ECONOMICS OF PRODUCTION AND MARKETING OF LITCHI (Litchi chinensis) IN KANGRA DISTRICT OF HIMACHAL PRADESH
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Date
2017-08
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UHF,NAUNI
Abstract
ABSTRACT
In the present study entitled “Economics of Production and Marketing of Litchi (Litchi chinensis)
in Kangra district of Himachal Pradesh’’ multistage random sampling technique was used for the selection of
the sampled households from three blocks of Kangra district. Sample of 60 households was drawn randomly and
by using cube root cumulative frequency method the sample was classified into two groups’ viz. Group-I and
Group-II. The economic analysis revealed that initial cost of investment on litchi plantation was estimated Rs.
32157.43 per hundred plants. The litchi cultivation was profitable and earned an internal rate of return of 19.14
per cent with a benefit-cost ratio of 1.69 and net present value of Rs. 48089.56 per hundred plants. Sensitivity
analysis of litchi plantation showed that up to 15 per cent changes in costs or returns, internal rate of litchi crop
remained higher than the prevailing bank rates for long deposits, which clearly shows that the risks and
uncertainties associated with price and costs are minimum in litchi crop. Therefore, it is suggested that litchi
cultivation should be encouraged among the orchardists in the foot hills of Himachal Pradesh. Three main
marketing channels were found prevalent in the study area for the marketing of litchi crop. Amongst these
channel-C (Producer Pre-harvest contractor Wholesaler Retailer Consumer) was found to be the most
preferred channel as 50.28 per cent of the produce was traded through this marketing channel. Shortage of
labour, high wage rate and non-availability of labour at peak operation time were major production problems
faced by the farmers. Marketing problems included higher commission, lack of bargaining power, delay in
payments, large number of intermediaries, lack of transport facilities and lack of remunerative price. Problem of
non-availability of labour at peak operation time was found maximum in Group-II (57.69%) which differs
significantly from all other problems.
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