals were
contributing more than one third (38.9 %) to the total variable cost incurred on the crop.
Labour use accounted for 19 per cent of total variable cost. Other inputs i.e. seeds accounted
for 15.7 percent, machine use 11.8 percent and manures & fertilizers for another 8.9 percent
of the variable cost. The marketing and transportation charges involved 3.9 percent of the
total cost. Theper acre returns accruing from the main product have been recorded at Rs
26995 which accounted for 93 per cent of gross returns from cotton. The gross returns, after
including the value of by product were aggregated to Rs. 28905 per acre. The returns after
meeting variable costs were observed to be Rs. 10554 per acre.
4.3.4 Maize Cultivation Details
The maize crop is one of the main crops cultivated in Punjab. It is being advocated as
a sound diversification option as an alternative to paddy, which is notorious for its water
guzzling attribute. The cultivation of maize crop has been undertaken by the agricultural
households of Zone I and Zone II only. The zone wise maize cultivation details have been
presented in Table 4.18. It was found that all the agricultural households of Zone I and only
two (3.3 %) of those from Zone II had undertaken maize cultivation.The average area under
maize cultivation has been worked out to be 13.25 acres in Zone I and 2.0 acres in the case of
Zone II. Nearly 38 percent of GCA in Zone I and much smaller (0.2 %) proportion of GCA in
Zone II has been apportioned to this crop. In absolute terms, the maize productivity was
observed to be higher in Zone II i.e. 19.5q/acre as compared to Zone I i.e. 16.41q/acre, but
these differences can‟t be treated as statistically significant (p<0.05).

Table 4.18: Zone wise productivity and cost-return profile of maizecrop in Punjab,
2014-15
Particulars Zone I Zone II Zone III Overall
(n1=30) (n2=2) (n3=0) (N=32)
Agronomic Productivity, q/acre 16.41a 19.50a - 16.61
Total Variable Cost, Rs /acre 17168.80a 17532.80a - 17191.50
Gross Returns, Rs /acre 22213.30b 26900.00a 22506.20
-
(74:26) (79:21) (74:26)
Returns over Variable Cost, Rs /acre 5044.50b 9367.20a - 5314.70
*Represents ratio of returns from main product to by-product
abc
Figures with different superscripts in a row differ significantly (p<0.05)

37
Per cent

Zone
9.4 13.0 9.3 12.6 50.4 3.5
1.8
I

Zone
10.0 14.8 10.0 10.0 49.9 3.4
1.8
II

Seed Manure & fertilisers


Plant protection chemicals Machine use
Labour use Marketing and transportatin
Interest

Figure 7: Variable cost components (in % terms) of maize cultivation in Punjab, 2014-15

In absolute terms, the average variable cost for the cultivation of one acre of maize
estimated for Zone II (Rs. 17533/acre) was found to be higher than that observed in the case
of Zone I (Rs. 17169/acre), the difference between the two being statistically non-significant
(p<0.05). As can be observed from Figure 7, as much as 50 percent of the total variable cost
of maize cultivation was incurred on the machine labour in case of both the zones (Zone I and
Zone II). The respective share of different cost components i.e. seed, manure & fertilizers and
plant protection chemicals in total variable cost was found to be higher in the case of Zone II
in comparison to that in the case of Zone I; whereas the proportion of cost incurred on
machine use and marketing and transportation charges in total cost was found to be higher in
Zone I as compared to Zone II.
The gross returns from maize cultivation on per acre basis have been recorded at Rs
22213 per acre for Zone I, which was significantly lower (p<0.05) than that observed for
Zone II (Rs 26900), which can well be attributed to productivity differentials in two zones.
The average figure for net returns over variable costs estimated in the case of Zone II (Rs.
9367) was also found to be significantly higher (p<0.05) than that observed in the case of
Zone I (Rs 5044).
4.3.5 Pearl MilletFodder Cultivation Details
The Pearl Millet cultivation for the purpose of fodder use was undertaken in Zone I
and Zone II only and the related information has been presented in Table 4.19. As many as 50
percent of the sampled agricultural households in Zone I and 43 percent in case of Zone II

38
cultivated the said crop on 0.55 and 1.68 acres respectively. Bajra fodder accounted for a
little less one percent of the GCA in case of Zone I and 2.5 percent in case of Zone II.

Table 4.19: Zone wise productivity and cost-return profile of bajra fodder in Punjab,
2014-15

Particulars Zone I Zone II Zone III Overall


(n1=15) (n2=26) (n3=0) (N=41)

Agronomic Productivity, q/acre 266.67a 254.64a - 259.04

Total Variable Cost, Rs /acre 8519.80a 8964.70a - 8801.90

Gross Returns, Rs /acre 26533.30a 24502.60b - 25245.50

Returns over Variable Cost, Rs /acre 18013.50a 15537.90b - 16443.60


ab
Figures with different superscripts in a row differ significantly (p<0.05)

Per cent

Zone
11.8 22.4 39.3 24.7 1.8
I

Zone
13.0 20.8 40.6 23.8 1.8
II

Seed Manure & fertilisers Machine use Labour use Interest

Figure 8: Variable cost components (in % terms) of bajra cultivation in Punjab, 2014-15

Total variable cost of pearl millet fodder cultivation has been observed to be more in
the case of Zone II (Rs. 8965 per acre) as compared to that in the case of Zone I (Rs. 8520 per
acre). Considering the split up of the total variable cost of bajra cultivation, the machine use
accounted for the highest proportion (nearly 40 %) in the case of both, Zone I and Zone II.
The share of different components i.e. labour and manures & fertilizers in total variable cost
was found to be higher in Zone I as compared to that in the case of Zone II. The gross returns,
on an average, were found to be significantly higher (p<0.05) in the case of Zone I
(Rs.26533/acre) as compared to that in the case of Zone II (Rs.24503) and this difference in

39
gross returns also translated into significantly different returns over variable costs in these two
zones (Rs. 18014 vs. Rs. 15538).
4.3.6 Sorghum fodder Cultivation Details
Sorghum was cultivated in all the three zones of Punjab as sorghum is one of the
most commonly used fodder for livestock.

