ECONOMIC ANALYSIS OF WHEAT PRODUCTION ACROSS CROPPING SYSTEMS IN NORTH - WEST INDIA

The variable cost constitutes nearly 46% of total cost involved in wheat production in Northwest
India. The study revealed that the cost of wheat production was well below the Minimum
Support Price but the farmers’ margin obtained by adding the value of family labour and rental
for owned land was only Rs. 18538/ha which was hardly sufficient to sustain a family for six
months in cotton - wheat region of Punjab state. The figure for rice- wheat region was
Rs. 18853/ha making no significant difference from cotton- wheat system. The cost of production
was less in cotton - wheat system but rice - wheat system was more productive. The yield of
crops was affected significantly by operational holding, seed and land preparation. Analysis of
variability and cost structure revealed that threshing, harvesting and land preparation were the
variables which affected the working cost and in turn cost of cultivation the most. So these
variables should be chosen as policy objects for the purpose of devising new technologies and to
lower the cost of production.