Department of Economics and Sociology, Punjab Agricultural University, Ludhiana-141004
*Corresponding Author email: sharmanobby1995@gmail.com
Online published on 8 June, 2021.
The study analyzed the cost-returns structure and economic viability of litchi cultivation in Punjab. A representative sample of 60 litchi growers was selected from four blocks of Pathankot and Hoshiarpur districts. The results of the study revealed that the expenditure incurred on planting costs had the largest share (42.31%) during the establishment of litchi orchards followed by land preparation. The annual operational/maintenance cost was low in the initial years, which then increased consistently during the subsequent years with the increase in the age of the orchard. Manures and fertilizers, inter-cultural operations, plant protection measures, pruning and training were the major components of operational cost. It was observed that net returns received by the litchi growers were quite high when they sold the produce themselves in the market rather selling through preharvest contractor. The benefit-cost ratio (BCR) greater than unity and Internal rate of return (IRR) greater than discount rate indicated that litchi cultivation was economically viable in the study area. The BCR and IRR were higher when litchi was sold directly by growers in the market rather selling to pre-harvest contractor. It was emphasised that due to highly perishable nature of litchi there is a need to develop storage facilities along with providing technical knowhow to litchi growers by concerned departments for getting remunerative returns as well as better management of litchi orchards.
Costs, Economic viability, Returns, Benefit-cost ratio