Table 4.20: Zone wise productivity and cost-return profile of sorghum fodder in
Punjab, 2014-15

Particulars Zone I Zone II Zone III Overall


(n1=9) (n2=25) (n3=29) (N=63)
Agronomic Productivity, q/acre 240.67a 247.83a 252.10a 248.77
Total Variable Cost, Rs /acre 6280.80a 5455.90b 6924.20a 6249.70
Gross Returns, Rs /acre 23912.20a 24878.70a 25210.30a 24893.30
Returns over Variable Cost, Rs /acre 17631.40a 19422.80a 18286.10a 18643.60
abc
Figures with different superscripts in a row differ significantly (p<0.05)

Per cent
Zone
18.4 10.0 38.3 31.4 1.8
I

Zone
18.2 16.1 30.2 33.5 1.8
II

Zone
14.4 20.7 36.7 26.3 1.8
III

Seed Manure & fertilisers Machine use Labour use Interest

Figure 9: Variable cost components (in % terms) of sorghum cultivation in Punjab,


2014-15

In Zone III, 97 percent of the respondents in comparison to 30 percent in case of


Zone I and 42 percent in case of Zone II opted for the cultivation of this crop. Average area
per sorghum cultivator was observed to be the highest in Zone II (1.1 acre) followed by that
in case of Zone III (0.60 acres) and minimum in the case of Zone I (0.53 acres). As is in the
case of all the fodder crops, sorghum crop accounted for 0.5 per cent of GCA in case of Zone
I, 1.5 percent in case of Zone II and 2.5 percent in case of Zone III. There were no significant
40
zonal differences (p<0.5) observed as far as the productivity of sorghum was concerned,
which was maximum in Zone III (252.1q/acre) and minimum in Zone I (240.7 q/acre).
Total variable cost was found to be the maximum in Zone III (Rs. 6924 per acre)
followed by Zone I (Rs. 6281 /acre) although this difference could not be deemed significant at
5 percent level of significance. The variable cost observed in case of Zone II to the tune of Rs.
5456 /acre has been testified as significantly lower than that observed in case of Zone I and
Zone III. Out of the total cost incurred on sorghum cultivation, nearly 65 percent expenses were
incurred on both machine and labour use in Zone II and Zone III. In Zone I, the expenses on
machine use and labour use touched the 70 percent mark. The other components like seed and
manure and fertilizers contributed nearly 35 percent in Zone II and Zone III and this proportion
was found to be below 30 percent in Zone I as presented in figure 9.
The gross returns were found to be the minimum in Zone I i.e. Rs. 23912 per acre and
the maximum in case of Zone III i.e. Rs.25210 per acre.The somewhat similar trend has been
observed in the case of net returns over variable costs also.The returns over variable costs
were found to be the lowest atRs. 17631.50 for Zone I. All the three zones were found to be
statistically at par in so far as the gross returns and the returns over variable cost were
concerned.
4.3.7 Wheat Cultivation Details
Similar to paddy, wheat crop too holds a prominent position in Punjab‟s cropping
pattern. The Zone wise wheat cultivation details have been presented in Table 4.21. Wheat
was cultivated by all the selected agricultural households of all the zones of Punjab and
accounted for 37.9 percent of the GCA in case of Zone I, 41.7 percent in case of Zone II and
47.5 percent in case of Zone III. As is clear from the Table 4.21, the wheat productivity
observed in case of Zone I (12.8 q/acre) was found to be significantly lower (p<0.05) than
that observed in the case of Zone II (19.29q/acre) and Zone III (19.94q/acre), which were
statistically at par. The low productivity potential of Zone I is a well-recognized fact and the
study has testified it. Total variable cost of wheat cultivation, in absolute terms, was observed
to be the highest in case of Zone III (Rs. 10041/acre) and the second highest in Zone II (Rs.
9884 / acre) and the lowest in Zone I (Rs 9908/acre) but statistically all the zones were at par
with respect to the cost of wheat cultivation. As can be observed from Figure 10, machine use
was found to be the major contributor to total variable cost in all three zones. The expenses on
other components like seeds, manures and fertilizers and labour use was found to be higher in
Zone I as compared to other two zones.

41
Table 4.21: Zone wise productivity and cost-return profile of wheat crop in Punjab,
2014-15

Particulars Zone I Zone II Zone III Overall


(n1=30) (n2=60) (n3=30) (N=120)
Agronomic Productivity, q/acre 12.79c 19.29b 19.94a 17.83
Total Variable Cost, Rs /acre 9908.00a 9884.50a 10041.20a 9929.60
Gross Returns, Rs /acre 22622.10c 32154.60b 33117.10a 30012.10
(82:18)* (87:13)* (87:13)* (86:14)*
Returns over Variable Cost, Rs /acre 12714.10b 22270.10a 23075.90a 20082.50
*Represents ratio of returns from main product to by-product
abc
Figures with different superscripts in a row differ significantly (p<0.05)

Per cent
Zone
10.9 21.1 7.3 37.2 15.1 6.7 1.8
I

Zone
10.2 20.8 7.6 37.7 13.3 8.6 1.8
II

Zone
10.4 20.5 7.2 39.4 13.2 7.5 1.8
III

Seed Manure & fertilisers


Plant protection chemicals Machine use
Labour use Marketing and transportatin
Interest

Figure 10: Variable cost components (in % terms) of wheat cultivation in Punjab, 2014-15

Table 4.21 highlights the zone wise gross returns and returnsnet of variable costs
from wheat production per acre. A significant difference in gross returns was found among
the different zones. The gross returns were found to be the maximum in Zone III (Rs.33117 /
acre) followed by Zone II (Rs.32155/ acre) and Zone I , where the returns to the tune of Rs
22622 per acre were conspicuously low attributed primarily to low productivity. Statistically
speaking, the returns were significantly different (p<0.05) amongst all the three zones. The
returnsover the variable costs were also found to be maximum in the case of Zone III, i.e., Rs.
23076 per acre followed by Zone II (Rs. 22270.0) and Zone I (Rs. 12714.1) and it was found
that the said returns from Zone II were statistically lower than those accruing from other two
zones.

42
4.3.8 Berseem Cultivation Details
Berseem is one of the most important and highly palatable fodder crop. It was
cultivated in all three zones, the percentage of agricul*tural households opting for this crop
varying from 13.3 percent in case of Zone III to as high as 85 percent in case of Zone II, with
area apportioned to it as percent of GCA varying from as little as 0.4 percent to 3.9 percent in
the said zones. The productivity of berseemhas been recorded as the highest in Zone II (
372.92 q/acre) and the lowest in Zone III ( 357.50q/acre) but all the three district stood at par
statistically as far as the productivity of berseemwas concerned.

Table 4.22: Zone wise productivity and cost-return profile of berseem fodder in Punjab,
2014-15
Rs./acre

Particulars Zone I Zone II Zone III Overall


(n1=24) (n2=51) (n3=4) (N=79)

Agronomic Productivity, q/acre 372.92a 377.24a 357.50a 374.93

Total Variable Cost, Rs /acre 7038.00a 6849.90a 7416.60a 6935.80

Gross Returns, Rs /acre 36781.30b 38241.80a 35750.00b 37671.90

Returns over Variable Cost, Rs /acre 29743.30b 31391.90a 28333.40b 30736.10


abc
Figures with different superscripts in a row differ significantly (p<0.05)

Per cent
Zone
31.6 12.4 24.9 29.4 1.8
I

Zone
30.2 17 23.3 27.8 1.8
II

Zone
30.6 15.6 23.6 28.4 1.8
III

Seed Manure & fertilisers Machine use Labour use Interest

Figure 11: Variable cost components (in % terms) of berseem cultivation in Punjab,
2014-15

