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Economic Analysis of Small Onion in Southern Tamil Nadu

BY: Dr. Rajendran T | Category: Agriculture | Submitted: 2017-04-26 09:16:35
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Article Summary: "The small onion prices may be bringing tears to the consumers. But the farmers who are engaged in the cultivation of the crop in the Tirunelveli district are making a handsome profit this year as the prices have shot up to Rs. 40 to Rs. 45 a kg..."


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Economic Analysis of Small Onion in Southern Tamil Nadu
Authors: Dr. Rajendran, T

INTRODUCTION

The small onion prices may be bringing tears to the consumers. But the farmers who are engaged in the cultivation of the crop in the Tirunelveli district are making a handsome profit this year as the prices have shot up to Rs. 40 to Rs. 45 a kg.

Small onion is a short-term crop. Its water requirement is modest when compared to paddy and sugarcane. Since cash crops like turmeric do not fetch good income. The return is good because the price remains high in the market, says Thiru. Duraimurugan [Mobile No: 078454 16243] farmer in Village of Kanmaniyapuram, Kadayanallur Taluk, Tirunelveli Distirct, who cultivated small onions in an acre of his land.

It is also important to conduct an economic analysis of small onion as way of study, which will help to improve the productivity of the farmers through appropriate policy interventions.

OBJECTIVES

Major objective of the study is to assess the economic analysis of small onion. In the very famous tool of Case Study, The specific objectives were:

i. to assess the economics of small onion; and

ii. to suggest the policy measures to improve productivity of small onion farmers.

METHODOLOGY

Let us see what’s happening in the actual situation in the field of economic cultivation for Small onion. The actual practices are done [Case Study] by Thiru. Duraimurugan, [Mobile No: 078454 16243] from Kanmaniyapuram, Kadayanallur Taluk, District of Tirunelveli.

PERIOD OF STUDY

The study was conducted during October, 2016

LIMITATIONS OF THE STUDY

The study is primarily based on the field level data collected through interviews and discussion with the farmers. Hence, the usual limitations resulting from the recall bias of the farmers apply to this study as well, further, this study was done in a specific agro-climatic region covering specific time period and hence the results should be carefully interpreted.


RESULTS AND DISCUSSION

The following costs of operations in small onion were gathered and discussed very consciously. Let us see the actual cost of cultivation of small onion and make an attempt which factors of production is to be give more profit with maximization of productivity,

Table No: 1 Economics of Small of Onion [acre]

S. No

Operations

Quantity [kg/lit/

Number/Hours]

Value [Rs]

1

i. Main field preparation Tractor ii. Ridges and furrows JCP

3

3

3600

4200

2

Seed rate [bulbs] Rs. 22/kg

400

8800

3

Sowing and Planting Rs. 150/female labour

18

2700

4

Irrigation

3

450

5

Manures and Fertilizers First time i. Basal application - DAP ii. N:P:K Second time N:P:K

150

60:45:30

30:60:45

3150

1800

2250

6

Weeding First time Second time

12

18

1800

2700

7

Plant protection i. Fertilizers Ammonium Sulphate:P:K ii. Thrips

60:15:15

3

3000

6000

8

Harvesting

75

11250

9

Transport Truck

3

450

10

Market Commission charge

550

Total Cost

52700

11

Profit Rs. 10/kg

6000

60000

Benefit-Cost Ratio

1:1.4

The above Table 1, will shows that the benefit-cost ratio is 1:1.4 that means, if the farmer will spend one rupee the profit is rupee 1.4. Have you aware that what is the implication? Yes. The farmer has been really struggling with the Break-Even Point. They face huge loss owing to poor yield.

He has to modify their production pattern and verify the each cost component, which component to be minimize and which inputs might add to get higher profit with lower cost production,

SUGGESTIONS

  • Normally rain brings cheers to farmers. But it does not shower blessings on small onion growers who face huge loss this season, owing to poor yield. Incessant rain in November-end did the maximum damage to standing onion crops on thousands of hectares in the district. Fog since mid-December too harmed the crop further.
  • Onion growers feel the burden only when they attempted to harvest. Now, they harvest only 50 per cent of total yield they got in last season.
  • Sharp slump in yield resulted in steep hike in prices of onion in whole sale market. But such price hike does not benefit them as it fails to meet their initial costs even.
  • Most of the farmers in India sell their produce through village level markets, fairs, Mandies, Co-operative Societies, and directly through intermediaries like agents etc.
  • In the above process of agricultural marketing, there may be possibility of middlemen exploit farmers as well as consumers. Consequently farmers has not get fair price and even not able to meet the cost of cultivation results in indebtedness.
  • In order to eliminate the middlemen between farmers and consumers, government level intervention worked out by the policy makers in different state introduces the farmer market concept as an alternate to agricultural marketing. It is being known by different names like Uhavar santhai, buy-back segment, direct marketing etc.,


References:

1. Farm survey, 2016
2. Horticultural Crop Production Guide, 2013


About Author / Additional Info:
Working as Asst. Professor [Agrl. Economics] at Agrl. College and Research Institute, Killikulam, Vallanad - 628 252. Handling the UG, PG Courses and Guiding the PG Students.

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