Research Article ECONOMIC ANALYSIS OF COST AND RETURN STRUCTURE OF PADDY CULTIVATION UNDER TRADITIONAL AND SRI METHOD: A COMPARATIVE STUDY

Abstract

Agriculture is the backbone of Indian economy. It provides employment to 52 percent of the total labourforce and contributed approximately 14 percent of the
Indian GDP. Rice is one of the three most important food crops in the world. Rice belongs to the genus Oryza and family Gramineae. It is one of the few crop species
endowed with richest genetic diversity. India is the second largest rice growing country after China. Besides, this nation has a large range of area under rice cultivation,
as it is one of the important nutrient staple crops. It is indeed the predominant product of the nation as well a s Jharkhand. The present study was conducted in Geswe,
Gutru, Katangdiri, Korabar and Surid villages of Burmu block of Ranchi district, Jharkhand. In this study the main objective is to estimate the cost and return structure of
paddy cultivation under SRI and traditional method, but the major issue with the traditional system of paddy cultivation is that the area where paddy is grown, water
demand increasing day by day, so the only option is to follow any strategy like SRI that could produce higher rice with low cost. The study concluded that traditional
method was somewhat more expensive (Rs. 14014.54 per acre) than SRI method (Rs. 12154.63 per acre). The yield realized in traditional method was 1560.06 kg per
acre, while it was 1821.17 kg per acre in the SRI method of paddy cultivation. The B: C ratio is higher in SRI method of paddy cultivation.

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International Journal of Agriculture Sciences
ISSN: 0975-3710&E-ISSN: 0975-9107, Volume 10, Issue 8, 2018
|| Bioinfo Publications ||
5890
Research Article
ECONOMIC ANALYSIS OF COST AND RETURN STRUCTURE OF PADDY CULTIVATION UNDER TRADITIONAL
AND SRI METHOD: A COMPARATIVE STUDY
AGARWAL P.K.*1, YADAV P.2 AND MONDAL S.3
1
Department of Agricultural Economics and Statistics, K.A.P.G. College, Allahabad, 211002, Allahabad State University, Allahabad, 211001, Uttar Pradesh, India
2
College of Agriculture, Amreli, Junagadh Agricultural University, Junagadh, 365601, Gujarat , India
3
Ramakrishna Mission Vivekananda University, Morabadi, Ranchi, 834008, Jharkhand
*
Corresponding Author: Email - punitagriculture@gmail.com
Received: April 21, 2018; Revised: April 26, 2018; Accepted: April 27, 2018; Published: April 30, 2018
Citation:
Punit K.A., et al., (2018) Economic Analysis of Cost and Return Structure of Paddy Cultivation Under Traditional and Sri Method: A Comparative Study.
International Journal of Agriculture Sciences, ISSN: 0975-3710 & E-ISSN: 0975-9107, Volume 10, Issue 8, pp.-5890-5893.
Copyright:
Punit K.A., et al., This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use,
distribution and reproduction in any medium, provided the original author and source are credit
ed.
Introduction
India is the second largest rice growing country after China. Besides, this nation
has a large range of area under rice cultivation, as it is one of the important
nutrient staple crops. It is indeed the predominant product of the nation as well as
Jharkhand. Jharkhand is primarily an agricultural state, and nearly 78 percent of
the population residing in 32620 villages depend mainly on agriculture and allied
activities for their livelihood. Jharkhand has 1.4 million ha area under rice
cultivation, which is mostly in rain-fed shallow and upland zones. Rice is a major
crop of the state during kharif with about 75 -80 percent of the net cultivated area
under rice. A large area of about 14.8 lakh ha Vacated by kharif rice is left fallow in
Rabi season in Jharkhand, which is typically called rice fallow. Recent studies on
paddy cultivation shows that demand of water for paddy cultivation is continue
increasing in present Indian context, especially in the eastern part, any strategy
that would produce higher rice yield with less water and less expenditure is the
need of the day. The cultivation of paddy crop under the conventional method
(inundation method or flood method) has been facing several constraints. First,
since paddy is a water-intensive crop, its cultivation and water availability are
closely linked. It is well known that about 70 -80 percent of freshwater withdrawals
at global level are used for the agricultural purpose and rice accounts for about 85
percent of it. Paddy being an important water intensive crop (consumes 3000-
5000 litres to produce one kg of rice as against the requirement of only 900 litres
for wheat), irrigation water supply is essential to increase the productivity. But, the
fast decline of irrigation water potential and increased demand for water from
various sectors has been reducing the availability of water for agricultural sector,
which is causing a serious impact on the productivity of paddy in many parts of the
country. Under such circumstances the system of rice intensification (SR I) method
of paddy cultivation emerged as a best option for farmers [1].