43
The variable cost with respect to berseem fodder was found to be the maximum in
the case of Zone III ( Rs. 7417/acre) followed by that in the case of Zone I (Rs 7038/acre)
and the minimum in Zone II (Rs. 6850/ acre). It can be observed from Figure 11 that,
irrespective of the zones, the seed cost constituted the maximum proportion (30-32 %) in the
cost of berseem cultivation. The proportion (27-29%) of cost spent on labour use was also
observed to be more or less the same in all the zones. The proportion of cost incurred on
machine use was found to be slightly higher in Zone I in comparison to the other two zones.
Zone II had highest proportion of expenses on manure and fertilizers as compared to other
two Zones.
On an average, the gross returns from berseem cultivation were found to be Rs.
37672 per acre. The gross returns figure from berseem cultivation in Zone II was recorded as
the highest (Rs. 38242 / acre) and significantly higher (p<0.05) than that observed for Zone I
(Rs 36781/acre) and Zone III (Rs.35750/acre). The similar pattern has been observed in the
case of returns over variable costs, wherein Zone I (Rs 29743) and Zone III (Rs 28333) had
statistically the same returns (p<0.05), which were found to be significantly lower than that
observed for Zone II (Rs 31391/acre).
4.3.9 Oat Cultivation Details
Oat fodder is one of the most common and conventional livestock fodder. As can be
observed from Table 4.23, as many as 83 percent of the respondents in Zone III and a
comparatively much smaller (1.7) percentage of respondents had undertaken oat cultivation in
Zone II. The area under this crop stood at 1 acre in Zone II and 0.6 acre in Zone III, which
must have been governed by requirement of fodder by the households opting for the
cultivation of this fodder. It can be readily observed from Table 4.23 that Zone III had
significantly (p<0.05) higher oat fodder productivity (237.7q/acre) in comparison to that
attained in Zone II (200.00 q/acre).

Table 4.23: Zone wise productivity andcost-return profile of oat fodder in Punjab,
2014-15

Particulars Zone I Zone II Zone III Overall


(n1=0) (n2=1) (n3=25) (N=26)
-
Agronomic Productivity, q/acre 200.00b 237.76a 236.31
-
Total Variable Cost, Rs /acre 5926.80a 4567.80a 4619.90
-
Gross Returns, Rs /acre 20000.00b 23776.00a 23630.8
-
Returns over Variable Cost, Rs /acre 14073.20b 19208.20a 19010.90
abc
Figures with different superscripts in a row differ significantly (p<0.05)

44
Per cent

Zone
8.4 15.2 23.6 51.0 1.8
II

Zone
9.1 18.6 30.2 40.2 1.8
III

Seed Manure & fertilisers Machine use Labour use Interest

Figure 12: Variable cost components (in % terms) of oat cultivation in Punjab, 2014-15

The variable cost involved in oat fodder cultivation in Zone II (Rs 5927 /acre) has
been observed to be higher, in absolute terms, as compared to that in Zone II (Rs 4568 /acre) ,
these differences were testified as statistically non significant. Higher productivity and lesser
cost experienced in Zone III could be attributed to the sandy soil structure of that particular
area, which is the most suited for this crop and this has resulted in higher returns as well. It
can be observed from Figure 12 that just like other fodder crops, labour (biological and
mechanical both) use constituted three fourth of the total cost of cultivation. Except for
human labour cost, the proportion of expenses incurred on all other components was found to
be more in the case of Zone III as compared to Zone II.
Table 4.23 represents the zone wise receipts from oat production as well. The total
returns were found to be significantly lower (p<0.05) in Zone II (Rs. 20,000/ acre) in
comparison to that in the case of Zone III (Rs. 23, 776 /acre). The returns over variable cost
with respect to oat fodder cultivation in Zone II and Zone III were Rs. 14073 per acre and
Rs.19208 per acre respectively, with statistically significant difference observed between the
zones as far as returns over variable cost were concerned.
4.3.10 Green Pea Cultivation Details
The green pea cultivation details have been presented in Table 4.24. During the study
period, green pea was cultivated by only 10 respondents of Zone II, with the average area per
green pea cultivator recorded at 6.9 acres. Green pea cultivation was undertaken on 3.9 per
cent of GCA of Zone II with productivity attained being 23.1q/acre.

45
Table 4.24: Productivity and cost-return profile of green pea crop in Punjab, 2014-15

Particulars Zone I Zone II Zone III Overall


(n1=0) (n2=10) (n3=0) (N=10)
Agronomic Productivity, q/acre - 23.10 - 23.10
Total Variable Cost, Rs /acre - 25541.40 - 25541.40
Gross Returns, Rs /acre - 45610.00 - 45610.00
Returns over Variable Cost, Rs /acre - 20068.60 - 20068.60

Per cent

Zone 3.1 1.8


32.1 10.2 4.5 15.0 33.4
II

Seed Manure & fertilisers


Plant protection chemicals Machine use
Labour use Marketing and transportatin
Interest

Figure 13: Variable cost components (in % terms) of pea cultivation in Punjab, 2014-15

Total variable cost of pea cultivation on one acre was observed to be Rs. 25541. As
can be seen from Figure 13, the labour cost entailed the highest proportion (33.4 %) in the
total cost incurred and the second highest being that of seed (32.1 %). The proportion of
expenses on other components i.e. machine use, manure and fertilizers and plant protecting
chemicals was found to be 15.0, 10.2 and 4.5 percent respectively. The gross returns from pea
were found to be Rs.45610 per acre, leading to returns over the variable cost to the tune of Rs.
20069 per acre.
4.3.11 Potato Cultivation Details
Potato is a starchy tuberous crop. As observed from table 4.25, potato cultivators
were found in Zone I and Zone II only during the study period. As many as 97 percent of the
respondents in Zone I and a comparatively much smaller (15) percentage of respondents had
undertaken potato cultivation in Zone II. Mean area under this crop stood at 7.8 acre in Zone I

46
and 9.0 acre in Zone II. The percent share of GCA accounted for by potato crop was observed
to be 21.7 and 4.6 percent in case of Zone I and Zone II respectively. The potato productivity
has been observed to be significantly higher in the case of Zone II (99.4q/acre) than that
observed in the case of Zone I (64.5q/acre).

