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INTRODUCTION:
Floriculture is fast emerging as a major venture in the world scene. Improvement in the
standard of living has a direct impact on demand of modern flowers. This was reflected much
earlier in Europe, USA and Japan and very recently in India also. The flowers have been used in
social ceremonies and also for religious purpose. In India, the floriculture industry got an
appreciable boost during the last two decades due to active patronage from the Govt. of India.
Carnation (Dianthus- caryophyllus) is also known as the divine flower. It is belongs to the family
of Caryophyllaceae. Carnation is occupying the position of one of the top ten flowers of the world
for more than five decades. Carnations were the first flowers to be cultivated on a commercial
scale in the high altitude areas of tropics for export to Europe and North America. South Africa,
Colombia, Kenya, Morocco, Turkey etc. were the pioneer countries in commercial cultivation of
carnation for export purpose. In India, the areas in and around Kodaikanal, Nasik, Himachal
Pradesh and Uttarakhand etc. are suitable for carnation cultivation. It is estimated that more than
In Himachal Pradesh, Carnation crop is gaining popularity among the flower growers, due
to congenial climatic conditions of districts Mandi, Bilaspur, Kullu, Solan, Chamba and Kangra. It
can also be grown successfully in other hilly parts of country. The flowers produced in the State
are being sold in the domestic markets, especially in Delhi. Growers associations and co-operatives
have been formed for marketing the flowers grown in the region.
Capsicum is commonly known as sweet pepper, red, yellow or green pepper. It is
domesticated species of plant belonging to the family Solanaceae and native to America. Capsicum
is cultivated for its fruits and important source of vitamin A, C and E. It is used in food both
chopped and raw in salads as well as medicine. It has very good potential as an alternative for
important role to promote floriculture industry in the State. IHBT is providing quality planting
materials of carnation and other commercial cut flower crops to the growers either directly or
through grower's societies. Moreover, the floriculturists are also being provided with R&D
backings by the scientists of IHBT in the areas of cultivation and post -harvest management
technologies of the produce. Regular trainings programmes are organized by the institute for the
benefit of farmers.
Since, the State Govt., IHBT and Agriculture Universities are laying adequate emphasis on
the cultivation of carnation and capsicum in the state and capital investment is same, so it becomes
absolutely necessary to calculate the economics of carnation and capsicum. Therefore, the present
1. To find out the cost structure of carnation and capsicum cultivation under polyhouse conditions.
2. To calculate different income measures for economics of carnation and capsicum in polyhouse.
MATERIALS AND METHODS
The primary data of carnation flower and capsicum production which covers cultivation of
carnation and capsicum each in 500 sq.m. polyhouse were collected from farmers of Bilaspur
well as capsicum cultivation, prices of various inputs used and output produced were prepared.
Cost components were categorized as Capital cost and Recurring cost. Capital cost includes
polyhouse construction cost and fertigation unit cost, whereas, recurring cost include planting
material cost, bed preparation charges, plant protection cost, hoeing charges, fertilizers cost,
packaging & transportation charges etc. Total cost includes total recurring cost, rental value of
land, depreciation charges on capital cost, interest on capital cost, interest on recurring cost and
commission charges. The data was analyzed and presented as per the procedure adopted by the
Commission for Agriculture Costs and Prices (CACP), Govt. of India (Reddy et al., 2004).
In order to know the economics of carnation and capsicum production, the following
formula were calculated on the basis of prevailing market prices of carnation flower and capsicum
4. Farm investment income = Farm business income – imputed value of family labour or
= Net income + imputed rental value of owned land + interest on
owned fixed capital invested
I. CARNATION:
(A) With Subsidy:
Agronomic practice followed for establishment and management of carnation crop under 500
sq.m. polyhouse was analysed as are given in Table 1. Major recurring expenditure Rs. 80,544 was
on purchase of planting material (53.41% of total recurring cost of 1st, IIIrd and Vth year). Total
recurring cost was highest in 1st, 3rd and 5th year (Rs. 1,50,825). Total capital investment was Rs.