SRI method differs from the conventional method of rice cultivation as given
below.
1. Nursery Management:
Firstly, raised seed bed prepared by a well mixture of
FYM and soil either on polythene covers, banana sheaths etc. or on soil itself.
Secondly, seed rate five kg per hectare is sufficient as against 50 to 62.5 kg in
conventional method. Thirdly 8 to 12 days aged seedlings transplantation with two
small leaves, and seed attached to the plant as against 25 days and above in
conventional method of rice cultivation.
2. Transplanting to main field:
Seedlings should be removed carefully from the
nursery without disturbing the roots of the plant along with seed and single
seedling should be transplanted per spot in the main field. Water in the main field
should be drained out before transplanting.
3. Wide spacing:
Wider spacing of 25 x 25 cm in square pattern should be
maintained for better aeration and for easy intercultural operations due to line
plantation with the help of rotavator as against 50 to 60 hills per square meter in
conventional method.
4. Weeding:
Naturally weed growth is more in SRI fields because there is no
stagnated water. Weeding should be done with rotary weeder/ conoweeder for at
least four times with an interval of 10 days starting from tenth day after planting. It
churns the soil and the weeds are incorporated in the soil, which in turn serves as
organic manure. It helps in increased soil aeration and soli health.
5. Water management:
The soil should be kept moist but not to break the soil
also not saturated by providing alternating wetting and drying.
6. Manure and fertilizer:
Application of more of organic manures i.e., 8 tonnes
per ha should be used and apply fertilizer based on soil test results [2]
International Journal of Agriculture Sciences
ISSN: 0975-3710&E-ISSN: 0975-9107, Volume 10, Issue 8, 2018, pp.-5890-5893.
Available online at https://www.bioinfopublication.org/jouarchive.php?opt=&jouid=BPJ0000217
Abstract-
Agriculture is the backbone of Indian economy. It provides employment to 52 percent of the total labourforce and contributed approximately 14 percent of the
Indian GDP. Rice is one of the three most important food crops in the world. Rice belongs to the genus Oryza and family Gramineae. It is one of the few crop species
endowed with richest genetic diversity. India is the second largest rice growing country after China. Besides, this nation has a large range of area under rice cultivation,
as it is one of the important nutrient staple crops. It is indeed the predominant product of the nation as well a s Jharkhand. The present study was conducted in Geswe,
Gutru, Katangdiri, Korabar and Surid villages of Burmu block of Ranchi district, Jharkhand. In this study the main objective is to estimate the cost and return structure of
paddy cultivation under SRI and traditional method, but the major issue with the traditional system of paddy cultivation is that the area where paddy is grown, water
demand increasing day by day, so the only option is to follow any strategy like SRI that could produce higher rice wit h low cost. The study concluded that traditional
method was somewhat more expensive (Rs. 14014.54 per acre) than SRI method (Rs. 12154.63 per acre). The yield realized in tr aditional method was 1560.06 kg per
acre, while it was 1821.17 kg per acre in the SRI method of paddy cultivation. The B: C ratio is higher in SRI method of paddy cultivation .
