A Project on- “Organic farms exhibit significantly lower expenditure per

kilogram of farm produce than non organic farms.”

HYPOTHESIS :-
1) Organic farming relies on fertilizers of organic origins like manures. As the organic
fertilizers are cheaper than chemical ones, organic farms need lower expenditures.
2) Conventional farming or non-organic farming is more capital intensive.
3) Organic farms exhibit significantly lower expenditure.
OBJECTIVES :-
The main objectives of this Study are:
1. To examine the trends in the area, production and productivity of the selected crops of Godavari
District is located in the North Coastal part of the State of Andhra Pradesh,
2. To analyse the expenditure per kilogram of farm produce and returns from organic farming
practices than non organic farms.
3. To assess the economic efficiency of organic farming over non-organic farming.
4. To identify the factors determining technical efficiency.
5. To suggest measures that may be useful to the policy makers both at the micro and macro levels.
REVIEW OF LITERATURE :-
 Green Revolution made the Indian farmers and that world over to depend mostly on
chemical fertilizers and pesticides, which degraded soil fertility, and environment.
 The negative consequences of higher use of chemical fertilizers and pesticides are reduction
in crop productivity and deterioration in the quality of natural resources.
 Anand Raj Daniel et al., (2005)14 in their study concluded that in 2004 organic cotton
yielded generally on par with conventional cotton. In the case of organic cotton grown on
fields that came out of a short term fallow, yields were higher than yields of conventional
cotton. Profitability of organic cotton was significantly higher than that of conventional
cotton, the contributing factor being reduced expenditure on pest control management
 Kurma Charyulu, D and Subho Biswas(2010)25 focused mainly on the issues like economics
and efficiency of organic farming vis- à- vis conventional farming in India. Four states of
Gujarat, Maharashtra, Punjab and U.P were purposively selected for the Study. Similarly, four
major crops i.e., cotton; sugarcane, paddy and wheat were chosen for the comparison. A
Model based nonparametric Data Envelopment analysis (DEA) was used for analyzing the
efficiency of the farming systems. The results showed a mixed response.
  Overall, it is concluded that the unit costs of production is lower in organic farming in case of
cotton, sugarcane, paddy and wheat.
 The DEA efficiency analysis conducted on four different crops indicated that the efficiency
levels are lower in organic farming compared to conventional farming, relative to their
production frontiers. The results concluded that there is ample scope for increasing the
efficiency under organic farms.
RELEVANCE:-
 Many people believe that organic product refers solely to the promotion or advertising of
products with environmental characteristics especially in his buying decision. Green
marketing or environmental marketing refers to ecological products such as healthy food,
phosphate free, recyclable, refillable ozone friendly, and environment friendly.
 Typically, organic exports are sold at impressive premia, often at prices 20 percent higher
than identical products produced on non-organic farms. The ultimate profitability of organic
farming varies.
 Some researchers have reported that yields of crops grown under organic farming system
are comparable to those under conventional system.
 Most organic farmers are motivated by more than economic objectives – their aim is to
optimize land, animal, and plant interactions, preserve natural nutrient and energy flows,
and enhance biodiversity, all of which contribute to sustainable agriculture.
 Uncertainties of marketing organic products discourage farmers to produce green
agriculture products. Consumers will be interested to buy those products if they find those
cheap.
 our research study will help the farmer to know the fact about organic farms exhibit
significantly lower expenditure per kilogram of farm produce than non organic farming.
MATERIAL & METHOD:-

 The objectives of this study were achieved through primary and secondary sources of data
collection from farmers of Godavari district.
 The source of data was obtained through Godavari District is located in the North Coastal
part of the State of Andhra Pradesh. The District is bounded by Visakhapatnam and the state
of Odisha.
Major type of crops farming by organic and conventional farming practices.

