An Economic Analysis of Mung Bean Seed Production Technology in Mau District of Eastern Uttar Pradesh

Seed is the numero uno input for agriculture, which determines the response of all other inputs viz., irrigation, fertilizer and plant protection chemicals etc. In the significant advances that India registered in agriculture in the last few decades, the role of the seed sector has been substantial. A sustained increase in agricultural production and productivity has been dependent on the development of new improved variety, timely and adequate supply of quality seed to the farmers. It is estimated that the direct contribution of quality seed alone to the total production is about 15-20 per cent depending upon the crop and it can be further raised up to 40 per cent with effective management of other inputs (Anonymous, 2007a). A superior quality seed not only increases productivity per unit area, but also helps to produce uniform crops without any admixtures which is important for obtaining high prices in the market.
       
Mung bean is grown on more than 6 million ha worldwide (about 8.5% of global pulse area) and India is the largest producer in the world (https://avrdc.org/). It is one of the important pulse crops of India occupying an area of 4.33 million hectare with the production of 2.17 million tons with an average productivity of 5.01 quintal/ha during 2016 (http://dpd.gov.in/). It is third important pulse crop of India after chickpea and pigeonpea (http://agropedia.iitk.ac.in/). Uttar Pradesh is also important Mung bean producing state in the country and it was grown in 0.92 lakhs hectares with production of 0.52 lakhs tons with an average productivity of 5.65 quintal/ha during 2016-17 (https://eands.dacnet. nic.in/). Summer is the main Mung bean growing season in the state (http://upagripardarshi.gov.in/).
 
Mung bean (Vigna radiata L.) also known as green gram and native pulse crops of India. It contains 56.6 per cent carbohydrate, 24 per cent protein, 1.3 per cent of fat, mineral (428.4 mg/100 g) and vitamins (2.86 mg/100 g) (Anonymous, 2007b). It is a drought and high temperature tolerant with soil enrichment properties, low input requirement, shallow rooted summer legume crop of high social and economic significance. It is extensively grown in tropical and subtropical Asia because of its wider adaptability (Poehlman, 1991). This crop is suitable for multi-cropping systems because of its fast growth and early maturity, which results in the increase of farmers’ income and improvement of soil fertility (Nsoukpoe-Kossi et al., 1999). However, its large-scale adoption is constrained by low yield potential due to various biotic and abiotic factors (Chotechuen, 1996).

Quality seed production is a specialized activity. The general farm produce retained for seed cannot be substituted for quality seed. Farm saved seed generally lacks genetic vigour and has poor germination (Singh et al., 1990).  Seed of Mung bean has significant share in its cost of cultivation, therefore the economics of Mung bean seed production has impacted both seed producers as well as its users. There are several studies pertaining to economics of Mung bean cultivation for commercial grain production (Samant, 2014; Poonia, 2017, Prem et al., 2017; Angadi and Patil 2018; Jat et al., 2016; Dash and Rautaray, 2017; Dash et al., 2018) and seed production in other crops (Pal et al., 2016a; Pal et al., 2016b and Pal et al., 2016c). But no studies have been made in relation to economics of Mung bean seed production. Considering these facts, the present study was taken with the objectives to study the economics of certified seed production of Mung bean with comparison to grain production.

The study is based on primary data collected from Mau district of Uttar Pradesh. Data and information have been collected through survey from certified seed growers under farmers participatory schemes of Institute (ICAR-Indian Institute of Seed Science, Mau, Uttar Pradesh) to estimate the economics of certified seed production of Mung bean. The list of certified seed growers of Mung bean under farmers participatory scheme has been obtained from the Institute. For comparison study, commercial grain producers of Mung bean were also selected randomly from the villages where farmers participatory scheme is in operation. The total number of selected farmers (commercial grain and certified seed producers of Mung bean) was fifty. The primary data for the study on input used in the grain and seed production of Mung bean and their costs and returns were collected by personal interview with the respondents using a well-structured and pre-tested interview schedule for the agricultural year 2017-18.
       
Institute is implementing farmers’ participatory seed production programme, where a Memorandum of Understanding (MoU) is signed between farmers and Institute. According to provisions of MoU, participating farmers should have possession of appropriate land (i.e. plain, productive, neutral pH, adept water holding and drainage facility) preferably on road side with irrigation facility and it should meet all land requisition standards as per certification (Indian Minimum Seed Certification Standards- 2013). Seed producer should grow single crop in field, the crop should not be grown as mixed or inter crops. With respect to isolation, inputs used in production process and inter-cultural operations, due care needs to be taken by farmers.  Registration of crop and seed certification charges are to be paid by farmers only. Institute accepts only processed seed and undersize/ rejected seed is returned to farmers. In case of pulse seed production, procurement price of particular crop is 20 per cent higher than Minimum Support Price (MSP) or highest APMC (Agricultural Produce Market Committee) price in intake month, whichever is higher. There is also a provision of 70 per cent advance payment to the farmer on raw seed submitted in the Institute.
 
Cost concepts
 
The cultivation cost of Mung bean (grain and seed) was worked out by using various cost concepts defined below:
 
Cost A₁ =   All the variable costs excluding family labour cost and including interest on working capital.
Cost A₂ =   Cost A₁ + Rent paid for leased in land.
Cost B1 =  Cost A₁ + Interest on value of owned fixed capital (other than land).
Cost B2 =  Cost B₁ + Rental value of owned land + Rent paid for leased in land.
Cost C₁ = Cost B₁ + Imputed value of family labour.
Cost C₂ = Cost B₂ + Imputed value of family labour.

