UPSC MainsMANAGEMENT-PAPER-II20224 Marks
Q10.

If the profit per acre of onions were ₹2,500, how many acres of land should Agrofarms Ltd. plant of each crop to maximise the profit for the season?

How to Approach

This question requires the application of Operations Research techniques, specifically Linear Programming, to solve an agricultural optimization problem. The approach involves identifying the decision variables (acres of each crop), the objective function (maximizing profit), and the constraints (land availability, potentially other resource constraints not explicitly stated). While the question is incomplete without information on other crops and their profits, we will demonstrate the setup assuming only two crops: onions and a generic 'other crop'. The answer will focus on formulating the problem and explaining the solution process.

Model Answer

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Introduction

Agricultural optimization is a crucial aspect of modern farm management, aiming to maximize profitability while efficiently utilizing available resources. Operations Research provides powerful tools, such as Linear Programming, to address these complex decision-making scenarios. The core principle involves formulating a mathematical model that represents the farm's objectives and constraints, and then solving it to determine the optimal allocation of resources. This question presents a simplified scenario, focusing on maximizing profit from onion cultivation alongside another crop, given a profit margin for onions. A complete solution would require details on other crops, but we can illustrate the methodology.

Problem Formulation

Let's assume Agrofarms Ltd. has a total of 'L' acres of land available. Let 'x' be the number of acres planted with onions and 'y' be the number of acres planted with another crop. We need to determine the values of 'x' and 'y' that maximize the total profit.

Decision Variables:

  • x = Acres of land planted with onions
  • y = Acres of land planted with other crop

Objective Function:

The objective is to maximize the total profit (Z). Given the profit per acre of onions is ₹2,500, and let's assume the profit per acre of the other crop is ₹P. The objective function is:

Maximize Z = 2500x + Py

Constraints:

  • Land Constraint: x + y ≤ L (Total land available)
  • Non-negativity Constraints: x ≥ 0, y ≥ 0 (Acres planted cannot be negative)

Solving the Linear Programming Problem

Without knowing the value of 'L' (total land) and 'P' (profit per acre of the other crop), we cannot arrive at a numerical solution. However, we can illustrate the solution process using graphical or algebraic methods.

Graphical Method (Illustrative):

If we assume L = 100 acres and P = ₹1,500, we can graph the constraints and find the feasible region. The optimal solution will lie at one of the corner points of the feasible region. We would evaluate the objective function (Z) at each corner point to determine the maximum profit.

Algebraic Method (Simplex Method):

For more complex problems with numerous variables and constraints, the Simplex method is used. This iterative algorithm systematically explores the feasible region to find the optimal solution. Software packages like Excel Solver or specialized Operations Research software can be used to implement the Simplex method.

Scenario Analysis & Sensitivity Analysis

The optimal solution is highly sensitive to the values of 'L' and 'P'.

  • If P < 2500: The optimal solution will likely involve planting all available land with onions (x = L, y = 0).
  • If P > 2500: The optimal solution will likely involve planting all available land with the other crop (x = 0, y = L).
  • If P = 2500: Any combination of x and y satisfying x + y = L will yield the same maximum profit.

Importance of Additional Constraints

In a real-world scenario, other constraints would likely exist, such as:

  • Water Availability: Onions and the other crop may have different water requirements.
  • Labor Availability: Different crops require different amounts of labor.
  • Market Demand: There may be limits on how much of each crop can be sold.
  • Crop Rotation Requirements: To maintain soil health, certain crop rotations may be necessary.

Including these constraints would make the problem more realistic and potentially alter the optimal solution.

Conclusion

In conclusion, maximizing Agrofarms Ltd.'s profit requires formulating a Linear Programming model that considers the profit per acre of each crop and the available land. While a precise solution necessitates knowing the profit from the other crop and the total land available, the methodology outlined above provides a framework for optimal resource allocation. Sensitivity analysis is crucial to understand how changes in profit margins or resource availability impact the optimal planting strategy. Incorporating additional real-world constraints would further refine the model and lead to more practical recommendations.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Linear Programming
A mathematical method for achieving the best outcome (such as maximum profit or lowest cost) in a mathematical model whose requirements are represented by linear relationships.
Objective Function
A mathematical expression that quantifies the goal of a linear programming problem, such as maximizing profit or minimizing cost.

Key Statistics

India is one of the largest producers of onions in the world, accounting for approximately 23% of global production (2022-23).

Source: National Horticultural Board (NHB), India

Onion prices in India are highly volatile, often influenced by seasonal factors and supply chain disruptions. In September 2023, onion prices surged to ₹30-40/kg due to unseasonal rainfall in key growing regions.

Source: Press Information Bureau (PIB), Government of India (as of knowledge cutoff)

Examples

Crop Diversification in Punjab

Punjab, traditionally focused on rice-wheat cultivation, is promoting crop diversification towards horticulture (fruits and vegetables) and oilseeds to address water depletion and improve farmer incomes. This involves optimizing land allocation based on profitability and water usage.

Frequently Asked Questions

What if there are multiple crops with different profit margins?

The Linear Programming model can be extended to include multiple crops. The objective function would then include the profit per acre for each crop, and the constraints would ensure that the total land used does not exceed the available land.

Topics Covered

Operations ResearchAgricultureEconomicsLinear ProgrammingOptimizationAgricultural Economics