Economics of Production and Marketing of Chrysanthemum Flowers in Karnataka

This study provides information on economic aspects of production and marketing of one of the important commercial flower crops viz. Chrysanthemum, based on the data collected from Kolar district in Karnataka during 1985. The cost of cultivation which includes marketing costs besides cost of inputs and fixed costs on an average was around Rs, 21,500 per heactare showing the high capital outlay needed for growing this crop. The labour cost has accounted for major portion of the input cost showing the labour intensive nature of the crop. The higher proportion of marketing costs (44 per cent) in total cost of cultivation and the huge differences in returns realised between Channel-I (sale through commission agent) and Channel-II (sale to pre-harvest contractors) shows the need for encouraging self marketing by cultivators instead of selling to pre-harvest contractors. For achieving this additional credit in the form of marketing credit also is to be provided besides production credit as need for money is one of the main reasons for selling to pre-harvest contractors. There is also need to regulate the trade in flowers to control the commission charges and to prevent cheating at the market.