Table 4.25: Zone wise productivity and cost-return profile of potato crop in Punjab,
2014-15
Particulars Zone I Zone II Zone III Overall
(n1=29) (n2=9) (n3=0) (N=38)
Agronomic Productivity, q/acre 64.55b 99.44a - 72.82

Total Variable Cost, Rs /acre 27124.30b 29109.50a - 27594.40

Gross Returns, Rs /acre 38875.90b 55291.70a - 42763.80

Returns over Variable Cost, Rs /acre 11751.60b 26182.20a - 15169.40


abc
Figures with different superscripts in a row differ significantly (p<0.05)

Per cent

Zone
35.3 20.1 10.2 8.6 21.2 2.7
1.8
I

Zone
36.5 17.8 9.2 6.5 22.0 6.1 1.8
II

Seed Manure & fertilisers


Plant protection chemicals Machine use
Labour use Marketing and transportatin
Interest

Figure 14: Variable cost components (in % terms) of potato cultivation in Punjab, 2014-15

Total variable cost of potato cultivation has been observed to be more in the case of
Zone II (Rs. 29109 per acre) as compared to that in the case of Zone I (Rs. 27124 per acre).
Considering the split up of the total variable cost of potato cultivation, the seeds accounted for
the highest proportion (more than 35 %) in the case of both, Zone I and Zone II. The share of
different components i.e. manure& fertilizers, plant protection chemicals and machine use in
total variable cost was found to be higher in Zone I as compared to that in the case of Zone II.
The gross returns, on an average, were found to be significantly higher (p<0.05) in the case of

47
Zone II (Rs.55292/acre) as compared to that in the case of Zone I (Rs.38876/acre) and this
difference in gross returns also translated into significantly different returns over variable
costs in these two zones (Rs. 26182 vs. Rs. 11752) to the advantage of agricultural
households of Zone II.
4.4 FARM EXPENDITURE ON AGRICULTURAL PRODUCTION
The focus of the study, by taking a cue from the National Sample Survey Office
(NSSO) which has been carrying out the „Situation Assessment Survey of Farmers‟ from time
to time, has been limited to the collection of the detailed information on receipts and expenses
of agricultural households' farm business with a view to bring forth the differentials in
different agro-climatic zones of Punjab. The scheme of the present section has been planned
to produce the zone wise and land holding category wise summary picture of expenses
incurred on the farm level.
4.4.1 Zonal Differentials in Split up of Farm Expenditure
It can be readily observed from Table 4.26 that the annual expenditure incurred on
agricultural production and its disposal thereafter (since the marketing and transportation
costs have also been accounted for) stood at Rs 540590 for Zone I followed by Rs 349084 for
Zone II and Rs 274330 for Zone III. Since it is not advisable to draw our conclusions on the
basis of these figures as these figures encompass within itself the effect of farm size, crop mix
and its attendant issues, cropping intensity, level of technology used, adherence to the crop
management practices apart from basic agro climatic differentials, the study is trying to
investigate. But the proportion of different cost components in total cost does bring out
substantial information, which can ultimately translate into suggestions for the customized
farm planning for different zones.
It was observed that in the case of Zone I, the highest contributor (to the extent of
33.3 %) to the total farm expenses happened to be labour use followed by seeds (21.8 %) and
manure & fertilizers (18.4 %). The corresponding figures for these three heads in case of
Zone II and III have been recorded at 21.2 and 18.1 percent for labour use, 13.4 percent each
for seed and 17.5 and 15.4 percent for manures and fertilisers respectively. The comparatively
higher figures for seed and labour use in case of Zone I can well be explained by the inclusion
of potato crop in the crop mix, which accounted for nearly one fifth of the zone‟s cropped
area under study. Another conspicuous finding emerging from this table is significant share
(22. 5 %) of plant protection chemicals in the farm expenditure reported for Zone III. It can
well be attributed to the fact that cotton crop accounts for as high as 30 per cent of the
cropped area, which must have necessitated the use of plant protection chemicals in a big
way.

48
Table 4.26: Component wise split up of farm expenditure (Rs/farm) in different zones of
Punjab, 2014-15
Rs,/farm

Cost Component Zone I Zone II Zone III Overall


(n1=30) (n2=60) (n3=30) (N=120)
Seed 117939.2 46759.2 36635.5 62023.3

21.8 13.4 13.4 16.4

Manure and fertilizers 99476.3 61126.3 42334.5 66015.9

18.4 17.5 15.4 17.5

Plant protection chemicals 52248.3 30697.3 61801.6 43861.2

9.7 8.8 22.5 11.6

Labour use for 0.0 28213.3 9188.3 16403.8


Transplanting
0.0 8.1 3.3 4.3

Machine use 68904.3 85462.6 56794.0 74155.9

12.7 24.5 20.7 19.6

Labour use 179783.5 74055.5 49536.9 94357.9

33.3 21.2 18.1 24.9

Marketing and 22238.5 22770.0 18039.2 21454.4


transportation
4.1 6.5 6.6 5.7

Total 540590.1 349084.2 274330.0 378272.1


* Figures in bold represent per cent to total

This analysis has been carried a step further to bring forth the share of different crops
in individual cost components of total farm expenditure. It is to point out as to which crop
acts a drain on the resources apportioned for different inputs. The information pertaining to
this aspect has been presented in three tables viz. Table 4.27, 4.28 and 4.29 for Zone I, II and
III respectively.
In the case of Zone I, potato crop accounted for quite pronounced share (64.6 %) in
the seed cost, recorded at Rs 117939 per farm. The maize and wheat crop, which together
occupied three fourth of the GCA, accounted for nearly one third of the seed cost incurred at
the farm level. In case of manure & fertilizers and plant protection chemicals also, potato crop
cornered the major share in their respective totals. The wheat crop accounted for the highest
share (51.5 %) followed by maize (27.4 %) and potato crop (18.2) in total machine use
expenses per farm.

49
Table 4.27: Apportionment of cost components to different crops grown in Zone I of
Punjab, 2014-15
in percent
Crops Manure and Plant protection
Seeds fertilizers chemicals Machine use Labour use
Kharif
Maize 18.8 30.1 40.7 27.4 63.4
Sorghum 0.2 0.1 - 0.5 0.2
Bajra 0.2 0.5 - 1.4 0.3
Rabi
Wheat 15.4 27.9 18.6 51.5 11.4
Berseem 0.8 0.4 - 1.0 0.5
Zaid
Potato 64.6 41.0 40.7 18.2 24.2
Total, Rs/farm 117939.2 99476.3 52248.3 68904.3 179783.5

The apportionment of cost components to different crops in the case of Zone II of


Punjab has been presented in Table 4.28.
Table 4.28: Apportionment of cost components to different crops grown in Zone II of
Punjab, 2014-15
in percent
Crops Seeds Manure Plant Labour use Machine Labour
and protection for use use
fertilizers chemicals Transplanting
Kharif
Paddy 4.8 27.1 39.5 74.1 29.6 29.0
Basmati 2.6 9.2 13.4 25.9 11.1 18.1
Cotton - - - - - -
Maize 0.2 0.3 0.4 - 0.2 0.8
Sorghum 1.0 0.7 - - 0.8 1.2
Bajra 1.8 2.4 - - 3.3 2.1
Rabi
Wheat 33.4 40.9 30.9 - 45.6 22.7
Oat 0.1 0.0 - - 0.0 0.1
Barseem 5.1 2.6 - - 2.2 3.3
Zaid
Potato 30.8 11.8 11.7 - 3.2 11.4
Pea 20.2 5.0 4.1 - 4.1 11.4
Total, 46759.2 61126.3 30697.3 28213.3 85462.6 74055.5
Rs/farm

