Risk Analysis in Sugarcane Production: Evidences from Uttar Pradesh and Maharashtra States of India

Abstract

Agriculture is an intrinsically risk industry. Sugarcane crop is grown as a important cash crop in all over the world and facing several risks in production and marketing. Present study focuses on the measurement of farm risk i.e. area, production, productivity and price for sugarcane production in Uttar Pradesh and Maharashtra. Coefficients of variation (CV) are used to analyze the production risk for both states. Result revealed that coefficients of variation by standard deviation (SD) of area in Uttar Pradesh were 4.92 per cent and in Maharashtra 32.82 per cent. Production risk was lower in Uttar Pradesh (7.85 %) as compared to Maharashtra (36.89 %). Productivity risk in Uttar Pradesh and Maharashtra were 4.49 and 10.04 per cent respectively. Price risk showed high in both state Uttar Pradesh and Maharashtra with 45.59 and 49.55 per cent respectively. Therefore, it can be concluded that risk associated with area, production, productivity and price risk in Uttar Pradesh was lower as compared to Maharashtra