Vol. 11, Special Issue 6 (2022)

Author(s):
Ratika Kayastha, Ravinder Sharma, Nitin Sharma and Neeraj Singh Parihar

Abstract:
The sampled families in the current study, titled "Economic Evaluation of Litchi Cultivation in Kangra District of Himachal Pradesh," were chosen using a multistage random sampling methodology from three blocks in Kangra District. A sample of 60 households was drawn randomly. According to the economic analysis, the initial cost of investment in litchi plantation was estimated to be ₹ 32,157.43 per hundred plants. With a 19.14 percent internal rate of return, a benefit-cost ratio of 1.69, and a net present value of ₹ 48,089.56 per hundred plants, litchi cultivation was lucrative. Sensitivity analysis of litchi plantations revealed that the internal rate of litchi crop remained higher than the prevailing bank rates for long deposits even when costs or returns changed by 15 percent, demonstrating that the risks and uncertainties associated with price and costs are minimal in litchi crop. As a result, it is suggested that litchi cultivation be encouraged among orchards in the foothills of Himachal Pradesh. Orchardists should be educated on fertilizer application time and other better management practices. Raising producer awareness should stimulate the implementation of current processes.