50
In the case of wheat crop, which was grown on 42 percent of the cropped area in
Zone II, seed accounted for 33.4 percent, manure and fertilizer for 40.9 percent, plant
protection chemicals for 30.0 percent of their respective farm expenses, which were to the
tune of Rs 46759, Rs 61126 and Rs 30697 respectively. Paddy (basmati as well as non
basmati) and wheat crop, which together accounted for 83 percent of the cropped area of
Zone II, utilized 86 percent of the amount spent on machine use.
The information on the apportionment of major cost components to different crops
grown in Zone III presented in Table 4.29, highlighted the peculiarity of this zone, popularly
known as cotton belt of Punjab. In case of cotton crop, seed accounted for 54.7 percent and
plant protection chemicals for a still higher proportion of 78.6 percent of the respective total
farm expenses, in relation to 30.4 per cent of the cropped area of Zone III. Wheat crop was
found to utilize the highest share (53.5 %) out of total expenses on manure and fertilizers,
whereas cotton and paddy accounted for 26.1 and 17.2 percent respectively.
Table 4.29: Apportionment of cost components to different crops grown in Zone III of
Punjab, 2014-15
In percent

Crops Seeds Manure Plant Labour use Machine Labour


and protection for use use
fertilizers chemicals Transplanting

Kharif
Paddy 2.8 17.2 8.7 100.0 18.6 17.2
Cotton 54.7 26.1 78.6 - 19.2 48.5
Sorghum 1.6 2.0 - - 2.6 2.0
Rabi
Wheat 39.9 53.5 12.7 - 58.3 30.0
Oat 0.4 0.9 - - 1.1 0.5
Berseem 0.6 0.3 - - 0.2 1.9
Total, 36635.5 42334.5 61801.6 9188.3 56794.0 49536.90
Rs/farm

4.4.2 Land Holding Wise Differentials in Split up of Farm Expenditure


The annual farm expenditure in case of marginal farmers (irrespective of the zone)
has been estimated as Rs 59225 and the corresponding figure for the large farmers stands at as
high as Rs1008082 (Table 4.30). There is no denial to the fact that farm expenditure will be
directly related to the size of the land holding, or more precisely, to the total cropped area. It
can be observed that difference in the farm expenditure is not commensurate with the
difference in cropped area with respect to marginal and large farms (4.40 acres vs. 29.28
51
acres) presented in Table 4.14. Although the per farm figures reported here in the table have
not been adjusted for zonal differences and crop mix differences to a name a few, yet the
revelations of the analysis are quite startling. It can be readily observed that in case of
marginal and small farmers, the machine use constitutes the highest share in total farm
expenditure, which can well be attributed to the practice of hiring the machinery by the
farmers of these categories. In case of rest of the cost components, the percentage has been
observed to be the higher for larger land holding categories. In general, in all the land holding
categories seed cost constitutes one sixth, manures &fertilisers and plant protection chemicals
constitutes nearly one fourth of the total cost in case of marginal farmers and progressively
higher in larger land holding categories
Table 4.30: Component wise split up of farm expenditure (Rs/farm) in different land
holding categories of Punjab, 2014-15
Rs/farm

Cost Marginal Small Semi- Medium Large


Component (n1=24) (n2=24) medium (n4=24) (n5=24)
(n3=24)
Seed 7942.5 17344.8 31883.8 75766.7 177178.5
13.4 14.9 14.9 15.4 17.6
Manure and 9052.1 19362.3 38566.4 88575.6 174522.9
fertilizers
15.3 16.6 18.0 18.0 17.3

Plant 5508.3 13976.0 23099.6 58020.8 118701.0


protection
chemicals 9.3 12.0 10.8 11.8 11.8

Labour use 1979.2 3710.4 9956.3 23814.6 42558.3


for
Transplanting 3.3 3.2 4.6 4.8 4.2

Machine use 19539.8 28343.6 45513.5 91692.7 185689.7


33.0 24.3 21.2 18.6 18.4
Labour use 12686.3 28047.3 53595.2 127337.3 250123.2
21.4 24.1 25.0 25.8 24.8
Marketing 2516.6 5621.9 11679.7 28145.5 59308.3
and
transportation 4.2 4.8 5.5 5.7 5.9

Total 59224.8 116406.3 214294.3 493353.2 1008082.0


* Figures in bold represent per cent to total

52
4.5 COST- RETURN ASPECTS OF FARM PRODUCTION
This section is devoted to the discussion on remunerative aspects of crop production
by studying the value of the output and enumerating the net returns to the agricultural
households by accounting for the farm costs. The said analysis has been carried out to bring
forth the zonal differentials as well land holding category wise differentials.
4.5.1 Cost- returns Aspects of Farm Production: Zonal Differentials
The perusal of the Table 4.31 elucidates that total variable cost per farm was the
highest (Rs 550726) in case of Zone I followed by that in case of Zone II (Rs 355630) and
Zone III (Rs 279480), wherein the differences (Zone II vs. Zone III) were found to be non-
significant (p< 0.05). In order to make sound comparison, it was deemed necessary to bring
per farm figure to a common denominator i.e. on per acre of NSA and GCA basis. The cost
per acre of NSA for Zone I estimated at Rs.40228 is found to be significantly higher than that
observed for Zone II (Rs.26343) and also Zone III (Rs.24135) which are statistically at par.
Similar trend has been observed in case of variable cost per acre of GCA, which is
significantly higher in case of Zone I in comparison to both Zone II and Zone III.
Table 4.31: Zone wise cost-return analysis for agricultural households of Punjab, 2014-15

Particulars Zone I Zone II Zone III Overall


(n1=30) (n2=60) (n3=30) (N=120)
Variable Cost
Rs /farm 550726.10a 355629.60b 279480.50b 385366.40
Rs / acre of NSA 40228.30a 26342.90b 24134.80b 29484.80
Rs /acre of GCA 15762.10a 12051.20b 12067.40b 13161.40
Value of output
Rs /farm 890416.00a 1050769.60a 732918.30a 931218.40
Rs /acre of NSA 65041.30b 77834.80a 63291.70c 71248.50
Rs /acre of GCA 25484.10c 35607.20a 31645.90b 31803.90
Returns over variable costs
Rs/farm 339690.70b 695140.00a 453437.80b 545852.00
Rs /acre of NSA 24813.00c 51491.85a 39157.00b 41763.70
Rs /acre of GCA 9722.10c 23556.10a 19578.50b 18642.50
abc Figures with different superscripts in a row differ significantly (p<0.05)

The highest value of output on per farm basis has been recorded as Rs 1050770 in the
case of Zone II followed by Zone I (Rs 890416) and Zone III (Rs. 732918) with statistically
non-significant differences. The value of output on per acre of NSA was observed to be the

53
highest (Rs.77835) in case of Zone II followed by Zone I (Rs.65041) and Zone III (Rs.63292)
with significant differences (p<0.05) amongst each other. The similar pattern has been
observed in case of value of output per care of GCA and returns over variable costs per acre
of NSA, where in the value for the three zone are significantly (p<0.05) different from one
another and the Zone II securing the highest value testifying the production potential of
Central Zone of Punjab. The net returns per acre of GCA were the least in case of Zone I,
which calls for immediate policy attention.
4.5.2 Cost- returns Aspects of Farm Production: Land Holding Wise Differentials
The cost return profile of agricultural households with respect to crop farming
presented in Table 4.32 brings about the land holding wise differentials.

