International Journal of Environment, Agriculture and Biotechnology

Vol-9, Issue-4; Jul-Aug, 2024

Peer-Reviewed International Journal
Journal Home Page Available: https://ijeab.com/
Journal DOI: 10.22161/ijeab

An Economic Analysis of Organic Farming for Sustainable

Agriculture and Facing the Constraints by Organic
Farmers of Uttarakhand
Dr. Awadhesh Narayan Shukla1,*, Dr. Sarju Narain2 and Dr. Ajay Kumar Tripathi3
1
Assistant Professor, Agricultural Economics, Brahmanand P.G. College Rath, Hamirpur, U.P., India
2Associate Professor Agril. Extension, Brahmanand P.G. College, Rath-210431, Hamirpur, U.P., India
3Assistant Professor, College of Agriculture, G.B. Pant University of Agriculture & Tech. Pantnagar-263145, Uttarakhand.

*Corresponding author: dr.shuklaan@gmail.com

Received: 11 Jul 2024; Received in revised form: 04 Aug 2024; Accepted: 10 Aug 2024; Available online: 19 Aug 2024
©2024 The Author(s). Published by Infogain Publication. This is an open-access article under the CC BY license
(https://creativecommons.org/licenses/by/4.0/).

Abstract— Introduction: Agriculture is carried out mainly through three types of farming systems namely,
natural farming system, inorganic farming system and organic farming system characterized by the
different types of inputs and agricultural management practices used for cultivation of land and production
of crops. Context: Green revolution brings several changes in agriculture production system via inorganic
farming which promotes unsustainable practices for ecosystem and human health. Therefore organic
farming practices are more prefer by farmers for obtaining better price. Objectives: In this context it is
necessary to find out the economics of major crops grown under Organic Farming System and identify the
constraints of production in hilly region of Uttarakhand as compare to Inorganic friendly farmers.
Method: A purposive study was conducted in district Tehri - Garhwal and Almora under hill state of
Uttarakhand. The result is based on the randomly selected 120 farmers (60 Organic Farming System
Farmers and 60 Inorganic Farming System Farmers) interview. The costs of production of different crops
have been worked out by using the standard cost concepts with suitable statistics. Results & Discussion:
The gross as well as net income or profit of different crops increased significantly by two to three times
under organic farming system whereas they remained stagnant and even declined under inorganic farming
system over the years. The costs of production of crops per hectare and per quintal under organic farming
system are lower than under inorganic farming system. Gross and net incomes or profits are nearly 2 times
higher under organic farming systems. Overall organic farming system produces more and sustainable
agriculture output with less energy, low cost and fewer resources with many constraints.
Keywords— organic farming, Economic Analysis, Constraints, Sustainable Agriculture.

HIGHLIGHTS • Constraints related to scarcity of bio based

• Organic farming System having less cost of production inputs and Poor knowledge about
production per hectare and per quintal as compare Organic certification were the pinpointed by the
to Inorganic Farming System. Therefore, gross farmers.
and net incomes were nearly two times higher
under organic farming systems. I. INTRODUCTION
• Organic farming system produces safer and Agriculture and food security are the most
sustainable agriculture output with fewer important concern in 21st century. Agriculture is carried
resources utilization. out mainly through three types of farming system namely

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Shukla et al. An Economic Analysis of Organic Farming for Sustainable Agriculture and Facing the Constraints
by Organic Farmers of Uttarakhand

