Vol. 12, Special Issue 8 (2023)

Author(s):
Somesh Prasad Singh and Sunil Kumar Singh

Abstract:
The present study had been conducted in the Korea district of Chhattisgarh state to access the effect of farm subsidies on income of paddy farmers. The research had tried to understand that how subsidy is affecting the cost and returns from paddy cultivation in Korea district. For the, 100 farmers comprising 50 beneficiaries (receiving the subsidy) and 50 non-beneficiaries (receiving no subsidy) paddy cultivators had been selected randomly. The data on relevant variables were collected from both beneficiary and non-beneficiaries farmers through personal interview method. Simple tabular analysis and CACP cost concepts were employed to study the costs and return from paddy cultivation in the study area. The overall cost of cultivation of paddy for was found higher for beneficiaries farmers compared to non-beneficiaries farmers. The labour expense was the major component in total costs and accounted for 60.18 percent and 56.82 percent for beneficiary and non-beneficiary farmers, respectively. The expenses on variable resources were found to be 78.08 percent and 76.30 percent of total expenses for beneficiary and non-beneficiary farmers, respectively. The overall yield of paddy was observed to be higher for beneficiary farmers than non-beneficiary farmers. The net return was found to be higher for beneficiary farmers despite the higher cost of cultivation. The overall input-output ratio of paddy production was observed to be slightly higher for non-beneficiary farmers. The study indicated that the costs and returns from paddy cultivation was higher for beneficiary cultivators implying that agricultural subsidy had affected the income of farmers positively in the study area.