Abstract:
The major debate in paddy cultivation is whether the net earnings from paddy
cultivation were inadequate to sustain household expenditure throughout the
season. The net earning of a farmer varies based on production costs, paddy
prices, and the increase in the price of consumer goods. Therefore, the study aims
to assess whether the farmers' net earnings are adequate to sustain their
household expenditure. The average production, unit cost, price of produce,
guaranteed price, and average monthly household expenditure were analyzed
using Microsoft Excel and linear regression models. Five major paddy-producing
districts were selected and considered for the project for 2024 and 2025 based
on the situation from 2019 to 2023. The study revealed that the price of produce
and the guaranteed price during the study period were higher than the cost of
production, confirming that cultivation was profitable. In addition, the study
showed that if a farmer has 3 ac paddy land and sells his paddy at Rs. 120 in 2024
and Rs. 130 in 2025, the net earnings in the Maha seasons will be adequate for
around two months and in the Yala season for around one to one and a half
months household expenditure which confirmed that net earning was not
adequated. Since the cost of production varies mainly with land holding and
either rainfed or irrigated, further study is needed to generalize the results. This
study analyzed the average condition of the five major paddy-producing districts
that have not yet been studied. Therefore, policymakers need to consider how to
enhance the livelihood of paddy farmers.