Table 4.32: Land holding wise cost-return analysis for agricultural households of
Punjab, 2014-15
Particulars Marginal Small Semi- Medium Large
medium
(n1=24) (n2=24) (n3=24) (n4=24) (n5=24)
Variable Cost
Rs /farm 60343.80d 118588.90d 218312.30c 502603.60b 1026983.60a
Rs / acre of NSA 30323.50a 29499.70a 29422.10a 28968.50a 29733.20a
Rs /acre of GCA 13745.70a 13235.40a 12971.60a 12997.20a 13244.60a
Value of output
Rs /farm 141927.10d 277999.00d 552087.70c 1257112.50b 2426965.60a
Rs /acre of NSA 71320.10a 69154.00a 74405.40a 72456.10a 70265.40a
Rs /acre of GCA 32256.20a 31026.70a 32803.80a 32508.70a 31299.50a
Returns over variable
costs
Rs/farm 81583.30d 159410.10d 333775.40c 754508.90b 1399982.00a
Rs /acre of NSA 40996.60a 39654.30a 44983.20a 43487.50a 40532.20a
Rs /acre of GCA 18541.70a 17791.30a 19832.20a 19511.50a 18055.00a
abcd Figures with different superscripts in a row differ significantly (p<0.05)

The information presented in the table above highlights that there were no significant
differences observed across the five land holding categories, when the parameters of interest
were presented on NSA and GCA basis. In absolute terms, the cost incurred per acre of NSA
was observed to be the highest in case of marginal farmers (Rs. 30323) and the lowest in the
case of medium category farmers (Rs. 28968), statistically the differences being non
significant. Similarly, in the case of variable cost on GCA basis, the values were found to be

54
statistically non-significant although the cost incurred per acre of GCA was also the highest
for the marginal farmers (Rs.13746) and the lowest for semi-medium farmers (Rs.12972). The
value of output per farm was recorded as the highest for large farmers (Rs.2426966), whereas
value of output per acre of NSA and GCA was found to be the highest for semi-medium
category farmers i.e. Rs. 74405 and Rs.32509 respectively and the lowest for small farmers
i.e. Rs.69154 and Rs. 31027 respectively, although these differences were testified as non
significant statistically (p<0.05). The returns over the variable cost on the per farm basis were
found to be statistically different as was logically expected. The figures for the returns over
the variable cost per acre of NSA and GCA for different land holding categories were found
to be non significant statistically. The absolute figures for per acre returns over the variable
cost on both the NSA and GCA basis were recorded as the highest for semi medium farmers
(Rs 44983 and Rs. 19832 respectively) and the lowest for the small farmers (Rs.39654 and
Rs. 17791 respectively).
4.6 FARM LEVEL COST-RETURN PROFILE IN RELATION TO CROPPING
PATTERN
Situation assessment of agricultural households belonging to different zones
according to their cropping pattern has been highlighted in Table 4.33 and Table 4.34 as well.

Table 4.33: Share of different crops in farm cost in relation to area apportioned in
different zones of Punjab, 2014-15

Crops Zone I Zone II Zone III


(n1=30) (n2=60) (n3=30)
% of % of farm % of GCA % of farm % of GCA % of farm
GCA cost cost cost
Paddy - - 30.9 30.5 17.1 16.4
Basmati - - 10.7 12.4 - -
Cotton - - - - 30.4 43.8
Maize 37.9 39.6 0.2 0.3 - -
Bajra 0.8 0.4 2.5 1.9 - -
Sorghum 0.5 0.2 1.5 0.7 2.5 2.2
Wheat 37.9 22.3 41.7 33.3 47.5 36.6
Berseem 1.2 0.5 4.0 2.4 0.4 0.2
Oat - - 0.1 0.0 2.1 0.8
Pea - - 3.9 7.7 - -
Potato 21.7 37.0 4.6 10.8 - -

55
In Zone I, wheat and maize crops accounted for three fourth of the cropped area. The
wheat, an important Rabi crop occupying 37.9 percent of the GCA of Zone I after entailing a
cost to the tune of 39.6 percent of total farm expenses translated into 53.4 percent of the net
returns. On the other hand, maize crop accounting for 37.9 percent of GCA of Zone I study
area, resulted into 19.7 percent of the returns over variable costs. The potato area in Zone I,
which accounted for 21.7 percent of the GCA, with expenses to the tune of a significantly
high proportion of 37 percent could lead to only 20.9 percent of the net returns. The highest
share of the wheat crop in total farm returns highlights the importance of favorable farm
policy and assured market for the crop. In the case of zone II, wheat and paddy rotation which
accounted for 83.3 percent of the total cropped area, entailing 76.2 percent of the farm cost
exhibited the potential to generate 82.4 percent of the net farm accruals. In case of Zone III,
wheat crop accounting for 47.5 percent of the cropped area accounted for 53.2 percent of the
total farm returns, whereas cotton cultivation on 30.4 percent of the cropped area, accounted
for 43.8 percent of the entire farm cost and returned proportionately less (only 17.9 %) in
terms of returns over the variable costs. In Zone III, the wheat, paddy and cotton accounted
for 95 percent of gross cropped area entailing 87.6 percent of the farm cost and resulted in
95.3 percent of the returns over variable costs.

Table 4.34: Share of different crops in farm returns over variable cost in relation to
area apportioned in different zones of Punjab, 2014-15

Crops Zone I Zone II Zone III


(n1=30) (n2=60) (n3=30)
% of GCA % net returns % of GCA % net returns % of GCA % net returns
Paddy - - 30.9 34.2 17.1 21.8

Basmati - - 10.7 8.2 - -

Cotton - - - - 30.4 17.9

Maize 37.9 19.7 0.2 0.1 - -


Bajra 0.8 1.5 2.5 1.6 - -

Sorghum 0.5 0.8 1.5 1.3 2.5 1.9


Wheat 37.9 53.4 41.7 40.0 47.5 53.2

Berseem 1.2 3.7 4.0 5.3 0.4 0.6

Oat - - 0.1 0.0 2.1 2.0


Pea - - 3.9 3.1 - -

Potato 21.7 20.9 4.6 6.2 - -

56
The situation assessment of the agricultural households with a view of gaining an
insight into the farm business of these households and to bring forth the differentials in
different agro-climatic zones of Punjab with respect to farm expenses and receipts, has
conclusively established that there are widespread differentials in the cropping patterns of
these zones resulting into cost and return differentials, which call for customised crop
planning, diversification options along crop and regional dimensions and matching policy
support to bring about all round development of the state agriculture on both agronomic and
economic front and that too on a sustainable basis.

