Economic Viability of Kinnow Orchards in South-Western Punjab

Abstract

The study revealed that expenditure on plant materials and planting charges had the largest share (25.07 per cent) in the initial cost on establishment of kinnow orchard followed by digging/filling of pits (20.21 per cent) and fencing (19.77 per cent). The annual operational/maintenance cost was low in the initial years, which consistently increased with the increase in age of the orchard. Plant protection measures, pruning, manuring/fertilization and watch and ward were the major components of operational cost. It was emerged out that net returns received by the sample kinnow growers were quite high for selling the produce themselves in the market as through elimination of pre-harvest contractor; the net margins of this important intermediary get transferred to the farmers. The benefit cost ratio and IRR at 1.53 and 30.25 per cent respectively in case the output was sold by growers in the market directly were significantly higher as compared to 1.26 and 19.24 per cent for disposal of output to the pre-harvest contractors. Overall, benefit cost ratio more than unity and higher internal rate of returns (IRR) were indicative that investment in kinnow cultivation in study area was attractive.