An Estimation of Cost and Returns of Cultivation of Major Crops in Punjab

The present study attempted to analyze the costs of significant crops cultivated in the various parts of Punjab. The field survey data were collected from the depleted districts of the Punjab, i.e., Ludhiana, Jalandhar, and Taran Tarn district. The results revealed that human labour was the most critical variable cost component, nearly 60 and 50 per cent of rice and wheat production costs in the selected districts. The returns over cost ratio of paddy and wheat was 2.24 and 1.56 per cent, highest in the Tarn Taran district as compared to Jalandhar and Ludhiana, respectively; however, this ratio for basmati crops was found to be highest in the Jalandhar district. To conclude, the paddy and wheat crops were profitable in the Tarn Taran district, and the basmati crop was profitable in the Jalandhar district. There is a need to increase the market structure for basmati and alternative crops.