Economic Analysis and Resource Use Efficiency in Papaya Production

Abstract

Papaya is an important commercial fruit crop in India due to its high productivity, short gestation period and significant economic returns. Maharashtra, particularly the North Maharashtra region, has emerged as a major papaya-producing belt; however, scientific evidence on cost structure and efficiency of resource use remains limited. The present study analysed the Economics of production and resource use efficiency of papaya cultivation in Nandurbar district of North Maharashtra. The study was based on primary data collected from 40 papaya growers during the agricultural year 2023–24 using a specially designed schedule. Tabular analysis was employed to estimate cost and returns, while a Cobb–Douglas production function was used to examine resource productivity and efficiency. The results revealed that the per hectare cost of cultivation of papaya was ₹3,75,640.06, with Cost ‘A’ accounting for 63.18 per cent of the total cost. Human labour and rental value of land contributed major components of production cost. The average yield obtained was 533.39 quintals per hectare, generating gross returns of ₹6,52,074.61 and net returns of ₹2,76,434.55 per hectare, with a benefit–cost ratio of 1.74, indicating the economic viability of papaya cultivation. The estimated Cobb–Douglas production function showed that area under papaya had a positive and statistically significant influence on yield at one per cent level, while fertilizer nitrogen, number of plants and irrigation exhibited positive but non-significant effects. The adjusted coefficient of multiple determination (R²) was 0.91, indicating a good fit of the model. The marginal value product to marginal cost ratios suggested underutilization of nitrogen fertilizer, planting material and irrigation, whereas other resources were overutilized. The study concludes that papaya cultivation is profitable in the study area, but there exists considerable scope for improving productivity through efficient allocation of key resources and adoption of balanced input use.