Economics and Institutional Aspects of Protected Cultivation of Carnation in Himachal Pradesh

Abstract

This paper examines the role of different institutions in promotion of protected cultivation and the benefits realized by the farmers in Solan district of Himachal Pradesh. The area under protected cultivation promoted by National Horticulture Mission, has been found nearly 1.5 lakh ha, of which 20 per cent is under greenhouse. The export-oriented carnation cultivation has been observed most profitable vis-a-vis domestic market oriented and diversified pattern of production. The study has shown that the cost of protected cultivation can be recovered in 3–5 years, depending upon the crops grown. The IRR varies from 31 per cent for carnation with capsicum to 73 per cent when only carnation is grown. The sensitivity analysis with respect to subsidy has shown that protected cultivation is sustainable even without subsidy for its cultivation. The protected cultivation has made a significant impact on the farm households in the hilly region. However, further expansion of protected cultivation will depend on the effectiveness of supporting institutions and market structure.