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Agrarian crisis in wheat-producing region of India: analysis of profitability and costs

Author

Listed:
  • Ankur Jain

    (Jawaharlal Nehru University
    Manipal University Jaipur)

  • Neela Madhaba Sheekha

    (Jawaharlal Nehru University)

Abstract

The distress of the farming community has increased in the recent period due to the changes in climatic conditions and other vagaries of the monsoon. It has resulted in many farmers committing suicides and leaving farming as a profession as agriculture has become less profitable. Under this context, the present study examines the trends in profitability of wheat cultivation in major wheat-growing states of India. The crop failure and inability to pay the farm equipment loan are the chief culprits for the suicides. The verdict reveals that the number of times increases in cost C2 is higher than the number of times increase in value of production (VOP) of wheat in Uttar Pradesh, Haryana and Rajasthan, whereas in Punjab and Madhya Pradesh, the numbers of times increase in VOP are higher than the numbers of times increase in cost C2 and this happens in both agrarian crisis pre 1990s and agrarian crisis post 1990s period. There is intelligible relationship between wheat profitability and farmers committing suicides in all the selected states except Punjab where other socio-economic and psychological factors are important. There is an urgent need to increase public spending in agriculture and farmers should be given incentives for ensuring agriculture profitability to farmers as well as sustainability of food security in India besides removing the agrarian distress of crop failure and as well as realizing the goal of doubling of farmers' income.

Suggested Citation

  • Ankur Jain & Neela Madhaba Sheekha, 2022. "Agrarian crisis in wheat-producing region of India: analysis of profitability and costs," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 24(2), pages 320-339, December.
    • Handle: RePEc:spr:jsecdv:v:24:y:2022:i:2:d:10.1007_s40847-022-00186-0
    DOI: 10.1007/s40847-022-00186-0
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    References listed on IDEAS

    as
    1. Singh, Karam & Singh, Sukhpal & Kingra, H.S., 2009. "Agrarian Crisis and Depeasantisation in Punjab: Status of Small/Marginal Farmers Who Left Agriculture," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 64(4), pages 1-19.
    2. Reddy, A. Amarender, 2015. "Regional Disparities in Profitability of Rice Production: Where Small Farmers Stand?," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 70(3), pages 1-13.
    3. Narayanamoorthy, A., 2013. "Profitability in Crops Cultivation in India: Some Evidence from Cost of Cultivation Survey Data," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 68(1), pages 1-18.
    4. Gill, Anita & Singh, Lakhwinder, 2006. "Farmers’ Suicides and Response of Public Policy: Evidence, Diagnosis and Alternatives from Punjab," MPRA Paper 146, University Library of Munich, Germany.
    5. Narayanamoorthy, A. & Alli, P. & Suresh, R., 2014. "How Profitable is Cultivation of Rainfed Crops? Some Insights from Cost of Cultivation Studies," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 27(2).
    6. Grewal, S. S. & Rangi, P. S., 1976. "Impact of Input Prices on Production and Profitability of What and Paddy in the Punjab," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 31(3), July.
    7. Basu, Deepankar & Das, Debarshi & Misra, Kartik, 2016. "Farmer Suicides in India: Levels and Trends across Major States, 1995-2011," UMASS Amherst Economics Working Papers 2016-01, University of Massachusetts Amherst, Department of Economics.
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    More about this item

    Keywords

    Agrarian crisis; Farmer’s suicides; Cost of cultivation; Wheat crop; Profitability;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q02 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Commodity Market

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