57
CHAPTER V
SUMMARY

Punjab economy is predominantly an agrarian economy and is known as wheat basket


of India. In an effort to prove itself worthy of its name and making all out efforts to ensure the
food security of the nation, the agricultural scenario in the state has been giving importance to
the rice-wheat cropping pattern. These crops constitute about 80 per cent of the total cropped
area in the state. The dominance of wheat-rice cropping pattern, which has been to the
exclusion of other crops,has led to the deterioration of the soil health and thereby its
productive potential, which in its own right has affected the farming practices. Some of other
concerns are declining water table in some parts, water logging in other parts, widespread
deficiency of micro nutrients in the soil, increase in weed infestation and pest and disease
outbreak and environmental pollution.
The situation assessment and getting to the roots of the problems, the Punjab
agriculture is at present confronted with, is the only way forward. The problem can be
addressed only by studying the situation at the base level that is at the level of agricultural
households in the rural Punjab. This study is a modest attempt to bring out the situation of the
agricultural households in the state of Punjab. The study primarily focused on the following
objectives:
1. To examine the agricultural production scenario of Punjab.
2. To carry out situation assessment of the agricultural households of Punjab as
characterized by different agro-climatic zones.
3. To work out the potential correlates of situation assessment parameters with
agricultural production parameters.
The findings of the present study have been based on the secondary data from
National sample survey office (NSSO) and Statistical Abstracts of Punjab from year 2001-02
to 2013-14 and the primary data collected from 120 sample agricultural households, equally
spread over the five land holding categories, from three agro climatic Zones of Punjab; Zone I
(Sub-Mountainous Region) , Zone II (Central Plain Region) and Zone III (South Western
Region) . The information for Zone I pertained to 30 agricultural households equally spread
over five land holding categories from district Hoshiarpur. The information pertained to a
total of 60 agricultural households in case of Zone II, equally distributed over two selected
districts namely Amritsar and Ludhiana and 30 agricultural households from Bathinda district
of Zone III. The information collected from the respondents, through a specifically structured
interview schedule, pertained to the crop year 2014-15.
One of the objectives of the study was to have a bird‟s eye view of agricultural
production scenario of the state. Cropping intensity in Punjab has increased from 186.9

