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Assessment of Cost of Cultivation of Agricultural and Horticultural Crops in Tripura


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Assessment of Cost of Cultivation of Agricultural and Horticultural Crops in Tripura

1. Introduction

Tripura is one of the seven states in the north eastern part of India located between 22 degree and 56 minutes and 24 degree and 32 minutes north latitude and between 90 degree and 09 minutes and 92 degree and 20 minutes east latitude.

Map of Tripura

It is bounded on the north, west, south and south-east by Bangladesh whereas in the east it has a common boundary with Assam and Mizoram. Tripura is a hilly and landlocked state endowed with vast green forests and established gas reserves. The state has a total area of 10492 sq. km. The state has a long border with Bangladesh of 856 km., whole Tripura is divided in eight districts ((Map of Tripura). As in the other states of the north east, Tripura’s economy is primarily agrarian, and agriculture and its allied activities contribute nearly 34 % to the state’s Net Domestic Product (Map 1). Rainfall is the primary determinant of crop production in Tripura. However, rainfall is highly variable in terms of length of the rainy season and amount of rainfall. This variability had a significant impact on rainfed agriculture in the state. Rainfed lowland rice ecosystems are highly variable and unpredictable in nature. Multiple abiotic stresses such as unfavorable soil conditions, regional weather



patterns, topography, pests and weeds all contribute to the complexity of the ecosystem. The income of most farmers is low and they are challenged by erratic yields. The average of rainfall over a long period of time is showing that the amount of rainfall is sufficient for growing of at least two crops in a season. There is sufficient amount of rainfall starts from April (172.3 mm) to October (186 mm) as depicted in Fig. 1. Normal distribution of rainfall of Tripura showed that the approximately ±200 mm rainfall received from April to October in each month. This rainfall pattern provides sufficient residual soil moisture for growing lentil in rice fallow after harvest of rice. Land use pattern show a unique trend in Tripura (Table 1).

Fig. 1. Normal rainfall distribution in Tripura

Table 1. Land use pattern in Tripura

i ) Total geographical area 10, 43,169 ha.

ii ) Net area sown 2, 55,524 ha.

iii ) Forest area 6.29,429 ha.

iv ) Area sown more than once 1, 92,968 ha.

v ) Gross area sown 4, 48,492 ha.

vi) Cropping intensity 176%

2. Economy of Agricultural crops in Tripura

The agricultural sector is the largest contributor to the economy of Tripura state. Besides striving to meet the food requirement, the sector has a strong impact on the needs and overall quality of life of the people of Tripura. More than 75% of the state's total workforce is still dependent on agriculture for their subsistence. The ICAR and state departments have been trying to alleviate farmers’ problems through introduction of new technologies, fertilizers, improved seeds and protective chemicals since their inception in Tripura. The agricultural production and productivity depends largely on the quality of land and sustainable practices. A balance between efficient and productive agricultural enterprise and environmental protection and sustainability is important to make agriculture sector an economically viable venture. In the recent decade, the achievement of self-



sufficiency in food production in various states was accorded high priority in the food policies of the country. Tripura, one among the north eastern states of India is also successful in achieving self- sufficiency in various sectors by increasing its food production in manifolds. But, it has not yet solved the problem of chronic food security at the household level and year to year fluctuations in food production.

During the past two decades or so, agriculture sector has experienced many changes in its production, consumption, distribution and trade regimes due to the changed global economic scenario.

In this ambience, the importance of accurate and up to date information on the economics of agricultural crops can hardly be overemphasized. The knowledge of the cost and return structure of different crops is crucial for policy formulation, selecting appropriate production strategies and identifying regional comparative advantages in crop production. The reliable information on cost and return of various crops helps the farmers in allocating the scarce resources most optimally. Besides, such information is of critical importance to the financial and insurance institutions to make provisions for farm credit and fix insurance premium.

Agriculture in Tripura has traversed a long way during the past decades. The growing unavailability of landholdings, almost stagnant productivity of all the agriculture and horticulture crops, livelihood security concerns, increasing incomes, changing consumption patterns and availability of newer technological options have tempted the farmers to shift to new crops or follow modern production technology in the state. The major crops of Tripura are grouped broadly under agriculture crops, vegetable crops and fruit crops, but, area, production and productivity vary from one agri sub-division to other agri sub-division. The area, production and yield of different agriculture crops and vegetable are depicted in the following Table 2-6.

Cost of cultivation surveys are carried out to collect data on the various inputs used for the cultivation of crop. Cost of cultivation surveys are very intensive surveys and is one of the most important mechanisms for data generation on cost structure of crops. Under these surveys the data are collected through an inquiry based method, where information on the inputs used for the cultivation of various crops are obtained by direct inquiry from the farmers or more precisely through the personal interview method. The farmer is visited repeatedly to record the information on input use correctly and properly throughout the growth stage of the particular crop i.e. from planting to till the time of harvest, as the use of input is a continuous process which goes on from beginning to end. Through these surveys a huge volume of data is generated and the data so collected is generally used to work out cost per unit area or cost per unit weight. This particular aspect of cost of cultivation surveys is a problem area, but despite the fact these surveys have been carried out across all the districts of Tripura. The main objective of the study was to assess actual cost of cultivation incurred by the farmers for different agricultural and Horticultural crops in the state.



