COST AND RETURN ANALYSIS OF INORGANIC AND ORGANIC AGRICULTURE: A LITERATURE REVIEW

Abstract

This paper reviewed the global and Indian organic and inorganic agriculture scenarios, especially in the areas of cost of cultivation and return from farming practices. The after-effects of the green revolution have encouraged farmers to start organic farming. It can be seen that the area of organic agriculture is emerging and is very much under discussion between government and non-governmental organisations, policy makers, researchers, agricultural scientists, environmentalists and planners. In view of this, numerous studies have been conducted worldwide on organic and inorganic agriculture by various scholars in the field of agricultural economics and developmental economics. Furthermore, scholars’ perspectives on the studies carried out, differ in methods and systems of agriculture. The majority of the studies advocate that organic farming in most cases; costs are relatively lower than that of inorganic farming and organic farms have obtained relatively higher net-returns than inorganic farms. It has been argued that organic farming is productive and sustainable. The study suggests that the government had to set a minimum support price for organic vegetables, which encourage the establishment of exclusive organic vegetable marketing centres and the development of organic vegetable supply chain systems. The farmers should be trained in the production of vermicompost. Moreover, provision of subsidies for inputs such as seeds, bio-fertilizers, bio-pesticides etc., credit facilities, adequate training programmes, sufficient inputs and a regulated market for organic products are also required for the enhancement of organic farming in India.