Cotton Cultivation in Punjab: An Economic Analysis

The present study was conducted to analyze the economics of cotton cultivation in south-western districts of Punjab at two different points of time viz. 2001–02 and 2009–10. The cross-section data collected from centrally sponsored “Comprehensive scheme to study the cost of cultivation of principal crops in Punjab ”from seven villages of different tehsils of south-western zone of Punjab having more than 50 percent of the net sown area under cotton were taken for the study. The cost structure changed significantly during the two study years. During 2001–02, the major share (50.09 percent) in total variable cost was of plant protection, followed by human labor (24.50 percent), machine labor (7.13 percent), fertilizer (5.34 percent) and seed (4.48 percent). While during 2009–10, the major share (45.92 percent) was of human labor followed by seed (15.13 percent), machine labor (8.25 percent) and fertilizers (7.95 percent). Due to higher yield advantage, picking in Bt cotton required more labor as this operation is done manually. So, mechanization of picking operation can provide solution to this problem. Adequate storage facility and credit facility will help the farmers to avoid distress sale during glut period and increase their income.