Table 2. Area, production and yield of different agriculture crops

Crops Area (ha) Production (MT) Yield (kg/ha)

Aush 33971 86286 2540

Aman 145149 434982 2997

Boro 57272 172961 3020

Jhum 18351 18993 1035

Total Rice 254743 713222 2800

Wheat 650 1300 2000

Maize 3632 4703 1295

Arhar 1498 1124 750

Moong 386 207 536

Black gram 827 512 619

Other 1928 1265 656

Total Kharif Pulses 4639 3108 670

Moong 281 163 580

B/Gram 554 371 670

Lentil 475 324 682

Pea 995 758

Gram 164 127 774

Other 1331 1107 832

Total Pulses (Kharif +Rabi)

8439 5958 706

Total Food grains 267464 725183 2711

Sesasum 2085 1188 570

Kharif Groundnut 232 251 1082

Total Kharif Oilseed 2317 1439 621

Rape & Mustard 2132 1701 798

Rabi Groundnut 365 480 1315

Total Rabi Oilseed 2497 2181 873

Total Oilseed (Kharif +Rabi)

4814 3620 752

Source: - Department of agriculture.



Table 3. Area and production of kharif and summer vegetables in different districts.

Crop Dhalai Gomati Khowai North Sepahijala South Unakoti West

Area(ha) Production (MT)

Area (ha)

Production (MT)

Area (ha)

Production (MT)

Area (ha)

Production (MT)

Area(ha) Production (MT)

Area (ha)

Production (MT)

Area (ha)

Production (MT)

Area (ha)

Production (MT)

Bhindi 205 1975 195 1898 223 2156 147 1425 225 2100 215 1950 230 1822 225 2500

Brinjal 150 2804 170 3211 225 4225 148 2767 275 2652 252 2346 106 1030 330 3161

Spine gourd 75 1469 95 1871 99 1952 110 2168 292 5496 192 3622 118 2207 350 6594

Pointed gourd

70 829 65 774 50 602 60 715 120 2361 116 2282 80 1567 146 2868

Ridge gourd

90 1612 112 2011 142 2540 155 2772 59 703 79 939 45 535 71 843

Bitter gourd 65 622 85 815 99 945 103 982 152 2729 132 2369 103 1844 210 3776

Bottle gourd

95 1713 85 1533 72 1306 80 1453 121 1160 105 1005 75 717 150 1444

Sweet gourd

75 1501 97 1937 84 1684 130 2592 90 1623 95 1726 60 1084 110 2014

Ash gourd 65 1105 48 822 75 1280 95 1617 105 2107 118 2367 102 2036 124 2492

Snake gourd

10 112 32 344 7 80 10 112 98 1668 58 991 69 1169 102 1739

Colacasia 185 3081 115 1919 125 2094 205 3393 15 165 38 407 13 144 10 112

Yam 5 111 10 233 8 188 6 132 145 2422 142 2371 154 2551 198 3309

Jal kachu 85 1609 45 853 52 990 107 1992 7 166 15 346 5 111 5 119

Cucumber 75 901 95 1142 115 1381 102 1211 61 1161 30 571 60 1117 74 1410

Amaranthus 188 2998 92 1473 210 3356 120 1916 145 1747 103 1234 73 869 187 2217

Barbati 35 391 52 577 22 248 35 391 252 4089 125 2038 109 1741 315 5018

Raddish 115 1730 96 1439 49 743 42 636 35 391 68 753 25 281 35 391

Cowpea 120 2027 74 1253 138 2334 25 424 62 639 115 1726 30 454 73 1106

Summer cabbage

56 574 27 280 45 463 6 67 125 2125 89 1506 20 341 204 3413

Summer cauliflower

52 369 25 181 35 247 6 48 62 639 34 351 5 51 76 773

Summer tomato

5 60 13 163 5 67 12 144 42 301 33 237 4 36 51 363

Chilli 100 958 170 1639 25 244 127 1214 12 151 15 187 9 115 7 91

Leaf veg 300 2850 42 405 21 205 19 183 75 720 195 1879 108 1034 45 434

Watermelon 75 1921 98 2550 314 8205 17 440 26 247 45 432 15 143 32 310

Others 447 5929 179 2378 117 1557 115 1542 66 1721 350 9124 13 338 44 1148



Table 4. Area and production of winter vegetables

Crop Dhalai Gomati Khowai North Sepahijala South Unakoti West

Area (ha)

Production (MT)

Area (ha)

Production (MT)

Area (ha)

Production (MT)

Area (ha)

Production (MT)

Area (ha)

Production (MT)

Area (ha)

Production (MT)

Area (ha)

Production (MT)

Area (ha) Production (MT)

Cabbage 355 9936 385 10776 345 9657 265 7417 425 11896 475 13295 185 5178 530 14835

Cauliflower 275 6045 295 6484 320 7034 235 5165 395 8682 380 8352 170 3737 475 10441

