Book Description

This study aimed at designing economic crop planning consistent with natural and economic endowments, achieving resource use efficiency for Central Dry Zone (CDZ) of Karnataka. Field data were collected from 45 sample farmers each under Rainfed and Borewell irrigated conditions of CDZ of Karnataka. The extent of efficiency in resource use and allocation is reflected in the costs incurred and net returns realized by valuing inputs at market prices, economic prices and natural resource valuation. The cost of cultivation of crops indicated that, the net returns for borewell irrigated paddy were ₹ 34091/ha, ₹ 17278/ha, ₹ -26120/ha at market prices, economic prices and natural resource values, respectively. Thus, due to subsidies offered, the distortion of prices is to the tune of ₹ 16813/ha, while the distortion due to inclusion of GHGs (₹ 1899/ha) and inclusion of groundwater cost (₹ 41500/ha) is 43399/ha. The resource use efficiency of crops was estimated using Cobb- Douglas production function and results indicated that the ratio of MVP to MFC was differed from unity, in most of the crops, indicating scope for reallocation of expenditure among various resources from over used to under used resources. Economic Optimal Crop Plan for Sustainability in the region developed using linear programming technique indicated that, 40900 ha is to be allocated under borewell irrigated and 103673 ha for rainfed situation according to Economic pricing criteria. Total optimum area allocated would be 144574 ha which maximizes net returns at ₹ 73 crores for Tumakuru District in the CDZ of Karnataka.