Wheat had highest average gross returns over cost of cultivation in 2020-21 rabi marketing season

Returns for wheat in India were highest in Haryana

Wheat had the highest average gross returns over the cost of cultivation (CoC) for rabi (winter-sown) crops in the 2020-21 rabi marketing season in India. As per the calculations of the Commission for Agricultural Costs and Prices (CACP), the average gross returns of wheat over CoC A2 (paid-out cost) and A2+FL (paid-out cost plus imputed value of family labour) during the triennium ending (TE) 2020-21 were Rs 51,396 per hectare or Rs 20,558 per acre (1 hectare=2.5 acres) and Rs 43,549 per hectare (Rs 17,419 per acre) respectively.

Safflower had lowest average gross returns during the 2020-21 RMS over CoC A2 and A2+FL at Rs 6,193 per hectare (Rs 2,477 per acre) and Rs 1,169 per hectare (Rs 477 per acre) among the rabi crops during 2022-23.

In its ‘Price Policy for Rabi Crops: Marketing Season 2023-24’, CACP stated that during the 2020-21 RMS the all-India average gross returns as percentage of CoC A2 were highest at 199.3% for rapeseed-mustard, and lowest for safflower (31.9%). The all-India average gross returns as percentage of CoC A2+FL were highest at 108.1% for wheat, and lowest at 4.8% in safflower.

During the 2020-21 RMS For wheat, per hectare returns over A2 and A2+FL costs were highest for Haryana at Rs 76,798 (Rs 30,719 per acre) and Rs 70,298 (Rs 28,119 per acre), while lowest returns over A2 cost were for Karnataka (Rs 9,058 per ha or Rs 3,623 per acre) due to lowest yield, and A2+FL cost for Jharkhand (Rs 1,257 per ha or Rs 503 per acre) because of significantly low yield and high paid-out cost of production. Returns over A2 and A2+FL costs of wheat for Haryana and Punjab were higher than all-India owing to higher yields and prices in these states than all-India average.

Among pulses, per hectare all-India returns over CoC A2 and A2+FL of lentil at Rs 32,724 (Rs 13,090 per acre) and Rs 26,370 (Rs 10,548 per acre) were higher than gram at Rs 29,662 (Rs 11,865 per acre) and Rs 22,337 (Rs 8,935 per acre) mainly due to higher prices of lentil. Returns of pulses at all-India level registered an increasing trend during TE2020-21.

Among oilseeds, returns over CoC A2 and A2+FL were significantly higher for rapeseed-mustard than safflower mainly due to very low productivity and high cost of production of safflower. In case of rapeseed-mustard, returns substantially increased during 2019-20 because of enhancement in yield and prices, and further increased during 2020-21 mainly due to significant hike in prices.

Per hectare maximum returns over A2 and A2+FL costs at Rs 65,681 (26,272 per acre) and Rs 59,211 (Rs 23,684 per acre) for rapeseed-mustard were registered for Haryana owing to highest yield and lowest paid-out cost of production including family labour. Minimum returns were realised over A2 cost at Rs 8,864 (Rs 3,545 per acre) for Odisha because of lowest yield and highest paid-out cost of production, and A2+FL cost at Rs 6,666 (Rs 2,666 per acre) for Assam mainly due to lowest prices.

Returns from cereals were higher than pulses and oilseeds mainly due to significantly higher yield and lower cost of production of crop under cereals. Due to reasonably high productivity and low cost of production, rapeseed-mustard has registered higher returns than pulses.

CACP stated that due to assured MSP, low-production risks and high profitability, wheat output has increased significantly in the country, while production of barley and oilseeds has declined or remained almost stagnant due to lower yields and market prices. Crop diversification from wheat to barley, pulses and oilseeds is needed to improve nutritional security, sustainability, and maintain demand-supply balance. To enhance farmers’ income, efforts are needed to reduce cost of cultivation/production, improve yield, ensure remunerative prices and provide assured market to farmers, particularly in barley, pulses and oilseeds, the commission mentioned in its rabi price policy report.

All-India average gross returns over actual paid-out cost of rabi crops (average from 2018-19 to 2020-21)

Source: CACP calculation
GVO: Gross value of output
A2: Paid-out cost

All-India average gross returns over actual paid-out cost plus imputed family labour of rabi crops (average from 2018-19 to 2020-21)

Source: CACP calculation
GVO: Gross value of output
A2+FL: Paid-out cost plus imputed family labour

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2020-21 ਦੌਰਾਨ ਹਾੜ੍ਹੀ ਦੀਆਂ ਫ਼ਸਲਾਂ ਦੀ ਸਕਲ ਆਮਦਨ

2020-21 में रबी फ़सलों के लिए सकल आमदन