Economic Evaluation of Production and Marketing of Lemon in Kathua District of Jammu and Kashmir State

The present study made an indepth analysis of lemon being an important citrus variety by studying its costs and returns, economic viability as well as its marketing which is the mostly needed today's researchable issue. With regard to various costs involved, the first year establishment costs per acre worked out to be ‘3821.59 while as the total establishment costs was ‘9563.54 The operational costs i.e., cost A, cost B and cost C worked out to be ‘816.77,’2579.71 and ‘3268.04, respectively. As far as returns were concerned, overall per acre per year returns were ‘10475.36. The study further revealed that at 12 per cent discount rate which is actually the prevailing rate, on an average net present value, internal rate of return benefit cost ratio and payback period of lemon was ‘5475.61, 20.80 per cent, 2.70 and 6.4 years, respectively. The average per quintal marketing cost at producers’ level varied to the extent of ‘399.35, ‘299.90 and ‘217.15 per quintal for channel I, II and III, respectively. The average per quintal marketing cost borne by the retailer was ‘28.65 and ‘18.75 in channel I and II, respectively, and in channel III whole of the marketing cost was borne by the producer as there was direct marketing of produce. A comparison of price spread through different marketing channels revealed that producers’ share in consumers’ rupee was the highest (about 81.99 per cent) in channel III. It was due to self sale in the local market where marketing costs were less. The marketing efficiency was found to be highest in channel III.