Exploratory Study of Decline of Lavender Cultivation in Chamba District of Himachal Pradesh: Economic Analysis

This study examined the economic viability of lavender cultivation in Chamba, identifying key challenges confronted by farmers to develop a comprehensive framework for promoting lavender farming.The total cost of establishment of lavender crop was Rs.2.63 lakhs per hectare and total cost of cultivation of lavender from second year onwards was Rs.1.59lakhs per hectare per year.The net present value of lavender cultivation at 8, 12 and 15 per cent of discount rates was Rs.9.05 lakh, Rs.7.04 lakh and Rs.5.86 lakh, respectively.The BC ratio at discount rate of 8, 12 and 15 per cent was 1.79, 1.73 and 1.68 respectively, which was more than unity indicating the worthiness of investment on lavender cultivation.The IRR for lavender cultivation was 67 per cent.The lavender farmers encountered significant challenges, primarily stemming from poor marketing facilities, high wages of labour and lack of government support.The research recommends developing farmercentric marketing systems and promoting supportive government initiatives for lavender farmers, encompassing subsidies, training and market connectivity.