Profitability and cost efficiency of paddy and bajra cultivation in Haryana

Abstract

Agricultural sector in India has experienced significant growth and plays an important role in Haryana’s economy, employing more than half of the state’s workforce and contributing substantially to their income. The study uses secondary data from official agricultural statistics from 1996–97 to 2021–22 to compare the profitability and productivity of 2 major crops grown in the state, paddy and bajra. Profitability was assessed through cost–benefit analysis, while cost efficiency and efficiency were evaluated using the stochastic frontier approach. The results showed that paddy remained more profitable throughout the study period, with the value of output increasing sevenfold, whereas bajra’s profitability declined due to a sharp rise in input costs. The mean technical efficiency was found to be 98.5 % for paddy and 92 % for bajra, indicating that both crops were highly cost-efficient in production indicating that cost efficiency differences are unlikely to be the primary driver of profitability differences between rice and bajra. However, the dominance of paddy cultivation is associated with intensified groundwater depletion and reduced soil fertility, posing sustainability challenges. The findings suggest the need for policy measures to encourage millet production through competitive support prices, assured procurement and farmer awareness programs. Promoting bajra as a sustainable alternative can reduce environmental stress, enhance income stability and contribute to long-term agricultural resilience in Haryana.