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International Journal of Statistika and Mathematika, ISSN: 2277- 2790 E-ISSN: 2249-8605

Volume 6, Issue 2, June 2013 pp 73-78

Research Article

An Analysis of Yield-Price Risk Associated with Cereal Crops

S. T. Chinchane, S. L. Sananse, C. D. Sonar

Academic Editor:  Dr. Dase R.K.

The yield uncertainty arising due to vagaries of nature vitiates farmers production programmes and causes instability in production and income of the farmers. The situations also discourage credit institutions to advance loans for agricultural purposes. A serious crop failure means not only the loss of farmer’s income but also the loss of investment in crop season to come. Hence it is of crucial importance to protect the farmers from yield and price risk. In this paper we have studied the yield and price risk in Marathwada region of major cereal crop Bajara which is rainfed. We have computed expected annual negative deviations, security indices and the risk equivalent prices for bajara crop for three districts where this crop is grown as main cereal crop. It was found that for Bajara crop the average Security Index for yield was 2.83% and for gross returns was 5.36%. Thus, considering risk in the crop yield Rs. 90.46 per quintal needs to be given to the farmers over and above the minimum support price (MSP) declared by the Govt.Further, considering the risk in yield and price fluctuations  Rs. 171.46 per quintal needs to be given to farmers over and above the MSP declared by the Government.