Brinjal 182 2233 295 3620 245 3006 195 2393 285 3497 365 4479 142 1742 355 4356

Raddish 242 4896 275 5563 275 5563 445 9002 365 7384 312 6312 345 6979 395 7991

Tomato 195 4797 225 5535 195 4797 175 4305 280 6888 260 6396 125 3075 295 7257

Gardenpea 56 216 65 250 45 173 46 177 65 250 85 327 22 85 75 289

Cucumber 95 808 86 731 91 774 75 638 115 978 95 808 45 383 135 1148

Knolkhol 34 389 30 343 24 275 57 652 25 286 35 400 42 480 30 343

French bean 45 170 95 358 59 222 68 256 75 283 105 396 48 181 95 358

Carrot 48 575 45 539 44 527 35 419 60 719 50 559 25 299 65 779

Capsicum 28 218 15 117 10 78 19 148 15 117 17 132 15 117 17 132



Table 5. Area, production and productivity of major vegetables in Tripura.

Crops Area (000'Ha) Production

(Lakh MT)

Productivity (MT /Ha)

Summer vegetables 18.412 2.811 15.27

Winter vegetables 19.559 3.455 17.67

Total 37.971 6.267 16.51

Table 6. Area, production and productivity of major fruits in Tripura.

Crop Crops Area (000' hec) Production

(Lakh MT)

Productivity ( MT /hec)

Mango 10.559 0.563 5.33

Pineapple 11.59 1.620 14.00

Orange 6.302 0.339 5.38

Jackfruit 10.120 3.022 29.86

Banana 13.644 1.342 9.84

Litchi 3.888 0.202 5.19

Lime/Lemon 4.836 0.231 4.78

Papaya 3.413 0.338 9.91

Sapota 0.201 0.016 8.08

Musambi 1.102 0.009 0.89

Guava 0.997 0.052 5.22

Others 1.725 0.125 7.20

Total 68.378 7.863 11.50

2.1 Development of statistical system of the sector in Tripura

The project on cost of cultivation was started primarily with the objectives of collecting data of different agri-horticulture crops in the sector and to formulate a design for future programme of studies. A multi-stage stratified random sampling design was followed for the collection of data. The districts and the villages under the project formed the first and second stage unit of sampling while the ultimate unit of sampling was household. The districts and villages were selected in such a manner so as to cover the major crops identified for the study. However, a common schedule was used to collect the required information from the farmers regarding various crops under study. The present cost of cultivation survey covered all the eight districts of Tripura.



2.2 Need for statistical standards

Cost of cultivation surveys are an important data source for decision making at the macro as well as micro level. Accuracy of information generated out of these surveys is of paramount importance and this can be ensured by proper planning of the survey, so that the sampling as well as non-sampling errors are minimized. Proper designing of the survey is of utmost importance and judicious use of the information available from other surveys and censuses serve the purpose in an efficient manner. Cost of production studies are undertaken with a view to get information for a class of cultivators belonging to a particular region or an area called as the population. The number of farmers in all over the state is expected to be very large and surveying such a large population involves both cost and time. Hence, sample-based information can be used to draw inferences about the population with the use of precise sampling techniques. A multistage random sampling has been used for the present study covering all the eight districts of Tripura, where the household is the ultimate sampling unit along with districts and villages as first and second stage unit of sampling respectively.

2.3 Need for precise survey

The information on costs and returns from all crops and initiatives for different regions of the state is yet to be ascertained and documented on scientific lines at the state level. The more apparent climatic changes have started impacting agriculture in a big way. Ecological amplitude and niches of all the crops are getting shifted which have direct implications for the structure of cost and returns of these crops. New diseases and insect pests are emerging in these crops. Resultantly, the economy of the small and marginal farmers is being influenced in a big way by these changes. In addition to these, the farmers of the state face errant natural vagaries such as torrential rains, hail storms and droughts that wreck the small holders’ economy frequently. Thus, at times the farmers demand the support and compensation from the state for their unforeseen crop losses. Also, many a time the Government requires precise information on the costs of cultivation of crops that enter international market so as to rationalize the duty structure. Since the ground realities in farming are changing very fast, there is a need to keep track of the changing production costs. In order to meet this requirement, one needs the most recent cost of cultivation data of major crops, especially agri and horticulture crops grown in the state so that if the situation demands the farming community be provided appropriate support under Market Intervention Scheme (MIS). However, such information is not available with any agency in the state. Therefore, to fill this void the present project was sanctioned by the Directorate of Economics & Statistics, Planning (Statistics) Department, and Government of Tripura. The specific objectives of this project are as under:

 To estimate the cost of cultivation of major agriculture and horticulture crops in the state and work out their profitability.

 To supply the policy inputs based on these studies to the administrators, policy makers and planners in the state.

 To find out the technological gap of cost of cultivation between marginal farmers & medium land holding farmers.

3. Methodology

The methodology being followed in present study regarding the production behavior of all types of horticultural and agricultural crops in Tripura includes both primary and secondary data. The



study includes all the eight districts of Tripura. The primary data was collected through a structured schedule questionnaire containing relevant questions regarding the production behavior of all types of horticultural and agricultural crops and various costs involved in the production process of various crops under different villages of every subdivision and sectors (Annexure I and II). The secondary data was collected from Governmental and Nongovernmental source such as Directorate of Economics and Statistics, District Agricultural office, Department of Agricultural Statistics and various governmental bulletins. In order to compute the costs and returns, the standard methodology used by the Commission for Agricultural Costs and Prices (CACP), New Delhi and The Manual published by the Central Statistical organization was followed. The standard farm management costs were computed to fulfill the objectives of the investigation. Data on various aspects of the cost and returns of selected crops were collected using rapid rural appraisal in the sample villages using specially designed schedules for this purpose. The data were tabulated and analyzed using appropriate tools to arrive at the conclusions of the study.

