Cost Benefit Analysis of Paddy and Cotton Crops - An Empirical study in Telangana

This study examines the cost of cultivation and cost–benefit analysis of paddy and cotton crops in Venkatraopet village of Mallapur Mandal, Telangana. The analysis is based on primary data collected from 45 farmers selected through systematic random sampling. The study evaluates land distribution, cropping pattern, cost components, yield levels, gross income, net income, and cost benefit ratios across marginal, small, medium, and large farm categories. Results reveal that cotton generates higher gross income per acre compared to paddy due to its higher market price. However, cotton cultivation involves significantly higher input costs, particularly labour, fertilizers, and pesticides, resulting in lower net returns. In contrast, paddy cultivation shows moderate costs with relatively higher and more stable net income. The cost benefit ratio of paddy is consistently higher than cotton across all farm categories. The study concludes that paddy cultivation is more economically viable and cost efficient than cotton in the study area.