Potato

Economics

Introduction

  • Pattern and magnitude of different type of costs in case of potato crop over different size categories of farms (Rs. Lakh).
Components of total variable cost
Size category of farms
  Small Medium Large Overall
Production variable cost
Seed and seed treatment 9932 9707 9541 9726
Fertilizer and manures 4674 5113 5343 5043
Plant protection measures 789 872 1004 888
Irrigation charges 677 604 592 624
Machinery charges 2683 2919 3122 2908
Hired labour 2579 2719 2995 2764
Interest on working capital 1163 1190 1224 1193
Sub-Total A 22497 23124 23821 23147
Marketing cost
Package expenses 2178 2353 2087 2206
Transportation expenses to market 1389 1503 1530 1474
Sub- Total B 3567 3856 3617 3680
Gross Value Product 53096 57265 60683 57015
Return over Production Variable Cost (Gross Return-Production Variable cost A) 30599 34141 36862 33868
Return over Total Cost (Return over Production variable cost-Marketing Cost B) 27032 30285 33245 30188
  • Department of Economics : M.Sc. Thesis 1999 : Productivity and Resource Use efficiency of Potato Farms in Jalandhar District
  • Note : Economics of Potato crop is highly variable. The cost of production does not vary largely but the returns are highly variable depending upon the prevailing market prices.
  • In some years, potato cultivation proves highly profitable while in some years, it just compensates the expenditure only.

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