Keywords-
Cost and Return, Benefit Cost ratio, System of Rice intensification, Cost of production, Cost of Cultivation

International Journal of Agriculture Sciences
ISSN: 0975-3710&E-ISSN: 0975-9107, Volume 10, Issue 8, 2018
|| Bioinfo Publications ||
5891
Economic Analysis of Cost and Return Structure of Paddy Cultivation Under Traditional and Sri Method: A Comparative Study
Table-1
Per Acre Input Used Pattern in Traditional and SRI Method of Paddy Cultivation
Sr.No
Particulars
SRI
TRADITIONAL
EXPENDITURE %
EXPENDITURE %
A
Variables
1
Seed
78.02
0.64
1165.68
8.32
2
Fertilizer
a
Nitrogen
390.32
3.21
377.85
2.7
b
Phosphorus
729.84
6
731.84
5.22
c
Pottash
0
0
0
3
Farm Yard Manure
775.71
6.38
459.12
3.28
4
Plant Protection Chemical
63.21
0.52
50.02
0.36
5
Human Labour
3721.95
30.62
5198.37
37.09
6
Bullock Labour
2108.03
17.34
1352.69
9.65
7
Machinery Labour
653.23
5.37
630.75
4.5
8
Irrigation
166.23
1.37
954.72
6.81
9
Interest on Working Capital @ 8%
173.73
1.43
218.42
1.56
Sub Total
8860.26
72.9
11139.47
79.49
B
Fixed Capital
1
Land Revenue
2.5
0.02
2.5
0.02
2
Rent Value of Own Land
1250
10.28
1250
8.92
3
Depreciation
852.69
7.02
286.95
2.05
4
Interest on Fixed Capital @12%
84.21
0.69
61.58
0.44
Sub Total
2189.4
18.01
1601.03
11.42
Managerial Cost
1104.97
9.09
1274.05
9.09
Total Cost of Cultivation
12154.63
100
14014.54
100
Source: Field Survey
Table-4
Prioritization of constraints in SRI method of paddy cultivation
SRI
Sl. No.
Problems
Percent
position
Garret value
Mean value
Rank
1
Management practices
5
82
63.84
I
2
Lack of water availability
15
70
55.96
II
3
Lack of getting skilled labour
25
63
51.8
III
4
Non-availability of machines and tools
35
57
51.76
IV
5
Disease and pest attack
45
52
48.5
VI
6
Lack of guidance from govt. officials
55
47
44.18
VIII
7
Lack of confidence in taking new technology
65
42
45.7
VII
8
Non-availability of pesticides or other
chemicals
75
36
40.52
X
9
Non-availability of cash or credit
85
29
43.08
IX
10
Non-availability of quality seed
95
18
51.38
V
Source: Field Survey
Objectives of study
To work out the cost and return structure of paddy cultivation under traditional and
SRI methods.
To analyze the major constraints confronted by the farmers under SRI method of
paddy cultivation.
Research Methodology
The study was based on the input and output data obtained from the respondents
in Burmu block of Ranchi district. For selection of respondent’s multistage
sampling design was employed. In this procedure, at first stage Ranchi district
selected purposively. From Ranchi district Burmu (paddy growing) blocks following
both traditional and SRI method of paddy cultivation were purposively selected.
The block was selected purposively because of the earlier experience of work in
the same block. Then on the third stage, five major paddy growing villages
(Geswe, Gutru, Katangdiri, Korabar, Surid) were selected from Burmu block. At
last, 20 farmers (10 SRI and 10 traditional System followed) were selected
randomly from each village Thus, the total sample size was 100.
Nature of Data
For the present study, necessary primary data were obtained from the
respondents through personal interview with the help of pretested and well-
structured survey schedule and observation methods. The data so collected
pertained to the kharif season of the agricultural year 2015-16.

International Journal of Agriculture Sciences
ISSN: 0975-3710&E-ISSN: 0975-9107, Volume 10, Issue 8, 2018
|| Bioinfo Publications ||
5892
Agarwal P.K., Yadav P. and Mondal S.
Analytical Approach
Estimation of Costs and Returns
The farm management, cost concept approach is widely used in India for
evaluating crop profitability in production. The cost concepts in brief, are Cost A1,
A2, B1, B2, C 1, C2, and cost C3
COST A1: This gives the total cash expenses incurred by the owner or operator.
It included the following terms of costs.
1- Value of hired human labour.
2- Value of bullock labour.
3- Value of machinery charges (except depreciation).
4- Value of fertilizers and manures.
5- Value of seeds.
6- Value of insecticides, pesticides and weedicide
7- Irrigation charges.
8- Depreciation on farm implements
9- Interest on working capital.
10- Land revenue paid to government.
Cost A2 = Cost A1+ Rent paid for leased in land, if any
Cost B1 = Cost A1+ Interest on value of owned fixed capital assets.
