PROFITABILITY OF WHEAT PRODUCTION IN DERA ISMAIL KHAN
Samiullah*, Mehmood Shah*, Kalim Ullah**, Rehmat Ullah*** and Ibrarullah****
This study sought to assess the cost and gross margin of wheat in Dera Ismail Khan District, Khyber Pakhtunkhwa (KPK) Pakistan, in the wheat crop season during May-June, 2012. A survey method was employed and 11 villages were selected at random which are the major wheat producing villages in the said district. A total of 50 respondents were probed by personal interview method from the sampled villages. Cost and return (gross return) data from the respondents were analyzed. Farm budgeting technique for estimating cost, gross return and profitability was applied. The analysis of data revealed that the average cost per acre was Rs. 24716.32. Similarly average production of wheat (output) was estimated to -1 -1 be 1618.40 kg acre . Thus the gross return was Rs. 45315.39 acre , whereas the net return (profit) from wheat production was Rs. 20599.07 -1 acre . It is thus concluded that profit is under the direct positive influence of price and output of wheat grain whereas cost had negatively affected the wheat profitability.