Impact of Innovations in Value Chain on Sorghum Farmers

B. Dayakar Rao, J.V. Patil, M.P. Rajendraprasad, K. Nirmal Reddy, Kamini Devi, B. Sriharsha and N. Kachui

Agricultural Economics Research Review, 2010, vol. 23, issue Conference

Abstract: The paper has studied the implementation of millets value chain pilot project under the NAIP to create demand for sorghum through diversification in farm production, procurement, ultimately aiming at economical benefits to both farmers and other stakeholders. This 4.5 years novel initiative is still in the mid-way. The study has reported that technological backstopping of sorghum cultivation with end-product specific improved cultivars has realized 51 per cent rise in incremental net income of Rs 16098/ha for the participating farmers (58 per cent rise in kharif and 44 per cent in rabi farmers). The inconvenience in the preparation of sorghum foods which has been the important reason for the decrease in its consumption, has been eliminated through development of convenient and ready-to-eat/cook foods. The factorization of the investment expenditure made per farmer (one acre of sorghum per participating farmer) has been worked out to be Rs 356 (equivalent of Rs 890/ha) in a season resulting in 51 per cent rise in incremental net income over baseline which is slightly higher in kharif sorghum than in rabi sorghum. The output pricing in kharif has helped in attaining these benefits. However, the benefit-cost ratio has worked out in favour of rabi sorghum farmers, i.e. 1:7.5 vis-à-vis kharif farmers BC ratio of 1: 4.2. The study has observed that linking up of the entire stakeholders through value addition throughout the value chain system would renew and uplift the diminishing sorghum area and production and its ultimate economical benefits to farmers and other stakeholders in the value chain.

Keywords: Agricultural; and; Food; Policy (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aerrae:96916

DOI: 10.22004/ag.econ.96916

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