Cost B2 = Cost B1+ Rental value of owned land less land revenue + rent paid for
leased in land.
Cost C1 = Cost B1+ Imputed value of family labour.
Cost C2 = Cost B2+ Imputed value of family labour.
Cost C3 = Cost C2+10% of Cost C2 on account of managerial functions
performed by the farmer.
In the present study, the rent paid for leased in land was zero, as none of the
sample farmers took land on lease. Hence, cost A1 and cost A2 are similar.
Rates of Returns over Different Cost Concepts
Gross Income:
Yield of main product (in kg/acre) x their prices (Rs.) + Yield of by
product (in kg/acre) and their prices (Rs.)
Net Income:
Gross Income – Cost C.
Farm Business Income:
Gross Income – Cost A2
Farm Investment Income:
Farm business income- wages of family labour
Family Labour Income:
Gross Income – Cost B
For achieving the second objective simply Garret’s ranking technique was used
Garrett’s ranking technique
  

[3]
Where, Rij is the rank given for i
th
item by the J
th
individual
Nij is the number of items ranked by the J
th
individual.
The percent position of each rank was converted in to scores using Garrett table.
For each constraint, scores of individual respondents were added together and
were divided by total number of respondents for whom scores were added. Thus,
the mean score for each constraint was ranked by arranging them in descending
order.
Result and Discussion
The productivity and income from the crop production can be judged in better way,
if we analyse it with respect to the different costs incurred during cultivation of a
particular crop. The cost of cultivation and cost of production of any crop is the
most important aspect of the farm economy both at micro and macro level point of
views; it provides guideline to the government in promulgating the price policy
both for factors of production and the produce. Input wise cost was worked out in
two broad heads namely variable cost and fixed cost. The variable cost includes
cost of human labour (family and hired), machinery labour, seeds, manures,
fertilizers, pesticides, herbicides, and interest on working capital. On the other
hand, fixed cost involves land revenues, rental value of owned land and
depreciation [4]. The study revealed that SRI method has been found to be
considerably more profitable than traditional method in study area due to low input
expenditure. The total cost of cultivation was higher in traditional method (Rs
14014.54./acre) than SRI method (Rs 12154.63 per acre) in paddy cultivation.
Average variable cost was observed Rs. 8860.26 under SRI method while in
traditional method it was observed Rs. 11139.47 per acre. Expenditure on seed
was higher in traditional method due to high quantity of seed used. It was found
that, human labour cost was the major variable component in both SRI and
traditional method i.e., Rs.3721.95 and Rs.5198.37 per acre respectively. It was
calculated on the basis of wage rate prevailing in study area. The percentage
expenditure incurred on Irrigation component was more in traditional method i.e.,
6.81 percent while in SRI it was 1.37 percent of total cost of cultivation. It is
because SRI required less water than traditional method. It also indicates that the
water use efficiency pattern followed in SRI method of paddy cultivation.
Managerial cost was calculated as a fixed cost component that was 10 percent
[Table-1]. It was observed at the time of data collection that there is no rent paid
for leased in land in study area. So, Cost A1 and Cost A2 were same in both the
SRI and traditional methods. Per acre Cost A, B and C for traditional method were
more when compared to traditional method. For example, Cost C3 was more
about Rs. 1859.91 per acre for traditional method when compared to that in SRI
method. Cost A1, A2, B1, B2, C1, C2, and C3 are given in [Table-2]. The return
structure in paddy cultivation in the study area is given in [Table-3]. The yield
realized in traditional method was 1560.06 kg per acre, while it was 1821.17 kg
per acre in the SRI method of paddy cultivation. The yield differences were mainly
because of more number of productive tillers per meter square in SRI and due to
spacing maintenance principle followed by SRI cultivators. The gross return was
calculated from raw data was Rs. 27661.29 per acre under SRI method and in the
traditional method it was Rs. 22365.69 per acre. So, the difference of gross return
gained from SRI and the traditional method of Paddy cultivation was Rs.5295.6.
