Production efficiency and marketing constraints of basmati rice in Punjab: An economic analysis

The present study has been carried out to analyze the production and marketing of basmati rice in Punjab using the cross-section data collected under centrally sponsored “Comprehensive scheme to study the cost of cultivation of principal crops in Punjab” during the agricultural year 2018–19. In Punjab the area, production, and productivity of basmati increased significantly with a compound annual growth rate of 10.62, 14.52, and 3.53 per cent, respectively during the period 2001–02 to 2020–21. Paddy and wheat were the dominant crops grown by the selectedfarmers with a share of 35.51 per cent and 43.60per cent, respectively in the gross cropped area. The per hectare total variable cost of basmati cultivation in Punjab was Rs. 55021during 2018–19. Per hectare gross returns from basmati cultivation were Rs. 128262 and the returns over variable cost were Rs. 73240 in the Punjab state. The operations of transplanting, irrigation and harvesting & threshing were the major labour-intensive operations in cultivation of basmati rice. The per hectare usage of tractor in basmati cultivation has been found as 12.72 hours comprising 85 per cent owned and 15 per cent hired tractor use. Average hiring charges of tractor were found to be about Rs. 892 per hour. The major constraints faced by the farmers in production and marketing were lack of latest technical knowledge, high labour cost, unavailability of good quality FYM in time, lack of finance and credit facilities, the occurrence of rice diseases, not getting remunerative price for the produce, unorganized marketing & unstable price, lack of market information and high commission charges. Suitable policy measures need to be developed to overcome these constraints.