Trends in input-output prices and their impact on profitability of crops in Haryana

In this paper, trends in input-output prices and their impact on profitability of crops have been studied, based on the data collected from various research/extension bulletins published by the Department of Agricultural Economics, CCS Haryana Agricultural University, Hisar. The study has revealed that the relative shares of labour have been declining in the study area, except in cotton, mainly due to mechanization of farming. The relative shares of purchased inputs, like chemical fertilizers, pesticides, etc. have increased due to adoption of modern input-intensive technology. The returns to investment have been found higher on cereals than pulses. An increasing trend has been observed in the prices of both inputs and output, but the higher increase in out-put prices enabled the barter terms of trade to turn favourable to agriculture, in general in recent period. The consumption of fertilizer has increased, but is still lower than other countries. This change in factor-product prices as well as adoption of improved technology over the years has resulted in improvement in productivity of crops, making India a food surplus country.

To increase the scope for multiple cropping, diversified agriculture and other technical improvements, a sound price policy should be devised for agricultural commodities that emphasizes on higher net returns per hectare than merely supporting higher prices per quintal.