Dynamics of Cotton Farming in Kalahandi District of Odisha

Abstract

The present research has attempted to explore the cost-returns profile and resource use efficiency of cotton cultivation in the Kalahandi district of Odisha by collecting primary data from 300 sample cotton farmers based on their operational landholdings. The resource use efficiency was measured using the Cobb-Douglas production function. The results concluded that the farmers should utilize more bullock labour, pesticide and seed inputs for higher benefits. The major cost components of cotton cultivation were hired human labour (23.89 per cent), followed by fertilizers (12.13 per cent), machine labour (10.09 per cent) and manure (10.02 per cent). The overall cost of cotton cultivation was `25,385 per acre, and the gross return was `56,799 per acre. The benefit-cost ratio of the overall farmers was estimated to be 2.23, indicating the profitability of the cotton crop. Keywords: Benefit-cost ratio, costs, resource use efficiency, returns. JEL Codes: C20, D61, Q12