3.1 Selection of study area and method of sampling

Farm level data were collected from eight districts of Tripura. The districts were randomly selected for investigation because very few attempts have been made earlier in Tripura to investigate the pattern of growth rate in area, production and productivity of various crop and nature of instability and variability in production.

A multistage stratified random sampling technique was used to select the ultimate unit of sample i.e. farmer respondents. Both primary and secondary data were collected for the study.

Primary data have been collected from sample respondent from each and every sector of 8 districts in Tripura. Under the sampling technique followed for the present study the districts and villages constituted the first and second stage unit of sampling respectively and the household is the ultimate sampling unit. A household can be defined as a group of people who share food regularly, and usually live in the same house or group of houses. A household is classified as farm/farmer household if it possess some land and if at least one of its member is engaged in agricultural activities. For the purpose of economic analysis, the farm household is ascertained as the sum of all the productive activities of its members, remunerated and unremunerated.

Table 7. Financial and Economic Measures based on Stock and Flows Assets Total stock of resources and products on a given date.

Liabilities Total stock of debts on a given date

Net worth Assets minus Liabilities on a given date. It represents a measure of potential income.

Gross Income Inflow of value of products during a given period.

Cost Outflow of value of resources used during a given period

Net Income Gross income minus cost during a given period of time represents current benefits.

3.2. Data collection method

Interview and observation method were considered as appropriate tools for the present study.

Interview method was considered for the following reasons:

a) To get complete and reliable information of the field situation.

b) To get the information about cost of cultivation of every crop.

c) To get information about economic profit of farmer.



Figure.2 State agriculture setup

3.3. Variables under the study

A variable is defined as anything that has a quantity or quality that varies. There are two types of variables, namely dependent variables and independent variables.

3.4. Dependent variable

The variable that depends on other measurable factors is known as dependent variables. These variables are expected to change as a result of an experimental manipulation of the independent variable or variables. Dependent variables are often denoted by Y. The dependent variables under the present study are gross return.

3.5. Gross return (in Rs.)

Gross return was expressed in term of rupee. It was calculated by converting both the main product and the by-product in to value terms by multiplying yield of crops with their respective post harvest prices prevailing in the studied area.

3.6. Independent variable

A variable whose variation does not depend on that of other variables is known as independent variables. Independent variable is stable and unaffected by the other variables and often denoted by x. The independent variables under the present study are

3.6.1. Area (in ha):

Area was expressed in terms of hectare. It was calculated by taking the unit of area.

3.6.2. Manures-Fertilizers and Pesticides (in Rs):

This variable was calculated as total expenses made on farm yard manures, chemical fertilizers and pesticides at current prices.

State level (Director of agriculture)

District level (Deputy Director of agriculture)

Village (Village level worker


Sub division level (superintendent of Agriculture)

Agri-sector level (Agriculture office)



3.6.3. Seeds and planting material (in Rs):

This variable was calculated as total expenses made on seeds at current prices. The cost of vegetable seeds, grafted fruit plants and suckers for banana and pineapple were considered at the current approved price.

3.6.4. Human labour:

Labour units are standard units for the measurement of the stock of labour in the household, family or hired labour. They are calculated by assigning the appropriate labour unit equivalent to each household member and multiplying that by the percentage of time the member was available for work in the farm household during the previous year.

3.6.5. Machine labour:

It refers to the machine labour charges incurred through the use of various farm machineries such as tractor, power tillers etc.

3.7. Methods of measurement of cost items

Method of measurement of cost items will depend on the item on which cost is measured.

Given below are some of the methods of valuation of items of cost.

3.7.1. Purchased price:

This is a method of valuation of item of cost on the basis of current price as actual purchase price. It is used for those items of cost which have both short life span and whose values do not change substantially during short time periods. For example, inputs like fertilizers, chemicals, feeds and seeds can be evaluated on the basis of purchase price.

3.7.2. Net selling price: It is the selling price minus cost of marketing. Used for farm products sold.

3.7.3. Imputed value

: The family labour is an important input in the enterprise, but no money is paid by the farmer to his family members for the work done on the farm. Cost assessment in respect of such items is made by using imputed value of cost. Family labour cost is generally imputed on the basis of prevailing wage rate in the locality. It may be noted that the family of a farmer may comprise male, female or young children all of which may be doing some work on the farm.

3.7.4. Replacement cost less depreciation:

It is generally used for property whose value changes appreciably from year to year.

3.7.5. Allocation of joint costs:

In case more than one crop is grown on a farm it is very important to determine cost incurred on various items as are used on individual crops. While correct assessment of crop specific costs are impossible, reasonably good estimates of costs can be obtained by following the standard procedures of allocation of joint costs.


