Journal Article

Economic Viability and Productivity Dynamics of Finger Millet Cultivation in Karnataka- An Empirical Analysis

Krishnan, Manikandan, Babu, Shabna, Krishna, Reji, Vattekkad, Reshma, Kuttykrishnan Nair, Mohandas Vallamala, Krishna, Dhanya

2026

Overview

Finger millet production in India has decreased in recent decades, primarily due to challenges such as drought, inadequate market support, and cultural barriers. Against this backdrop, the present study examines the economic viability of finger millet cultivation in Karnataka, the state with the largest share of finger millet production. Specifically, it examines (i) the cost of cultivation, returns, and profitability; (ii) the relationship between inputs and output through the application of the Cobb-Douglas production function and decomposition analysis, The study is based on the cost of cultivation survey data published by the Commission of Agricultural Costs and Prices (CACP) and the Indian Institute of Millet Research (IIMR) for 2001–2020. Results revealed that the total cost of cultivation increased sharply from ₹13,125.17/ha in 2001 to ₹79,025/ha in 2020, primarily driven by escalating labour and input expenses. Although gross income rose substantially during the same period, profitability under comprehensive cost (C2) remained negative, reflecting persistent cost pressures. Break-even analysis indicated that actual yield remained below the threshold level in most years. The highest negative deviation was observed in 2011, with the actual yield (20.15 q/ha) falling 15.05 q/ha (-42.75 percent) short of the break-even yield (35.20 q/ha), underscoring the vulnerability of rainfed systems to climatic shocks and drought conditions. The total cost of cultivation increased sixfold from ₹13,125/ha in 2001 to ₹79,025/ha in 2020, mainly driven by sharp rises in human labour (785%), seed (599%), and rental values (706%). Although gross income rose to ₹73,014/ha by 2020, profitability remained negative under comprehensive cost (C2), with losses reaching –₹6,011/ha. The Cobb–Douglas production function explained 61 percent of the output variation, identifying seed, fertilizer, human labour, and animal labour as significant contributors to yield, with fertiliser having the highest positive effect of 0.35. The sum of input elasticities (1.06) indicated increasing returns to scale, suggesting potential efficiency gains through integrated input use. Decomposition analysis revealed that total factor productivity (TFP) contributed 46.73 percent to output growth, underscoring the significant role of technological advancements and improved management practices. The study concludes that profitability cannot be sustained without reducing labour costs, strengthening value chain incentives, and promoting climate-resilient and mechanised cultivation practices. Policies supporting processing, MSP revision, and input-efficient technologies are essential to revive finger millet production under rainfed conditions.