4,16,795 in the 1st year after availing subsidy on polyhouse construction and fertigation unit.
Different cost components of carnation production under 500 sq.m. polyhouse were evaluated.
Total cost was Rs. 7,17,089 in 1st year, Rs. 3,44,711.50 in 2nd year, Rs. 2,50,279 in 3rd year, Rs.
1,60,058.50 in 4th year and Rs. 2,50,279 in 5th year and Rs. 1,60,058.50 in 6th year . Total cost was
highest in 1st year due planting material cost and bed preparation charges. Gross returns from the
sale of flowers was Rs. 5,52,220 in each year. Net Returns were negative in 1st year i.e. Rs. –
1,64,869; Rs. 2,07,508.50 in 2nd year, Rs. 3,01,941 in 3rd year, Rs. 3,92,161.50 in 4th year, Rs.
For the purpose of doing Farm income analysis; total cost, gross returns, number of flower
produced, net returns, Cost A1, Cost B and Cost C were computed on an average basis. Cost A1
was computed as Rs. 1,95,143; Cost B was computed as Rs. 2,07,901 and Cost C was Rs. 2,24,326
as is given in Table 3. Farm business income was calculated as Rs. 3,57,077, Family labour
income as Rs. 3,44,319, Net income as Rs. 3,27,894 and Farm investment income was computed
Agronomic practice followed for establishment and management of carnation crop under 500
sq.m. polyhouse (without subsidy) was analysed as are given in Table 2 . Major recurring
expenditure Rs. 80,554 was on purchase of planting material in 1st (53.41% of total recurring cost
of 1st year). Total recurring cost was highest in 1st, 3rd and 5th year (Rs. 1,50,825). Total capital
investment was Rs. 5,62,500 in the 1st year without any subsidy. Different cost components of
Total cost was Rs. 8,89,021 in 1st year, Rs. 5,46,017.50 in 2nd year, Rs. 2,59,021 in 3rd year, Rs.
1,68,800.50 in 4th year and Rs. 2,59,021 in 5th year and Rs. 1,68,800.50 in 6th year . Total cost was
highest in 1st year due planting material cost and bed preparation charges. Gross returns from the
sale of flowers was Rs. 5,52,220 in each year. Net Returns were negative in 1st year i.e. Rs. –
3,36,801. Whereas for others it was as Rs. 6202.50 in 2nd year, Rs. 2,93,199 in 3rd year, Rs.
3,83,419.50 in 4th year, Rs. 2,93,199 in 5th year and Rs. 3,83,419.50 in 6th year.
For the purpose of doing Farm income analysis; total cost, gross returns, number of flower
produced, net returns, Cost A1, Cost B and Cost C were computed on an average basis. Cost A1
was computed as Rs. 2,03,885, Cost B was computed as Rs. 2,22,996 and Cost C was Rs. 2,39,421
as is given in Table 3 . Farm business income was calculated as Rs. 3,48,335, Family labour
income as Rs. 3,37,966, Net income as Rs. 3,21,541 and Farm investment income was computed
Percentage difference of carnation with subsidy over without subsidy is calculated for Farm
business income, family labour income, net income and farm investment income as is given in
Table 5. It was calculated as 2.51%, 1.88%, 1.98% and 2.56% for farm business income, family
II. CAPSICUM
sq.m. polyhouse was analysed as are given in Table 6 . Major recurring expenditure Rs. 30,960
was on harvesting, packaging and transportation in all the years which was 30.46 % of total
recurring cost in 1st, 3rd and 5th years; whereas it was 45.80 % of total recurring cost of 2nd, 4th and
6th years. Total recurring cost was highest in 1st, 3rd and 5th year (Rs. 98,425). Total capital
investment was Rs. 3,94,745 in the 1st year after availing subsidy on polyhouse construction and
fertigation unit. Different cost components of capsicum production under 500 sq.m. polyhouse
were evaluated.
Total cost was Rs. 5,77,123 in 1st year, Rs. 5,40,793 in 2nd year, Rs. 5,34,617 in 3rd year, Rs.