.7.6. Depreciation of farm buildings:

It can be charged to the individual enterprise in proportion to the total area under the enterprise in case the building is used for different enterprises. However, if the building is used for single enterprise, the entire depreciation can be charged to that particular enterprise only.

3.7.7. Depreciation of farm machinery, tools and implements:

Like the farm buildings here also the depreciation or minor repairs can be charged to individual enterprise in proportion to the area under a given enterprise. Alternatively, time spent on individual enterprise by a given machine / tool and implement can form the basis for charging depreciation.



3.7.8. Taxes and rental for land:

These can be allocated to the different enterprises in proportion to the land occupied by the individual enterprise.

3.7.9. Maintenance of farm animal costs:

These would be allocated on the basis of proportion of time the animal labour is used for the respective enterprise.

3.8. Classification of cost items

There are several cost components involved in the crop production which constitute the cost of production of a particular crop. Accurate measurement of all the components of costs is thus of crucial importance for correct assessment of cost of production of any particular crop.

Costs incurred on a farm can be classified as cash cost or non-cash cost. Cash Costs are the costs for which farmer spends money for acquisition of material inputs like seeds, fertilizer, chemicals or labour inputs like hired labour etc. On the other hand, non-cash costs are attributable to items of cost, which do not require spending money. These may be items of cost like family labour, payments made in kind, home grown seeds, manure etc, exchange labour, depreciation, interest on operating capital etc.

Another way of classifying costs are treating them as variable or fixed costs, although some of the costs may be treated as fixed or variable depending on the time at which they are incurred. This is due to the fact that in short term some of the costs are variable while others are fixed. However, in the long run all costs are variable.

3.8.1. Fixed cost:

These costs are related to fixed resources and are overhead costs. They remain constant irrespective of the yields obtained. Fixed cost considered for cost of production calculation of crops includes land rent, interest on fixed capital, depreciation of building and farm machineries, taxes and wages of the permanent laboures. In the present study, the land revenue was not taken into consideration for cost of cultivation calculation as the land area belonging to each farmer under the study was less than one ha and mostly acquired through inheritance. Depreciation:

In the present study, depreciation charges of fixed assets are worked out by the Straight Line Method using the formula:

Original cost – Junk value Depreciation = ⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯

Life of the asset Rental Value of Land:

A number of alternative procedures to compute rental value for owned land have been suggested in various literatures. The important methods among them are - a) An appropriate rate of interest on the value of land.

b) Market rent

c) A fixed proportion of the output.

In the present study the land rent was not taken into consideration for cost of cultivation calculation as the land area belonging to each farmer under the study was own land and mostly acquired through inheritance.



3.9. Variable cost

These costs are related to the variable resources and change with the output. The variable costs are nil, if there is no production on the farm. They change with the quantity of production. In the beginning, as the production increases variable costs rise quite rapidly, but with further rise in production variable costs do not increase proportionately with the production and in later part the variable costs start rising more rapidly than the production. The variable cost includes all the current supplies such as seeds, fertilizers, irrigation, insecticides, hired labour charges, interest on working capital.

3.9.1. Cost of seed and planting material (in Rs.):

It is calculated by multiplying the amount of seeds or numbers of plants used in the farm for respective crops with their respective current market prices.

3.9.2. Cost of manure and fertilizers (in Rs.):

It is also calculated by multiplying the amount of manures and fertilizers used in the farm with their respective current market prices.

3.9.3. Cost of herbicides and pesticides (in Rs.):

It is calculated by multiplying the amount of herbicides and pesticides used in the particular farm with their respective current market prices.

3.9.4. Human labour cost (in Rs.):

It was expressed in terms of rupees by converting one standard man day equal to Rs.300. Eight hours of an adult man’s work was considered as standard man-day. It includes hired labour and imputed cost on family labour etc. The child and women labours were converted in to man labour days by taking ratio of 1:0.75:0.5 for men, women and child labour respectively. Different labour unit equivalents are assigned to men and women in some countries justifying the lower pays to women. It is observed that men and women doing the same work do not show any significant difference in work efficiency, therefore, labour flow (inputs) should not be weighted by labour units equivalents. If actual hours are measured, and not days, the lower productivity of youth and old people will be reflected in the shorter hour worked.

3.9.5. Machine labour cost (in Rs.):

It was measured in terms of rupee by counting machine cost per hour at Rs. 300.

3.9.6. Irrigation charges (in Rs.):

Irrigation charges are calculated by considering the method of irrigation for the particular farm under study. When irrigation in the crop fields requires operation of pump sets then the irrigation charges are calculated considering the operation cost and fuel cost etc.

3.9.7. Fixed cost (in Rs):

The fixed cost (Cost B) related to different crops under the present study includes land rent, depreciation value and others. Land revenue was not included in the calculation of fixed cost, as most of the farmers under study have less than 1 ha of land as their operational holding for particular crops.

3.9.8. Total cost:

Both the fixed and variable cost together form the total cost of production of each unit of crop. Even when the variable costs are nil, the total cost remains there in the form of fixed costs. Total cost includes total economic cost of production and is made up of variable costs, which vary according to the quantity of a good produced and include inputs such as labor and raw materials, plus fixed costs, which are independent of the quality of a good produced and include inputs that cannot be varied in the short term such as building and machinery.

