Protected cultivation of bell pepper (Green capsicum) in Himachal Pradesh, India: An economic analysis

Protected cultivation has a special relevance for marginal and small farmers who can now think of earning higher farm income from their small land holdings which otherwise is a far-away dream for them. Protected agriculture is an appealing agricultural alternative for farmers as well as service providers in the rural region. Present study was conducted in Kullu district of Himachal Pradesh, India. Kullu area was chosen for its significant contribution to the state's vegetable production in terms of both area and output. Costs concept and capital budgeting analysis were used to analyze the financial feasibility of capsicum cultivation under polyhouse. Results concluded that capsicum cultivation under polyhouse with and without subsidy (@ 80% subsidy provided by government) was profitable, increased farmer’s income and their quality of living. Farmers got higher rewards by selling the produce off seasonally. Net farm income earned was ₹ 65990.54 to ₹ 260798 for Category I and Category II. Under both the Categories NPV of the capsicum cultivation was found positive with Benefit-cost ratio 1.04 to 2.36. IRR was found sufficiently high for both the Categories. Paired t test was used to evaluate the impact of adoption of polyhouse on crop yield and the results revealed a significant increase in yield, confirmed the effectiveness of polyhouses in improving production. The results ascertained that the implementation of polyhouse cultivation constitutes a viable and lucrative enterprise, enhancing the produce quality, efficiency and financial success in farming operations.