An Economic Analysis of Processing of Cotton Crop Produce
Abstract
This study was conducted in 2011 covering 30 cotton growers, fifteen each commission agents and Cotton Corporation of India agents, twenty ginners and five spinners in six mandals of Adilabad and four mandals of Guntur district. Findings of the study revealed that, the average total cost of cultivation and net returns of Bt cotton was higher in Adilabad district ( 69607 and 36781.15 ha−1 respectively) as compared to Guntur district ( 63793.2 and 21901 ha−1 respectively). The average total cost incurred in the processing of kapas to lint and lint to yarn worked out to be 4630.87 and 17201.64 q−1 of kapas. The gross returns obtained from ginning one quintal of kapas were 4970.41, of which the returns from main product (lint) were 3978.81 and that from by product (seed) were 991.6. The value addition to the product in the process was 732.41. The net value added as a result of processing of kapas to lint was 339.54 q−1 of kapas processed. The gross returns obtained from processing (spinning) of one quintal of lint were 20435, which comprised of mainly returns from yarn ( 18250) and wastage ( 2185). The value addition in the process was 8435. The net value added as a result of processing of lint to yarn was 5933.36 q−1 of lint processed. The ginners have maximum financial profitability (1.86) followed by spinners (1.62) and farmers (1.39).
Keywords
Cotton, cost, return, ginning, spinning, profitability