An economic analysis of wheat production and marketing efficiency in Basti District of Eastern Uttar Pradesh

Abstract

This study attempts to identify the economic viability of wheat production and marketing efficiency in Eastern Uttar Pradesh, with special emphasis on cost structures, profitability and market dynamics across varying farm sizes. Employing a descriptive research design, a multistage stratified random sampling method was used to select 200 farmers from two blocks and five villages of the Basti District. Data was collected through semi-structured interviews, group meetings and focus group discussions, focusing on production costs, marketing efficiency and price spread. The study employs various cost concepts, such as Cost A1/A2, B1, B2, C1, C2 and C3 and income measures, such as gross income, net income and benefit-cost (B : C) ratio, to evaluate the profitability of wheat cultivation. The total cost of wheat cultivation averaged ₹60778.2/ha, while gross income ranged between ₹93765 and ₹101707, yielding a B : C ratio of 1.59–1.60. Marketing channel analysis indicated that 34.5 % of farmers preferred intermediary-heavy routes, with marketing costs varying from ₹39.25/q to ₹316.75/q depending on the channel. The study concludes that despite relatively favorable B : C ratios, inefficiencies in marketing structures limit farmers’ income potential. Consequently, policy measures that advocate direct marketing and minimise intermediation are important for improving economic returns and ensuring fair value distribution throughout the wheat supply chain.