Comparing Costs and Profitability of Canola, Rapeseed-Mustard, and Wheat Production in Punjab: Lessons for Integrating Oilseeds in Cropping Pattern

Abstract

The profitability analysis for rapeseed-mustard and canola revealed that land rent, fertilizer, harvesting, threshing, and ploughing were major cost items. The total per-acre cost of production, gross income, net profit, and Benefit-Cost Ratio (BCR) for rapeseed-mustard were PKR 63413, PKR 105572, PKR 42159, and 1.66, respectively. For canola, the total cost of production per acre, gross income, net profit, and Benefit-Cost Ratio (BCR) were PKR 65765, PKR 134933, PKR 64225, and 2.05, respectively.   The total cost of production per acre, gross income, net return, and Benefit-Cost Ratio (BCR) for wheat were PKR 79073, PKR 105785, PKR 11479, and 1.33, respectively. This profitability analysis revealed that the total per-acre cost of production for rapeseed-mustard and canola is lower than that of wheat. On the other hand, net profit and BCR for rapeseed-mustard and canola are much higher than for wheat, indicating that these oilseed crops are more profitable. However, their cultivation is not gaining the desired momentum in Punjab. Wheat being the staple diet, with support prices and procurement policies, thus blocking the adoption of oilseed crops. Lack of consistency and flaws in government policies are clearly evident in the case of oilseed crops. Policy makers must exercise due care while devising policies for the competing crops.