Economic viability of tenant farming in punjab: a case study of paddy cultivation

Surbhi Bansal and D.K. Grover

The present paper has been designed to review the dynamics of tenant farming/reforms, to study the fiscal viability and input use productivity of paddy cultivation for the tenant as well as the owner farmers. The study has been based on the primary data collected from 180 farmers (120 tenant and 60 owner), spread over all the major agro-climatic zones of Punjab pertaining to the year 2017-18.The study highlighted that the operational cost of paddy cultivation per hectare was found slightly lower (Rs.29630) in case of tenant farmers as against Rs.30077 for owner farmers. The returns over variable cost was found to be higher on tenant farms (Rs.92169/ha) as compared to owner farms (Rs.89673/ha). Total cost of cultivation (C2) was also observed to be lower in case of tenant farmers (Rs.83800/ha) as compared to (Rs.87122/ha) on owner farmers, resulting into the higher profitability of tenant farmers (Rs.37998 / ha) in relation to (Rs.32628/ ha) owner farmers. The regression analysis brought out relatively efficient input use productivity on tenant farms especially in terms of micro nutrients and other chemical fertilizers.

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