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An analysis of costs and returns of organic and non-organic agriculture

Author Affiliations

  • 1Department of Economics, Punjabi University, Patiala, Punjab, India
  • 2Department of Economics, Punjabi University, Patiala, Punjab, India

Int. Res. J. Social Sci., Volume 6, Issue (7), Pages 6-9, July,14 (2017)


In the recent development efforts, the economic benefits have been given more preference than the social and environmental benefits. These attempts have negatively affected the ecosystem and resulted in interruptions in the natural cycles. The organic agriculture is notified as one such attempt which has helped to increase the environmental sustainability. Socially, it increases the employment opportunities leading to labour welfare along with the consumer protection and food security. Economically, it provides higher price to the farmers to fulfill the higher cost of cultivation. Punjab, the trendsetter state of Green Revolution, has very high consumption of fertilizers and pesticides. In this regard, it is indispensable to have an insight of costs and returns of organic agriculture in Punjab. No doubt, the techniques developed during the period of green revolution are profit oriented, but these techniques and methods are opposed to the environment as well as to the health of individuals. Punjab has been the forerunner of Green Revolution in India and therefore, its worse effects have been visible here. In this regard, Organic agriculture is viewed as an alternative method for the sustainability of ecology in the state of Punjab. The main aim of the present study is to examine the costs as well returns in organic and non-organic wheat and paddy cultivation. An effort has also been made in the present study to suggest policy measures to promote organic agriculture in Punjab. In order to fulfill the objectives of the study, the first hand information/primary data has been collected by making use of well prepared questionnaire. The study has been conducted in Nabha area of Punjab state due to large area covered under organic agriculture here. A sample of 100 farmers doing organic as well as non-organic agriculture has been taken. The study brings out the efficient results to prove the relevance of organic agriculture. Its adoption is beneficial to the farmers as they are going through the disastrous period. Despite the low yield and high costs in organic agriculture, its gross as well as net returns are high. It will be more beneficial for the farmers, especially the marginal farmers of Punjab which are under debt. With the adoption of organic agriculture they can come out of the debt trap which would improve their economic condition also.


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