Agricultural Economics Division, Directorate of Wheat Research, Karnal-132 001, India.
The variable cost constitutes nearly 46% of total cost involved in wheat production in North-west 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.