natural farming system inorganic farming system and regards it is necessary to understand the production
organic farming system characterized by the different economics and constraints of the organic farming system.
types of inputs and Agriculture management practices used However, the work done and know edge available on
for cultivation of land and production of crops. The natural economics of production of organic produce in general and
farming system is considered as a primitive and extensive for the produce of hills in particular. In this context it is
farming system giving low production and income. It is necessary to find out the following research objectives in
found that inorganic farming system over the years burns the districts Almora and Tehri-Garhwal of Uttarakhand.
the soil organic matter and soil microorganisms rendering 1. To study the Comparative economics of major crops
lifeless and unfertile nature of soil. This had resulted in grown under Organic Farming System (OFS) vis-à-vis
stagnation and declining in the yield of crops. The Inorganic Farming System (IFS) over the years.
chemical inputs used in inorganic farming system are 2. To find out the major constraints faced by farmers of
costly and lead to contamination and pollution of natural the study area.
resources like soil water air and other natural resources of
ecosystem and also harm to health of living being
including human. As our health is directly connected to the II. METHODOLOGY
health of the food we eat an ultimately to the health of the The purposive study was conducted in hill state of
soil (Lockie,et.al,2006). As such, there is a strong feeling Uttarakhand. The data from farmers have been collected
world-over that the solution of this problem and ills of the from tahsil Chamba of district Tehri - Garhwal and tahsil
inorganic farming system now lies in organic farming. Almora from district Almora to work out the economics of
According to the FAO, organic agriculture is a system that production of crops and find out the constraints faced by
relies on ecosystem management rather than external farmers in the study area. Total 120 farmers (60 OFS
agricultural inputs such as synthetic fertilizers and Farmers and 60 IFS Farmers) for research work were
pesticides. India backed by a legacy of organic farming selected from five villages in tehsil Chamba and five
markets and there is an urgent need to promote organic villages from tehsil Almora by the random sampling
farming in order to increase exports. The increasing technique with probability proportion to the total
demand for organic food products in developed countries households. In the study area maize, wheat, rajmah and
and the extensive support for organic farming by the pea crops were grown both under organic farming system
Indian government (Chandrashekhar, 2010) may be seen and inorganic farming system with recommended package
as the key driver for this development. Attitude is one of of practices.
the constructs which is very difficult to measure directly.
The data have also been collected, analyzed and presented.
Several psychometric methods of measurement of attitudes
The study was carried out for the year during 2018-19,
have been developed over a period with various
2019-20 and 2020-21. The costs of production of different
advantages and limitations. In the quest to make Ladakh,
crops have been worked out by using the standard cost
an organic Union Territory, and several efforts are already
concepts as follows.
in progress. (Huria et al. Indian Res. J. Ext. Edu. 23 (3),
July-September, 2023) CostA1: All actual expenses in cash and kind incurred in
production by the producer. The items covered in Cost A 1
According to ministry of Agriculture Government
are:
of India the country is divided into three categories in
which Uttarakhand State has been placed in first category 1. Cost of hired human labor.
where the consumption of chemical fertilizers is less than 2. Cost of hired bullock labor.
the other states. The state has a large number of certified
3. Cost of owned bullock labor.
organic farmers who are supported by the promotion of
organic farming as well as with the help of a well 4. Cost of hired machine power
developed organization structure for marketing of organic 5. Cost of home produced /purchased seed
crop products. The total area under organic farming in 6. Cost of plant protection chemicals
Uttarakhand is about 16158.86 hectare. The farmers have
already made a significant contribution in the field of 7. Cost of home produced /purchased manure.
organic farming and farmer to farmer transfer of 8. Cost of fertilizer.
technology helps in domestic and export market potential 9. Depreciation on farm machinery, equipments and
for organic products. Conversion to small organic farms is building.
more profitable and would lead to sizeable increases of
10. Cost of irrigation.
food production worldwide. (Satyajeet et. Al. 2018). In this

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Shukla et al. An Economic Analysis of Organic Farming for Sustainable Agriculture and Facing the Constraints
by Organic Farmers of Uttarakhand

