Economics of Flower Cultivation with Special Reference to Orchid in Hilly Areas of West Bengal

Abstract

The present study is an attempt to assess the cost of cultivation and economic viability of orchid cultivation in the hilly area of West Bengal with a unique set of primary data collected purposively during 2017-18 from the farm level. Based on farm size, farmers were categorised into three i.e. category-I (500 ft2), category-II (640 ft2) and category-III (1000 ft2). Returns from different categories were found to increase with the time as Orchid usually shows significant boost in yield with time. The estimated costs of establishment of orchid farm for Category- I (500 sq. ft), Category- II (640 sq ft) and Category-III (1000 sq ft) were ` 67117.89, ` 69870.67 and ` 159746.51 respectively. The average net income in absolute term had been worked out to be ` 46,354.2, ` 34,143.2 and ` 1, 97,760 respectively. The values of financial feasibility analysis with Net Present Value (` 97,971.3), Benefit-Cost Ratio (1.76) and Internal Rate of Return (25.38%) also proved that Orchid was a financially viable enterprise. Pay-back-period (3 to 5 years) was also reliable for investment though it varied little with size of farm. Keeping the commercial prospect of Orchid, it may be suggested for concerted efforts and more investment towards R&D, infrastructure, extension for further development in this sector.