Cost Competitiveness of Maize Cultivation in India: A State-wise Analysis
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Author: Arshdeep Singh and Poonam Kataria
Author Address: Research Scholar and Professor of Economics; Department of Economics and Sociology, Punjab Agricultural University, Ludhiana-141004 (Punjab), India
Keywords: Cost of cultivation, gross returns, MSP, net returns, profitability.
JEL Codes: C00, Q00, Q10, R15, Y10.
Abstract
Maize plays a vital role in India's cropping system, but its cost competitiveness differs widely across states. This study examined state-wise cost and return profiles for maize during TE 2021–22 using secondary data from the Cost of Cultivation of Principal Crops survey. The costs were analyzed using CACP concepts, and differences were tested using the ANOVA, and LSD was statistically significant. Operational costs ranged from ?36899 per ha in Madhya Pradesh to ?62942 per ha in Tamil Nadu, with human labour being the major component (36–57 per cent). Madhya Pradesh recorded the lowest Cost A2+FL (?37388 per ha), while Telangana had the highest (?64448 per ha). Despite high input intensity, Andhra Pradesh achieved the lowest per-unit production cost (?826 per q) and highest gross returns (?118920 per ha), whereas Punjab and Rajasthan faced low profitability. This analysis highlighted significant regional differences in maize cultivation costs and returns, affecting competitiveness and farmer income. The findings emphasized the need for rationalizing MSP by linking it to price indices and monitoring market trends. Region-specific strategies are essential, such as improving yields in high-cost, low-return states like Punjab and Rajasthan and adopting best practices in resource use. Such interventions will enhance maize competitiveness, reduce inter-state disparities, and ensure sustainable farmer incomes.
Description
Indian J Econ Dev, 2025, 21(3), 477-487
https://doi.org/10.35716/IJED-24390