ACCENT JOURNAL OF ECONOMICS ECOLOGY & ENGINEERING Peer Reviewed and Refereed Journal, ISSN NO. 2456-1037
Available Online: www.ajeee.co.in/index.php/AJEEE
Vol. 07, Special Issue 06, (MIM/IC-RI-2022) October 2022 IMPACT FACTOR: 7.98 (INTERNATIONAL JOURNAL) 34 COMMERCE & INDUSTRY (RESEARCH & INNOVATIONS IN COMMERCE &
ECONOMICS) FACTORS AFFECTING COST & BENEFIT IN AGRICULTURE BUSINESS Researcher (Author)
Prerna Kaushik
Swami Vivekananda Government Commerce College, Ratlam (M.P.) Guidance by
Dr. S. C. Jain
Principal of Government Collage, Sailana (M.P)
Abstract - The paper aims to determine the need and opportunities of the cost-profit analysis for the economic entities in the field of agriculture taking into account the priorities of agriculture production is based on an analysis of the following indicators: the paper aims to determine the need and opportunities of the cost profit analysis for the economic entities in the field of agriculture taking into account the priorities of agriculture production is based on analysis of the following indicators: in the presented research paper that the industry plays an important role in the economy of India. In the present context, there is a need to make the agriculture sector aware and pay more attention.
Farmers should get a fair price for their produce. Many times due to natural uncertainty and lack of knowledge, farmers suffer huge losses. Many times the farmers are not able to get the proper price for the crop produced by them, Due to this, the trend of farmers towards agriculture is decreasing.
The factors described in the research paper affect the cost and benefit. The main factor in this has been described as supply. Farmers should be provided with the necessary means for crop production like loans, fertilizer, seed, and agricultural land at concessional rates. So that the cost of crop production can be reduced and profit can be increased. If the farmers will get a fair selling price for the crop produced by them, then they will be motivated to produce the crop in more quantity so that the supply will increase according to the demand. The estimated result for the association studied shows good prospective and they reveal significant potential opportunities for the expansion of the agriculture sector.
This analysis is necessary to evaluate how to reduce the cost of production and enhance profits.
Keywords: Industry, cost, profit, agriculture, farmer.
1 INTRODUCTION
the present study entitles "factors affecting cost and benefit in agriculture business" is an attempt to evaluate the performance of the Indian farming business because we know that our population of our country is getting close to 140 crores, and because of the increasing population, this is related to the food supply.
Because of the growing population, micro, medium, small and large industries related to food supply like grading and replacing industries, oil industries, sugar mills, fruit juices and gems, package food, silk and cotton industries, industries that are associated with this type of industry, those who use agricultural products as raw materials.
Indian economy revolves around all these industries. And all these industries are industries based on raw materials generated from agriculture. Along with this, many other cooperative businesses and industries like Logistics, Transportation, Packaging, chemicals, Advertising, Marketing, Retailers, Wholesalers, warehouses, Cold Storage, Export agencies, etc. come and earn a profit from lakhs and also provide employment. All these industries use the products produced by the farmers as raw material and in today's era, we are forgetting the farmers and their contribution which is not right to face the challenges that may arise in future.
We have promoted industrialization, but the foundation of these industries is farming and farmers, which we are constantly denying. This field has been chosen because of its importance in an agriculture-based country like India. Usually, the Indian economy depends upon agriculture business and also India is one of the largest export countries.
That's why the agriculture industry plays a very important role in the Indian economy.
India is a developing country, The following three industries play an important role in the economy of India, which are as follows: -
ACCENT JOURNAL OF ECONOMICS ECOLOGY & ENGINEERING Peer Reviewed and Refereed Journal, ISSN NO. 2456-1037
Available Online: www.ajeee.co.in/index.php/AJEEE
Vol. 07, Special Issue 06, (MIM/IC-RI-2022) October 2022 IMPACT FACTOR: 7.98 (INTERNATIONAL JOURNAL) 35
Manufacturing Industry
Service Industry
Agriculture based Industry 1.1 Manufacturing Industry
In the manufacturing sector, India is slowly moving from an agro-based economy to a manufacturing-based industry. This is necessary for economic progress, many types of manufacturing industries are operating successfully in India, which is providing an unprecedented contribution to advancing the country's economy by exporting its products not only in the country but also abroad. The main among these is Automobile Sector, Pharmaceutical, Mining, Defense, Machine and Equipment, Petroleum Products, Gems and Jewellery, Electronic Goods ETC.
1.2 Service Industry
Service Industries Like Banking, IT, Insurance, Software Development, Customer Support, ETC In the last 10-20 years, India's service and IT industry has made India proud all over the world and this sector helps in collecting foreign exchange by exporting about lakh crores to India every year.
