An economic analysis of poplar cultivation in Punjab

The present study analyzed the economic viability of poplar based agro-forestry system in Punjab. Primary data were collected from a sample of 60 adopters and 32 non-adopters of agro-forestry from 4 clusters of villages from Ludhiana and Ropar districts of Punjab state pertaining to year 2013–14. Two types of agro-forestry systems AFS-I (wheat + kharif fodder during 1^st four years of poplar cultivation) and AFS-II (sugarcane for first two years and wheat during 3–4 years) were identified. The establishment cost was estimated at 7, 871 per acre for an average farmer. The operational cost was worked out at 3, 724 during 1–4 years and 2, 919 during 5–6 years of plantation in AFS-I on per acre basis. The per acre operational cost in AFS-II was estimated at 1, 904 during 1–2 years, 5, 071 during 3–4 years and 3, 630 during 5–6 years of poplar plantation. The net returns were 2, 02, 463, 2, 05, 283 and 2, 29, 720 in AFS-I and 2, 19, 015, 1, 78, 832 and 2, 00, 639 in AFS-II at 4^th, 5^th and 6^th years of harvesting on per acre basis. The benefit-cost ratio and net present value were the highest at 5th year of harvesting in case of AFS-I and AFS-II. The analysis of benefit-cost ratio and net present value showed that the investment in poplar cultivation is considered to be economically viable during the study year.

Highlights

The annual returns from poplar in both the systems i.e. AFS-I and AFS-II were found to be higher than the wheat and paddy crop rotation, if the harvesting of poplar is done at the age of 4th year.

The poplar plantation was more beneficial than wheat and paddy crop rotation during the study year at the estimated costs and price of poplar as well as intercrops.

It is concluded from the analyze that the undiscounted returns increased with the increase in the age of poplar but using discounting criteria it is indicated that the returns are highest at the age of 4^th year if cost of capital is 15 per cent and above.