Trends in input-output prices and income from Jowar in Maharashtra

Trends in input-output prices and income from Jowar have been studied in the state of Maharashtra based on time series data on the cost of production and input-output prices of jowar generated under the Comprehensive Scheme in Maharashtra (CACP Reports), covering the period 1992–93 to 2002–03. The simple index numbers of input-output prices and income have been computed by considering 1992–93 as the base year. The study has revealed the indices of average prices of major inputs of jowar to be more than double at the current prices during the period under study. At constant prices, these have increased by 81.90 per cent. The per quintal cost of production indices at current prices of jowar have shot up by 286.46 per cent, whereas, these have shown an increase of 113.83 per cent at constant prices. The price of jowar has increased by 102.08 per cent at Minimum Support and by 79.14, per cent at Farm Harvest Prices (FHP). The parity indices between FHP and input prices of jowar in Maharashtra have been found to be non-favourable because the market prices of jowar are not sufficient to cover the increased costs on inputs. The parity indices of gross income to per quintal cost of production of jowar have affected the profitability adversely. Compound growth rates of input prices have been found to be nearly double of the prices of output at MSP and FHP. It has been observed that the increase in gross income from the jowar crop is not sufficient to cover the increased cost of inputs in its production. For sustainable agriculture, the study has suggested that efforts be made to maintain parity between the input and output prices of jowar.