Total cost/unit = Fixed cost/unit + Variable cost/unit



Thus, labour employed on a daily basis is variable while a permanent farm labour is to be considered fixed for a short period of time. Variable costs vary directly with the production. The greater the production, greater are the variable costs. Variable costs may be either cash costs or non cash costs. Examples of variable cash costs are seeds, fruit crop planting materials, fertilizers, pesticides, hired labour etc. On the other hand, payments made in kind are the variable non-cash costs.

Care need to be taken that the payments made in kind are accounting for only once. Unpaid family labour is considered as a variable cost only if there are alternative employment opportunities. In case alternative employment opportunities do not exist the unpaid family labour cost need not be included.

Again whether or not to include the unpaid family labour cost will depend on the objective of the study. Thus, if farms of different labour sources are to be compared, ignoring the unpaid family labour cost will underestimate the cost. The land rent paid is an example of fixed cash cost. Land rent paid in kind, depreciation of farm machinery, tools and equipments, farm buildings and the cost of maintaining farm work animals are the examples of fixed non-cash costs.

3.10. Cost structure

Costs are generated following certain cost concepts. These cost concepts and item of cost included under the present study are given bellow:

3.10.1. COST A: All the costs related to labour, planting material/seeds and inputs etc.

I. Value of human labour II. Value of hired bullock labour III. Value of hired machinery charges

IV. Value of seed(both farm produced and purchased) V. Value of insecticides

VI. Cost of manures VII. Cost of fertilizer VIII. Irrigation charges

IX. Miscellaneous expenses

3.10.2. Cost B:

Fixed Cost (Land rent, depreciation and other) which has been estimated as per the provision.

3.10.3. Cost C:

Total Cost (Cost A+ Cost B)

3.10.4. Gross Return:

Total income generated from the sale of farm produce including both the main product and the by product. Gross rate of return is the total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted over a specific period of time, such as a month, quarter or year.

3.10.5. Net Return:

Net return is calculated by deducing all incurred expenses from the gross return of a particular farm. It is the entity’s income remaining after the deductions of all expenses i.e. total cost.

Net return = (Gross return – Total cost)

3.10.6. Benefit cost ratio (BC ratio):

The benefit-cost ratio is calculated by dividing the total value of benefits by the total value of the cost. The particular crop is considered to be profitable when the benefit-cost ratio is equal to or greater than one i.e. BCR ≥ 1.

BC Ratio = (Gross Return/Total Cost)



3.11. Crops under the study:

Various agricultural and horticultural crops widely grown in Tripura have been taken into consideration under the present study.

3.11.1. Paddy: Paddy is the staple food of India. It is one of the most widely adaptable crops in India It covers wide range of area among all the crops but due to low benefit the area of rice is reducing day by day. Most of the farmers grow the low yielding old rice varieties with traditional system of cultivation. Most of the farmers in Tripura grow paddy as a main crop.

3.11.2. Maize: Maize is one of the cereal crop cultivated in Tripura. The production of Maize in Tripura is low due to low interest of farmer of the crop. Maize is grown under the agri-sub division of Panisagar, Kumarghat, Kailashahar, Padmabill, Tulashikhar, and Sabroom.

3.11.3. Ground Nut: Ground nut is one of the important oil seed crop cultivated in Tripura climatic condition. Farmer’s of Tripura presently grown ground nut for homestead purpose only.

3.11.4. Sesame: The crop is mostly cultivated by small and marginal farmers under rainfed conditions. An integrated effort with support services would help the farmers realise higher yields and returns for their efforts.

3.11.5. Mustard: Mustard is one of the most important oilseed crops in Tripura cultivated mainly as a rainfed crop, grown either as line sowing or broadcast.

3.11.6. Lentil: Lentil was sown under different methods of establishments in Tripura condition.

Farmers recently attempt to cultivate it on large scale in different region of Tripura.

3.11.8. Horticultural crops

Fruit crops of Tripura

Tripura state is blessed with such favourable agro climatic conditions that it can nurse various kinds of fruit plants. Bananas, Pineapple, Mango, Mandarin Orange, Musambi, Guava, Jackfruit, Lime and Lemon etc. are the major fruit crops which are grown by the farmer. However, systematic plantation of fruit crops is not found in most of the villages in the state. Recently, under various developmental schemes new orchards have been established in various agri-sectors. Most of the fruit crops are grown in sloppy land and upland of the state. Farmers do not apply much fertilizer in fruit crops. Many of them are getting the facilities from government sector as beneficiary. Very few farmers are following prescribed amount of fertilizer and method. In Tripura most of the month wet with rain so farmer do not irrigate fruit plants.

In Teliamura subdivision Mousambi, Mango and banana are cultivated and Orange is specially grown in Mungiyakami agri sector. Mango and Cashew nut are cultivated in private and government orchard under the Belonia agri subdivision. In Panisagar Subdivision the local people are growing their own orchard on a huge manner they are growing different fruit crops there specially Mango (Amrapali), Orange etc. Banana and Mango are grown in most of the agri subdivision.

