Economic Assessment of Soybean Production in Amravati District: Costs, Returns, and Farm Size Dynamics

Abstract

The research estimated the cost and returns of soybean production in the Amravati district of Maharashtra, a key region for soybean cultivation in India. Primary data was collected from 120 farmers across different farm sizes (small, medium, and large) through personal interviews and structured questionnaires. The study assessed the economic dynamics of soybean farming by examining inputs such as human labour, bullock labour, seeds, fertilizers, mechanization, and plant protection costs, and analyzed the output in terms of yields and profitability. The findings revealed significant variations in resource allocation and profitability across farm sizes. Small farmers incurred higher costs, particularly in labour due to limited mechanization, compared to medium and large farmers. The per quintal cost of production for overall farmers was Rs. 4002.20. In contrast, large farms benefited from economies of scale, with lower production cost (Cost C3: Rs. 60,878.89/ha) compared to small (Rs. 62,755.14/ha) and medium farms (Rs. 63,009.94/ha). Medium-sized farmers emerged as the most profitable, showing the best balance between input costs and returns, with a gross return of Rs. 72,597.99/ha. The overall input-output ratio for soybean cultivation indicates profitability, with a ratio of 1.14 at Cost C3. The study emphasized the potential for improving efficiency in farms through strategic investments in mechanization and better resource management. By enhancing productivity, such measures can help bridge the gap between local and global soybean productivity levels and give economic stability to soybean farmers in the region.