Profitability of capsicum production under protected conditions in Punjab: Towards agri-entrepreneurship for better livelihoods

The present study was undertaken to assess the costs and returns in the production of capsicum under protected cultivation vis-à-vis open field cultivation, to examine the economic viability of investment for the production of capsicum under protected cultivation and to identify the constraints in the production of capsicum under protected cultivation technique and making suggestions for streamlining the same. The primary data for the year 2018-19 were collected from 40 poly house and 40 open field farmers from Ludhiana and Jalandhar districts. The results revealed that the cost of establishment of polyhouse was to the tune of Rs.18,70,000/4000m² with subsidy. The total per acre cost of production of capsicum under polyhouse was higher by Rs.417233 (336.45%) than that of open field cultivation. The net returns under polyhouses were higher by Rs.280582.90 (510.50%) for capsicum in polyhouse cultivation. The huge differences in cost of production in polyhouse cultivation of capsicum were due to the use of more number of seedlings, costly seeds, high field and bed preparation cost and requirement of skilled labor while expenditure on weeding and irrigation was found less in polyhouse cultivation of vegetables. The yield of capsicum (111.05%) in polyhouse cultivation was found higher as compared to open field cultivation of capsicum. The cultivation of capsicum under polyhouse was found to be feasible as reflected in higher value of NPV, i.e., Rs. 17,61,915.66 per 4000m²with benefit cost ratio (BCR) of 1.3 and Internal rate of return (IRR) of 24% . High investment cost, lack of technical guidance, costly seeds, non-availability of skilled labor and high cost of maintenance were the major constraints faced by polyhouse farmers. Despite these constraints, cultivation of capsicum under polyhouse emerges as a profitable venture to increase farmers’ income.