4,93,187 in 4th year and Rs. 4,81,298 in 5th year and Rs. 4,33,470 in 6th year . Total cost was
highest in 1st year due to planting material cost and bed preparation charges. Gross returns from the
sale of capsicum was Rs. 1,84,000 in each year. Net Returns were negative in 1 st year i.e. Rs. –
3,93,123, Rs. – 3,56,793 in 2nd year, Rs. – 3,50,617 in 3rd year, Rs. – 3,09,187 in 4th year, Rs. –
For the purpose of doing Farm income analysis; total cost, gross returns, capsicum produced, net
returns, Cost A1, Cost B and Cost C were computed on an average basis. Cost A1 was computed
as Rs. 1,05,504, Cost B was computed as Rs. 1,48,664 and Cost C was Rs. 1,59,694 as is given in
Table 8. Farm business income was calculated as Rs.78,496, Family labour income as Rs. 35,336,
Net income as Rs. 24,306 and Farm investment income was computed as Rs. 67,466 as is given in
Table 9.
Agronomic practice followed for establishment and management of capsicum crop under
500 sq.m. polyhouse (without subsidy) was analysed as are given in Table 7. Major recurring
expenditure Rs. 30,960 was on harvesting, packaging and transportation in all years. Total
recurring cost was highest in 1st, 3rd and 5th year (Rs. 98,425). Total capital investment was Rs.
5,40,500 in the 1st year without any subsidy. Different cost components of capsicum production
Total cost was Rs. 7,49,151 in 1st year, Rs. 7,42,247 in 2nd year, Rs. 7,69,028 in 3rd year, Rs.
7,64,509 in 4th year and Rs. 7,93,961 in 5th year and Rs. 7,92,434 in 6th year . Total cost was
highest in 1st year. Gross returns from the sale of capsicum was Rs. 1,84,000 in each year. Net
Returns were negative in 1st, 2nd, 3rd, 4th year, 5th year and 6th year i.e. Rs. – 5,65,151, Rs.
-5,58,247, Rs. - 5,85,028, Rs. – 5,80,509, Rs. – 6,09,961 and Rs. - 6,08,434 respectively.
For the purpose of doing Farm income analysis; total cost, gross returns, capsicum produced, net
returns, Cost A1, Cost B and Cost C were computed on an average basis. Cost A1 was computed
as Rs. 1,14,286, Cost B was computed as Rs. 1,84,198 and Cost C was Rs. 1,95,228 as is given in
Table 8. Farm business income was calculated as Rs. 69,714; Family labour income as Rs.- 198;
Net income as Rs. – 11,228; and Farm investment income was computed as Rs. 58,684 as is given
in Table 9.
Percentage difference of capsicum cultivation with subsidy over without subsidy is calculated for
farm business income, family labour income, net income and farm investment income as is given
in Table 10. It was calculated as 12.60 % for farm business income, more than 100 % for family
labour income, more than 100 % for net income and 15 % for farm investment income.
for farm business income, family labour income, net income and farm investment income as is
given in Table 11. It was calculated as 355 %, 874.40 %, 1249 % and 405 % for farm business
income, family labour income, net income and farm investment income respectively.
Percentage difference of carnation over capsicum cultivation without subsidy is calculated for
farm business income, family labour income, net income and farm investment income as is given
in Table 12. It was calculated as 399.66 %, 1,70,790 %, 2963.74 % and 465.62 % for farm
business income, family labour income, net income and farm investment income respectively.
From the above results it is concluded that carnation cultivation in both conditions i.e. with subsidy
and without subsidy are giving more profits than capsicum cultivation under polyhouse conditions.
ACKNOWLEDGEMENT
Authors are thankful to farmers of District Bilaspur (H.P.) for providing necessary data of
REFERENCES
1. Gittinger J. Price (1972). Economic analysis of agricultural projects. The johns Hopkins
University Press, Baltimore and London.
2. Reddy, S. Subha, P. Raghu Ram, T.V. Neelkanta Sastry and I. Bhawani Devi (2004).
Agricultural Economics. Oxford & IBH Publication Co. Pvt. Ltd., New Delhi.
