Economics and Institutional Aspects of Protected Cultivation in India

This paper has examined the role of different institutions in promotion of protected cultivation and the benefits realised by the farmers. The area under protected cultivation promoted by National Horticulture Mission, has been found nearly 1.5 lakh ha, of which 20 per cent is under greenhouse. The maximum area under protected cultivation is in the form of plastic mulching. The study has found that farmers having linkages with public and private agencies have more area under protected cultivation. The export-oriented carnation cultivation has been found most profitable vis-à-vis domestic market-oriented and diversified pattern of production. The have results shown that the cost of protected cultivation can be recovered in 3–5 years, depending upon the crops grown. The IRR varies from 31 per cent for carnation with capsicum to 73 per cent when only carnation is grown. The protected cultivation has been found sustainable even without subsidy for carnation, but IRR reduces to 28 per cent. The protected cultivation has made significant impact on the farm households in the hilly region. However, its further expansion will depend upon effectiveness of supporting institutions and market structure.