Pineapple is specially grown in Sabroom, Padmabil, Tulashikhar, Kanchanpur agri subdivision. In West district, Amrapali mango, Mosambi, Guava, Banana and Pineapple etc. are commonly grown.

3.10.9. Winter vegetable crop Cabbage & Cauliflower: In case of cauliflower the farmers were applying less of both nitrogen and potash as against the recommendations. However, in cabbage the use of all the three nutrients of nitrogen, phosphorus and potash was much less than the recommended doses.From Khowai, Amarpur, Teliamura, Panisagar, Kumarghat, Kanchanpur, Sabroom, Belonia, Rupaichari



Subdivision was selected for studying the costs and returns of cabbage and cauliflower as this belt has emerged as the major season production centre of these crops. Potato: Khowai, Teliamura, Tulashikhar, Shabroom and Beloniya were chosen for estimating the costs and returns of potato crop because the former is known for production of seed potato throughout the country and they are contributor to the potato production in the state. The FYM application was well below the recommendation. The farmers were found to use imbalanced doses of fertilizers in this crop. Especially in Khowai, the farmers were applying higher phosphorus, potash and double times higher nitrogen as per the recommended doses. Radish: Reddish is grown in few pockets of Tripura as mainly Winter vegetable crops, mainly in South region of Tripura i.e. Belonia, Rupaichari, Hrishyamukh, Sabroom, part of Kailashahar and Jirania. Being short duration vegetable crop, it is highly profitable in term of growing with low inputs of fertilizers n irrigation implements. It is popular table crop used for salad &

culinary purpose. French bean:

French bean is an important and highly profitable vegetable crop of North Eastern Hill Region of India. It occupies an important position among various Khariff pulses. The productivity of French bean will meet the increasing demand for green vegetables of the region. Cucumber:

Cucumber is a very high value vegetable crop in the state. This crop is grown in winter as well as in summer season. Tomato:

Tomato is cultivated mainly during winter season. This crop is also very profitable for the farmers, though, cost of cultivation is high due to its pest and disease management and staking. Capsicum:

This crop is high value crop and is sold at very high rate in the market.

Growing season is winter. Only selected farmers grow this crop. Rate of capsicum seed is also high and along with management cost, its cultivation cost is very high. However, return is also high.

3.10.10. Summer Vegetable Brinjal, Bhindi and Chilly:

These vegetable crops are widely cultivated crops in Tripura. Almost in all agri subdivision these are common crop grown by farmers round the year and also have good market facility so farmers are interested in these crops. Pointed gourd and Spine gourd:

These crops are mostly cultivated in Teliamura Sub division, Melaghar Subdivision, Satchan agri subdivision. The cost of cultivation of these crops is very high due to high rate of stacking fencing and planting material. But its market rate and yield is so high which is influencing the farmers for growing these crops. Ridge gourd:

This vegetable crop is one of the highest growing crops in Tripura. It is extensively grown in south Tripura mainly Hrishyamukh, Belonia, Rajnagar, Rupaichari, Sabroom and other parts of Tripura. It is an important commercial crop fetching good yield and investment returns to the farmers. Now days it is growing throughout the year where irrigation facility is available. Usually this vegetable crop has creeping nature, hence require good support for its vine for good quality and high yield.


17 Bottle gourd and pumpkin:

Though these crops are grown in winter as well as in summer season. Farmers get very good return from these two crops. Bittergourd:

Bittergourd is a profitable crop grown in late winter and summer season.

Table 8. List of Districts, Agri-Subdivision and sector in Tripura SL.No. District SL.


Agri-subdivision SL.
















6 7






Tulashikhar Teliamura
















8 9.


























Singhicherra Chebri Hatkata Ampura Rajnagar Bachaibari Teliamura Krishnapur Mungiakami Gilatali Mandwi Sumily Jirania Belbari


Sekherkote Mohanpur Lefunga Hezamara Bishalgarh Bishramganj Madhupur

Charilam Jampuijala Boxanagar

Kathalia Melagarh Killa

Matabari Kakraban Amarpur Ampi Tuidu






Karbook Chechua

Natunbazar SL.No. District SL.


Agri-subdivision SL.











12 13









Bagafa Satchand

































63 64.





Bagafa Sabroom Krishnanagar


Belonia Rajnagar Hrishyamukh Salema

Durgachowmuni Ambasa

Kamalpur Gandacherra Tuichakma Rasyabari Chawmanu Manu Chailengta


Gournagar Kumarghat Kailashahar Pecharthal Fatikray Kadamtala Jubarajnagar Dosda Jampui Kanchanpur Panisagar Damcherra



Table 9. List of agri-subdivision, agri-sector and sample villages with number of farmers selected for each crop.

