ECONOMICS OF PRODUCTION AND MARKETING OF PLUM IN KULLU DISTRICT OF HIMACHAL PRADESH
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Date
2021-12
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UHF,NAUNI
Abstract
ABSTRACT
In the present study entitled “Economics of Production and Marketing of Plum in Kullu District of
Himachal Pradesh” a sample of 60 farmers cultivating plum was selected using two stage random sampling
method. The farmers were categorized on the basis of their total land holding as marginal (2 ha) and overall. Local markets of Bhuntar and Bandrol were selected purposively for
conducting market study. A total sample of 5 wholesalers and 5 retailers were selected randomly from Bhuntar
and Bandrol markets. Results of the study revealed that literacy rate was found 84.49 per cent with literacy
index of 3 indicating average quality of education. Average operational area was worked out to be 0.98 ha. The
cropping intensity was worked out to be 181.58 per cent. The cultivation of plum fruit seemed to be quite
important, with its contribution to total household income ranging from 56.88 per cent in case of marginal
farmers to 66.44 per cent in medium farms. Per hundred plants total cost of plum cultivation in the initial stage
was estimated to be Rs. 22678.43 at overall level and practically found almost same in all categories of farmers.
The maintenance cost of non-bearing plants was Rs. 18730.17, Rs. 20452.82, Rs. 23368.15, Rs. 26874.07 and
Rs. 29349.63 per hundred plants in the first to fifth year, respectively. Maintenance cost during bearing stage
was increasing with the age from Rs. 48205.66, Rs. 50577.87 and Rs. 51123.45 per hundred plants in the age
groups of 6-10, 11-15 and 16-20 years, respectively and then gradually decreased to Rs. 50470.31 in plants >20
years of age. The proportion of variable cost ranged from 51.12 to 54.32 in different years and share of fixed
cost varied from 45.68 to 48.88 in the total cost. The payback period worked out to be 7 years at overall level.
Benefit-Cost Ratio (BCR) was estimated to be 2.17, Internal rate of Return (IRR) 33 per cent and Net Present
Value (NPV) Rs. 448257.77 which indicated that plum cultivation in the study area is a profitable venture. At
the discount rates of 5 and 10 per cent BCR was found to be greater than 1.5 and NPV was found positive with
increases in costs at 5 per cent and decreases in return at 10 per cent for all categories of farms. It has been
observed that value of r for all inputs is <1, which means overutilization and decrease in their use would
maximize profits. Four main marketing channels were found prevalent in the study area for marketing of plum
crop. Among these channel-B, consisting of Producer-Wholesaler-Retailer-Consumer was found to be the most
preferred as 49.97 per cent of the produce was traded through this channel. Lack of labour during peak operation
time, higher wage rates, shortage of skilled labour, diseases management, lack of irrigation facilities, lack of
storage facilities, fluctuating prices of produce, wholesaler not taking consent while selling, market very far off,
etc. were some of the production and marketing problems faced by the farmers in the study area. The findings of
this study strongly recommend optimum resource utilization for maximizing returns and profits.