Economic Analysis of Potato Production In Kangra District of Himachal Pradesh

Abstract

Potato cultivation is an important part of the agricultural landscape in the Kangra district of newlineHimachal Pradesh, which is famous for producing high-quality seed potatoes that are free of newlinediseases. The objective of this investigation is to perform a thorough economic analysis of newlinepotato cultivation in the region, which will include an examination of production costs, newlineresource efficiency, and marketing channels. In Kangra district of Himachal Pradesh is newlinerenowned for its disease-free quality seed potato production, an economic study of 200 newlinegrowers grouped into small (105) and large (95) farms revealed an overall cost of cultivation newlineat Rs. 94,667 per farm and Rs. 3,08,051 per hectare in 2022-23. Among all inputs, potato seed newlineaccounted for 29%, while human labour constituted 27% of costs per hectare. The total newlinevariable cost was 89%, with fixed costs at 11% per hectare. Gross income averaged Rs. newline4,67,705 per hectare. Efficiency analysis across farm categories showed the cost of potato newlineproduction at Rs. 250 per quintal (q). Large farms exhibited a slightly higher output-input newlineratio (1.52) compared to small farms. Production costs ranged from Rs. 1,195 to Rs. 1,270 per newlinequintal for large and small farms, respectively, with variable costs higher on small farms (Rs. newline1,117) than on large ones (Rs. 1,074) per quintal. The reported benefit-cost ratio stood at 1.88, newlineindicating favorable returns. Potato prices ranged from Rs. 1,860 to Rs. 1,880 per quintal, newlinewith larger farms realizing higher prices. Break-even analysis suggested the need for small, newlinelarge, and overall farm categories to achieve at least 50.72, 38.02, and 44.14 quintals of newlinepotatoes, respectively, to maintain a no-profit, no-loss condition. The analysis underscores newlinepotential profit increase by optimizing human Labour, manure, and fertilizer use. newlineThis study additionally examined the socio-economic status of potato farmers in the Kangra newlineregion of Himachal Pradesh. It found that a significant proportion (57%) of household heads newlinefell within the age range of 16 to 40, a