11. Land revenue, land development tax and other III. RESULTS
taxes. A comparative economics of crops grown under
12. Interest on working capital organic farming system vis-à-vis inorganic farming system
13. Miscellaneous expenses are presented in table-1. Maize in kharif and wheat in rabi
season are the most important crops grown by the farmers
Cost A2: Cost A1+ rent paid for leased in land
in the hills. Maize and wheat cultivation was followed by
Cost B1: Cost A1+ interest on the value of owned capital the cultivation of peas and rajmah as well as intercropping
assets (excluding land) of rajmah and peas, respectively. In addition to these crops;
Cost B2: Cost B1+ imputed rental value of owned land (Net vegetable crops were also grown in the study area. It is
of land revenue) and rent paid for leased in land. found that the yield, total production, income and profit of
crops increased under organic farming system over the
Cost C1: Cost B1+Imputed value of family labor.
years. The gross as well as net income or profit different
Cost C2: Cost B2+ Imputed value of family labor. crops increased significantly by two to three times under
Cost C2*: Cost C2 worked out at actual wage rate or organic farming system whereas they remained stagnant
statutory minimum wage rate, whichever is higher. and even declined under inorganic farming system over the
years. Furthermore, organic products fetch very high
Cost D: Cost C2*+ 10 per cent of Cost C2* (on account of
premium prices in the market from the consumers which
managerial functions performed by farmer. The
are often as high as 2 to 3 times more than that of the
consumption of cost of production was done on the basis
inorganic produce which makes organic farming a high
of the input and output prices prevailing in the study area
profitable enterprise.
during the period of study.
Table 1: Comparative Economics of crops grown under Organic Farming System (OFS) vis-à-vis Inorganic Farming System
(IFS) over the years.
Particulars 2018-19 2019-20 2020-21
OFS IFS OFS IFS OFS IFS
Maize
Cost A1 8327.85 10284.81 8371.82 10343.09 8657.09 10451
Cost B1 8827.52 10901.89 8874.12 10963.67 9176.51 11078.06
Cost B2 11881.52 14069.89 12138.12 14233.67 12546.51 14358.06
Cost C2 14686.52 16627.89 15045.12 17344.67 15708.51 17622.06
Yield (qt/ha)
Grains 41.8 39.1 56.4 46.4 58 45.2
Straw 80.3 76.6 109.3 85.5 110 88.7
Price obtained by the farmers Rs./qt.
Grain 840 480 910 550 950 610
Straw 140 125 150 125 170 135
Gross Income 46354 28343 67719 36207.5 73800 39546.5
Net Income or 31667.48 11715.11 52673.88 18862.83 58091.49 21924.44
profit (Rs/ha)
Total Cost/ha 14686.52 16627.89 15045.12 17344.67 15708.51 17622.06
Total Cost/qt 351.35 425.27 266.76 373.81 270.84 389.87
Wheat
Cost A1 9995.95 12543.84 11380.08 1776.97 10841.77 12633.62
Cost B1 10535.7 11176.47 12086.36 12423.6 11432.27 13331.64
Cost B2 20149.62 21861.33 22540.6 23476.3 25505.79 27596.02

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Shukla et al. An Economic Analysis of Organic Farming for Sustainable Agriculture and Facing the Constraints
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Cost C2 38495.65 39309.33 40039.33 41120.3 41463.79 42758.02

Yield (qt/ha)
Grains 44 40 48 45 52 50.00
Straw 85 80 90 81 100 96.00
Price obtained by the farmers Rs/qt.
Grain 1700 1600 1850 1700 2000 1840.00
Straw 700 700 600 600 750 800.00
Gross Income 134300 120000 142800 125100 179000 168800.00
Net Income or 95804.35 80690.67 102760.7 83979.7 137536.2 126042.00
Profit (Rs/ha)
Total Cost/ha 38495.65 39309.33 40039.33 41120.3 41463.79 42758.02
Total Cost/qt 874.90 982.73 834.15 913.78 797.38 855.16
Rajmah
Cost A1 9336.44 12226.48 9585.93 12423.37 10243.61 13129.10
Cost B1 9896.62 12960.06 10161.08 13168.77 10858.22 13916.84
Cost B2 13061.15 16264.44 13444.52 16736.05 14214.93 17604.04
Cost C2 15611.15 19120.44 16096.52 19694.05 17121.93 20460.04
Yield (qt/ha)
Grains 9.2 14.2 23.2 20.8 24.4 26.6
Straw 18.00 30.00 47.4 43.2 45.8 38.5
Price obtained by the farmers Rs./qt
Grains 3800.00 2800.00 4300.00 3200.00 4600.00 3500.00
Straw 100.00 100.00 100.00 100.00 120.00 120.00
Gross Income 36760.00 42760.00 104500.00 70880.00 116820.00 97720.00
Net Income or 21148.85 23639.56 88403.48 51186.00 99698.07 77260.00
Profit (Rs/ha)
Total Cost/ha 15611.15 19120.44 16096.52 19694.00 17121.93 20460.00
Total Cost/qt 1696.86 1346.50 693.81 946.82 701.71 769.17
Peas
Cost A1 10810.89 13759.94 11518.49 14477.44 13070.82 16019.71
Cost B1 11459.54 14585.53 12209.59 15346.08 13855.06 16980.00
Cost B2 13583.97 17063.87 14695.07 18230.08 17179.49 20823.73
Cost C2 15215.97 18746.87 16430.07 20066.08 19219.49 22761.73
Yield (at/ha)
Grains 5.8 5.8 13.2 12.2 15.5 12.0
Straw 9.4 9.4 22.3 20.5 28.3 20.00
Price obtained by the farmers Rs./qt
Grains 6000.00 4700.00 6300.00 5200.00 6550.00 5500.00
Straw 100.00 100.00 100.00 100.00 120.00 120.00

