Economic feasibility analysis of major flower crops in Himachal Pradesh state of India

This study explored economic feasibility analysis of major flower crops in the Himachal Pradesh State of India, using, net present value, benefit cost ratio and internal rate of return. Descriptive statistics were used for analyzing the problems and prospect of floriculture industry in the state. Variable cost for important flower crops such as carnation, gerbera, lilium, chrysanthemum and rose were estimated. It ranges between 2–5 lakh/1,000 m² area. The Net Present Value (NPV) of different flower crops was positive and ranges between 30–44 lakhs. Benefit cost ratio (BCR) was estimated to be 2.37, 2.01, 1.89, 2.39 and 2.89 for carnation, gerbera, lilium, chrysanthemum and rose, respectively. Internal Rate of Return of all flowers was found to be high i.e. more than 70 per cent in case of every flower crop studied. Sensitivity analysis of different flower crops indicated that benefit cost ratio was more than unity and value of Internal Rate of Return was found to be more than 70 per cent which proves that investment in flower crops is financially feasible. Lack of training and technical know-how, problems related to post-harvest management of flower, non-availability of cold storage facilities, unavailability of local market, and high transportation cost were among problems faced by sample farmers.