Name of the Crop

Agri Subdivision Agri Sector Village No of Farmer

Paddy Khowai Gonki Chargonki, East Sonatala, Madhya


10 Singichera East Singhicherra, Choto Bagai ,

KMC Nagar

10 Chebri East Chebri , West Chebri , NC

para ,

10 Tulashikhar Bachaibari Asharambari, Banbazar, West


10 Rajnagar Shikaribari, Holongmwtai, West


10 Mohanpur Mohanpur Jamilghat, Kamalghat, Santipara 10

Lefunga Lefunga, Baganpara, Sukumany Para

10 Padmabill Hatkata East Belchara, Monaicherra,


10 Ampura Chandrakumar Para, Upendrabari,


10 Teliamura Gilatali Bagber, Uttar Gilatali ,Promodnagar 10

Teliamura Gamaibari, Khaisyamngal, Madhyacherra,

10 Mongiakami Atharamura, Mungiakami, Longtarai 10 Uttar Krishnapur Uttar Krishnapur, Chakmaghat,


10 Bishalgarh Bishalgarh Sichartilla, Gakulnagar,


10 Charilam Dariyaathal, South Charilam, Herma 10 Bishramganj Bishramganj, Masterpara,


10 Madhupur Noth Madhupur, Debipur,Kunaboon 10

Mohanpur Mohanpur Jamilghat 10

Shantipara 10

Lefunga Bagan Para, Borkathal, Gamchakobra 10 Hezamara Hezamara Baikantapur. Surendra Nagar, Purba



Amarpur Amarpur Birgaanj, Debatamura, Rangamati 10

Natunbazar Nutanbazar, Malbacha, Lebacherra 10 Taidu Gamaicherra,Chelagang, Sarbong 10

Ampi Ampinagar, Dalak, K.C Para 10

Chechuya Kobrapara, Nagrai, chechuya 10 Sabroom Krishnanagar Srinagar, Krishnanagar,

Madhur nagar

10 Sabroom Bajendra Nagar, Indranagar, Bijoy


10 Satchand Sinduk pathar, Manu Bazar,



Belonia Rajnagar Paikhola, Rangamura 10

Hrishyamukh Motai, Krishnagar, Aboynagar 10 Panisagar Panisagar West Panisagar, Bagbasa


10 10

Kanchanpur Pechartall Pechartall, Masmara 10

Kanchanpur South Laljuri,Kanchancherra, Santipur

10 Dasda Radhamadhabpur, Dhanicherra,


10 Kumarghat Kumarghat Dudhpur, Sonaimuri, Bathcherra 10



Fatikroy Fatikroy 10

Matabari Matabari Gakulpur, Gorgi, Murapara 10

Kakrabon Kakrabon, Ushamara, Kushamura 10

Tepania Gourjanmura 10

Killa Killa North Barmura,Killa, Dewanbari 10

Jirania Jirania Thaiplok, Chargoria Jirania 10

Dukli Sekhercot Pachim Anandanagr, Bikramnagar, Suryamoni

10 Melaghar Melaghar Telgasia, Bordwali, Durlobhnagar 10

Boxanagar Madhya Boxnagar, Kalsimura, Kulubari

10 Katalia Subashnagar, Gundhi Khala, Kathalia 10 Mandwi


Mandwi Burakha, Kathiram, Mandwi 10

Sumily Lakhxmipur, East Noabadi, East DB Nagar


Maize Hatkata East Belchara 10

Kailashahar Kailashahar Guldharpur 10

Kumarghat Kumarghat Dudhpur 10

Fatikroy Fatikroy 10

Panisagar Kameshwar Guldharpur 10

Tulasikhar Rajnagar Sikharibari 10

Sabroom Krishnanagr Srinagar 10

Satchand Sindukpathar 10

Krishnanagar Srinagar 10

Groundnut Sabroom Satchand Sinduk pather 10

Tulashikhar Bachaibari Talukbari 10

Rajnagar Sikharibari 10

Teliamura Telimura Sardukarkari 10

Mustard Kailashahar Kailashahar Guldharpur 10

Kumarghat Kumarghat Dudhpur 10

Fatikroy Fatikroy 10

Teliamura Teliamura North Gakulnagar 10

Sesame Panisagar Kameshwar Yubrajnagar 10

Kanchanpur Pecharthall Pecharthall 10

Kailashahar Kailashahar Guldharpur 10

Sabroom Satchand Srinagar 10

Teliamura Mungiakami Ramkrishnapur 10

Lentil Hezamara Hezamara Durgaipara, Borkathal 10

Melaghar Melaghar Durlob narayan 10

Amarpur Ompi Ompinagar 10

Teliamura Teliamura Sardukarkari 10

Rajnagar Hrishyamukh Matai, Jaikatpur 10

Mohanpur Mohanpur Bamutiya 10

Vegetable Crops

French bean Melaghar, Bishwalgarh, Khowai,Mohanpur,


Melaghar, Bishwalgarh, Khowai,Mohanpur,


Durlob Nagar, Srichurtiila, Gonki, Jamilghat, Subhasnagar


Cauliflower Khowai Gonki Chargonki, Paschim Sonatola,

Pashchim Gonki, Jambura, Dakhin Sonatola


Amarpur Amarpur Birgaanj, Debatamura, Rangamati 10

Natunbazar Nutanbazar, Malbacha, Lebacherra 10

Taidu Gamaicherra 10

Sechua Kobrapara, Nagrai, chechuya 10

Teliamura Teliamura Uttarbrahmacharra, Gamaibari, Khaisyamngal

10 Dukli Sekherkot Pachim Anandanagar, Bikramnagar,


10 Bishalgarh Madhupur Uttar Madhupur, Debipur, Kunaboon 10


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