Where the net income of SRI method varied about Rs.7342.02 from traditional
methods. The net income gained from SRI was almost double as compared to
traditional method, the net income was Rs. 15506.66 in SRI method and in
traditional it was Rs. 8351.15. It was revealed from the table that the Net Cos t was
Rs.5130.64 per acre in the SRI method where in the traditional method it was
Rs.8873.76 per acre. Net Cost is almost double in the case of traditional method
with a comparison to the SRI method of Paddy cultivation. Cost of production,
which is the ratio of net cost and output was highest in traditional method Rs.5.69
per kg. as comparison to SRI method Rs 2.82 per kg. The return per rupees
investment was around Rs. 2.28 and 1.60 over variable cost under SRI and
traditional method respectively.
The farmers were asked to list priority wise ten major constraints they were facing
in SRI method of paddy cultivation. All these were sorted, screened and give them
a rank according to the Garrett method. The study revealed that the constraint
Management Practices’ was the biggest constraint in SRI method of paddy
cultivation with the mean score of 63.84, followed by ‘Lack of water availability’
with the mean score of 55.96. SRI method was new to them, management
practices are little different, they could not have carried it out properly. ‘Lack of
getting skilled labour’ was the third major constraint in SRI system with the mean
score of 51.8. The other constraints expressed by the sample farmers were Non-
availability of machines and tools, ‘Non-availability of quality seed, Disease and
pest attack, Lack of confidence in taking new technology, Non-availability of cash
or credit, etc. The SRI method was optimized with the help of ATMA in study area
they gave ‘conoweeder’, seed, pesticide etc. for promotional purpose [Table-4].
Table-2
Per Acre various cost concepts used in paddy cultivation under SRI and
traditional methods.
COST
SRI (Rs/acre)
TRADITIONAL
Rs/acre)
A1
7358.42
8986.85
A2
7358.42
8986.85
B1
7442.63
9048.43
B2
8692.63
10298.43
C1
9799.66
11490.49
C2
11049.66
12740.49
C3
12154.63
14014.54

International Journal of Agriculture Sciences
ISSN: 0975-3710&E-ISSN: 0975-9107, Volume 10, Issue 8, 2018
|| Bioinfo Publications ||
5893
Economic Analysis of Cost and Return Structure of Paddy Cultivation Under Traditional and Sri Method: A Comparative Study
Table-3
Comparison of return structure in SRI and traditional methods of paddy
cultivation
Rate of Return Over Different Cost Components
Particulars
SRI
TRADITIONAL
Gross Return
27661.29
22365.69
Income
Net Income
15506.66
8351.15
Farm Business Income
20302.87
13378.84
Farm Investment Income
17945.83
10936.78
Farm Labour Income
18968.66
12067.26
Cost of Production
Net Cost
5130.64
8873.76
Output
1821.17
1560.06
Cost of Production
2.82
5.69
B:C Ratio
B:C Ratio on Total Cost
2.28
1.6
Summary and Conclusion
The findings of this study demonstrate the superiority of SRI in terms of yield and
returns advantage. However, it is worth mentioning here that the actual adoption
rate of SRI among paddy growers is very low, these observation calls for urgent
needs of popularising the SRI method such as government, NGOs, and other
agencies should take initiative and enhanced the extension services for SRI
method. Skilled labour requirement particularly for transplanting and weeding
operations was the major constraint in paddy cultivation under SRI method. So,
timely guidance to the farmers and Agricultural labours through extension
agencies (KVK, NGOs) should be ensured.
Application of Research:
In this study, the author has focused on economic view point and constraints of
traditional and SRI method of paddy cultivation so the study is helpful in making
SRI method more efficient at field level for policy maker and extension worker
related to this.
Research Category:
Agriculture Economics
Abbreviations:
Acknowledgement / Funding:
Author thankful to Ramakrishna Mission
Vivekananda University, Morabadi, Ranchi, 834008, Jharkhand, India
*Research Guide or Chairperson of research: Dr Punit Kumar Agarwal
University: Allahabad State University, Allahabad, 211001, Uttar Pradesh, India
Research project name or number: A Comparative Economic Analysis of SRI and
Traditional method of Paddy Cultivation
Author Contributions: All author equally contributed
Author statement:
All authors read, reviewed, agree and approved the final
manuscript
Conflict of Interest: None declared
Ethical approval:
This article does not contain any studies with human
participants or animals performed by any of the authors.
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