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Gross Income 35740.00 28200.00 85390.00 65490.00 104355.00 68000.00

Net Income or 20524.03 9453.13 68960.00 45424.00 85135.51 45238.27
Profit (Rs./ha)
Total Cost/ha 15215.97 18746.87 16430.00 20066.00 19219.49 22761.73
Total Cost/qt 2623.44 3232.21 1246.69 1644.75 1239.96 1896.81

The data of table -1 depicted the results related to legume plants such as straw and stubbles and another more
net profit (Rs. / ha.), total cost /ha. and total cost/qu. in both than one billion tones of annual and perennial crop plants
conditions, i.e. during Organic Farming System and are produced per annum. These biological wastes
Inorganic Farming System. Result showed the year wise considered as a bone to increase soil fertility for sustainable
difference among both type of groups indicating cost / ha. agriculture. This plant biomass may be utilized as such or
and cost/ql. were found more in case of Inorganic Farming after proper into organic manures. Farmers in India can
System as compare to Organic Farming System. In India, at also use these organic inputs in addition to organic manures
present, in addition to food grains output of above 250 for organic farming system and system and sustainable
million tones, more than 400 million tones of organic agriculture.
matter in the form of biological wastes of cereals and
Table 2: Scenario of Net Income (Rs./ha) under Organic Farming System (OFS) vis-à-vis Inorganic Farming System (IFS) of
different crops.

Particul Three year average of Organic Farming System Three year average of Inorganic Farming
ars (OFS) System (IFS)
Maize Wheat Rajmah Pea Maize Wheat Rajmah Pea
112033.75
47477.61

69750.13

58206.51

17500.79

96904.12

50695.18

33371.80
(Rs./ha)
Income
Net

The result depicted from table -2 indicated that net are of a long term nature. Organic farming system ensures
income received from crop grown under organic farming in built capacity to maintain and increase soil health and
system was found more as compare to inorganic farming fertility leading to sustained increase in yield and
system. The variation among wheat is low as compare to production and low variability of crops; this results in
maize, rajmah and pea. Organic farming may not lead to stabilization and high jump in incomes and sustainable
higher production and income in the short run as its returns agriculture or food security in the long run.

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Shukla et al. An Economic Analysis of Organic Farming for Sustainable Agriculture and Facing the Constraints
by Organic Farmers of Uttarakhand

120000

100000

80000
Maize
60000 Wheat
Rajmah
40000
Pea

20000

0
OFS (Net Income IFS(Net Income Rs.
Rs./Ha) / Ha.)

Fig.1. Scenario of Net Income (Rs./ha) under Organic Farming System (OFS) vis-à-vis Inorganic Farming System (IFS) of
different crops.