 In above table it is observed that the main yield farmers get from paddy red gram and
ground nut.
 We selected non organic and organic on random basis and studied productivity, income and
expenditure per kilogram of farm.
 It is evident from the earlier studies that the cost of pesticides which constituted a major
share in the total cost may be negligible for organic farming compared to the conventional
farming.
 For studying all these aspects, an attempt has been made in this project to compare the cost
structure and returns from the selected crops for both the organic and conventional farming.
 Further, the economics of farm business for both organic and conventional farming has been
analysed.
( Value in ‘rupees’)
Sr. NAME OF THE CROP ORGANIC NON- ORGANIC
1) PADDY 161462 21515 191034 23237
2) RED GRAM 99057 13653 112576 13694
3) GROUND NUT 105211 14428 118725 14445

 It is evident from the above table that the total expenditure of paddy, red gram, ground nut
per acre on the basis of different cost concepts is found to be relatively higher on non-organic
farms compared to organic farms.
OBSERVATION:-
 To ascertain the relative importance of different inputs in the cost structure, an item-wise
breakup of the total cost and expenditure per kilogram of farm produce is computed. The
details for organic and non organic holdings on the basis of per acre of farms are presented
in below table
 Cost of Cultivation of Paddy Per acre farm - organic farms and non organic farms
 ( Value in ‘rupees’)
Organic Farms Non Organic Farms
Sr.no EXPENDITURE PADDY Sr.no EXPENDITURE PADDY
1. Human Labour 54526 1. Human Labour 56004
2. Bullock Labour 988 2. Bullock Labour 1361
3. Machine Labour 13772 3. Machine Labour 15616
4. Seed 3669 4. Seed 4326
5. Organic Fertilizers 17070 5. Chemical fertilizer 14712
6. Pesticides 3731 6. Pesticides 4627
7. Others 3559 7. Others 3963
8. Interest on working 2540 8. Interest on working 6288
capital capital
9. Depreciation 2610 9. Depreciation 5678
10. Rent Paid on Leased-in 0 10. Rent Paid on Leased-in 9278
land land
11. Interest on Fixed Capital 6154 11. Interest on Fixed 6177
Capital
12. Rental Value of Owned 59525 12. Rental Value of Owned 65768
Land Land
13. Imputed Value of Family 2880 13. Imputed Value of 3413
Labour Family Labour
Total 171025 Total 197211

 It can be observed from the table that Organic farms exhibit significantly lower expenditure
per kilogram of farm produce than non organic farms
 The above analysis has revealed that the proportion of expenditure on organic fertilisers is
higher for organic paddy farms when compared with the expenditure on fertilisers on
conventional paddy farms. However, the total cost per acre on organic farms is lower than
that on conventional farm.
CONCLUSION:-
 The cost of paddy per farm and per acre on the basis of different cost concepts is found to be
relatively higher on non organic farms compared to organic farms. The same phenomenon is
discernible among different size groups of farms also.
 It is evident from the earlier studies that the cost of pesticides which constituted a major
share in the total cost may be negligible for organic farming compared to the non organic
farming, since organic pesticides are homemade and prepared with the locally available
herbs.
 As a result, the organic farmers can get higher returns compared to their counterparts. In
addition, chemical fertilizers are not supposed to be used in the case of organic farming.
 Though some other studies treated farm yard manure (FYM) as a component of chemical
fertilizers, this Study considered FYM as organic fertilizer Except this minor difference, costs
of remaining components that are necessary for calculating various cost concepts..
SUGGESTION:-
 Today's consumers are becoming more and more conscious about the environment and are
also becoming socially responsible. Therefore, we need to educate farmer to produce more
environmentally less damaging or neutral products.
 Many agro companies want to have an early-mover advantage as they have to eventually
move towards becoming green.
 Good awareness programme will motivate consumer go green.
 Reduction in price of green product will enhance sales.
 Organic product marketing should not neglect the economic aspect of marketing.
 Marketers need to understand the implications of green marketing.
 Agro companies must find an opportunity to enhance organic product’s performance and
strengthen customer's loyalty and command a higher price.
 Lot of research is to be done on organic product marketing to fully explore its potential.
BIBLOGRAPHY:-
http://orgprints.org/25543/7/25543.pdf
file:///C:/Users/CSLAB-11/Downloads/agriculture-06-00013%20(1).pdf
http://www.fao.org/3/a-ak355e.pdf
https://qz.com/423777/organic-farming-can-actually-be-more-profitable-than-using-fertilizers-
and-pesticides/
https://thewire.in/agriculture/eco-friendly-low-cost-farming-food-security-vidarbha-maharashtra
http://sustainablefootprint.org/costs-and-benefits-of-organic-farming/
http://www.fao.org/3/ac116e/ac116e05.htm
https://www.wisdomjobs.com/e-university/organic-farming-interview-questions.html
http://agritech.tnau.ac.in/org_farm/orgfarm_faq's_other.html
https://aitc.sk.ca/interviewfarmer
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