2 AGRICULTURE BASED INDUSTRY
As we have told earlier, India is an agrarian economy as well as told about the industries which use agricultural products as raw material, all these industries depend directly and indirectly based on agriculture. The industry has strengthened the country's economy in 75 years of independence and has contributed a lot to take India to the pinnacle of progress.
All the above three industries play an essential role in making India a developed nation as well as being able to meet the demand according to the increasing population in the country and today our country has become self-sufficient in the matter of food supply.
Similarly, maintaining the balance of demand and supply along with food supply is very important for a strong economy, this can be possible only when farmers are motivated to produce more crops, for this, farmers should be provided with necessary facilities and facilities for crop production.
Resources should be made available so that they can produce maximum crops to encourage crop production so that food supply and exports can be boosted. Farmers should get a fair selling price for the crop produced so that they can increase in profit and also their economic condition can be better. If the economic condition of the farmers is better, then the economy of the country itself will be better, apart from this, more attention should be paid to how to reduce the cost of production.
There the data presented some factors that affect the cost and benefit in the agriculture business firstly demand and supply affected cost and benefit because the law of demand and supply theory explains the interaction between the seller of a resource and buyers of that resource.
Costs and benefits are affected by demand and supply. If supply increases in the markets, its price decreases, and vice versa, if supply is of the same proportion. If the supply decreases, then its price increases, here we can understand from an example when all the farmers bring their produced produce of soybean for sale in the market, then the supply increases to a great extent so that its price goes less and the amount of its profit is affected by it, but when the farmer sows the next production, he has to buy soybean seeds from him, during this time the demand for soybean increases more but the supply is the same, thus increasing the demand. Due to this, the price of soybean seeds increases and the farmer has to buy expensive seeds, due to which his cost increases.
Sometimes supply decreases due to uncertainty of natural calamity. For example, if the rainfall is more than normal then the crop is destroyed and if the rainfall is less than normal whichever crop gets spoiled there is a shortage in supply.
Generally, due to the high cost of production, the trend of farmers towards commercial crops such as pulses and oilseeds has decreased. Due to the increase in their value, There can be many reasons for the high cost of production, such as rising prices during the season, due to the increasing demand for urea, insecticide, weed killer, seed treatment, increasing their prices, due to the lack of new technology and scientific
ACCENT JOURNAL OF ECONOMICS ECOLOGY & ENGINEERING Peer Reviewed and Refereed Journal, ISSN NO. 2456-1037
Available Online: www.ajeee.co.in/index.php/AJEEE
Vol. 07, Special Issue 06, (MIM/IC-RI-2022) October 2022 IMPACT FACTOR: 7.98 (INTERNATIONAL JOURNAL) 36 knowledge, Increase in the interest rate of the loan, increase in the prices of agricultural implements, machines and resources, etc., all the above factors lead to increases the cost of production there is a need to control the prices so that the cost can be reduced.
2.1 Objective
The present study aims at having a deep insight into the cost and benefit aspects of the agriculture business in India as the title of the study suggests.
The price of productivity is increasing rapidly day by day cost and benefit are very closely related all time. The profit is directly affected by the management of cost control and pricing and the price is directly affected by cost profitability efficient cost control management may help increase profit. Hence the study of cost and profit becomes essential.
3 CONCLUSION
As it is known earlier, India is an agricultural economy, three types of industries have been discussed in the research article, the main one is the agriculture industry, which uses agricultural-based raw materials and completely depends on agriculture, this is the reason.
That the agriculture sector should be given more attention, the farmers should get a fair price for their produce, how to reduce the cost of production and maximize the profit so that the farmer is encouraged to produce more. So that can be able to supply according to the demand of the growing population, the biggest reason for increasing inflation is the lack of supply. So if the rising prices are to be controlled, then there can be two options, first, the farmers should be encouraged to produce more, the resources necessary for crop production should be made available at concessional rates and the second option should be promoted imports so that Supply can be increased according to the demand if the research paper is studied deeply, then you will see that Farming based industries contribute incomparable to the country's economy and hence farming is called the backbone of the economy, due to this more attention is paid to farming. Farmers should be given the proper guidance from time to time on how to increase profits by reducing the cost of production.
REFERENCES
1. Ana Maria Navies DaSilva 2007 - Cost Volume Profit relations analysis among agriculture.
2. Bishnu Prasad Poudel 2009 - Cost Volume Profit analysis is a tool of Profit Planning and Control.
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4. Ashish Kumar 2018 - The comparative cost and profit analysis of organic and non-organic farming practices in the mid-Himalayan region. (International Journal of agriculture environment and Biotechnology).
5. Netra Bahadur Bhandari 2015 - Average production cost and profit margin of pulses oilseeds Spice and commercial crops.
6. Mihaela Tulvinschi 2017 – The opportunity and need of the cost volume profit analysis in agriculture.
