Production duality, profitability, driving forces and constraints in organic peanut cultivation in India

Abstract

Production duality in peanut cultivation is referred as conventional and organic method. A field survey was conducted in Gujarat state, India, to assess the cost and benefits of production duality in peanut; different organic formulations practised; and motivational factors and constraints in organic peanut cultivation. Thirty organic peanut growing and equal number of conventional farmers were selected through multistage sampling procedure, and face to face interview was conducted using pretested interview schedule. The results revealed that farmers were practising different organic formulations and their cost varied depending upon the inputs used. There were no significant differences in age, education and experience in farming between the organic and conventional farmers, but considerable differences were observed in the number of effective workers and livestock owned. It implies farm households with more family members and livestock are practising organic peanut cultivation. The total cost of cultivation in organic peanut was $699/ha, whereas it was $656/ha under conventional method. The total return in organic peanut was $1233/ha, whereas it was $1192/ha under conventional methods. The net returns realized by organic peanut growing farmers was $534/ha, whereas it was $536/ha by the conventional peanut farmers. There is no significant difference in the net return per hectare between organic and conventional methods, if organic and other inputs supplied from farmers own sources are imputed. However, if other sustainable benefits to the environment, ecology, landscape, consumers, etc. are included in valuation, the returns may outweigh in organic method. Besides traditional organic inputs like Farm Yard Manure (FYM) and compost, farmers used their own organic formulations like Panchamrut or Panchagavya, Jivamrut and Dharamrut and cost of these formulations ranged from $7.2/ha to $41.3/ha. The major factors that induced shift to organic peanut farming were soil improvement, awareness on hazards of conventional method and to reduce dependency on external inputs like chemical fertilizers and pesticides. The private institutions and individuals rather than the public institutions were the major motivational source for organic peanut cultivation, indicating the necessity of involvement of public institutions at different levels from farm to consumer for ordered growth of peanut cultivation. The initial decline in crop yield, high price of organic inputs supplied by the private companies and non-realization of premium price by farmers were the major constraints in organic peanut cultivation. These constraints have to be addressed by farmers themselves as well as by the government through appropriate policy intervention to upscale organic peanut cultivation in India.