1Department of Agricultural Economics, Institute of Agricultural Sciences, Banaras Hindu University, Varanasi-221 005, Uttar Pradesh, India
2Department of Farm Engineering, Institute of Agricultural Sciences, Banaras Hindu University, Varanasi-221 005, Uttar Pradesh, India
*Corresponding Author: Jasmeet Kaur, Department of Agricultural Economics, Institute of Agricultural Sciences, Banaras Hindu University, Varanasi-221 005, Uttar Pradesh, India. Email: jasmeetk0099@gmail.com
Ginger is a commercially significant spice crop in the Western Himalayan region, serving as a key source of livelihood for smallholder farmers. In recognition of its economic potential, the Sirmour district of Himachal Pradesh has been designated under India’s One District One Product (ODOP) initiative for ginger, aiming to promote value chain upgrading, processing and market expansion. However, empirical assessments of cost structures, profitability and determinants of income in this ODOP context remain scarce. This study examines the economics of ginger cultivation and identifies the factors that influence net farm income, aiming to inform evidence-based policy and value-chain development.
A multistage purposive-random sampling approach was employed to survey 300 ginger-growing households across major production clusters in Sirmour. Primary data for the agricultural year 2023–24 were collected using a pre-tested structured schedule. Production costs were estimated following the Commission for Agricultural Costs and Prices (CACP) framework. Profitability indicators, including gross and net returns, family labour income, farm business income and output-input ratios, were compared across marginal, small and semi-medium farmers. Determinants of net farm income were identified through an Ordinary Least Squares (OLS) regression model incorporating socioeconomic, input-use, farm-structural and institutional variables.
Semi-medium farmers achieved the highest productivity (153.71 q/ha), lowest unit cost of production (₹ 1,566/q) and the highest output-input ratio (2.51). The mean net farm income from ginger cultivation was ₹ 295,394 per farm, indicating economic viability, though income variability was high. The OLS results show that household size, hired labour use and area under ginger cultivation exert a positive and significant influence on net farm income. In contrast, seed cost negatively affects income, confirming it as a major profitability constraint. Expenditure on fertilisers and chemicals shows weakly diminishing returns, while varietal choice and market access variables, price information, transport and storage are statistically insignificant. The model explains about 50 per cent of the variation in net farmmo income. Overall, the findings highlight that production efficiency and crop-specific scale, rather than total landholdings or existing market infrastructure, are the principal drivers of farm income. The study offers strong empirical evidence for ODOP strategies to prioritise input cost reduction and production-side interventions to enhance the incomes of ginger growers in Himalayan regions.
Cost of cultivation, Farm income determinants, Ginger cultivation, Hill agriculture, ODOP, OLS regression, Profitability
