Economic Affairs
  • Year: 2022
  • Volume: 67
  • Issue: 3

Economic analysis of open field capsicum cultivation- Findings from Solan district of Himachal Pradesh

  • Author:
  • Sangya Kumari1,*, Subhash Sharma2, Amit Guleria3, Parul Barwal4
  • Total Page Count: 7
  • Published Online: Sep 2, 2023
  • Page Number: 211 to 217

1Dr. Y.S. Parmar University of Horticulture & Forestry, Solan, Himachal Pradesh, India

2Department of Agricultural Economics, Dr. Y.S. Parmar University of Horticulture & Forestry, Solan, Himachal Pradesh, India

3Economist (Quantitative Methods) Punjab Agricultural University, Ludhiana, Punjab, India

4Dr. Y.S. Parmar University of Horticulture & Forestry, Nauni, Solan, Himachal Pradesh, India

*Corresponding author: sangya.neet94@gmail.com (ORCID ID: 0000-0002-9954-0669)

Online published on 2 September, 2023.

Abstract

The present study attempted to analyze the cost and returns of open field capsicum cultivation in the Solan District of Himachal Pradesh. A total of 80 farmers were selected randomly from two developmental blocks, namely Solan and Kandaghat. Findings revealed that the overall cost of capsicum cultivation was 134896.38 per hectare, which was 137509.09, 132978.89, 130986.75, and 136858.50 in the marginal, small, semi-medium, and medium farm categories. The return analysis revealed that among all the four categories, the highest per hectare-average returns were observed in the marginal farm category, i.e., 216609.74 and the lowest average returns were recorded in the medium farm category, i.e., 152319.63. The cost of production varied between 718.38 per quintal in the marginal farm category to 875.54 per quintal in medium farm category. The input-output ratio on an overall level concluded that at an investment of 1 on capsicum cultivation, the farmers in the study area were getting 2.39 as returns.

• The study area represented an overall cropping intensity of 184.97 %.

• The highest per hectare cost of cultivation of 137509.09 in the marginal farm category revealed a high investment on the factors of production.

• The net farm income was found to be the highest in the case of the marginal farm category, i.e., 216609.74, which indicated an overall good performance in capsicum cultivation.

• The overall input-output ratio of 2.39 indicated a great potential of capsicum cultivation under open field conditions in the study area.

Keywords

Cost, Production, Returns, Profit, Benefit-Cost ratio