AN ECONOMICS OF POTATO PRODUCTION IN KANGRA DISTRICT OF HIMACHAL PRADESH

Abstract

In Kangra district of Himachal Pradesh is renowned for its disease-free quality seed potato production, an economic study of 200 growers grouped into small (105) and large (95) farms revealed an overall cost of cultivation at Rs. 94,667 per farm and Rs. 3,08,051 per ha in 2022-23. Among all inputs, potato seed accounted for 29% per hectare, while human labor constituted 27% of costs. The total variable cost was 89%, with fixed costs at 11% per ha. Gross income averaged Rs. 4,67,705 per ha. Efficiency analysis across farm categories showed the cost of potato production at Rs. 250 per quintal (q). Large farms exhibited a slightly higher output-input ratio (1.52) compared to small farms. Production costs ranged from Rs. 1,195 to Rs. 1,270 per q for large and small farms, respectively, with variable costs higher on small farms (Rs. 1,117) than on large ones (Rs. 1,074) per q. The reported benefit-cost ratio stood at 1.88, indicating favorable returns. Potato prices ranged from Rs. 1,860 to Rs. 1,880 per q, with larger farms realizing higher prices. Break-even analysis suggested the need for small, large, and overall farm categories to achieve at least 50.72, 38.02, and 44.14 q of potatoes, respectively, to maintain a no-profit, no-loss condition. The analysis underscores potential profit increase by optimizing human labor, manure, and fertilizer use.