Table1. Cost of cultivation of Carnation under 500 m2 Polyhouse (With subsidy)
S. Particulars Value (Rs.)
No.
Ist year IInd year IIIrd year IVth Vth VIth
1. Capital Cost
Total capital cost 416795
(Polyhouse
construction,
fertigation, support
net,etc.) without
subsidy
Balance capital from 164869
previous year
2. Total Recurring Cost
(planting material, bed
preparation, inputs, 150825.0 150825.0
hoeing, harvesting etc.) 0 70271 150825.00 70271 0 70271
4. Total Cost
*Total Recurring Cost 150825.0 150825.0
0 70271 150825.00 70271 0 70271
*Commission charges 55222 55222 55222 55222 55222 55222
*Rate of interest on 50015 19784
capital cost
*Depreciation charges 25008 25008 25008 25008 25008 25008
on capital cost
*Rental value of land 1125 1125 1125 1125 1125 1125
*Rate of interest on 18099 8432.50 18099 8432.50 18099 8432.50
recurring capital
Total 250279 160058. 250279 160058.
300294 179842.5 5 5
Total Capital Cost 416795 164869
Total Cost 250279 160058. 250279 160058.
717089 344711.5 5 5
5. Gross returns 552220 552220 552220 552220 552220 552220
6. Net Returns -164869 207508.5 301941 392161. 301941 392161.
5 5
Balance capital cost 164869 - - - -
for next year
4. Total Cost
*Total Recurring Cost 150825.0 150825.0
0 70271 150825.00 70271 0 70271
*Commission charges 55222 55222 55222 55222 55222 55222
*Rate of interest on 67500 40416
capital cost
*Depreciation charges 33750 33750 33750 33750 33750 33750
on capital cost
*Rental value of land 1125 1125 1125 1125 1125 1125
*Rate of interest on 18099 8432.50 18099 8432.50 18099 8432.50
recurring capital
Total 259021 168800. 259021 168800.
326521 209216.5 5 5
Table 3. Cost concepts (year basis) in case of Carnation Cultivation under 500 sq.m.
Polyhouse
S. No. Particulars Value (Rs.)
Cost A1 With subsidy Without subsidy
1 Hired human labour 49877 49877
2 Inputs (Planting material, 49070 49070
FYM, Fertilizers, chemicals)
3 Commission charges 55222 55222
4 Electricity charges 2700 2700
5 Depreciation 25008 33750
6 Interest on working capital 13266 13266
Total of A1 203885
195143
Cost B
1 Cost A1 195143 203885
2 Rental value of owned land 1125 1125
3 Interest on fixed capital 11633 17986
Total of B 207901 222996
Cost C
1 Cost B 207901 222996
2 Owned human labour 16425 16425
3 Total of Cost C 224326 239421
Table 4. Different Income Measures for Carnation Cultivation under 500 sq.m. Polyhouse
S. No. Particulars Amount (Rs.)
With Subsidy Without Subsidy
1 Farm Business Income 357077 348335
2 Family Labour Income 344319 337966
3 Net Income 327894 321541
4 Farm Investment Income 340652 331925
Table 5. Percentage difference of carnation cultivation with subsidy over without subsidy
Income Measures
Farm Business Family labour Net Income Farm Investment
Income Income Income
With subsidy 357077 344319 327894 340652
(Rs.)
Without 348335 337966 321541 331925
subsidy (Rs.)
Percentage 2.51 1.88 1.98 2.56
difference
Table 9: Different Income Measures for Capsicum Cultivation under 500 sq.m. Polyhouse
S. No. Particulars Amount (Rs.)
Table 10. Percentage difference of capsicum cultivation with subsidy over without subsidy
Income Measures
Farm Business Family Labour Net Income Farm
Income Income Investment
Income
With subsidy (Rs.) 78496 35336 24306 67466
Without subsidy (Rs.) 69714 -198 -11228 58684
Percentage difference 12.60% More than 100% More than 15%
100%