How Profitable is Agriculture in Indian Punjab: An Insight from Cost of Cultivation Surveys

The study elucidated that profits over A₁ and C₂ costs during the period 1981–82 to 2010–11 went up tremendously by 10.82 and 12.45 percent for wheat crop, 9.92 and 11.36 percent for paddy crop and 8.75 and 9.67 percent, for cotton crop. Cotton is a crop which has seen worse times during the period of study as serious pest attacks were recorded during the 1990's which affected its production and also led to increase in cost of cultivation. But, with the introduction of Bt cotton varieties, the yield increased and high returns were reaped by farmers growing cotton crop in Punjab. It was inferred from the study that the relative profitability from wheat and cotton crops had increased during the last decade while there was no major change in profitability of paddy crop. So, in order to make farming more remunerative, the Government should emphasize on the development of more high yielding varieties of wheat and rice, training of new farm technology should be given to farmers with emphasis on resource conservation Also, marginal and small farmers should use farm machinery on custom hiring basis to curtail the cost of cultivation.