An Economics Analysis on Production of Maize in Serchhip District, Mizoram, India

An Economics Analysis on Production of Maize in Serchhip District, Mizoram, India

R. Lalrinmawii^* , Sanjay Kumar , Ashish S Noel

Department of Agricultural Economics, Sam Higginbottom University of Agriculture, Technology and Sciences, Prayagraj- 211007, Uttar Pradesh, India

Corresponding Author Email: lalrinmawiirenthlei10@gmail.com

DOI : http://dx.doi.org/10.53709/CHE.2021.v02i04.008

Abstract

Keywords

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INTRODUCTION

Maize (Zea mays L.) is one of the most versatile emerging crop shaving wider adaptability under varied agro-climatic conditions. Globally, maize is known as queen of cereals because it has the highest genetic yield potential among the cereals [1-4]. It is cultivated on nearly 190 m ha in about 165 countries having wider diversity of soil, climate, biodiversity and management practices that contributes 39 % in the global grain production. India is one of the top 10 maize producers in the world; it contributes around 2-3% of the total maize produced globally and is one of the top-5 maize exporters in the world contributing almost 14% of the total maize exported to different countries around the world. South-East Asia is the biggest market for Indian maize with almost 80% of the exported Indian maize going to Indonesia, Vietnam and Malaysia [5-7].

The total cultivated area of maize in India is over 9.0 million ha (2013-14), with most of the Indian states growing it. Ten states in India represent around 80% of the total area of maize grown. Karnataka (15%) is the largest state for maize cultivation followed by Rajasthan (13%) and Madhya Pradesh (10%).  Maize farming in India is important because it has a high export potential and a large population of marginal farmers are dependent on it. Maize is also important for India as it is a component of the national food security programme. About 9005.00 ha land (Statistical abstract 2011-2012, Directorate of Agriculture –CH, Aizawl, Mizoram) is reported to have been brought under maize cultivation in the state of Mizoram during the year 2011-2012 [8-9]. The Mizoram Agriculture Department is taking steps to increase maize production despite an outbreak of the fall armyworm, which has left a trail of destruction in the fields across the state. The production of maize in the state was 8,911 metric tonnes in 5,779 hectares in 2016-17, while it was 9,470.6 MT IN 5,979.2 hectares in 2017-18. An increase in the cultivation area and production is expected due to the department’s concentration on maize cultivation in the low-lying areas of central Mizoram serchhip district under the Rashtriya Krishi Vikas Yojana. Additional seeds have been distributed for rabi and kharif crops.

RESEARCH METHODOLOGY

Study Area

The district is mostly a hilly terrain with two main rivers flowing viz. Tuichang and Mat. Area upto slope 35 is only 389.86 sq. km with water body of only 4.55 sq. km.  Temperature varies from 32℃ in summer and 9℃ in the Winter. The population of the district is 64937 as per the 2011 census of which 32851 were males and 32086 were females. The rural population is 50.69%. The district is thinly populated with 46 persons per square km, which is much below the State average of 52 persons per square km. The district has a literacy rate of 97.91%.

Table 2.1 Land utilization pattern of selected District

Source: Census 2011 and Dept. of Agr/Dir. of Eco. and Stat

Serchhip district consist of 2 blocks viz Serchhip and east lungdar. Since there are only 2 blocks both the blocks was selected purposively. A list of 12 villages was under selected block where 6 villages namely Hmawngkawn, Khawlailung, Hualtu, Mualcheng, Sailulak and Leng were selected again based on the highest number of production of Maize. A list of maize growers of selected villages was prepared along with their size of holding and it was grouped into three categories small, medium and large farmers.

Data collection

Primary Data

The personal interview method was adopted for data collection from the selected respondents. The data includes production, cultivation, packing practices, transportation pattern and constraint.

Secondary Data

The Data regarding the number of Maize grower in the districts and villages and also the agro economic aspects of the study area were collected from District Agriculture Office, Serchhip.

Analytical tools and technique

Suitable tabular as well as functional analysis as per need was applied to analyses the data and presentation of the results.

Descriptive statistics

Tabular presentation was adopted to compile the general characteristics of the different size of farm respondents, determine the resource structure, cost structure, returns, profits and opinion of respondents regarding the problems in production. Simple statistical tools like averages and percentages were used to compare, contrast and interpret the results properly.

Financial analysis

The techniques used for the financial analysis are:

Measures of Cost Concepts

The different costs items are that are included under each cost concept are detailed below with their procedures.

1. Cost- A₁: It includes the value of:

• Imputed value of machine charges (hired and owned)
• Bullock charges (hired and owned)
• Cost of Seeds
• Cost of Manures and fertilizers
• Cost of Plant protection chemical
• Cost of Irrigation charges
• Miscellaneous charges
• Interest on working capital
• Depreciation on fixed resources
• Land revenue paid to government
• The total of all these cost items make up Cost A₁

1. Cost A₂ = Cost A₁+ Rent paid for leased-in land, if any.
2. Cost B = Cost A₂ + Imputed rental value of owned land + interest on owned fixed capital.
3. Cost C = Cost B + Imputed value of family labor. Cost C is the total cost of cultivation or gross cost.
4. Cost C3: Cost C2 + 10 % of C2 (managerial cost).