The present analysis on cost of cultivation was worked out on per hectare basis separately for seed and grain production of Mung bean. The item-wise cost of cultivation of seed and grain production of Mung bean has been presented in Table 1. The table reveals that total cost of cultivation in grain and seed production of Mung bean was estimated to be Rs. 29360 and Rs. 38547 per ha. Human labour occupied the major share (41.89 and 39.69 per cent in grain and seed production respectively) of total cost in production of Mung bean. The high human labour requirement in seed production was mainly due to activities like inter-cultural operations, rouging, gap filling etc. The other items involved in production of Mung bean seed was machine labour, cost of seed, manures and fertilizers, plant protection chemicals and seed certification charges.  Variable cost was comparatively higher in seed production (Rs. 31652 per ha) than in grain production (Rs. 22665 per ha).


       
Cost of cultivation according to various cost concepts has been presented in Table 2 which reveals that all the costs were higher in seed production over grain production in Mung bean. The seed grower has to follow the recommended cultural practices to ensure genetic purity as laid down by the seed certification agency. Seed production plot must be weed free and off-type plants need to be removed. Proper drying and preliminary processing is another special operation in seed production. All these operations required additional labour. Also, certification charges are an additional expense in seed production. Hence, cost of cultivation was higher in seed production as compared to the grain production. The cost C₂ was higher by around 31.29 per cent in Mung bean seed production in comparison to grain production. The BC ratio was 1.46 in case of Mung bean seed production as compared to 1.28 in grain production.


 
Economics of Mung bean certified seed production
 
The cost and returns of certified seed production of Mung bean have been provided in Table 3. The ratio of fixed and variable cost in Mung bean certified seed production was 18:82. Human labour was the major component of cost on inputs applied for seed production in Mung bean. Its share in total costs was about 39.69 per cent. It was followed by machine labour accounting for about 15.31 per cent of the total cost of Mung bean seed production. The share of manures and fertilizers, irrigation, seed cost, plant protection cost and seed certification cost accounted for about 7.54, 6.23, 4.77, 4.54 and 1.53 per cent of total cost of Mung bean seed production. The total cost in certified seed production of Mung bean was Rs. 38547 per hectare. The average yield of Mung bean quality seed and rejected seed was 7.5 quintals and 1.5 quintals, respectively. The gross return and net return was Rs. 56175 and Rs. 17628 per hectare, respectively.

 

Comparison in Mung bean grain and certified seed production
 
The total cost of cultivation in Mung bean certified seed production was around 31.29 per cent higher than grain production while, gross return was about 49.80 per cent higher in seed production (Rs. 56175 /ha) than grain production (Rs. 37500/ha). Consequently, net return from seed production of Mung bean was 116.56 per cent (Rs. 17628/ha) higher than grain production (Rs. 8140/ha). Hence, production of certified seed has resulted in win-win situation for the farmers with higher yield and better quality of output. Because of seed production, seed producers fetched higher price than the grain in the marketing of produce. Graphical presentation of cost and return in Mung bean grain and certified seed production has been presented in Fig 1.



Cost of production and return over cost
 
The cost of cultivation and production according to cost A₂ and FL (Family Labour) and C₂ have been presented in Table 4. According to cost C₂, cost of production of Mung bean grain and seed was estimated to be Rs. 3915 and Rs. 4591 per quintal. The return to the farmers on cost C₂ was 27.71 and 45.72 per cent above cost of production for Mung bean grain and seed, respectively. Similarly, cost of production according to cost A2 and FL of Mung bean grain and seed was estimated to be Rs. 3089 and Rs. 3852 per quintal. The return to the farmers on cost A₂ and FL was 61.86 and 73.68 per cent above cost of production for Mung bean grain and seed, respectively.

 

Partial budgeting
 
The additional costs and returns incurred in the Mung bean certified seed production over grain production has been presented in Table 5. Table reveals that the increment in profit realized in Mung bean certified seed production was Rs. 9488/ha. The cost on human labour, irrigation, manures and fertilizers, plant protection chemicals, seed certification charges etc. mainly contributed to the increase in cost of certified seed production. The added return in Mung bean certified seed production were attributed mainly through the increased productivity in certified seed production and higher price realization of certified seed over grain. It can be concluded from the partial budgeting analysis that the adoption of certified seed production technology would provide an additional profit to the farmers.

The analysis shows that the ratio of fixed and variable cost in Mung bean seed production was 18:82. Human labour was the major component of cost (39.69 per cent of total cost). The total cost in seed production of Mung bean was Rs. 38547 per hectare. The gross return and net return was Rs. 56175 and Rs. 17628 per hectare, respectively. The BC ratio was 1.46. The total cost of cultivation in Mung bean certified seed production was around 31.29 per cent higher than grain production while, gross return was about 49.80 per cent higher in seed production than grain production. Consequently, net return from seed production of Mung bean was 116.56 per cent higher than grain production. The return to the farmers on cost C₂ was 27.71 and 45.72 per cent above cost of production for Mung bean grain and seed, respectively. Similarly, cost of production according to cost A2 and FL (Family Labour) of Mung bean grain and seed was estimated to be Rs. 3089 and Rs. 3852 per quintal. The return to the farmers on cost A₂ and FL was 61.86 and 73.68 per cent above cost of production for Mung bean grain and seed respectively. Partial budgeting analysis shows that the increment in profit realized in Mung bean certified seed production was Rs. 9488/ha. Production of Mung bean seed has resulted in higher profitability situation for the farmers. The net return from Mung bean seed production was encouraging and the same may be popularized among farmers for higher profitability and income generation.