Rice to Cotton: Rising Costs Have Made Farming Less Profitable

Rice to Cotton: Rising Costs Have Made Farming Less Profitable

While food prices have been rising over the years, Indian farmers’ margins on all major crops have steadily declined. Atul Thakur’s analysis reveals that in 2010-11, sugarcane farmers earned roughly Rs 2.8 for every rupee invested in their crop, but by 2020-21, they were making only about Rs 2.1 on every rupee. Similarly, cotton farmers’ profitability has declined even more, from earning about 1.8 on every rupee spent in 2009-10 to only Rs 1.3 in 2020-21. This decline is due to agricultural costs rising faster than farmers’ earnings per hectare, with earnings stagnating for crops like cotton.

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TIS Staff

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