Benefit- Cost Ratio
The benefit cost ratio (BCR) was worked out by using following formula:
B:C ratio =(present worth of benefit)/(present worth of cost)

Measures of Farm Profitability:

1. Gross income = per quintal price* yield per hectare in quintal
2. Farm business income = Gross income – Cost A₂
3. Net income = Gross income – Cost C
4. Family labor income = Gross income – Cost B
5. Input output ratio (cost benefit ratio) = Gross income ÷ Cost C

Garret ranking

It is used to find out the most significant factor which influences the respondent. As per this method, respondents have been asked to assign the rank for all factors and the outcomes of such ranking have been converted into score value with the help of the following formula:

               Percentage= 100 (Rij – 0.5)

                                              Nj

Where, Rij = Rank given for ith item by jth individual

              Nj =No. of items ranked by jth individuals

RESULT AND DISCUSSION

Cost of maize crop and Return in the sample farms

The result of the analysis in this study shows the different group of maize growers which are classified as small, medium and large [9-12]. The analysis of cost and return of maize shows whether the farm business is profitable or not. It has been analyzed that the Maize production is highly market oriented and it mainly depends on the production trends. Due to different schemes introduced by the department of agriculture production tend to increase over time (Table 2).

Cost of cultivation of maize in the sample farms

Cost of cultivation includes variable cost as well as fixed cost. This cost includes hired labour charges, family labour charges, machinery labour charges, cost of seed, cost of irragation, cost of plant protection, interest on working capital, depreciation on fixed resources, land reveenue paid to the government, interest on fixed capital and rental value of land. The sample average for total cost was (Rs26667.75/ha) in different size of farms group. The distribution of pattern of operational cost under various inputs revealed that the cost of family labour was the highest in the small size family (Rs9300.00/ha), followed by medium size farms and large size farms (Rs9263.00/ha and Rs9109.00/ha). The machinery labour charge range from Rs2000.00 (small size farms) to Rs1729.00 (large size farms). For plant protection, herbicide and pesticide were used and the cost range from Rs 606.00 /ha (small size farms) to Rs 478.00/ha (large size farms). Labourers were hired only during harvesting period and the cost range from Rs 5440.00/ha (small size farms) to Rs 5267.00/ha (large size farms) [11-13].

The sample average for depreciation on fixed resources was Rs 234.10 and the interest on fixed capital and working capital sample average were Rs 16.65 and Rs 141.71 in different size of farms group. The sample average for land revenue paid to the government was Rs 378 and rental value of own land was Rs 6489.21 in different size of farms group (Table 1).

Cost concept in maize crop in the sample farms

Cost concept is the financial valuation of the resources, materials, time and utilities spent to purchased goods and services. Cost A1 was highest in small size farms Rs 8889.85/ha, followed by medium size farms Rs 8503.16/ha and large farms Rs 8112.12/ha. Cost C was highest for small size farms Rs 25228.56/ha, followed by medium size farms Rs 24228.28/ha and small size farms Rs 23254.40/ha respectively. Cost B1 was highest in small size farms Rs 9090.56/ha, followed by medium size farms Rs 8649.23/ha and large farms Rs 8232.10/ha respectively.

The sample average for Cost A1, Cost B1, Cost B2, Cost C, Cost C3 and Cost C2 were Rs 8452.81/ha, Rs 8594.52/ha, Rs 15083.73/ha, Rs 24182.67/ha, Rs 226738.5/ha and Rs 24307.73/ha in different size of farms group (Table 3).

Measures of farm profitability in the sample farms

The sample average was Rs 31020/ha for different size farms. Farm business income for small, medium and large size farms were Rs 21350.15/ha, Rs 22096.84/ha and Rs 23767.19/ha respectively. The sample average for Farm Investment Income was Rs 13343.19/ha for different size of farms group. The Net return sample average was Rs 6782.92/ha. The sample average for Family labour income was Rs 16061.33/ha. Input – output ratio was highest in large size farms 1:2.5, followed by medium size farms Rs 1:2.3 and small size farms 1:1.1 (Table 4).

Constraints in production of maize in the sample farms

The sample farmers were asking about the constraints and problems they faced during the production of maize. A questionnaire were given to the sample farmers from which the constraint was mostly due to crop damage by wild animals according to the respondent and was rank 1, followed by lack of availability of seed on times rank 2, pest and disease attack  rank 3, non-availability of quality seeds locally rank 4, shortage of fym rank 5, non- availability of labor during peak period rank 6, lack of information about govt. schemes & subsidies rank 7, non- availability of skilled labor rank 8, high cost of fertilizer and chemicals rank 9 and fluctuating temperature rank 10 respectively (table 5).

Table 1: Cost of Cultivation of Maize Crop per Hectare in Different Size of Farms Group

(Note: Figure in parenthesis indicate the percentage to the total)

Table 2: Cost and Return in Maize Crop per Hectare in Different Size of Farms Group

Table 3: Cost Concepts in Maize Crop per Hectare in Different Size of Farm Group

Table 4: Measures of Farm Profitability in Maize Crop per Hectare in Different Size of Farms Group

Table 5: Constraints in Production of Maize in Different size of Farms Group

Note: Figures in the parenthesis indicate percentage to the total

CONCLUSION

The study reveals the production of Maize in Serchhip district, Mizoram. From the study it is known that most of the grower has small size farms but the production is more profitable in large size farms. The entire respondents were found to be literate, well economic background and greater access to all the assets. There was no used of any fertilizer therefore the entire produce were organic.

Abbreviation: viz- videlicet

DECLARATION

Ethics approval and consent to participate: All the data collected was done with an approval by the other party.

Consent for publication: Not applicable

Availability of data and materials: All data generated or analyzed during this study are included in this published article [and its supplementary information files].

Competing interest: Authors have declared that no competing interests exist.

Funding: Not applicable

Author’s contributions: This work was carried out in collaboration between all authors. Author R. Lalrinmawii designed the study, performed the statistical analysis, wrote the protocol, and wrote the first draft of the manuscript. Author SK and AN managed the analyses of the study. All authors read and approved the manuscript.

Acknowledgment: Not applicable.

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