Temporal variation in input-output prices and cost of cultivation of soybean in Vidarbha

A study carried out on the temporal variation in input, output prices and cost of cultivation of soybean in Vidarbha region of Maharashtra state in India during 1999-2k to 2008–09 revealed that like other inputs, output price of soybean increased by 8.17% per annum. The output-input price parity was decreased during year 1999-2k to 2000–01, thereby indicating unfavourable trade for soybean growers. However, the trade was favourable after this period. With regards to cost of soybean cultivation per hectare, it increased from 10,399 to 17,397 indicating 1.67 times increase during the study period. Due to increase in the manure cost, its use was slightly decreased. However, the use of major critical input like seed was increased from 75.92 to 87.09 kg/ha due to changes in prices of seed. The average cost of production per tonne also varied from 8,608 (with an average yield of 1579 kg/ha) in 2003–04 to 15049 (with an average yield of 1156 kg/ha) in 2008–09. This clearly indicated that technological breakthrough in soybean cultivation had not compensated inflation as it was associated without yield increase. Thus, per unit cost of output did not decline over time. Similarly, the gross income from soybean at current prices increased @ 10.76% per annum between 1999-2k to 2008–09 and might be attributed to both increase in output price as well as increase in yield of seed/by product. However, the rate of increase in cost of cultivation per hectare at current prices was 6.59 per cent. This resulted in an improvement in the net income per hectare of soybean crop over the years. This was further reflected by output-cost ratio, which increased from 0.876 in 1999-2k to 1.138 in 2008–09. Thus, soybean cultivation became remunerative after 2004–05 in Vidarbha region of Maharasthra, India.