Table 3: Constraints enumerated by the farmers under organic farming system vis-à-vis inorganic farming system:
S. No. Particulars Organic Farming System Inorganic Farming System
(OFS) (IFS)

f % Rank f % Rank
1. Unavailability of latest scientific Knowledge about 44 73.33 VII 37 61.66 VI
Organic concept
2. Lack of technical knowledge related to scientific soil 53 88.33 IV 55 91.66 I
management
3. Poor knowledge about Organic certification 57 95.00 II 40 66.66 V
4. Problems in pests and disease management 40 66.66 VIII 52 86.66 II
5. Unavailability of high yielding Seeds 55 91.66 III 46 76.66 IV
6. Scarcity of FYM and other organic manures 60 100.0 I 40 66.66 V
7. Poor knowledge and availability of bio-fertilizers & 57 95.00 II 47 78.33 III
bio-pesticides
8. Extension service in the form of farmers training 47 78.33 VI 33 55.00 VII
9. Marketing problems 50 83.33 V 20 33.33 VIII

These constraints make adoption of scientific The result obtained from table -3 indicated that
organic agriculture difficult, which is environment both types of farmers including OFS and IFS face various
friendly, more profitable and desirable. There is need for constraints. OFS severely faces the Scarcity of FYM and
dissemination of the OFS to create more awareness among other organic manures. Rank first and poor knowledge of
farmers of its success and all round benefits. The non- organic certification as well as Poor knowledge and
availability and scarcity of organic inputs as pinpointed by availability of bio-fertilizers & bio-pesticides. In case of
the farmer must be overcome and solved. IFS concerning farmers Lack of technical knowledge

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Shukla et al. An Economic Analysis of Organic Farming for Sustainable Agriculture and Facing the Constraints
by Organic Farmers of Uttarakhand

related to scientific soil management has rank first output of the findings envisages that Organic farming
followed by Problems in pests and disease management System having less cost of production /ha and per quintal
and other constraints. as compare to Inorganic Farming System. Therefore
farmers’ net profit was found more as compare to
inorganic farming. Organic friendly Farmers were also
IV. DISCUSSION
faces several constraints including scarcity of FYM and
Comparative Economics of crops grown under Organic organic manures, Poor knowledge and availability of bio-
Farming System (OFS) vis-à-vis Inorganic Farming fertilizers & bio-pesticides, Unavailability of high yielding
System (IFS) over the years Seeds, etc. were the major constraints for OFS. In other
It is found that the yield, total production, income and hand Inorganic Farming System friendly faces other types
profit of crops increased under organic farming system of constraints. Thus, availability of organic inputs,
over the years. The gross as well as net income or profit technology and other resources must for organic farming.
from different crops increased significantly by two to three It means that the role of government, private players,
times under organic farming system in case of some crops farmers, agricultural graduates, other policy makers, etc.
whereas they remained stagnant and even declined under are increasing to adopt organic farming system. The role of
inorganic farming system over the years. Anurag. Reddy, et government policies should be aimed at boosting organic
al (2014) was also reported the impact of the adoption of farming on a large scale for export of organic products.
organic agriculture was positive in terms of profitability The laggards of green revolution will be the pioneer of
and reduction in cost, even though there was a reduction in organic farming.
the yield in all crops.
Constraints enumerated by the farmers under organic Funding Source: It is a personnel effort of Authors and
farming system vis-à-vis inorganic farming system: the study is not funded by any organization /institution.
The Scarcity of FYM and other organic manures and Poor Declaration of competing Interest: The authors have no
knowledge and availability of bio-fertilizers & bio- conflicts of interest.
pesticides as well as Poor knowledge about Organic
Data availability: Data would be available on request.
certification are the pinpointed by the farmers must be
overcome and solved. The nature and magnitude of Acknowledgement: Authors are deeply indebted to the
constraints on organic farming system and inorganic farming community of Uttakhand.
farming system related farmers of quite different as Appendix: The supplementary data, table, graph in jpeg
revealed by high value. Chou, Y.M.et .al (2017) reported format for online visibility to the readers are submitted as
that scarcity of organic inputs and labor (particularly an appendix.
family labor) was another constraint, as organic agriculture Authors’ contribution: The corresponding author
is relatively more labor-intensive than conventional responsible for identification of problem,
agriculture. Although lower costs attract farmers to adopt conceptualization and development of schedule for survey.
organic farming, they are hesitant to adopt it widely due to The second author participated in contributing to text and
low yields, higher labor and supervision time requirements the content of the manuscript, including revisions and
and lack of premium price. edits. The third author helps in collection and analysis of
data.
V. CONCLUSION
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