58
percent in TE 2003/04 to 190.1 percent by the TE 2012/13 and at the same time limiting the
possibility of vertical expansion.The analysis for the study period reinforced that wheat,
paddy, cotton, sugarcane and maize were the important crops cultivated in Punjab and
accounted for 85.6 percent of the GCA in TE 2003/04, which increased to 89.3 percent by TE
2012/13. Notwithstanding the policy prescriptions of crop diversification to arrest the
sustainability issue arising from the paddy-wheat monoculture, paddy and wheat area as
percent of GCA has been increasing unabatedly from 74.4 percent in 2001-02 to 80.8 percent
in 2012-13. Some of the crops, like sugarcane, pulses and maize, have lost their acreage to
paddy-wheat rotation. The area under sugarcane as percent of GCA dwindled from 1.77
percent in TE 2003/04 to 0.98 percent by TE 2012/13, pulses from 0.71 to 0.27 percent and
maize from 2.00 to 1.64 percent during the same period.
An effort has been made to gauge the change in the pattern of contribution of crop
sector of Punjab to the GSDP and SDP from Agriculture and Livestock sector. The GSDP of
Punjab recorded a growth of 6.6 percent per annum during the study period 2001-02 to 2013-
14. The SDP from Agriculture sector increased from Rs 195 billion in TE 2003/04 to Rs 227
billion in TE 2013/14 recording a CAGR of 1.6 per cent, but the share of crop sector in SDP
Agriculture and Livestock sector exhibited a decline from 68.3 to 65.9 percent during the said
period.
The situation assessment of the agricultural households of Punjab as characterized by
different agro-climatic zones and to work out the potential correlates of situation assessment
parameters with agricultural production parameters, primary data of 120 agricultural
households (30 each from Zone I and Zone III, 60 from Zone II) was taken recourse to. The
findings of the study revealed that mean age of farmer respondents was 43.4 years. Major
income source of majority respondents was cultivation.The size of operational holding has
been recorded at 13.7 acres in the case of Zone I, 13.5 acres in Zone II and 11.6 acres in Zone
III. The average size of the operational holding stood at 2.0 acres for marginal category, 4.0
acres for small , 7.4 acres for semi-medium, 17.4 acres for medium and as high as 34.5 acres
for the agricultural household belonging to the large farmer holding category.
Zone wise cropping pattern details with respect to the selected agricultural
households of Punjab for the crop year 2014-15 pointed out that the paddy crop was
conspicuous by its absence in case of the agricultural households of Zone I, the kandiregion,
testifying the marked intra zonal differences in the cropping pattern of this zone. Paddy
(regular and basmati) occupied 41.5 percent of the GCA in case of Zone II and 17.1 percent in
case of Zone III. The other Kharif crops in Zone II were maize, bajra and sorghum which
were adopted on 11.4 percent, 6.0 percent, 5.4 percent, 1.5 percent and 1.4 percent of gross
cropped area respectively. Wheat was the most common and traditional crop of Rabi season
and accounted for 41.8 percent of gross cropped area at the overall level. The paddy and
59
wheat together accounted for 83 percent of the GCA in the case of Zone II and 64.6 percent in
case of Zone III. Potato was important crop of zaid season found to have grown in Zone I and
Zone II accounting for as high as 22 percent of the GCA in the case of Zone I and
comparatively much lower proportion (4.6 %) in the case of Zone II, where pea cultivation
was also undertaken on 4 percent of the GCA. The analysis has conclusively established that
the agricultural households of Zone I, the region known for its poor potential have adopted
the crops with higher agronomic and economic productivity and lower gestation period to tide
over the problems of poor income status faced due to the low productive performance of
traditional cropping pattern. The cropping intensity in the farms of selected agricultural
households showed considerable difference across the zones, the highest being observed in
Zone I (255.2 %), followed by that in Zone II (218.6 %) and the lowest in the case of Zone III
(200 %).
The focus of the study, by taking a cue from the National Sample Survey Office
(NSSO) which has been carrying out the „Situation Assessment Survey of Farmers‟ from time
to time, has been limited to the collection of the detailed information on receipts and expenses
of agricultural households' farm business with a view to bring forth the differentials in
different agro-climatic zones of Punjab. The study brought forth that the annual expenditure
incurred on agricultural production and its disposal thereafter (since the marketing and
transportation costs have also been accounted for) stood at Rs 540590 for Zone I followed by
Rs 349084 for Zone II and Rs 274330 for Zone III. It was observed that in the case of Zone I,
the highest contributor (to the extent of 33.3 %) to the total farm expenses happened to be
labour use followed by seeds (21.8 %) and manure & fertilizers (18.4 %). The corresponding
figures for these three heads in case of Zone II and III have been recorded at 21.2 and 18.1
percent for labour use, 13.4 percent each for seed and 17.5 and 15.4 percent for manures and
fertilisers respectively. The comparatively higher figures for seed and labour use in case of
Zone I can well be explained by the inclusion of potato crop in the crop mix, which accounted
for nearly one fifth of the zone‟s cropped area under study. Another conspicuous finding
emerging from the present study is the significant share (22.5 %) of plant protection
chemicals in the farm expenditure reported for Zone III. It can well be attributed to the fact
that cotton crop accounts for as high as 30 per cent of the cropped area, which must have
necessitated the use of plant protection chemicals in a big way.
The study has tried to bring forth the share of different crops in individual cost
components of total farm expenditure in ordee to point out as to which crop acts a drain on
the resources apportioned for different inputs. In the case of Zone I, potato crop accounted for
quite pronounced share (64.6 %) in the seed cost, recorded at Rs 117939 per farm. The maize
and wheat crop, which together occupied three fourth of the GCA, accounted for nearly one
third of the seed cost incurred at the farm level. In case of manure & fertilizers and plant
60
protection chemicals also, potato crop cornered the major share in their respective totals. The
wheat crop accounted for the highest share (51.5 %) followed by maize (27.4 %) and potato
crop (18.2) in total machine use expenses per farm. In the case of Zone II of Punjab, wheat
crop, which was grown on 42 percent of the cropped area in Zone II, seed accounted for 33.4
percent, manure and fertilizer for 40.9 percent, plant protection chemicals for 30.0 percent of
their respective farm expenses, which were to the tune of Rs 46759, Rs 61126 and Rs 30697
respectively. Paddy (basmati as well as non basmati) and wheat crop, which together
accounted for 83 percent of the cropped area of Zone II, utilized 86 percent of the amount
spent on machine use. The study highlighted the peculiarity of Zone III, popularly known as
cotton belt of Punjab. In case of cotton crop, seed accounted for 54.7 percent and plant
protection chemicals for a still higher proportion of 78.6 percent of the respective total farm
expenses, in relation to 30.4 per cent of the cropped area of Zone III. Wheat crop was found
to utilize the highest share (53.5 %) out of total expenses on manure and fertilizers, whereas
cotton and paddy accounted for 26.1 and 17.2 percent respectively.
The analysis of remunerative aspects of crop had been carried out to bring forth the
zonal differentials as well land holding category wise differentials.The findings of the study
elucidated that total variable cost per farm was the highest (Rs 550726) in case of Zone I
followed by that in case of Zone II (Rs 355630) and Zone III (Rs 279480), wherein the
differences (Zone II vs. Zone III) were found to be non-significant (p< 0.05). The cost per
acre of NSA for Zone I estimated at Rs.40228 was found to be significantly higher than that
observed for Zone II (Rs.26343) and also Zone III (Rs.24135) which are statistically at par.
Similar trend has been observed in case of variable cost per acre of GCA, which is
significantly higher in the case of Zone I in comparison to both Zone II and Zone III. The
highest value of output on per farm basis has been recorded as Rs 1050770 in the case of
Zone II followed by Zone I (Rs 890416) and Zone III (Rs. 732918) with statistically non-
significant differences. The value of output on per acre of NSA was observed to be the
highest (Rs.77835) in case of Zone II followed by Zone I (Rs.65041) and Zone III (Rs.63292)
with significant differences (p<0.05) amongst each other. The similar pattern has been
observed in case of value of output per care of GCA and return over variable costs per acre of
NSA, where in the values for the three zone are significantly (p<0.05) different from one
another and the Zone II securing the highest value testifying the production potential of
Central Zone of Punjab. The returns net of variable costs per acre of GCA were the least in
case of Zone I, which calls for immediate policy attention.
The land holding wise information on cost return aspects highlighted that there were
no significant differences observed across the five land holding categories, when the
parameters of interest were presented on NSA and GCA basis. In absolute terms, the cost
incurred per acre of NSA was observed to be the highest in case of marginal farmers (Rs.
61
30323) and the lowest in the case of medium category farmers (Rs. 28968), statistically the
differences being non-significant. The value of output per acre of NSA and GCA was found
to be the highest for semi-medium category farmers i.e. Rs. 74405 and Rs.32509 respectively
and the lowest for small farmers i.e. Rs.69154 and Rs. 31027 respectively, although these
differences were testified as non-significant statistically (p<0.05). The returns over the
variable cost on the per farm basis were found to be statistically different as was logically
expected. The figures for the returns over the variable cost per acre of NSA and GCA for
different land holding categories were found to be non-significant statistically. The absolute
figures for per acre returns over the variable cost on both the NSA and GCA basis were
recorded as the highest for semi medium farmers (Rs 44983 and Rs. 19832 respectively)
and the lowest for the small farmers (Rs.39654 and Rs. 17791 respectively).
Situation assessment of agricultural households belonging to different zones in
relation to cropping pattern adopted by them highlights that the wheat crop occupying 37.9
percent of the GCA of Zone I after entailing a cost to the tune of 39.6 percent of total farm
expenses translated into 53.4 percent of the net returns. On the other hand, maize crop
accounting for 37.9 percent of GCA of Zone I study area, resulted into 19.7 percent of the
total returns. The potato area in Zone I, which accounted for 21.7 percent of the GCA, with
expenses to the tune of a significantly high proportion of 37 percent could lead to only 20.9
percent of the total returns. The highest share of the wheat crop in total farm returns
highlights the importance of favorable farm policy and assured market for the crop. In the
case of zone II, wheat and paddy rotation which accounted for 83.3 percent of the total
cropped area, entailing 76.2 percent of the farm cost exhibited the potential to generate 82.4
percent of the net farm accruals. In case of Zone III, wheat crop accounting for 47.5 percent
of the cropped area accounted for 53.2 percent of the total farm returns, whereas cotton
cultivation on 30.4 percent of the cropped area, accounted for 43.8 percent of the entire farm
cost and returned proportionately less (only 17.9 %) in terms of net returns. In Zone III, the
wheat, paddy and cotton accounted for 95 percent of gross cropped area entailing 87.6 percent
of the farm cost and resulted in 95.3 percent of the net returns.
The situation assessment of the agricultural households with a view of gaining an
insight into the farm business of these households and to bring forth the differentials in
different agro-climatic zones of Punjab with respect to farm expenses and receipts, has
conclusively established that there are widespread differentials in the cropping patterns of
these zones resulting into cost and return differentials, which call for customised crop
planning, diversification options along crop and regional dimensions and matching policy
support to bring about all round development of the state agriculture on both agronomic and
economic front and that too on a sustainable basis.

62
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65
VITA

Name : Vikas Kansal

Father’s Name : Sh. Parshotam Dass Kansal

Mother’s Name : Late Usha Rani

Nationality : Indian

Date of Birth : 20th March 1993

Permanent Address : #327, Mandir wali Gali,


Opp. Police quarters
Mansa

Email: vikaskansal007@gmail.com

EDUCATIONAL QUALIFICATIONS

Bachelor’s degree : B.Sc. (Hons.) Agriculture

University and year of award : Guru Nanak Dev University, Amritsar


2014

Percentage of marks : 75.4%

Master’s degree : M.Sc. (Agricultural Economics)

University and year of award : Punjab Agricultural University, Ludhiana


2017

OCPA : 8.32/10.00

Title of Master’s Thesis : Situation assessment of agricultural


households in Punjab

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