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One thing that makes organic produce different from chemical produce is that is better in taste, easily digestible, highly healthy and nutritious. There is an increasing awareness, preference and demand for organic produce from consumers and as such, organic produce is fetching much higher prices in the market.
The Average total Cost (COST A1) of chemical group is 22% higher than organic group. But Cost per quintal of wheat of organic group is 29% more than chemical group. This is because yields are higher in chemical farming. But the average selling price of organic produce among the sample was Rs. 1,800 while that of chemical produce was Rs. 850. This makes organic farming profitable compared to chemical farming, which is easily seen while comparing Net Incomes of both the groups, where Net income of Organic Group is around 30% more than Chemical group.
Average yields in Organic Farming i.e. 11.1 Quintal is quiet less compared to Chemical Farming yield of 17.6 Quintal. Since many farmers have just converted some part of land in just last 2-3 years, hence initially there is bound to be some downfall in productivity. But many farmers who are practicing organic Farming for more then 4-5 years have reported that productivity is slowly increasing. Most of the farmers are also concerned about not just productivity but sustainability, as they feel there land under chemical farming looks dead, while the land they have converted to organic farming looks alive and more fertile. Many Organic farmers have done green manuring to improve the fertility of land.
There are not much differences in the costs incurred on Repairs & Maintenance Charges, Harvesting & Threshing (Contract) Charges, Market costs and Interest on Working Capital (10% p.a.). But Harvesting & Threshing (Contract) Charges are slightly higher in Organic Farms as many do it through hand and not Machines. This also leads to higher straw production. Thai is why many farmers tempt to harvest and thresh their crop through manual labour. While market costs are lower in Organic Farms as it is seen that many of the farmers use part of the produce for their home consumption and sell rest to the clients they know who have demand for the organic wheat, i.e most of the organic produce is sold through special channels with premium. Many times traders and buyers pick up the organic produce right from the farm field, Whereas in the Chemical group wheat, it is sold to government agency and produced has to be taken to Mandi where Mandi charges, transportation, commission and labour charges are paid. Hence market costs are greater in terms of Chemical group than organic group.
Seed costs of organic farm groups were greater because the HYV seed used in chemical farmers are subsidised while seed used by Organic Farms are traditional and are expensive if purchased, but most of the organic farms use the home-grown seeds as many are practising organic farming for more than 5 years. So many of the farmers don’t buy the seeds from the market.
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It is also seen the organic farm group consumed appreciable less energy in crop production than chemical farm group. It is evidently seen in the table as fuel cost incurred per acre in Chemical farms was 14% more than organic farm. This is due to many reasons. Firstly organic farms soil is livelier, hence might require less of ploughing work and no pesticides. So fuel is saved on such operations. Moreover, organic farm requires less irrigation eg. If chemical farm need to be irrigated 4-5 times, then organic farm needs to be irrigated only 3 times. All these save energy and labour costs as well. Hence fuel costs are 14% higher in chemical group compared to organic group. Also Fertilizer costs comprise up to 31% of the total costs, which is a very substantial amount.
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