Economic Appraisal of Protected Horticultural Crop Cultivation in Chhattisgarh, India

This study compares the economic appraisal of Protected Cultivation and Precision Farming (PCPF) compared to open cultivation for various vegetables. The analysis revealed that PCPF demonstrates higher productivity due to improved labor-to-capital ratios, as indicated by the Arithmetic Mean & Geometric Mean (AM-GM) inequality. Indeterminate tomato varieties exhibit superior yields and longer shelf lives under PCPF conditions. Cost analysis showed PCPF reduces operational expenses through efficient drip irrigation and lower plant protection costs, despite higher initial fixed costs. IRR analysis for the Centre of Excellence in Protected Cultivation and Precision Farming (PCPF) revealed a promising financial outlook, with the project generating substantial returns. For instance, the NPV of costs incurred over the years, such as ₹49,51,000 in 2015 and ₹1,99,508.54 in subsequent years, is offset by significant gross returns, including ₹16,33,946.13 and ₹14,34,437.58 in later years. These figures, when discounted at rates of 12%, 44%, and 49%, consistently showed that the present worth of gross returns surpasses the present worth of costs, indicating a robust financial performance. The Benefit-Cost (B: C) ratio analysis indicated significant growth for cabbage, cauliflower, and tomatoes due to higher off-season prices, while knol-khol and brinjal show less change. Overall, PCPF enhances productivity, cost efficiency, and economic returns, underscoring the importance of modern agricultural practices and targeted policies to promote sustainable vegetable cultivation and improve food security and economic resilience. Further analysis has the potential to resolve future challenges such as climate variability, technological adoption constraints, and market access barriers that may hinder long-term sustainability and profitability.