I. BHAVANI DEVI, M. SRIKALA*, T. ANANDA AND V.SUBRAMANYAM

Research Scholar, Department of Agricultural Economics, S.V. Agricultural College, Tirupati – 517 502.

ABSTRACT

The total cost of cultivation of rice per ha in Kharif 2010-2011 worked out to 67,899 of which operational costs formed 70.20 per cent and the remaining fixed costs. Human labour was the major cost factor occupying 34.40 per cent of the total cost. Gross returns stood at 59,115, while the net returns were negative ( -8,784). Net returns over operational costs were 11,452. The total cost of cultivation in rabi was 66,905. Total operational costs were found be 50,282 slightly higher as compared to Kharif season. Among fixed costs rental value of owned land was less than that of Kharif season. Gross returns were 69,263, while net returns stood at 2,358. Net returns over operational costs were 18,981. The retailer’s margin ranged from 6.8 to 8.27 per cent of consumer’s rupee. The share of producer in the consumer’s rupee was 62.92 and 57.27 per unit respectively for old and new rice respectively.

KEYWORDS:

Cost concepts, Cost of Cultivation, Net returns, Marketing Channels, Price spread