Economics of capsicum cultivation under protected condition in South Gujarat Region

Protected farming of vegetables is economically more viable. Adoption of protected cultivation technology can improve yield and productivity of capsicum in off-season. Growing of capsicum in greenhouses is proving to be a very remunerative. Cost is the major issue in sustaining this technology. The present study examined the economic feasibility and profitability of capsicum cultivation. Data were generated by cost accounting method for estimating the feasibility of production and was analyzed by using project evaluation techniques such as Benefit Cost Ratio (BCR), Net Present Value (NPV) and Internal Rate of Return (IRR) and Pay Back Period(PBP).The present study showed that the establishment cost of polyhouse and cost of cultivation of capsicum in polyhouse for the area of 1000 m²was less with 65% and 75% subsidy. Net return obtained without subsidy of capsicum cultivation in polyhouse was less as compare to the net return obtained with 65% and 75% subsidy. The higher values of NPW, IRR and BC ratio and lowest value of payback period of capsicum cultivation in polyhouse with subsidy implied that the capsicum cultivation was most profitable and economically feasible with 65% and 75% subsidy.