Comparative economics of organic and inorganic paddy in Amritsar District of Punjab

The study analyzed and compared the cost and profitability of organic and inorganic paddy growers in the Amritsar district. In the present study, three farmers and two institutions practicing paddy’s organic farming and 60 inorganic paddy growers were interviewed for the study. Percentages, averages, and multiple regression analysis were used for the analysis of the study. The variable cost of production for organic paddy growers was 15.71 percent less than the yield of inorganic paddy growers but the yield was 26 percent less for organic paddy growers than inorganic paddy growers. Net returns of paddy organic growers were 36 percent higher than the net returns of paddy inorganic growers in the study area.Marketing patterns for organic paddy growers involved advertisements, social networks, or personal contacts which was a major hindrance in organic farming reported by paddy organic growers in the study area. Regression analysis revealed that factors affecting value productivity of paddy organic growers were operated area, labor, FYM, and Agni Astra, and factors affecting value productivity of inorganic paddy growers were laser leveling, plant protection spray, and DAP. The main problems faced by organic paddy growers were lack of proper marketing facilities for organic produce, low yield of organic produce, non-availability of biopesticides, and lack of training/extension facilities. The study suggested that to solve the problem of marketing organic produce, farmers in the nearby areas form an association to market-their produce. Separate social network groups can be formed for the organic farmers where the organic-farmers can share their experience, problems, and future course of action regarding organic produce. Certification of organic produce may be made easy for paddy organic farmers. The subsidy may be given by the government on inputs of organic farming to lower its cost of cultivation.