Indian Journal of Economics and Development
  • Year: 2018
  • Volume: 14
  • Issue: 1a

Development of Optimum Farm Plans for Enhancing Farmers Income in Agrarianly Distressed Marathwada through Multi-Criteria Decision Making in Farm Planning§

1Navsari Agricultural University, Navsari-396450 (Gujarat)

2Division of Dairy Economics, Statistics, and management, National Dairy Research Institute, Karnal-132001 (Haryana)

*Corresponding author's email: vishal.lotus@gmail.com

JEL Codes: C61, E64, Q12, Q18.

Abstract

In the middle of the agrarian distressed scenario, government focusing on special efforts in realigning its interventions to move from ‘production-centric ’to ‘farmers ’income-centric ’platform. As documented by NITI Ayog, efficient use of farm resources forms one of the major sources of growing farmers ’income operating within agriculture sector. As farmers have multiple goals running through his mind, it was crucial to think beyond traditional single objective resource optimization to multiple objective decisions making. In this concern, this study aimed to develop optimum farm plans considering the combination of crop and dairy enterprises subject to limited availability of farm resources. Primary data pertaining to crop and dairy enterprises were collected from 100 dairy farm households in Latur district of Marathwada as the district forms the best representation of agrarian distress in the region. The analytical technique used was multi-criteria goal programming model. It was found that marginal and small farmers have the highest aspiration level than other farming categories in goals such as net return and total production. Optimum farm plan for landless dairy households suggests that replacement of crossbred to indigenous cow can enhance net return from existing 36211 to 51118 and total production from 45 quintals to 70 quintals per annum. Farm plan for marginal and small farmers can increase income to 130000 from existing 64174.47. Suggested combination of farm resources for medium and large farmers enhances the income to 320000 and 450000 desired by farmers from existing 180156 and 278737 respectively. Optimum farm plans for all the farming categories suggest shifting the area under soybean and wheat to tur and gram and inclusion of high productive milch animal species instead low productive indigenous cattle. The suggested optimum plan can have its positive impact on the returns of households only in presence of proper institutional revamp.

Keywords

Agrarian distress, Goal programming, Marathwada